This week I would like to cover another topic that has surfaced a few times lately. It appears there is still a bit of confusion on the type of representation we provide our clients in different situations. On and after July 1, 2008, a real estate licensee representing a customer is assumed to be operating in a Transaction Broker capacity. This means you are not required to provide a transaction broker notice to the customer before or at the time of entering into an agreement for representation, or before showing property.
Don’t I have the option to represent them as a Single Agent?
The answer is YES and NO. If you are showing property and negotiating contracts that are NOT listed with RE/MAX Elite, then you are perfectly okay to operate as a single agent. However, once you get involved with an in-house transaction, you must transition back into the transaction broker status. The Florida Statutes requires that you must obtain the customer’s written consent as a condition to transitioning. The disclosure that must be used in this case is entitled “Consent to Transition to Transaction Broker.”
One of the main differences between the two is 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: and any additional duties that are mutually agreed to with a party.
You are still required to deal honestly and fairly no matter what! There is nothing against representing your customer as a Single Agent as long as all parties understand you may have to transition if you get involved with any inventory listed by our firm. Of course that includes selling your own listing 🙂
Questions, comments or concerns?
May the force be with you! JB
By Justin Brown aka JB | Jedi Master Yoda @ RE/MAX Elite