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In Florida, the default brokerage relationship when no disclosure is made is:

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Audio Lesson

Duration: 3:20

Question & Answer

Review the question and all answer choices

A

Single agent

Single agent is incorrect because Florida law requires specific written disclosure to establish this relationship. Without disclosure, the default is not single agency, which would require higher fiduciary duties.

B

Transaction broker

Correct Answer
C

No brokerage relationship

No brokerage relationship is incorrect because Florida law always establishes some form of brokerage relationship between licensees and parties in real estate transactions.

D

Dual agent

Dual agent is incorrect because dual agency requires written consent from both parties and cannot be established by default without disclosure and consent.

Why is this correct?

Transaction broker is the correct default relationship in Florida because state statute specifically designates it as the presumed relationship when no other relationship is established through written disclosure. This relationship limits fiduciary duties compared to traditional agency.

Deep Analysis

AI-powered in-depth explanation of this concept

This question tests a fundamental concept in Florida real estate law that directly impacts how agents conduct business and what obligations they owe clients. The default brokerage relationship determines an agent's duties and liabilities when no specific agency relationship has been established. In Florida, the law presumes transaction brokerage as the default relationship, which is crucial because it limits the fiduciary duties agents owe compared to traditional agency relationships. Understanding this concept helps agents properly disclose their role to clients and avoid unintended agency relationships. The question focuses on what happens when no disclosure is made, which is a common scenario in practice. The correct answer requires knowledge of Florida's specific statutory framework regarding brokerage relationships. This question might be challenging for students who are more familiar with traditional agency models where single agency is the default, or for those who confuse disclosure requirements with relationship establishment.

Knowledge Background

Essential context and foundational knowledge

Florida's brokerage relationship laws were significantly revised in 2011 to enhance consumer protection and clarify agent duties. The state recognizes three brokerage relationships: single agent (highest fiduciary duties), transaction broker (limited duties), and no brokerage relationship. Transaction brokerage became the default to protect consumers from unintended fiduciary obligations. Agents must provide written disclosure of their brokerage relationship at first contact, but if they fail to do so, the law presumes a transaction broker relationship. This framework balances consumer protection with practical business considerations.

Memory Technique
acronym

TBD - Transaction Broker Default

Remember that in Florida, the default relationship when no disclosure is made is Transaction Broker. Use TBD to recall this concept.

Exam Tip

For Florida brokerage relationship questions, remember that transaction broker is always the default when no other relationship has been established through written disclosure.

Real World Application

How this concept applies in actual real estate practice

A new real estate agent in Florida meets with a buyer at an open house without providing any written disclosure forms. The buyer later wants to make an offer on the property. Without having established a different relationship through disclosure, the agent automatically operates under transaction brokerage. This means the agent has limited duties to the buyer, including providing fair treatment, accounting for funds, and confidentiality, but does not owe the duties of loyalty or undivided allegiance that would exist in a single agent relationship.

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