Damon Botticelli, Realtor - Las Vegas Real Estate (Silver State Realty & Investments)

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2,330,610
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Good morning, AR Friends!

       Damon, the bottom line with Transaction Broker Relationship is that there is NO FIDUCIARY.    Your family member will only have "Limited Confidentiality".  Please read every word of the Florida Statute 475.27  

    If you (Seller or Buyer) do not have a Single Agent contract, exactly like you see in the Statute, you do not have a Fiduciary.

      Caveat:   "Consent to Transition to Transaction Broker" - this clause will be buried in most listing agreements.  If you (the Seller) sign it, you are waiving away your right to Single Agent.

     Who would I want to represent me when buying or selling real estate in Florida?  I want a Single Agent.   This is the only relationship that establishes a Fiduciary.   Read the language in the Statute to see the duties that come with a Single Agent relationship. 

  

     *** See a Lawyer before signing anything!  Have your relatives see a real estate attorney who is familiar with Real Estate Brokerage Relationships.  It is money well spent.

 

  Excerpt from  F.S. 475.278

Feb 07, 2019 07:11 AM
Rainmaker
155,018
Scott Pope
Nautical Properties - Panama City Beach, FL
You Can't Live Without Water™

A transaction broker has no fiduciary responsibilty to either parties in the transaction. Each party is considered a "customer" rather than a client. Basically, the listing agent can list the property for their customer. And, if a buyer calls the listing broker, the broker can assist the buyer as well. For example, the broker receives an offer from the buyer and presents the seller with the offer. In theory, the broker cannot advise pricing strategy with either party, just facilitate the negotiation. The broker is a middle man relaying messages. This legalized semi-dual agency is popular because most brokers want to double-side as many deals as possibe.

However, if a another broker brings the buyer, then the listing broker can remain in a transactional relationship with the seller or advise the seller in negotiating the deal (which is more fiduciary in scope).

The law says actions determines the relationship more than an agreement on paper. That's why a transaction broker must tread carefully when handling both sides of a deal. Any favoritism shown by the licensee is violating the law.

Single agency in Florida is when a broker is acting as an agent for a principal in a real estate transaction, which is a fiduciary role. The single agent must be loyal and keep the client's information confidential. They must have the BEST interest of the client first and foremost. This does not however preclude the single agent listing the property from taking an offer from a buyer.

The single agent must inform the buyer that she works (represents) for the seller. If the buyer does not want representation from another real estate licensee, then the listing agent needs to have the buyer sign a "no representation" agreement explaining the relationship between all parties. This means that anything the buyer says once they are fully aware of the agent's loyalty can be told to the seller (even if they say what their highest offer will ultimately be; or how much they love the house). In fact, the seller's agent is bound to disclose this information to her client, which can be advantageous to the seller.

So it is possible for the lising agent with single agency with the seller to still double-side the transaction. Another way to accomplish this is the single agent can request to transition from a single agent to a transaction broker when a buyer first comes along. This has to be approved by the seller first. If the seller agrees, then she is free to act as a facilitator only.

Damon Botticelli I recommend seller's choose a broker who cheerfully offers single agency. A broker hesitant in providing that relationship probably is not willing to be responsible for her actions, and is more interested in big commissions by handling both sides of the deal.

Feb 07, 2019 07:21 AM
Rainmaker
4,743,573
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This is the default agency relationship in Florida.  The other two are non-representation which is self-explanatory and single agent which means full fiduciary responsibilities.  As a single agent that Realtor nor his broker will be able to bring the buyer to the transaction.

Feb 07, 2019 06:55 AM
Rainmaker
3,020,802
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

A listing agent can be a single agent for the seller or move to a transactional broker with the permission of the seller when they find a buyer they represent. Sounds like "dual agnecy" with a different name.

Feb 07, 2019 04:26 AM
Rainmaker
869,022
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for Fred Griffin presently on Leave of Absence 

Feb 07, 2019 06:16 AM
Ambassador
3,000,504
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

My understanding is that both sides will have limited representation by one broker.

I would probably make a call to the Florida Real Estate Commission since it's a family member asking for your blessing on this, Damon.

Feb 06, 2019 09:37 PM
Rainmaker
1,466,426
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Damon Botticelli thank you, thank you, thank you for posing a question that got Fred Griffin presently on Leave of Absence to step up to the plate. When Fred answers a question... IT'S ANSWERED! 

