BUYER REPRESENTATION

A real estate licensee in Florida may enter into a brokerage relationship as either a single agent or a transaction broker with potential buyers and sellers.

Single Agency
A single agency relationship with a buyer is created when a buyer enters into an agreement for buyer representation, usually called a "Buyer Broker Agreement" or "Exclusive Right to Represent" agreement. According to the law, the duties of a single agent must be fully described and disclosed in writing to the buyer before, or at the time of, entering into an agreement for representation or before the showing of property, whichever occurs first. This is done with a form called the "Brokerage Relationship Disclosure."

The duties of a real estate licensee owed to a buyer who engages the real estate licensee as a single agent include the following:

Dealing honestly and fairly; Loyalty; Confidentiality; Obedience; Full disclosure; Accounting for all funds; Skill, care, and diligence in the transaction; Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

What does all of this means to you, the homebuyer? Simply put, a buyer's agent works for you, the buyer. The agent and brokerage are required to act solely on behalf of your interests.

Some REALTORS specialize in representing buyers, and have earned the Accredited Buyer Representative, or ABR designation from the National Association of REALTORS. This designation was created as a direct result of buyer's agents needs for specialized training and knowledge to effectively service their customers in today's real estate market.

Transaction Broker
In Florida, while real estate licensees can practice single agency, the law presumes that licensees are Transaction Brokers. A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following:

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 and are not readily observable to the buyer; Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and Any additional duties that are mutually agreed to with a party. Florida law also allows real estate licensees who represent a buyer or seller as a single agent to change from a single agent relationship to a transaction brokerage relationship in order for the licensee to assist both parties in a real estate transaction by providing a limited form of representation to both the buyer and the seller. This change in relationship cannot occur without your prior written consent.