IS YOUR REALTOR REPRESENTING YOU?
AND WHY IT’S IMPORTANT TO KNOW…
Representation in real estate transactions is often misunderstood. Many consumers believe that their "agent" is looking out for their best interests, but that may not necessarily be the case.
Florida law recognizes three types of working relationships between a consumer (buyer or seller) and a real estate brokerage firm:
No Brokerage Relationship
In a no brokerage relationship, the associate is simply handling the paperwork of the transaction and cannot represent or negotiate on behalf of the buyer or seller.
As a transaction broker, the real estate licensee by law must perform certain duties, but does not represent you. The buyer or seller is a “customer” of the associate and has given up his or her right to undivided loyalty of the licensee. In other words, transaction brokers serve as a neutral party who facilitate the transaction with limited representation and limited confidentiality. For example, a transaction broker is not legally allowed to tell the seller that the buyer will pay more than that which was offered, or tell the buyer that the seller will take less than list price. The associate must stick to the facts of the transaction, unable to offer opinions or share motivating factors that may make a big difference in a buyer or seller’s decision-making process. A transaction broker may not work to the detriment of either party in a real estate transaction, but conversely cannot work to benefit either party.
The highest degree of representation is offered with single agency. As a single agent, the broker has a fiduciary relationship and owes complete loyalty and allegiance to the buyer or seller, who is then referred to as a principal or client. By law, the agent must work to achieve the best price and terms for their principal with complete confidentiality and disclosure.
The four major differences between a single agent and a transaction broker as outlined by Florida Statute Section 475.278 are:
If you would like to work with someone who can and will advocate for YOUR BEST INTERESTS, please contact me today!