Key Takeaways
- Florida requires disclosure of brokerage relationships before or at the time of entering into a listing or buyer representation agreement
- Florida recognizes three types of brokerage relationships: single agent, transaction broker, and no brokerage relationship
- Transaction broker is the DEFAULT relationship in Florida unless another relationship is established
- Single agents owe full fiduciary duties; transaction brokers owe limited duties (no fiduciary relationship)
- The brokerage relationship disclosure must be in writing and must be signed by the customer or client
Brokerage Relationships in Florida
Florida law (Chapter 475, Part II) governs brokerage relationships and requires disclosure before entering into an agreement.
Three Types of Brokerage Relationships
1. Single Agent
A single agent represents one party with full fiduciary duties:
| Duty | Description |
|---|---|
| Dealing honestly and fairly | Truthful in all dealings |
| Loyalty | Put client's interests first |
| Confidentiality | Protect private information |
| Obedience | Follow lawful instructions |
| Full disclosure | Reveal all known material facts |
| Accounting | Account for all money |
| Skill, care, and diligence | Competent representation |
| Presenting all offers | Even if property is under contract |
2. Transaction Broker (DEFAULT)
A transaction broker provides limited representation with NO fiduciary duties:
| Duty | Description |
|---|---|
| Dealing honestly and fairly | Truthful dealings |
| Accounting | Account for all money |
| Skill, care, and diligence | Competent service |
| Disclosure | Known facts affecting property value |
| Presenting all offers | Even if property is under contract |
| Limited confidentiality | Only price, motivation, terms |
Key Point: Transaction broker is the DEFAULT relationship in Florida. If no disclosure is made, the broker is presumed to be a transaction broker.
3. No Brokerage Relationship
A broker may work with a party without any representation:
- No duties except honesty and disclosure of known material facts
- Must disclose that no representation exists
- Common with For Sale By Owner (FSBO) situations
Disclosure Requirements
When to Disclose
Disclosure must be made:
| Situation | Timing |
|---|---|
| Before listing | At or before listing agreement |
| Before buyer agreement | At or before representation agreement |
| Before showing (buyer) | Before showing property as transaction broker |
Written Disclosure Required
All brokerage relationship disclosures must be:
| Requirement | Details |
|---|---|
| In writing | Written disclosure form |
| Signed | By the customer or client |
| Dated | Date of disclosure |
| Retained | 5 years by broker |
Disclosure Form Content
The disclosure must include:
- Type of relationship being established
- Duties owed under that relationship
- How compensation is handled
- Transition rules (if applicable)
Transition from Single Agent
A single agent can transition to transaction broker:
| Step | Requirement |
|---|---|
| 1 | Provide written notice of transition |
| 2 | Obtain client's written consent |
| 3 | Explain changed duties |
| 4 | Cannot reveal previously obtained confidential information |
Comparison of Relationships
| Duty | Single Agent | Transaction Broker | No Relationship |
|---|---|---|---|
| Loyalty | Yes | No | No |
| Full disclosure | Yes | Limited | Material facts only |
| Confidentiality | Full | Limited | None |
| Fiduciary | Yes | No | No |
| Accounting | Yes | Yes | No |
| Present offers | Yes | Yes | N/A |
Designated Sales Associate
For nonresidential transactions where the broker is the single agent for both parties:
- Broker may designate different sales associates
- Each represents their respective party
- Similar to Texas intermediary with appointments
What is the default brokerage relationship in Florida if no disclosure is made?
Which duty is owed by a single agent but NOT by a transaction broker in Florida?