Two Types Of Real Estate Brokers In Florida
When someone is looking to buy a piece of residential property in Florida, it is always a good idea to hire a knowledgeable real estate attorney. However, too many people either believe they can navigate the transaction alone, or simply think they can save money, by relying on their real estate agent’s expertise. In reality, there are two different types of real estate agents under Florida law, and only one of them has a fiduciary duty to the party who hires them.
Do They Owe A Duty?
In residential real estate, a person looking to engage a real estate agent is almost always looking for a person who owes them a fiduciary duty during the transaction. A fiduciary is someone who is bound, usually by contract, to act in their party’s best interests. A real estate attorney is required to act in the best interests of their client, as is the broker known as a “single agent.”
However, the way Florida’s law is structured, there is a second type of real estate agent known as a “transaction broker.” A transaction broker is a licensee of sorts for both parties to the real estate transaction; they may provide some form of representation to both parties, but cannot hold themselves out as acting in the interests of either. In other words, a single agent will act on behalf of a party, while a transaction broker will act in whatever manner concludes the transaction in the most satisfactory (and ethical) way.
Avoid Unauthorized Practice Of Law
It is permissible under Florida law to have a transaction broker conduct your real estate purchase and sale as long as both parties consent to this; since the broker does not truly represent either party, both must accept that. However, a single-agent broker is often preferred simply because you can count on their acting in your best interests. This is not to say that transaction brokers would be unethical, but that they would not prioritize your interests as a buyer or seller.
That said, it is always a good idea to enlist the right legal help on your side, even if you have a single agent broker working for you. While a real estate agent can complete certain specific forms, any other legal document will require the services of an attorney to execute. If either type of broker attempts to execute these documents, it may constitute the unauthorized practice of law – which, as one might imagine, can throw a wrench into your intended purpose.
Contact A Tampa Real Estate Attorney
Buying residential property is often a complex endeavor, and you want both the right broker and the right attorney on your side. A Tampa real estate attorney from the Seward Law Office can ensure that your rights are protected during this type of transaction. Contact our office today at 813-252-6789 to schedule a consultation.
Source:
flsenate.gov/Laws/Statutes/2021/475.01
