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

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Question & Answer

Review the question and all answer choices

A

Single agent

Single agency is not the default in Florida; it must be affirmatively established through a written agreement and requires the broker to provide full fiduciary duties including loyalty, which is a higher standard than the transaction broker's limited representation.

B

Transaction broker

Correct Answer
C

No brokerage relationship

A 'no brokerage relationship' status in Florida means the licensee represents neither party and owes only statutory duties of honesty and disclosure; this is not the default and must be specifically established and disclosed in writing.

D

Dual agent

Dual agency β€” where one agent represents both buyer and seller with full fiduciary duties to each β€” is actually prohibited in Florida under the transaction broker framework, making it impossible for dual agency to be the default relationship.

Why is this correct?

Florida Statute Β§ 475.278 explicitly establishes transaction brokerage as the presumed default brokerage relationship when a licensee works with a buyer or seller without executing a written agreement specifying a different relationship. This means that unless a broker and client affirmatively agree in writing to a single agency or no brokerage relationship, the law presumes the licensee is acting as a transaction broker with limited representation duties. The transaction broker default was chosen to reflect the practical reality of how most Florida real estate transactions are conducted and to provide a legally clear starting point for all parties.

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