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Agency Disclosure

 

A real estate broker or salesperson must (under FL law) tell you who he or she represents in a prospective transaction. This disclosure of the relationship the agent has with you must be made in writing at the time of your first personal meeting to discuss a specific piece of property.

Types of Agency Relationships

Non-Broker

At first meeting you do not have a relationship with any agent, REALTOR or  broker. They have a responsibility to explain the options available to you prior to showing you property.

Transitional Broker

Once the real estate person starts the explanation process they will introduce you to the concept of transitioning from not being represented to your options of how to be represented. Your options will be Seller's or Buyer's Agent.

Seller's Agent

If you engage the services of a listing broker to sell your property, you become the broker’s client. That broker represents you, the seller, and owes you undivided loyalty, confidentiality and accountability. In negotiating for the best price terms, he must put your interests first.

Buyer’s Agent

You may engage the services of a broker to represent you exclusively as a buyer of real property. In this case, the broker represents you and is accountable to you. He must obey your instructions and keep confidential anything you tell him that may affect your purchase of real property. In negotiating for the best price and terms, he must put your interests first. If you are seeking to purchase real property and are working with a broker that is not under contract as a Buyers Agent, that broker is responsible to the seller.

Reverting back to Transactional Brokerage

On those occasions when a brokerage firm represents both the buyer and the seller they would be unable to offer 100% loyalty to both sides of the transaction. As Florida does not allow Dual Agency the legislature determined that your representation could revert to the Transactional Broker status because you now understand the options. When you revert back, a broker can work for both the buyer and the seller on the same transaction provided the broker gets the consent of both parties in writing and provides each with a written notice of the relationship. In this case, the broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker does not represent either the seller or buyer exclusively, and neither party can expect the broker’s undivided loyalty. Dual Agency by a broker is illegal in Florida, but your interest are now protected under a Transactional Broker contract.

You should have a clear understanding of agency under Florida law. You should understand the real estate broker's/agent's duties to each party. If you need to learn more, I have written a six-page pamphlet you may find helpful. If you would like a copy, contact me: Cliff Roe, Cliff Roe Realty (727) 595-7295 or Mobile (727) 644-7209 or email.