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TL;DR: Florida recognizes three brokerage relationship types—transaction broker, single agent, and no brokerage relationship. Each relationship carries specific duties and disclosure requirements under Chapter 475, F.S. New agents must understand these roles to stay compliant, serve customers properly, and avoid accidental violations.
What Are Florida Brokerage Relationships?
Florida law defines how real estate professionals may work with buyers and sellers. These relationships determine the level of representation, duties owed, and required disclosures.
The three authorized brokerage relationships in Florida are:
- Transaction Broker
- Single Agent
- No Brokerage Relationship
Understanding the differences is essential for new agents to remain compliant with FREC rules and provide customers with the correct information.
Transaction Broker Relationship
The transaction broker relationship is the default brokerage relationship in Florida unless another relationship is established in writing.
A transaction broker provides limited representation to both the buyer and the seller in the same transaction. This means the agent facilitates the deal without being a fiduciary.
Duties include:
- Dealing honestly and fairly
- Accounting for all funds
- Using skill, care, and diligence
- Presenting all offers
- Limited confidentiality
- Performing any additional duties mutually agreed to
Most residential transactions in Florida operate under this relationship due to its flexibility.
Single Agent Relationship
A single agent relationship provides full fiduciary representation to either the buyer or the seller.
Duties owed include:
- Loyalty
- Confidentiality
- Obedience
- Full disclosure
- Accounting for all funds
- Skill, care, and diligence
- Presenting all offers
A single agent relationship must be established in writing. Before transitioning to a transaction broker, a Consent to Transition to Transaction Broker disclosure must be signed by the customer.
No Brokerage Relationship
In a no brokerage relationship, the agent does not represent the customer in any capacity.
Duties owed include:
- Dealing honestly and fairly
- Disclosing known material defects
- Accounting for all funds
This relationship is often used when working with sellers in limited circumstances or in certain commercial transactions.
Required Brokerage Relationship Disclosures
Florida agents must use the correct disclosures at the correct time.
Required disclosures include:
- No Brokerage Relationship Disclosure
- Single Agent Disclosure
- Consent to Transition to Transaction Broker
Failure to provide disclosures properly is one of the most common compliance mistakes among new agents.
Why Brokerage Relationships Matter to New Agents
New agents must clearly understand brokerage relationships because:
- Misrepresentation can result in FREC discipline
- Incorrect disclosures can jeopardize a transaction
- Customers rely on agents to explain their options
- Representation determines your legal duties and liabilities
Mastering brokerage relationships helps new agents stay compliant and deliver professional, ethical service.
Practical Tips for New Agents
Here are useful habits for handling brokerage relationships correctly:
- Review Chapter 475 and FREC Rule 61J2 regularly
- Discuss representation options early with customers
- Use only FREC-approved disclosure forms
- Ask your broker when unsure how to classify a relationship
- Document conversations and signed disclosures
Correctly using and explaining brokerage relationships builds customer trust and protects your license.
Final Thoughts
Understanding Florida brokerage relationships is essential for every new real estate agent. Your ability to properly classify and disclose your role ensures compliance, protects consumers, and strengthens your reputation.
Ready to take your next step? Sign up at OLTraining.com and start your career off right!
Tags: Florida Real Estate, Brokerage Relationships, Transaction Broker, Single Agent, No Brokerage Relationship, FREC Rules, New Agents, Real Estate Compliance, Florida Real Estate Education
