If you have ever purchased or sold a home in Florida with the assistance of a real estate agent, then it is quite likely that you have worked with a transaction broker. A transaction broker is a licensed real estate agent who acts as a neutral third party in a real estate transaction. In the State of Florida, it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer. Transaction brokers provide services to facilitate the closing of a deal but do not act on behalf of any particular client. The transaction broker’s primary job is to assist with tasks that may be difficult for a buyer or seller to perform on their own. However, they are expected to refrain from offering either client any advice on the sale or otherwise influencing the transaction.
Transaction broker duties
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.
Common tasks of transaction brokers
- Preparing and reviewing contracts
- Negotiating on behalf of their clients
- Managing the closing process
- Providing market research and analysis
- Representing their clients at the closing table
Summary
As mentioned at the onset of this article, the majority of real estate transactions involving a real estate agent are handled via a transaction brokerage relationship. To view the full Florida statutes, you can find Chapter 475, section 278 by clicking here. As always, it is important to be informed of the entire real estate process. Of course, a local and knowledgeable real estate agent will be your best resource for all matters related to your local real estate market.
Are you looking to buy or sell property in the South Florida market? We can help! Contact our friendly and knowledgeable team at Live South Florida Realty, Inc.! Also, be sure to download the free Florida Home Search app for your mobile device.
