Agency and Brokerage Relationships: Transaction Broker, Single Agent, and Disclosure
Agency and Brokerage Relationships tests Florida's relationship rules: transaction broker, single agent, no brokerage relationship, fiduciary duties, disclosure, designated sales associates, and vicarious liability.
The three relationships
Florida presumes a transaction broker relationship unless a single agent or no brokerage relationship is established in writing. A transaction broker assists both parties and owes honesty, disclosure of known facts, accounting, limited confidentiality, and fairness, but does not advocate for either side. A single agent represents one party and owes full fiduciary duties: loyalty, confidentiality, obedience, full disclosure, accounting, and reasonable care. A no brokerage relationship notice means the licensee must deal honestly and disclose known facts but represents neither party.
Disclosure and transition
The required relationship disclosure must be made before the parties sign an agreement and at first substantive contact. A single agent may transition to a transaction broker with written consent. Confidential information learned in a single agency may not be used against the former client.
Designated sales associates
Florida permits designated sales associates only in nonresidential transactions, allowing one brokerage to represent both sides through different associates. Each designated associate owes single-agent duties to that associate's client; the brokerage must have written consent and the parties must be represented by different associates.
Vicarious liability
A broker is generally liable for the acts of associates within the scope of the brokerage relationship. That is why supervision, written policy, and errors and omissions insurance matter.
Worked example
A buyer calls the listing agent directly. No written single agency exists, so the agent is a transaction broker for both sides. The buyer asks what the lowest price the seller will take. The agent may not disclose that confidential motivation and should not advocate for the buyer. The agent can explain the process, disclose known defects, and suggest the buyer obtain independent advice.
Traps
Calling a buyer's agent a single agent without a written agreement; confusing transaction broker limited confidentiality with full confidentiality; using designated sales associates in residential deals; and assuming a no brokerage relationship eliminates honesty duties.