Single agent duties and the transition to transaction broker
A single agent is a broker who represents, as a fiduciary, either the buyer or the seller, but not both in the same transaction (475.01(1)(k)). The person represented is the licensee's principal.
The nine duties
Fla. Stat. 475.278(3)(a) lists them:
- Dealing honestly and fairly
- Loyalty
- Confidentiality
- Obedience
- Full disclosure
- Accounting for all funds
- Skill, care, and diligence in the transaction
- Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing
- Disclosing all known facts that materially affect the value of residential real property and are not readily observable
Loyalty, obedience, full disclosure and full (not limited) confidentiality are what make this a fiduciary relationship. A transaction broker does not owe them.
When the single agent notice is due
In a residential sale, the single agent duties must be fully described and disclosed in writing. Under 475.278(3)(b)1., the disclosure must be made before or at the time the licensee enters into a listing agreement or an agreement for representation, or before the showing of property, whichever occurs first.
The disclosure may be a separate document or part of another document, such as the listing agreement. The required wording is set out in 475.278(3)(c)1., which begins with a sentence in capital letters stating that Florida law requires single agents to disclose their duties.
Moving to transaction broker
Under 475.278(3)(b)2., a single agent may change to a transaction broker at any time during the relationship, but only after getting the principal's written consent. The consent form in 475.278(3)(c)2. must be initialed or signed.
The form explains to the principal what they give up and what stays the same:
- The licensee will provide limited representation and can assist both parties.
- The licensee will not work to represent one party to the detriment of the other.
- The principal is giving up the right to the undivided loyalty of the licensee.
- The buyer or seller is not responsible for the licensee's acts.
This is how a licensee can lawfully help both sides of a deal after starting as a single agent. Switching to "agent for both" is never an option, because dual agency is banned.