Transaction Brokerage
Definition
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
Example
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.
Exam Tip
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 Agency Terms
Agency Relationship
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.
Fiduciary Duty
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.
Dual Agency
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
Designated Agency
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.
Agency by Estoppel
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.
Agency by Ratification
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
Frequently Asked Questions
Test Your Agency Knowledge
Practice with exam-style questions to make sure you can apply Transaction Brokerage and other agency concepts.