Transaction broker duties
A transaction broker provides a limited form of representation to a buyer, a seller, or both. The transaction broker does not represent either party as a fiduciary or as a single agent (475.278(2); 475.01(1)(l)). This is the relationship Florida presumes when nothing else is set up in writing.
Because the representation is limited, a transaction broker can lawfully help both sides of the same deal. That is the key difference from a dual agent, which Florida bans.
The seven duties
Fla. Stat. 475.278(2) lists the duties, lettered (a) through (g):
| Duty | |
|---|---|
| (a) | Dealing honestly and fairly |
| (b) | Accounting for all funds |
| (c) | Using skill, care, and diligence in the transaction |
| (d) | Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer |
| (e) | Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing |
| (f) | Limited confidentiality, unless waived in writing by a party |
| (g) | Any additional duties that are mutually agreed to with a party |
What limited confidentiality protects
Unless a party waives it in writing, limited confidentiality keeps the licensee from disclosing:
- 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 in a written offer;
- the motivation of any party for selling or buying;
- that a seller or buyer will agree to financing terms other than those offered;
- any other information a party asks to keep confidential.
What is missing
Compare the list with the single agent duties in the next lesson. A transaction broker does not owe loyalty, obedience, or full disclosure. Those are fiduciary duties, and a transaction broker is not a fiduciary.
The duty to disclose known material facts about residential property that are not readily observable is on the list, though. A buyer does not need to ask about a hidden defect the licensee knows of.