What is a Transaction Broker in Florida?

In Florida, a transaction broker provides limited representation to the buyer and seller in a real estate transaction without offering full fiduciary duties to either party. This type of representation is common in assumed and differs from the traditional agent-client relationship in other states, where an agent owes full loyalty and responsibility to a single party.

A transaction broker works to facilitate the real estate deal impartially, ensuring both parties are informed and that the process moves forward smoothly. However, this role lacks the full confidentiality and loyalty a single agent provides. For example, a transaction broker cannot negotiate exclusively on behalf of one party, nor can they disclose confidential information to favor one side over the other.

Florida law recognizes several types of brokerage relationships:

1. Transaction Broker: Offers limited representation to both parties, focusing on facilitating a fair deal without full fiduciary duties like loyalty or confidentiality.

2. Single Agent: Provides full representation to either the buyer or seller, including loyalty, confidentiality, and full disclosure. The agent must act solely in the best interest of the client.

3. No Brokerage Relationship: The broker has no fiduciary duties and facilitates the transaction without representing either party.

A transaction broker can transition to a single agent through a written disclosure known as the Single Agent Notice. Once this transition occurs, the agent assumes full fiduciary duties, including loyalty, confidentiality, and full representation to one party. This switch is crucial when one party seeks stronger representation, particularly in complex transactions or negotiations.

In Florida, the default relationship between real estate agents and clients is that of a transaction broker unless otherwise specified. Transitioning to a single agent offers enhanced protection and advocacy, especially when one party requires dedicated support.