Do you know what level of loyalty you should expect?

Whether you are buying or selling a home, make sure you understand the type of relationship you have established with the real estate licensee.

In the State of Florida there are three types of relationships you can enter into with a real estate agent:
Single Agent,
Transaction Broker
No Brokerage Relationship.

Each relationship varies by the level of representation a Licensed Real Estate Broker, Sales Associate or Broker Associate  will provide.

In a Single Agent Relationship  you become the Client or “Principal” and the licensed professional acts by law, as the Single Agent with a fiduciary duty; meaning they must be obedient, loyal and provide full confidentiality to you, the Principal.

Can a licensed professional have a single agent relationship with two people? Having a fiduciary duty to both a seller and buyer in a transaction can cause serious conflicts of interest. This is what is referred to as a Dual Agency. It is not allowed in Florida, thus the majority of real estate sales are facilitated by a Transaction Broker.

A Transaction Broker Relationship provides limited representation to you, the customer. You will not have the right to the undivided loyalty of the agent, and therefore you are not a Client or “Principal” of the agent. This type of limited representation allows real estate agents to facilitate a transaction by assisting both the buyer and the seller, but will not work to represent one party to the detriment of the other. The licensed professional represents the transaction only.

“It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.”- Florida Statute

If you act in the capacity of a Buyer or a Seller, it is presumed that you have entered into a Transaction Broker Relationship unless the Licensed Sales Associate,  or Broker provides you with a Single Agent or No Brokerage Relationship Agreement.

Transaction Broker duites include:

• Dealing honestly and fairly.
• Accounting for all funds.
• Using skill, care, and diligence in the transaction.
• Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer.
• Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing.
• Limited confidentiality, unless waived in writing by a party. This is intended to prevent the associate from disclosing 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, or 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.

Single Agent Relationships are created when you act as a Client Seller, or Client Buyer, and an agent agrees to act solely on your behalf .  Once you enter a Single Agent relationship all agents within that brokerage firm  become Single Agents and owe you, the Client, fiduciary duties. Each and every one of the brokerage’s agents must place your interests ahead of their own and refrain from any self-dealing.

Single Agent duties include:

• Dealing honestly and fairly.
• Loyalty.
• Confidentiality – everything that transpires during the relationship can never be disclosed unless the principal or client directs the agent to do otherwise – best to get this in writing.
• Obedience – the agent must obey the principal as long as what the principal is directing the agent to do is within the law.
• Full disclosure – Everything the agent discovers about the transaction, the property or the other party must be disclosed to the principal.
• Accounting for all funds.
• Skill, care, and diligence in the transaction.
• Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing.
• Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

Would this ever be an issue? Yes, take for instance that you, a Buyer in a Single Agent Relationship with a real estate agent, are interested in purchasing a home listed with the agent’s Broker. Before moving forward both you and the seller must consent in writing to Transition to a Transaction Broker Relationship thereby releasing the agents of the firm from their fiduciary duties. However, anything that transpired during the Single Agent Relationship continues to be protected by the Single Agent agreement meaning the agents can not disclose any confidential information obtained during that period without the written consent of their former Clients.

The 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.

What about if you are driving around, or surfing a real estate app, and become interested in a property. You reach out to the ( listing ) real estate agent who has a single agent relationship with the seller, and ask about purchasing the seller’s home? If the seller refuses to transition to a transaction broker relationship, you will either have to employ an agent from a different brokerage firm to represent you or the seller’s agent, by law, must have you sign the No Brokerage Relationship disclosure. This leaves you with no representation in the transaction.

No Brokerage Relationship duties include:

• Dealing honestly and fairly.
• Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer.
• Accounting for all funds entrusted to the licensee.

Whether you are buying or selling a home, make sure you understand the type of relationship you have established with the real estate licensee .

Real Estate offers us an emotional place of connection, belonging, security, and protection. We each inherently understand the relationship the Earth and places have in our hearts and minds, even when we do not articulate it.

