The majority of Florida real estate agents are not agents of either the buyer or the seller. This is not necessarily a bad thing, but it is different from how other states function, and can be confusing for those new to purchasing Florida real estate.
In Florida, most real estate “agents” are presumed by law to be transaction brokers (often called transaction facilitators). This means that most Florida agents do not actually represent either party in a sale. A transaction broker cannot represent only one party in a transaction; they really are agents of the real estate transaction itself. This means that they must faithfully, skillfully, and honestly facilitate the transaction, but they cannot be loyal to any party.
Florida statutes state that “It shall be presumed that all licensees are operating as transaction brokers” unless this is otherwise agreed to in writing. This is because Florida does not allow designated agency, also known as a form of dual agency.
In designated agency, which is illegal in Florida, two agents working for the same broker can each represent opposing sides of a sale transaction. That is, the buyer’s agent and the seller’s agent can work for the same broker. In this case, the buyer’s agent and seller’s agent only represent their respective clients, though they do so through the same broker. Thus, the supervising broker is in a dual agency relationship with the buyer and the seller, but the designated agents representing the buyer and seller are each loyal to only their clients.
In Florida, this type of relationship is illegal; a Florida broker cannot have two agents who work under them representing opposite sides of a transaction as agents of one party or the other. Florida law views this as illegal dual agency.
Ironically, because Florida views designated agency as illegal, most Florida buyers and sellers do not technically have agents at all, but have neutral third party facilitators. The good thing about transaction brokers/facilitators is that they can’t be loyal to the other party at your expense; the bad thing about them is that they can’t be loyal to you at the other party’s expense.
In fact, it’s somewhat difficult to have a single agent who will represent only your interests in Florida. This is because if you want a single agency relationship, you must sign a single agency agreement with your agent that contains a disclosure called Consent to Transition to a Transaction Broker. This discloses that you can transition at any time from a single agency relationship to a transaction broker relationship, though you will have to agree to this in writing.
In fact, in certain situations, you must transition to a transaction broker relationship, or find a new agent. This is because if you make an offer on a house listed by an agent who works for the same broker as your agent, then you cannot work with your agent as an agent anymore, you must work with them as a transaction broker, or you must find a new agent who is not employed by the same broker.
Because Florida presumes all “agents” to be transaction brokers (unless otherwise agreed to in writing), far fewer buyers and sellers in Florida have an agent who represents only their interests. It is precisely Florida’s firm stance against dual agency that has eliminated agency in the majority of transactions. In some ways, this is a very clear and honest approach, since many real estate consumers may not realize that their agent works for the same broker as the opposing side’s agent.
Since a transaction broker cannot negotiate against you, the real estate transaction in Florida has less antagonistic competition built into it. Remember, there are positives and negatives to this structure; the good news is that a transaction broker cannot negotiate against you; the bad news is that they can’t negotiate for you either.
https://www.floridarealtymarketplace.com/blog/dual-agency-in-florida.html
https://berlinpatten.com/naming-your-relationship-agency-law-101/
https://randrflorida.com/changes-to-florida-real-estate-forms-for-2024/
https://m.flsenate.gov/Statutes/475.278
https://www.sandyhartmannhomes.com/blog/327170/What+You+Need+To+Know+About+Exclusive+Buyer+Brokerage+Agreements
http://www.leg.state.fl.us/STATUTES/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499/0475/Sections/0475.278.html
Consent to Transition to Transaction Broker in Florida
