No brokerage relationship
Sometimes a licensee deals with a buyer or seller without representing them at all. A common example is a seller's single agent showing the listing to a buyer who does not want to be represented. Florida calls this no brokerage relationship.
Remember the presumption from lesson 1: unless no brokerage relationship (or single agency) is established in writing, the law presumes the licensee is a transaction broker. Writing it down matters.
The three duties
Even with no brokerage relationship, a licensee owes the person three duties under 475.278(4)(a):
- Dealing honestly and fairly
- Disclosing all known facts that materially affect the value of the residential real property and are not readily observable to the buyer
- Accounting for all funds entrusted to the licensee
That is the floor. Every relationship in Florida includes these three duties. Notice what is missing compared with a transaction broker: no skill, care and diligence duty, no duty to present offers, and no confidentiality.
When the notice is due
In a residential sale, the duties must be fully described and disclosed in writing before the showing of property (475.278(4)(b)). That is earlier, in practical terms, than many people expect: it is tied to the showing, not to the contract.
The required wording is in 475.278(4)(c). Its first sentence, in capital letters, states that Florida law requires licensees who have no brokerage relationship with a potential seller or buyer to disclose their duties. It may be a separate document or part of another document.
Quick comparison
| Duty | No brokerage | Transaction broker | Single agent |
|---|---|---|---|
| Honest and fair dealing | Yes | Yes | Yes |
| Disclose known hidden material facts (residential) | Yes | Yes | Yes |
| Account for funds | Yes | Yes | Yes |
| Skill, care, and diligence | No | Yes | Yes |
| Present offers and counteroffers | No | Yes | Yes |
| Confidentiality | No | Limited | Full |
| Loyalty, obedience, full disclosure | No | No | Yes |