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The Florida Statutes

The 1997 Florida Statutes

Title XXXII
REGULATION OF PROFESSIONS AND OCCUPATIONS
Chapter 475
Real Estate Brokers, Salespersons, Schools, And Appraisers

475.278  Authorized brokerage relationships; required disclosures.--

(1)  AUTHORIZED BROKERAGE RELATIONSHIPS.--A real estate licensee in this state may enter into a brokerage relationship as either a single agent or as a transaction broker with potential buyers and sellers. A real estate licensee may not operate as a disclosed or nondisclosed dual agent. As used in this section, the term "dual agent" means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction. Once a brokerage relationship is established, this part does not prevent a licensee from changing from one brokerage relationship to the other as long as the buyer or the seller, or both, gives consent as required by subparagraph (3)(c)2. before the change and the appropriate disclosure of duties as provided in this part is made to the buyer or seller. This part does not require a customer to enter into a brokerage relationship with any real estate licensee.

(2)  TRANSACTION BROKER RELATIONSHIP.--

(a)  Transaction broker-duties of limited representation.--A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following:

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 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 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 of any other information requested by a party to remain confidential; and

7.  Any additional duties that are mutually agreed to with a party.

(b)  Disclosure requirements.--Duties of a transaction broker must be fully described and disclosed in writing to a buyer or seller either as a separate and distinct disclosure document or included as part of another document such as a listing agreement or agreement for representation. The disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of limited representation, except that the first sentence of the information identified in paragraph (c) must be printed in uppercase and bold type.

(c)  Contents of disclosure.--The required notice given under paragraph (b) must include the following information in the following form:


FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS THEIR ROLE AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.


As a transaction broker, _____ _____ _____ _____ (insert name of Real Estate Firm and its Associates), provides to 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 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 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 of any other information requested by a party to remain confidential; 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.

__________
Date
______________________________
Signature
______________________________
Signature

(3)  SINGLE AGENT RELATIONSHIP.--

(a)  Single agent-duties.--The duties of a real estate licensee owed to a buyer or seller who engages the real estate licensee as a single agent include the following:

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; and

8.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing.

(b)  Disclosure requirements.--

1.  Single agent disclosure.--Duties of a single agent must be fully described and disclosed in writing to a buyer or seller either as a separate and distinct disclosure document or included as part of another document such as a listing agreement or other agreement for representation. The disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of a single agent, except that the first sentence of the information identified in paragraph (c) must be printed in uppercase and bold type.

2.  Transition to transaction broker disclosure.--A single agent relationship may be changed to a transaction broker relationship at any time during the relationship between an agent and principal, provided the agent gives the disclosure required under paragraph (2)(b) and the principal gives to the agent consent as required under subparagraph (c)2. before a change in relationship. This disclosure must be in writing to the principal either as a separate and distinct document or included as part of other documents such as a listing agreement or other agreements for representation. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of limited representation, except that the first sentence of the information identified in subparagraph (c)2. must be printed in uppercase and bold type.

(c)  Contents of disclosure.--

1.  Single agent duties disclosure.--The notice required under subparagraph (b)1. must include the following information in the following form:


FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.

As a single agent, _____ _____ _____ _____ (insert name of Real Estate Entity 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; and

8.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing.

__________
Date
______________________________
Signature

2.  Transition disclosure.--The notice required under subparagraph (b)2. must include the following information in the following form as well as the information required in paragraph (2)(c):


FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.


_____ _____ I agree that my agent may assume the role and duties of a transaction broker. [must be initialed or signed]

(4)  NO BROKERAGE RELATIONSHIP-DUTIES.--A real estate licensee owes to a customer with whom the licensee has no brokerage relationship the following duties:

(a)  Dealing honestly and fairly;

(b)  Disclosing all known facts that materially affect the value of the property which are not readily observable to the buyer; and

(c)  Accounting for all funds entrusted to the licensee.

History.--s. 3, ch. 97-42.