Florida Agency Law: Transaction Broker vs Single Agent

Florida's agency law is unlike most states. Florida defaults to transaction broker — not single agent — and prohibits dual agency. This distinction is heavily tested on the Florida exam.

Three Agency Options in Florida

1. Transaction Broker (Default) A transaction broker provides limited representation to both buyer and seller. This is Florida's default relationship unless a different arrangement is agreed to in writing.

Transaction broker duties: - Dealing honestly and fairly - Accounting for all funds - Using skill, care, and diligence in the transaction - Disclosing all known facts that materially affect the value of residential real property - Presenting all offers and counteroffers - Limited confidentiality (cannot reveal motivation to sell/buy, price willing to accept/pay, or personal financial information) - Any other duties mutually agreed upon

Key distinction: A transaction broker does NOT owe fiduciary duties. No loyalty, no obedience. The licensee facilitates the transaction without advocating for either party.

2. Single Agent A single agent represents one party (buyer OR seller) with full fiduciary duties.

Single agent duties (OLDCAR): - Obedience - Loyalty - Disclosure - Confidentiality - Accounting - Reasonable care

Single agency requires a written disclosure signed before or at the time of showing property (for sellers) or entering into an agreement (for buyers). The disclosure form is prescribed by Florida law.

3. No Brokerage Relationship A licensee may work with a customer (not a client) with no brokerage relationship. The licensee still owes: - Dealing honestly and fairly - Disclosing all known facts that materially affect value - Accounting for all funds

Written disclosure is also required.

Transitioning Between Agency Types

A single agent can transition to a transaction broker mid-transaction if: - The principal gives informed written consent - The licensee provides a transition to transaction broker notice

A transaction broker CANNOT transition to single agent without starting fresh.

Dual Agency: Prohibited in Florida

Unlike many states, Florida does not permit dual agency (representing both buyer and seller in the same transaction as single agents). Instead, Florida uses the transaction broker model when a brokerage represents both parties.

Disclosure Timing Requirements

| Relationship | When Disclosure Required | |---|---| | Single agent (seller) | Before or at time of listing agreement | | Single agent (buyer) | Before showing property | | Transaction broker | Before or at time of showing | | No brokerage | Before showing or entering agreement |

Exam Tip: Know the Duties Cold

Florida exam questions frequently ask which duties apply to transaction brokers vs. single agents. The most common trap: attributing "loyalty" or "obedience" to a transaction broker. Those duties only apply to single agents.

The duties that DO apply to transaction brokers but NOT single agents exclusively: dealing honestly and fairly (this applies to all).

[Practice Florida agency questions at CARealestate.com/states/florida](https://carealestate.com/states/florida)