Florida Real Estate Brokerage Relationships

AUTHORIZED BROKERAGE RELATIONSHIPS

A real estate licensee in this state may enter into a brokerage relationship as either a single agent or as a transaction broker with potential buyers and sellers. A real estate licensee may not operate as a disclosed or nondisclosed dual agent. As used here, the term "dual agent" means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction. Once a brokerage relationship is established, this part does not prevent a licensee from changing from one brokerage relationship to the other as long as the buyer or the seller, or both, gives written consent before the change and the appropriate disclosure of duties as provided in this part is made to the buyer or seller. This part does not require a customer to enter into a brokerage relationship with any real estate licensee.

DISCLOSURE REQUIREMENTS

Disclosure requirements - Duties must be fully described and disclosed in writing to a buyer or seller either as a separate and distinct disclosure document or included as part of another document such as a listing agreement or agreement for representation. The disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation or before the showing of property, whichever occurs first. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of limited representation, except that the first sentence of the information must be printed in uppercase and bold type.

Single agent-duties - The following are the duties and responsibilities a single agent owes their client are as follows and must include the information in the following form:

IMPORTANT NOTICE

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.

SINGLE AGENT NOTICE

As a single agent, ____________________ (insert name of Real Estate Entity and its Associates) owe to you the following duties:

1.  Dealing honestly and fairly;

2.  Loyalty;

3.  Confidentiality;

4.  Obedience;

5.  Full disclosure;

6.  Accounting for all funds;

7.  Skill, care, and diligence in the transaction;

8.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and

9.  Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

Transaction broker-duties of limited representation - A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation.  The required notice must include the following information in the following form:

IMPORTANT NOTICE

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.

TRANSACTION BROKER NOTICE

1.  Dealing honestly and fairly;

2.  Accounting for all funds;

3.  Using skill, care, and diligence in the transaction;

4.  Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;

5.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;

6.  Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and

7.  Any additional duties that are entered into by this or by separate written agreement.


Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

Transition to transaction broker disclosure - A single agent relationship may be changed to a transaction broker relationship at any time during the relationship between an agent and principal, provided the agent gives the required disclosure and the principal gives to the agent consent as required before a change in relationship. This disclosure must be in writing to the principal either as a separate and distinct document or included as part of other documents such as a listing agreement or other agreements for representation. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of limited representation, except that the first sentence of the information must be printed in uppercase and bold type.

Transition disclosure - The notice required must include the following information in the following form:

CONSENT TO TRANSITION TO
TRANSACTION BROKER

No brokerage relationship-duties - A real estate licensee owes to a potential seller or buyer with whom the licensee has no brokerage relationship the following duties:

1.  Dealing honestly and fairly;

2.  Disclosing all known facts that materially affect the value of the residential real property which are not readily observable to the buyer; and

3.  Accounting for all funds entrusted to the licensee.

Contents of disclosure - The notice required must include the following information in the following form:

IMPORTANT NOTICE

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE THIS NOTICE TO POTENTIAL SELLERS AND BUYERS OF REAL ESTATE.


You should not assume that any real estate broker or salesperson represents you unless you agree to engage a real estate licensee in an authorized brokerage relationship, either as a single agent or as a transaction broker. You are advised not to disclose any information you want to be held in confidence until you decide on representation.

NO BROKERAGE RELATIONSHIP NOTICE

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OR BUYER DISCLOSE THEIR DUTIES TO SELLERS AND BUYERS.

As a real estate licensee who has no brokerage relationship with you, __________(insert name of Real Estate Entity and its Associates)_____ owe to you the following duties:

1.  Dealing honestly and fairly;

2.  Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer.

3.  Accounting for all funds entrusted to the licensee.