Everything that can be born, is birthed on a piece of land.

We have stubbed toes or had a first heartbreak, or maybe even had a very heated argument somewhere on a vacant or improved piece of land.

We have fallen in love, heard a favorite song for the first time, hugged a child or puppy, or have been enthralled or scared at their first sight of an insect somewhere on some piece of land.

If you were lucky you have seen a movie, sunset, concert, or rainbow, had a cup of coffee with friends and played in a treehouse or blanket fort, swam with dolphins, or repelled down a waterfall -you guessed it-on a piece of land.

Whether it be the last day of high school or visiting a childhood neighborhood, or hosting Thanksgiving dinner for the first time, each of us has a vague or significant emotion attached to a piece of land.

Each of my sellers feels both a last moment of reflection and the first moment of joy in leaving their property after closing. Each of my buyers, be it first-time homeowners, an investor, commercial buyer, or downsizing senior experience a high moment when they realize the property, and the promise it has in fulfilling their needs, is their very own.

Fee Simple:  Absolute ownership in its simplest form.  If you own property in fee simple, you own the property outright and may dispose of it in any manner you desire.  You may sell all or part of it, give it away, or bequeath it through a will or trust.

Tenants in Common:  Shared ownership with others, but you retain the right to sell your portion without permission of the others.  All of the owners have a share of the estate.  If one of the owners dies, his portion can pass through to his heirs.

Joint Tenants:  Ownership to property with the survivor taking full ownership at the first death.  A joint tenant cannot devise his or her share through a will or trust. If the deed does not mention joint tenancy or right of survivorship, it will be considered as tenants in common.

Tenancy by the Entireties:  Joint tenancy between husband and wife.  If a deed reads, “. . .to John Smith and Mary Smith, his wife,” a tenancy by entireties is created.  Neither party can convey any property without the approval of the other, and each party is deemed to be a full owner.

Life Estate: Ownership limited by someone’s life.

Tenancy for Years:  Another name for a lease.  The right to use property for a specified period of time.

“Behold, I stand at the door and knock; if anyone hears My voice and opens the door, I will come in to him and will dine with him, and he with Me.”
We believe God is continuously with each of us and desires a  relationship with us that would carry from one moment into the next. We believe that God values when we speak of Him and to Him, as we do to each other. If you have something that you wish for one of us to pray for on your behalf, click here to let us know how we may pray ( Note: Name and Email is optional. We believe you have not arrived at this page by accident. We value your privacy, and believe that because God knows you we needed have your name to pray for you.)

Title is the legal way of saying you own a right to something. For real estate purposes, title refers to ownership of the property, meaning that you have the rights to use that property. It may be a partial interest in the property or it may be the full. However, because you have title, you can access the land and potentially modify it as you see fit. Title also means that you can transfer that interest or portion that you own to others. However, you can never legally transfer more than you own.

Deeds, on the other hand, are actually the legal documents that transfer title from one person to another. It must be a written document, according to the Statute of Frauds. Sometimes the Deed is referred to as the vehicle of the property interest transfer. The transfers can be less than the title that you actually have. Deeds must be recorded in the courthouse or assessor’s office to make them fully binding in most states, but a failure to file them does not change the transfer of title. It just means that the Deed is not perfected. An imperfect Deed does not mean that there is a problem with the title. It’s just a problem with the way that the paperwork surrounding the Deed was handled.

There are four basic types of deeds in Florida with some specialized deeds based on one of the four types. The four basic types of deeds, in order of decreasing benefit to the Grantee, are: the Warranty Deed, the Special Warranty Deed, the Fee Simple Deed, and the Quit Claim Deed. In addition, there are specialized Deeds such as Personal Representative’s, Trustee’s, Guardian’s, and Life Estate Deeds. There is also a Tax Deed.

This is for informational purposes only, and  is not legal advice. Seek counsel of a licensed Attorney for legal advice.