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Florida law establishes three types of agency representation in real estate transactions: Single Agency, Transaction Brokerage and No Brokerage Relationship. The also presumes that the assumed relationship between and buyer and an agent (or a seller an and an agent) is as a Transaction Broker unless they agree to a Single Agency or a No Brokerage Relationship. For purposes of this article I will discuss only the Transaction Broker representation versus the Single Agency representation.
As a Transaction Broker, a realtor is required to facilitate a real estate transaction in very much the same way as a Single Agent. However, there is an exception and this occurs in the situation when the same agent represents both the buyer and seller in a real estate transaction which is very possible when a buyer passing a listing calls the realtor whose name is on the for sale sign in the front yard. In this case, the law stipulates that a real estate agent cannot represent one party, either buyer or seller, to the detriment of the other and it is this issue that primarily differentiates the two representations.
Another contrast between the two representations of Transaction Broker and Single Agency is that the Single Agency representation creates fiduciary relationship and therefore the law establishes that the "principal," or in this case the buyer, is responsible for the acts of the realtor acting in a Single Agency relationship. This may potentially create and issue of liability for a buyer. With the Transaction Broker representation the buyer would not be responsible for the agent's actions.
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