2,684,669
Good morning, AR Friends!
Damon, the bottom line with Transaction Broker Relationship is that there is NO FIDUCIARY. Your family member will only have "Limited Confidentiality". Please read every word of the Florida Statute 475.27
If you (Seller or Buyer) do not have a Single Agent contract, exactly like you see in the Statute, you do not have a Fiduciary.
Caveat: "Consent to Transition to Transaction Broker" - this clause will be buried in most listing agreements. If you (the Seller) sign it, you are waiving away your right to Single Agent.
Who would I want to represent me when buying or selling real estate in Florida? I want a Single Agent. This is the only relationship that establishes a Fiduciary. Read the language in the Statute to see the duties that come with a Single Agent relationship.
*** See a Lawyer before signing anything! Have your relatives see a real estate attorney who is familiar with Real Estate Brokerage Relationships. It is money well spent.
Excerpt from F.S. 475.278
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Kathleen Daniels, Prob...
San Jose, CA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Bob "RealMan" Timm
Minot, ND
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Barbara Todaro
Franklin, MA
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Damon Botticelli
Las Vegas, NV
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Kris Collis, Associate...
East Stroudsburg, PA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Ron and Alexandra Seigel
Carpinteria, CA
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Debe Maxwell, CRS
Charlotte, NC
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Scott Pope
Panama City Beach, FL
310,264
A transaction broker has no fiduciary responsibilty to either parties in the transaction. Each party is considered a "customer" rather than a client. Basically, the listing agent can list the property for their customer. And, if a buyer calls the listing broker, the broker can assist the buyer as well. For example, the broker receives an offer from the buyer and presents the seller with the offer. In theory, the broker cannot advise pricing strategy with either party, just facilitate the negotiation. The broker is a middle man relaying messages. This legalized semi-dual agency is popular because most brokers want to double-side as many deals as possibe.
However, if a another broker brings the buyer, then the listing broker can remain in a transactional relationship with the seller or advise the seller in negotiating the deal (which is more fiduciary in scope).
The law says actions determines the relationship more than an agreement on paper. That's why a transaction broker must tread carefully when handling both sides of a deal. Any favoritism shown by the licensee is violating the law.
Single agency in Florida is when a broker is acting as an agent for a principal in a real estate transaction, which is a fiduciary role. The single agent must be loyal and keep the client's information confidential. They must have the BEST interest of the client first and foremost. This does not however preclude the single agent listing the property from taking an offer from a buyer.
The single agent must inform the buyer that she works (represents) for the seller. If the buyer does not want representation from another real estate licensee, then the listing agent needs to have the buyer sign a "no representation" agreement explaining the relationship between all parties. This means that anything the buyer says once they are fully aware of the agent's loyalty can be told to the seller (even if they say what their highest offer will ultimately be; or how much they love the house). In fact, the seller's agent is bound to disclose this information to her client, which can be advantageous to the seller.
So it is possible for the lising agent with single agency with the seller to still double-side the transaction. Another way to accomplish this is the single agent can request to transition from a single agent to a transaction broker when a buyer first comes along. This has to be approved by the seller first. If the seller agrees, then she is free to act as a facilitator only.
Damon Botticelli I recommend seller's choose a broker who cheerfully offers single agency. A broker hesitant in providing that relationship probably is not willing to be responsible for her actions, and is more interested in big commissions by handling both sides of the deal.
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Damon Botticelli
Las Vegas, NV
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Kris Collis, Associate...
East Stroudsburg, PA
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
4,800,132
This is the default agency relationship in Florida. The other two are non-representation which is self-explanatory and single agent which means full fiduciary responsibilities. As a single agent that Realtor nor his broker will be able to bring the buyer to the transaction.
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Bob "RealMan" Timm
Minot, ND
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Damon Botticelli
Las Vegas, NV
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Kris Collis, Associate...
East Stroudsburg, PA
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Clay R. Seay
Saint Augustine, FL
5,240,047
A listing agent can be a single agent for the seller or move to a transactional broker with the permission of the seller when they find a buyer they represent. Sounds like "dual agnecy" with a different name.
