What are the duties and obligations of a real estate agent in Florida?
A real estate agent in Florida may act as a single agent or a transaction broker or maintain a “no representation” or “no brokerage” status.
A buyer’s agent or seller’s agent represents one party in the real estate transaction. A single agent has a fiduciary responsibility to either the buyer or seller, which results in a duty to exercise skill, care, diligence, loyalty, confidentiality, obedience, and full disclosure to their client’s benefit.
A transaction broker represents both parties in a limited manner, which does not include acting as a fiduciary to the buyer or seller. This essentially means their objective is to close the transaction, and they are not concerned with who gets the more favorable deal.
A transaction broker is not permitted to harm either party’s negotiating ability, such as by disclosing a seller’s motivation for selling or the maximum a buyer would be willing to pay. A transaction broker must deal honestly and fairly with the buyer and seller and disclose all known facts that materially affect a residential property’s value and are not readily observable to the buyer.
A real estate agent with no brokerage status is simply there to help facilitate the transaction between buyer and seller. An agent in a no-representation sale has three duties:
- Ensure the sale is conducted honestly and fairly.
- Disclose all known material facts that affect a residential property’s value and are not readily observable to the buyer.
- Account for all funds in transactions they facilitate.