Understanding the concept of agency

 

In Florida real estate law, "agency" refers to the legal relationship established between a real estate agent (or brokerage) and their client, defining the duties and responsibilities the agent owes to the client. There are several types of agency relationships recognized under Florida law, each with specific implications for the agent's role and obligations.

1. **Single Agent Relationship:** In this type of relationship, the real estate agent represents either the buyer or the seller as a fiduciary. This means the agent has a legal duty to act in the best interests of their client, offering loyalty, confidentiality, full disclosure, and obedience, as well as accounting for all funds and providing skilled and diligent service.

2. **Transaction Broker Relationship:** Florida allows agents to act as transaction brokers, providing a limited form of representation to both parties in a transaction. As a transaction broker, the agent does not represent either party as a fiduciary but is required to deal with all parties honestly and fairly, account for all funds, use skill, care, and diligence, disclose all known facts that materially affect the value of residential real property that are not readily observable, and present all offers and counteroffers in a timely manner.

3. **No Brokerage Relationship:** In some cases, an agent may not represent either party in a transaction. This means the agent does not provide any representation to the buyer or seller. However, the agent is still required to deal honestly and fairly, disclose all known facts that materially affect the value of the property, and account for all funds.

4. **Designated Sales Associate Relationship:** In non-residential transactions where the buyer and seller each have assets of at least $1 million, a brokerage firm may assign two agents as "designated sales associates" to represent each party, effectively creating a single-agent relationship within the same brokerage. Both parties must sign a disclosure form acknowledging this arrangement.

Understanding the concept of agency is crucial for real estate professionals and consumers alike, as it dictates the nature of the agent-client relationship, the level of representation, and the duties owed to clients under Florida law. It’s important for clients to be informed about the type of agency relationship they are entering into to understand the extent of the agent’s responsibilities and the protections afforded to them.

 

 

 

 

Guillermo "Bill" Sanjurjo Realtor® https://guillermo.realtor Amerivest Realty Cell: 786-232-1400