After successfully completing this topic, you will be able to list the three duties of a licensee who has no brokerage relationship with a customer.
Licensees can work with customers in a nonrepresentation status. This is often a result of the licensee working with the other party as a single agent. Because it’s important for the person who does not have representation to understand that fact, the licensee must give the person a no brokerage relationship notice before showing a property or entering in to an agreement for representation. The notice spells out the duties of the licensee, and is shown below:
• dealing honestly and fairly,
• disclose all known facts that materially affect the value of residential property which are not readily observable to the buyer, and
• accounting for all funds entrusted to the licensee.
Florida law dictates the format of brokerage relationship disclosures. The duties of the licensee must be fully described and disclosed in writing to a buyer or seller either as a separate and distinct disclosure document or included as part of another document such as a listing agreement or other agreement for representation. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement to advise customers of the duties of the licensee, except that the first sentence of the information identified in paragraph (c) must be printed in uppercase and bold type.