I have heard that so many times, I thought I best try and clarify, what being a “Transaction Broker” means. In Florida all Realtors are presumed to be “Transaction Brokers” unless disclosed differently. Personally, I think this was a great change in how we as Realtors are able to “represent” our customers. There I said it “represent our customers.” Yes, folks “Transaction Brokerage” IS a type of representation.
This seems to be the biggest misunderstanding amongst Realtors and the general public alike. Let me repeat it again, so all Florida Realtors that are reading this post will get it, “Transaction Brokerage” is a type of representation to our customers. AND. You are NOT representing the transaction, EVER.
A “Transaction Brokerage Relationship” is a limited form of representation. With limited liability(for Realtor and customer) and limited confidentiality. You can be a “Transaction Broker” for either Seller or Buyer or BOTH. If you are a “Transaction Broker” for both parties it cannot be to the detriment of either party. A Seller or Buyer is your customer, not a client, EVER.
Also, if you take a listing as a “Transaction Broker” you are able and expected to represent your customer’s interest. If the Buyer has a Realtor, you are not in any way representing that Buyer or the Transaction. Your duties are to your Seller. If the Buyer’s Realtor is working for his Buyer as a “TB” his duty is to look out for his Buyer’s interest. NOT THE TRANSACTION. Sorry for being so repetitive with this but I’m so tired of hearing from Realtors that they are representing the transaction. We are supposed to be professionals. Understanding your relationship with your customer or client is essential if you are going to do your job properly.
Here are some links if you need additional information.
So in summary:
1. “Transaction Broker” is a type of representation, albeit limited.
2. You do not represent the transaction. EVER
3. Your Buyer or Seller is a customer, not a client.
4. Unless you have a Single Agent relationship you are a Realtor, associate, salesperson, broker or broker associate not an Agent.
5. All State laws vary when it comes to “Agency.” This post relates to Florida law.