Transaction Broker Relationship
Under Florida law, it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established. A Transaction Broker is a broker who provides limited representation to a buyer, a seller, or both. The Buyer or Seller is considered a customer and not a principal. (Florida Real Estate Principles, Practices & Law. Author: Linda L. Crawford. Publisher: Dearborn Financial Publishing Inc. 2009).
In Laymen’s Terms
As a Single Agent, duties include full loyalty. It is established that full loyalty cannot be granted in a Transaction Broker Relationship because the Broker represents both parties. Furthermore, a Transaction Broker Relationship grants limited confidentiality (unless waived in writing by a party) versus a Single Agent Relationship’s full confidentiality. In a Transaction Broker Relationship, the agent must disclose all known facts that materially affect the value of a property and are not readily observable to the buyer; unlike a Single Agent who must offer full disclosure (including any known facts about the seller or buyer’s motivation, willingness to negotiate, etc.). And finally, a Transaction Broker Relationship does not include the act, by the agent, of full obedience.