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Bob "RealMan" Timm
Minot, ND
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Damon Botticelli
Las Vegas, NV
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
2,221,377
Great question for Fred Griffin presently on Leave of Absence
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
5,254,685
My understanding is that both sides will have limited representation by one broker.
I would probably make a call to the Florida Real Estate Commission since it's a family member asking for your blessing on this, Damon.
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Bob "RealMan" Timm
Minot, ND
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Kris Collis, Associate...
East Stroudsburg, PA
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Nina Hollander, Broker
Charlotte, NC
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Richard Weeks
Dallas, TX
2,400,675
Damon Botticelli thank you, thank you, thank you for posing a question that got Fred Griffin presently on Leave of Absence to step up to the plate. When Fred answers a question... IT'S ANSWERED!
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Fred Griffin Florida R...
Tallahassee, FL
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Damon Botticelli
Las Vegas, NV
463,473
In Florida, all agents, by Law, are considered Transaction Brokers, unless otherwise disclosed. The other choices are Non-Representation and Single Agent. The main difference as stated by others are the Fiduciary requirement and Limited Confidentiality. If a Broker lists a home as a Single Agent and someone in their firm wants to represent the Buyer, then the Transition to Transaction Broker must be used or there is a special designation called a Designated Sales Agent, but only in certain circumstances and with assets over $1 million dollars.
Transaction Agents still have to treat ALL Parties Honestly & Fairly and provide Full Disclosure of Material Issues that effect the home. It is not a big deal to get excited over. It is common in Florida and not detrimental to either party.
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Bob "RealMan" Timm
Minot, ND
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Damon Botticelli
Las Vegas, NV
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Debe Maxwell, CRS
Charlotte, NC
4,901,858
Since Wayne Martin once worked that market I'm sure he gave you the best answer.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
6,419,449
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Bob "RealMan" Timm
Minot, ND
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Damon Botticelli
Las Vegas, NV
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Bob Crane
Stevens Point, WI
5,583,328
pick a side and stay there....that's my recommendation for providing true representation..... dual agency and transactional relationships equate to greed in my opinion.... you can only work for one master....
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Scott Pope
Panama City Beach, FL
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Bob "RealMan" Timm
Minot, ND
1,506,163
Fred is the man on this and he has you covered!
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
5,772,587
Fred Griffin presently on Leave of Absence gave you the answer. A
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
7,864,182
Chat with a Florida broker for any needed clarification.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
3,416,038
Here in NH, a transaction broker, also known as a facilitator, can show the home, write the offer but in short, does not offer advice to the buyer. They do not represent the buyer. We have a form the biyer has to sign upon first meeting
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
140,560
Most Florida residential sales are conducted as "Transaction Broker" relationship. The duties of the broker are as you see in the notice that you posted.
All of my relationships are as a Transaction Broker and my feeling is that you can trust the agent in that relatioinship.
I urge your family member to compare several agents before deciding who to list with. Choose an agent based on their INDIVITUAL PAST PERFORMANCE, marketing plan, experience and competance. Do not choose a NEW agent, or an agent based on the price they suggest or just because they work for a major franchise. A good place to compare agents is by using the Agent Finder on Zillow.
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Bob "RealMan" Timm
Minot, ND
3,349,554
You have got your answer here. Good luck.
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Bob "RealMan" Timm
Minot, ND
902,038
You would be better off getting a legal definition from a Florida law text. Transactional brokerage is a little confusing. Basically, it allows agents to avoid a lot of potential liabilities.
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Bob "RealMan" Timm
Minot, ND
2,192,390
4,961,547
4,434,177
921,504
I would be hesitant to advise buyers or sellers in Nevada regarding that states practices.
Transaction broker and limited confidentiality should be clear.
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Bob "RealMan" Timm
Minot, ND
5,113,121
Not being licensed in Florida, this is not a question I would like to address. Maybe Beth Atalay will provide you with the correct answer.
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Bob "RealMan" Timm
Minot, ND
1,598,452
5,877,915
3,986,308