After successfully completing this topic, you will be able to
• state the type of brokerage relationship that is illegal in Florida,
• state the three basic duties all licensees have to their customers, and
• list the three authorized brokerage relationships under Florida law.
Florida law presumes that a broker is acting as a transaction broker, but the broker is allowed to operate as a single agent or as a nonrepresentative in a transaction, provided that written disclosures are given to the parties. A broker may not act as a dual agent.
The broker decides the type of relationship the company will have with a customer, but the customer is not required to enter into a brokerage relationship. Licensees who work in the firm must observe all the duties of that relationship. For example, if a sales associate in the firm is a single agent for a seller, another sales associate in the same firm cannot be a single agent for the buyer, because that would be an illegal dual agency.
All licensees, regardless of their brokerage relationships, have three basic duties to customers:
• fair and honest dealing,
• disclosure of known facts that materially affect the value of residential property and that are not readily observable to the buyer, and
• accounting for all funds.
The three authorized brokerage relationships under Florida law are
• transaction broker,
• single agent,
• designated sales associate,
and one status called no brokerage relationship.