The relationships Florida allows
Florida's rules on brokerage relationships sit in a group of statutes called the Brokerage Relationship Disclosure Act (Fla. Stat. 475.2701 to 475.2801). The Legislature's stated purpose, in 475.272, was to end confusion for customers: it did away with disclosed dual agency, set disclosure requirements, and defined the two kinds of representation a licensee may offer.
The two authorized relationships
Under 475.278(1)(a), a licensee may enter into a brokerage relationship with a potential buyer or seller as either a transaction broker or a single agent.
| Relationship | Who is represented | Fiduciary? |
|---|---|---|
| Single agent | The buyer or the seller, never both in the same transaction | Yes |
| Transaction broker | The buyer, the seller, or both, in a limited way | No |
A licensee may also work with someone and have no brokerage relationship at all. That is not a form of representation, but the licensee still owes that person a short list of duties, covered later in this unit.
Dual agency is banned
A dual agent is a broker who represents both the prospective buyer and the prospective seller as a fiduciary. Florida law says plainly that a licensee may not operate as a disclosed or nondisclosed dual agent. Getting both parties' consent does not make it legal. If a licensee needs to help both sides of a deal, the lawful route is to act as a transaction broker.
The presumption
Under 475.278(1)(b), every licensee is presumed to be a transaction broker unless a single agent relationship or no brokerage relationship is established in writing with the customer. So if nothing is in writing, the law treats the licensee as a transaction broker.
Words the exam uses
- Customer: a member of the public who is or may be a buyer or seller, whether or not represented (475.01(1)(d)).
- Principal: the party with whom a licensee has a single agent relationship (475.01(1)(h)). Only single agents have principals.
Changing relationships, and choosing none
A licensee may change from one relationship to another if the buyer or seller consents before the change and the required disclosure is made (475.278(1)(a)). The law also does not require a customer to enter into a brokerage relationship with any licensee.