In a transaction brokerage, the broker does not owe fiduciary duties to either party. Instead, the broker provides services like preparing documents, presenting offers, and facilitating communication. This model avoids dual agency conflicts and is the default in some states like Florida.
In Florida, a broker facilitates the sale between a buyer and seller without representing either. The broker cannot advise the buyer to offer less or tell the seller to accept — the broker simply ensures the paperwork is completed correctly and both parties are treated honestly.
Transaction brokers owe LIMITED duties: deal honestly and fairly, present all offers, disclose material facts, account for all funds. They do NOT owe loyalty, obedience, or confidentiality beyond what's required by law.
Related Terms
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
Frequently Asked Questions
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