Florida Real Estate Agent's Legal Obligations

REAL ESTATE AGENTS’ LEGAL OBLIGATIONS
A real estate agent’s primary activity is assisting clients in the transaction of buying and selling homes.   The title “Realtor®,” a trademarked nomenclature, may legally be used only by real estate professionals who are paying members of the National Association of Realtors (NAR).  In Florida, real state agents are bound by the rules and regulations of the State of Florida’s Department of Business and Professional Regulation (DBPR) in addition to federal mandated laws regarding real estate activity and transactions.

AUTHORIZED BROKERAGE RELATIONSHIPS
A real estate licensee in the State of Florida may enter into a brokerage relationship as either a single agent or as a transaction broker with potential buyers and sellers. A real estate licensee may not operate as a disclosed or non-disclosed dual agent. As used here, the term "dual agent" means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction. Once a brokerage relationship is established, it does not prevent the parties from changing from one brokerage relationship to the other as long as the buyer or the seller, or both, gives written consent before the change and the appropriate disclosure of duties is provided.  A third option is a Non-Representation Relationship.

SINGLE AGENCY VS. TRANSACTION BROKER
The major difference between Single Agency and transaction agency representation is the legal liability involved.  In Florida, Transaction Broker is the assumed relationship between real estate professional unless otherwise agreed in writing.

THE LANGUAGE OF THE LAW: SINGLE AGENCY NOTICE
Florida law requires that real estate licensees operating as Single Agents disclose to buyers and sellers their duties:
   1. Dealing honestly and fairly;
   2. Loyalty;
   3. Confidentiality;
   4. Obedience;
   5. Full disclosure;
   6. Accounting for all funds;
   7. Skill, care, and diligence in the transaction;
   8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and
   9. Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

THE LANGUAGE OF THE LAW: TRANSACTION BROKER NOTICE
As a transaction broker,  the Real Estate Firm and its Associates, provides to you a limited form of representation that includes the following duties:
   1.  Dealing honestly and fairly;
   2.  Accounting for all funds;
   3.  Using skill, care, and diligence in the transaction;
   4.  Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;
  5.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
   6.  Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and
   7.  Any additional duties that are entered into by this or by separate written agreement.
Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

THE LANGUAGE OF THE LAW: NOTICE OF NONREPRESENTATION
Florida law requires that real estate licenses provide this notice at first contract to all potential sellers and buyers of real estate.

You are hereby notified that BROKERAGE FIRM NAME and I do not represent you in any capacity. You should not assume that any real estate broker or salesperson represents you unless you agree to engage a real estate licensee in an authorized brokerage relationship, either as a single agent or as a transaction broker. You are advised not to disclose any information you want to be held in confidence until you make a decision on representation. Your signature below acknowledges receipt of this form and does not establish a brokerage relationship.
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Sarah Mazor is a licensed Florida Broker.
Have questions?  Email Info@MazorRealty.com