Feb 07, 2019 11:06 AM
Rainer
265,430
Clay R. Seay
Florida Homes Realty & Mortgage - Saint Augustine, FL

In Florida, all agents, by Law, are considered Transaction Brokers, unless otherwise disclosed. The other choices are Non-Representation and Single Agent. The main difference as stated by others are the  Fiduciary requirement and Limited Confidentiality. If a Broker lists a home as a Single Agent and someone in their firm wants to represent the Buyer, then the Transition to Transaction Broker must be used or there is a special designation called a Designated Sales Agent, but only in certain circumstances and with assets over $1 million dollars.

Transaction Agents still have to treat ALL Parties Honestly & Fairly and provide Full Disclosure of Material Issues that effect the home. It is not a big deal to get excited over. It is common in Florida and not detrimental to either party.

Feb 07, 2019 07:30 AM
Rainmaker
2,745,018
Richard Weeks
Dallas, TX
REALTOR®, Broker

Since Wayne Martin once worked that market I'm sure he gave you the best answer.

Feb 07, 2019 04:32 AM
Ambassador
3,833,812
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671
What is a transaction broker relationship?
FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO BOTH THE BUYER AND ...

Transaction Broker - Statutes & Constitution :View Statutes : Online ...


www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL...
Feb 06, 2019 07:51 PM
Rainmaker
4,695,350
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

pick a side and stay there....that's my recommendation for providing true representation..... dual agency and transactional relationships equate to greed in my opinion.... you can only work for one master....

Feb 07, 2019 12:25 PM
Rainmaker
1,177,437
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Fred is the man on this and he has you covered!

Feb 07, 2019 08:58 AM
Rainmaker
4,138,749
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Fred Griffin presently on Leave of Absence gave you the answer. A

Feb 07, 2019 08:22 AM
Rainmaker
5,065,960
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Chat with a Florida broker for any needed clarification.

Feb 07, 2019 06:52 AM
Rainmaker
2,870,941
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Here in NH, a transaction broker, also known as a facilitator, can show the home, write the offer but in short, does not offer advice to the buyer. They do not represent the buyer. We have a form the biyer has to sign upon first meeting

Feb 07, 2019 05:35 AM
Rainer
136,058
Richard L. McKinney P.A.
Atlantic Shores Realty Expertise - Port St Lucie, FL
For Results that MOVE you on the Treasure Coast!

Most Florida residential sales are conducted as "Transaction Broker" relationship. The duties of the broker are as you see in the notice that you posted. 

All of my relationships are as a Transaction Broker and my feeling is that you can trust the agent in that relatioinship.

I urge your family member to compare several agents before deciding who to list with. Choose an agent based on their INDIVITUAL PAST PERFORMANCE, marketing plan, experience and competance. Do not choose a NEW agent, or an agent based on the price they suggest or just because they work for a major franchise. A good place to compare agents is by using the Agent Finder on Zillow. 

Feb 09, 2019 04:50 AM
Rainmaker
2,719,990
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

You have got your answer here.  Good luck.

Feb 08, 2019 06:15 PM
Rainmaker
708,156
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

You would be better off getting a legal definition from a Florida law text. Transactional brokerage is a little confusing. Basically, it allows agents to avoid a lot of potential liabilities.

Feb 08, 2019 07:05 AM
Rainmaker
1,791,685
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Interesting

Feb 07, 2019 12:50 PM
Rainmaker
2,925,402
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Fred Griffith has your answer

Feb 07, 2019 12:09 PM
Rainmaker
4,403,685
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Others have answered.

Feb 07, 2019 10:16 AM
Rainmaker
717,141
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I would be hesitant to advise buyers or sellers in Nevada regarding that states practices.

Transaction broker and limited confidentiality should be clear.

Feb 07, 2019 05:08 AM
Rainmaker
2,810,100
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Not being licensed in Florida, this is not a question I would like to address. Maybe Beth Atalay will provide you with the correct answer.

Feb 07, 2019 04:34 AM
Rainmaker
3,924,420
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Not being in Florida, Fred has you covered! 

Feb 12, 2019 06:54 AM
Rainmaker
3,932,289
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Interesting information being shared

Feb 09, 2019 08:45 PM