Broker
Chapter 10
Brokerage Relationships
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Learning Objectives
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Distinguish between the terms
general agent and special agent
Describe which legal provisions apply
only to residential real estate
transactions
Describe the duties and disclosure
requirements of a transaction broker
Describe the duties and disclosure
requirements that single agents have
to their principals
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Learning Objectives
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Define a dual agent
Describe the purpose and
requirements of the no brokerage
relationship notice
List the no brokerage relationship
duties
Describe the process of transition
from a single agent to a transaction
broker
Identify the actions that will terminate
a brokerage relationship
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Law of Agency
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Two types
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Common Law
–
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Statutory Law
–
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Custom and court decisions
Legislature
Florida Real Estate Commission
(FREC) has rules that affect agency
relationships.
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Fiduciary Relationship
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Mutual Trust and Confidence
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Between a broker (agent) and sellers or
buyers (principals),
When accepted as a part of single agency
The opposite of dealing at Arm’s
Length (Caveat Emptor).
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Types of Agents
An agent is a person entrusted to represent another.
The three types are:
Everything
Everything
One
Business
One
Transaction
Universal
Agent
General
Agent
Special
Agent
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Law of Agency
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Principal
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Person who delegates authority to another
Agent
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Person entrusted with another's business
–
Who is authorized
 To represent
 Act for the principal
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No Brokerage
Transaction Broker
Single Agent
Honesty & Fairness
Account for All Funds
Disclose Known Facts (Residential)
Skill, Care & Diligence
Present All Offers and Counter Offers
Limited
Confidentiality
Confidentiality
(Full)
As Agreed
Obedience
Loyalty
Disclosure (Full)
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Disclosure Requirements
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Residential sales only
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Improved residential property of 4 or fewer
units
Vacant land zoned for 4 or fewer residential
units
Agricultural property of 10 or fewer acres
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Disclosure Requirements
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Must be made
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Before entering into an agreement
Before showing property
Whichever occurs first
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Disclosure Requirements
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Does not apply to
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Nonresidential transaction
Renting or leasing
–
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Unless including option to purchase
residential property
Auctions
Appraisals
Business brokerage
–
Unless residential property is included
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Dual Agency
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Single Agency (Full) representation
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For both sides
In the same transaction
Illegal in Florida
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Transition to Transaction Broker
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Change from single agent to
transaction broker
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Requires written consent
Prior to transition
Signed by the principal(s)
Signatures
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Recommended for all disclosures
Required for Transition to Transaction Broker
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Designated Sales Associate
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Broker assigns
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One sales associate to represent as a single
agent the seller
One sales associate to represent as a single
agent the buyer
In the same transaction.
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Designated Sales Associate
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Requirements
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Non-residential only
Both parties
– Must request
– Assets in excess of 1 million dollars
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Terminating Agency Relationship
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Terminated by:
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Fulfillment of agency purpose
Mutual agreement
Expiration of term
Agent renunciation by giving notice to
principal
Revocation by principal
Death
Destruction of the property
Bankruptcy
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