In Florida, real estate agents can represent both buyer and seller in the same real estate transaction, but only as a “transaction broker.” A real estate agent cannot represent both buyer and seller in a Florida real estate transaction as a fiduciary in a “dual agency relationship.” See Florida Statute 475.278(1)(a).
The reason a real estate agent cannot act in a dual agency relationship is because the agent would have conflicting interests in representing both buyer and seller. The buyer in a real estate transaction wants to purchase property at the lowest price possible whereas a seller wants to sell property at the highest price possible. A real estate agent could not maximize the interests of both parties.
A transactional brokerage relationship is where the real estate agent is acting as a neutral party between buyer and seller, so the real estate agent does not have a fiduciary duty to either party. The transaction broker only provides information to buyer and seller and helps to facilitate the real estate transaction.
Florida Statute 475.278 (2024) defines the transaction broker as follows:
(2) TRANSACTION BROKER RELATIONSHIP.—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:
(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 of any other information requested by a party to remain confidential; and
(g) Any additional duties that are mutually agreed to with a party.
While a transaction broker relationship is common, it offers buyer and seller less protection since the real estate agent does not have a fiduciary duty to either party. If a buyer or seller wants a real estate agent to have a fiduciary duty to the buyer or seller, then the buyer or seller needs to request an agency agreement with the real estate agent that indicates the real estate agent will act in a fiduciary capacity.