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Florida Real Estate Broker Chapter 10 - Brokerage Relationship

Terms in this set (25)

Henry is a transaction broker who provides limited representation to both the buyer and the
seller in a real estate transaction involving the sale of a single-family home. Henry owes both
the buyer and the seller each of the following duties,
a. Using skill, care, and diligence in the transaction.
b. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed
the licensee otherwise in writing
c. Disclosing all known facts that materially affect the value of the house and are not readily observable
to the buyer.
A Florida real estate transaction broker owes each of the following duties to each of his or
her customers, except:
Representing each customer as a fiduciary.
The Brokerage Relationship Disclosure Act.
Florida Statute 475.2701 - 475.2801
The Brokerage Relationship Disclosure Act. four following provisions;
• All forms of disclosed dual agency are prohibited. (the undisclosed dual agency was already un-lawful)
• Real estate licensees providing authorized forms of brokerage representation, must meet Florida statute disclosure requirements
• A real estate sales associate may only represent either a buyer or a seller, in any one real estate transaction. They are not permitted to represent both.
• Transaction brokers are permitted to represent both buyer and seller in a real estate transaction, but only on the condition that they offer a "limited form of nonfiduciary representation" to both parties.
Common law,
law that takes shape from the decision's judges make in the courts as each judicial case is decided upon.
The "Brokerage Relationship Disclosure Act
enacted by the Florida Legislature for the purpose of eliminating confusion and providing a better understanding for customers in real estate transactions
Disclosure as a transaction broker
requires that the disclosure be made in writing.
It does not require that it actually be signed to create the relationship
applies to residential sales only
residential sales are defined as
the sale of improved residential property of four units or fewer
, the sale of unimproved residential property intended for the use of four units or less,
or the sale of agricultural property of 10 acres or less
agency relationship will be presumed to be that of a
transaction broker if no disclosure is made to a buyer or seller.
In a nonresidential real estate transaction where the buyer and the seller each have assets of $1 million or more
the broker, at the request of the buyer and the seller, may designate two sales associates to act as single agents for the buyer and the seller in the same transaction.
There are no disclosure requirements for renting or leasing real property as per Florida statute 475.278 (5)2, unless
there is an option to purchase four residential units or fewer, in which case the transaction would then fall under the category of a residential sale.
Agents are not required to provide disclosure when
appraising real property.
Auctioning of real property does not require
agent disclosure or appraising real property
Florida Statute 475.5015 requires that brokers keep and retain all records for how long
five years
NO BROKERAGE RELATIONSHIP owes the following duties
Dealing honestly and fairly; 2. Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer. 3. Accounting for all funds entrusted to the licensee.
The disclosure must be made before
the showing of property to a buyer
Florida Statutes states nine duties that must be upheld within the single-agent relationship.
a. Dealing Honestly and Fairly
b. Loyalty
c. Confidentiality
d. Obedience
e. Full Disclosure
f. Accounting for All Funds
g. Skill, Care, and Diligence in the Transaction
h. Presenting All Offers and Counteroffers in a Timely Manner
i. Disclosing all known facts that materially affect the value of residential real property that are not readily observable
The first sentence of the single-agent disclosure must be printed
in uppercase and bold type
There are seven duties that must be upheld by a transaction broker
a. Dealing Honestly and Fairly
b. Accounting for All Funds
c. Using Skill, Care, and Diligence in the Transaction;
d. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer
e. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing
f. Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or any other information requested by a party to remain confidential
g. Any additional duties that are mutually agreed to with a party
Seller Carl has agreed to let Broker Stephen transition to transaction broker. What
disclosure form must Carl receive in order for the transition to be completed
Consent to Transition to Transaction Broker
In which brokerage relationship can a buyer or a seller choose not to be presented by
a real estate broker?
c. No Brokerage Relationship
What type of relationship occurs between the broker and the seller, when the real
estate broker takes a listing to sell someone's house?
Agent-principal
Which form of representation carries with it the greatest liability for the broker?
Single agency
Disclosure Requirements Do Not Apply per Section 475.278(5)(b), Florida Statutes to
1. Dispositions of any interest in business enterprises or business oppor-tunities, except for
property improved with four or less residential units
2. when a licensee knows
that the po-tential seller or buyer is represented by a single agent or a transaction broker
3. when an owner is selling new residential units built by the owner and the circumstances or
setting should reasonably inform the potential buyer that the owner's employee or single
agent is acting on behalf of the owner, whether be-cause of the location of the sales office or
because of office signage or placards or identification badges worn by the owner's employee
or single agent.
Which activity does not require agent disclosure?
a. Appraising real property
b. Auctioning real property
c. Renting real property
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