Transaction Broker vs. Single Agent in Florida: Duties, the Presumption of Transaction Brokerage, and Required Disclosures

Short answer: In Florida, every licensee is presumed to be working as a transaction broker unless a single agent relationship or no brokerage relationship is established in writing with the customer. A transaction broker gives limited representation to the buyer, the seller, or both, but is not a fiduciary. A single agent is a fiduciary for either the buyer or the seller, but not both, in the same transaction. Florida law does not allow licensees to act as disclosed or nondisclosed dual agents. These rules are in s. 475.278 of the 2026 Florida Statutes.

The three relationships Florida allows

Section 475.278(1)(a) says a real estate licensee may enter into a brokerage relationship as either a transaction broker or a single agent with potential buyers and sellers. The statute also sets out the duties owed when a licensee has no brokerage relationship with a buyer or seller. Dual agency, meaning a broker who represents as a fiduciary both the prospective buyer and the prospective seller, is not permitted.

Transaction broker: the default

Under s. 475.278(1)(b), it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer. A transaction broker provides a limited form of representation and does not represent either party in a fiduciary capacity. The statute lists seven duties: dealing honestly and fairly; accounting for all funds; using skill, care, and diligence; disclosing known material facts about residential property that are not readily observable to the buyer; presenting all offers and counteroffers in a timely manner unless a party has directed otherwise in writing; limited confidentiality, unless waived in writing; and any additional duties mutually agreed to.

Limited confidentiality has specific content. It prevents disclosing that the seller will accept less than the asking or listed price, that the buyer will pay more than the price in a written offer, the motivation of any party, that a party will agree to different financing terms, or any other information a party asks to keep confidential. In a transaction broker relationship, the buyer or seller is not responsible for the acts of the licensee, and the parties give up their rights to the undivided loyalty of the licensee (s. 475.01).

Single agent: full fiduciary duties

A single agent is a broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction. Section 475.278(3)(a) lists nine duties: dealing honestly and fairly; loyalty; confidentiality; obedience; full disclosure; accounting for all funds; skill, care, and diligence; presenting all offers and counteroffers in a timely manner; and disclosing known facts that materially affect the value of residential real property and are not readily observable.

The single agent duties must be fully described and disclosed in writing. The disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation, or before the showing of property, whichever occurs first. It can be a separate document or part of another document, such as a listing agreement. When it is built into another document, it must be in type at least as large as the other provisions and placed conspicuously, and the first sentence of the notice must be printed in uppercase and bold type.

No brokerage relationship

A licensee with no brokerage relationship owes three duties: dealing honestly and fairly; disclosing known facts that materially affect the value of the residential property and are not readily observable to the buyer; and accounting for all funds entrusted to the licensee. These duties must be disclosed in writing before the showing of property (s. 475.278(4)).

Transition from single agent to transaction broker

A single agent relationship may be changed to a transaction broker relationship at any time, provided the agent first obtains the principal's written consent to the change (s. 475.278(3)(b)2.). The licensee must use the statutory "Consent to Transition to Transaction Broker" notice, which the principal must initial or sign. This is how one brokerage can assist both a buyer and a seller in the same deal: by moving to limited representation of both, not by becoming a dual agent.

When the disclosure rules apply

The disclosure requirements apply to all residential sales. A "residential sale" means the sale of improved residential property of four units or fewer, unimproved residential property intended for four units or fewer, or agricultural property of 10 acres or fewer (s. 475.278(5)(a)). They do not apply to, among others, nonresidential transactions; most rentals and leases; a bona fide open house or model home showing that does not involve confidential information, offers or negotiation; auctions; and appraisals. They also do not apply when the licensee knows the customer is already represented by a single agent or a transaction broker.

Disclosure documents required under ss. 475.2755 and 475.278 must be retained in all transactions that result in a written contract to purchase and sell real property (s. 475.5015). For certain nonresidential transactions where the buyer and seller have assets of $1 million or more, the 2026 statute (s. 475.2755) lets the broker, at the customers' request, designate sales associates to act as single agents for different customers in the same transaction.

On the exam

Brokerage relationships are part of the "Authorized Relationships, Duties and Disclosures" area, 7% of the exam in the DBPR booklet effective January 2025. Expect questions that ask which duties apply, when a disclosure is due, and what happens when no relationship is established in writing (the answer: transaction broker is presumed). Study the full lesson at Florida brokerage relationships, see escrow rules for sales associates, or browse all Florida lessons.

Independent exam-prep guide. Not affiliated with the Florida Real Estate Commission, the DBPR or Pearson VUE. Always confirm current requirements with the DBPR.