Law of Agency
Florida recognizes three brokerage relationships: single agent, transaction broker, and no brokerage relationship. Since 1997 the default is transaction broker unless the parties agree in writing to single agency. In single agency the broker represents one party; designated sales associates within the same brokerage may represent different parties in the same transaction.
Duties
Single agent fiduciary duties are loyalty, obedience, full disclosure, confidentiality, accounting, and reasonable care and skill. Transaction broker duties are limited: honesty and fairness, accounting for funds, skill and care, disclosure of known facts materially affecting value, timely presentation of offers and counteroffers, and limited confidentiality. Even with no brokerage relationship, a licensee owes honesty, disclosure of material facts, and accounting.
Confidentiality survives termination; the other duties generally end when the agency ends.
Termination
Agency ends by performance, expiration of the term, mutual agreement, revocation by the principal, or operation of law (death, incapacity, or bankruptcy of a party).
Traps
- Florida's default is transaction broker, not single agent.
- A transaction broker does not owe loyalty or obedience.
- Compensation does not create the relationship; representation does.
- The broker is the agent; the sales associate is the broker's employee or independent contractor and never the agent of the public.
Rule of thumb
Memorize COLD AC for single-agent fiduciary duty: Care, Obedience, Loyalty, Disclosure, Accounting, Confidentiality.