E025: Is your realtor representing you?

Real estate laws vary from state to state and an important question to ask when hiring your real estate agent is how you will be represented in the transaction.

As discussed in this episode, there are three different relationships a customer can have with their real estate agent In the state of Florida. 

Listed below are the duties of the agent in each relationship. 

A Transaction Broker provides you a limited form of representation that includes the following duties:

1. Dealing honestly and fairly;
2. Accounting for all funds;
3. Using skill, care, and diligence in the transaction;
4. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer; 
5. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
6. 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 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 of any other information requested by a party to remain confidentia; and 
7. Any additional duties that are entered into by this or by separate written agreement 

Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

As a single agent, your brokerage and its associates owe to you the following duties:

1. Dealing honestly and fairly;
2. Loyalty;
3. Confidentiality;
4. Obedience;
5. Full disclosure;
6. Accounting for all funds;
7. Skill, care, and diligence in the transaction; 
8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and 
9. Disclosing all known facts that materially affect the value of residential real property and are not readily observable.
   

In a no-brokerage relationship, the brokerage and its associates owe to you the following duties: 

1. 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.
   

As you can see, the duties of the brokerage vary greatly in each of the three brokerage relationships available in Florida. When you are working with a brokerage and its associates make sure you know which relationship you have when buying or selling residential real property.