The laws in Florida prohibit a real estate agent from representing both the buyer and seller in a real estate transaction. Representing both parties is known as dual agency and it’s outlawed in Florida for a number of excellent reasons. It was primarily enacted to protect the interests of the buyer.
There are 3 types of real estate agents – single agent, no brokerage relationship, and transaction brokers. A real estate agent acts in very specific roles and while the agent can’t engage in dual agency, that doesn’t mean they can’t handle transaction details for the buyer and seller in some situations.
A real estate agent is required to maintain confidentiality, loyalty and is bound to act in the best interests of their client. It would be impossible for a real estate agent to act as a fair fiduciary to both parties in a real estate transaction, especially since the seller pays the agent in the form of commission fees.
A real estate professional acting as a transaction broker sounds like dual agency, but it’s not. As a transaction broker, the agent is essentially working for the transaction itself. The real estate agent doesn’t have a fiduciary relationship with either the buyer or the seller.
The agent acts as a neutral party with confidentiality to both. The agent isn’t allowed to tell the buyer the seller will take less or tell the seller the buyer will offer more – unless the agent has permission to do so.
No Brokerage Relationship
This is a situation when a real estate agent isn’t directly involved in the buying or selling of a property. The agent is responsible for listing the property and is paid an agreed upon fee for doing so. They provide photos, details and a description of the property in the listing.
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