What is Single Agency?

Single Agent Relationship

To understand Broker/Client relationship it is important to first understand the term ‘fiduciary’. When a broker represents the buyer or seller as a fiduciary, they are in a relationship of trust and confidence wherein the broker, as agent, accepts employment as a single agent of the buyer or the seller – but not both. This Single Agency relationship establishes certain duties of an agent that are not required under a Transaction Broker Relationship: Full Loyalty, Confidentiality, Obedience, and Disclosure.

In Florida, real estate license law prohibits a broker from creating a fiduciary relationship with both the buyer and the seller within the same transaction.

Further Defined

Real Estate Agents are licensed professionals who work on behalf of their Broker. In other words, you may choose a Real Estate Agent to represent you, but the Broker has the established fiduciary relationship with you. Therefore, Agents from within the same office cannot represent a buyer and a seller within the same transaction because, technically, the Broker would then represent both parties – this is prohibited.

Solving the Conundrum

When a situation arises where both a buyer and a seller are represented by real estate agents from within the same brokerage on the same transaction, a Transition to Transaction Broker is established.

Enhanced by Zemanta

About Toni Hedstrom

I am one half of Hedstrom & Stamm Home Solutions, a dynamic real estate team with emphasis on home marketing utilizing our exclusive Home Ready Program.