September 17, 2023 • 19 mins
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Unknown (16:50:40):
Welcome to Goodwin law unplugged, Florida real estate
and more. This podcast featurescandid insight for real estate
industry professionals from allsectors. Your host attorney
Matthew Goodwin, a nativeFloridian and experienced real
estate attorney will provide hispersonal insight on legal
matters and feature otherprofessionals offering their
(16:51:01):
candid advice. Whether you're afirst time homebuyer, seasoned
investor or experienced realestate agent, there is something
for everyone. Thanks for joiningus on Goodwin law unplugged.
Charlie McDermott (16:51:14):
Welcome back listeners and viewers. Charlie
McDermott, co host producer ofthe show here again with Matt
Goodwin met. What's happening.
Matthew Goodwin (16:51:22):
Hey, Charlie, how are you today?
Charlie McDermott (16:51:24):
doing terrific doing terrific. As
always, I mean, I'm excited totalk
Matthew Goodwin (16:51:28):
about this topic. And we try to keep our
episodes short for the quickdrive in the car. And today
we're going to talk aboutsomething that can really
involve in depth conversations,very fact intensive inquiries,
but it involves the brokeragerelationship types in Florida.
(16:51:50):
So there's three types ofbrokerage relationships. I'm
going to talk about those, orintroduce those rather, and the
duties associated with each theduty from the agent to the
customer or client, and thenjust offer some legal commentary
and clarification.
Charlie McDermott (16:52:07):
Like, I didn't know there are three
relationships. So as always, I'mtaking notes, Matt, go for it.
Good.
Matthew Goodwin (16:52:13):
All right. So you know, there's perpetual
blind spots over confusing areasof law and how Florida's agency
and non agency relationshipworks. So in other states, some
of these relationships areunheard of. And they're just
used to exclusive or singleagency. So I'm going to talk
about how the duties increasefrom in the three relationship
(16:52:39):
types in Florida. Moving from nobrokerage relationship to
transaction broker to singleagent. So no brokerage
relationship, here are theduties, dealing honesty,
honestly, and fairly. Numbertwo, disclosing known facts that
(16:53:01):
materially affect the value ofthe property. And that's for
residential properties only. Andnumber three, accounting for all
funds. So you work with a realestate agent who's part of a
brokerage, you have somethingthat's signed, or that says,
there's no brokeragerelationship here, that agent
(16:53:23):
still has to that broker stillhas to deal honestly and fairly
with you. They still have todisclose known facts that
materially affect the value of aresidential property, and they
still have to account for allfunds.
Unknown (16:53:37):
Okay. And Matt, just for our listeners who aren't
even aware of what a broker is,how would you define a broker?
A broker is the professionalentity represented by an
individual that helps protectyour interests, write up the
(16:53:58):
sales contract, or write up thelisting agreement, market your
property, show you properties,and usually you're dealing with
a real estate agent or a realtour. And that realtor either is
a broker or works for abrokerage. Okay? Okay. So they
(16:54:22):
help you find properties, theyhelp you sell properties, and
they do a lot of other things.
So hopefully that did it justicewith a basic description of real
estate broker, super. So if youthink of those three duties,
when there's no brokeragerelationship, it should give you
some peace of mind, right? Andnow moving on to a transaction
(16:54:43):
broker, we have those sameduties, but then we add these,
these four. One is thattransaction broker is required
to use skill, care, anddiligence. Next, they're
required to present all offersand counter offers. Third,
they're required the required tosort of keep things
(16:55:11):
confidentiality, but it's alimited form of confidentiality.
And finally, you can agree toadditional duties if they're
mutually agreed to, with thatbroker. So in Florida
transaction broker is thedefault. And if there's nothing
in writing, this is the mostcommon type of relationship you
(16:55:37):
You'd expect to have workingwith a real estate agent and or
broker when buying or sellingreal estate. So added peace of
mind, right? So they have tostill have to deal honestly and
fairly, they still have todisclose those known facts
materially affecting the valueof a residential property, they
still have to account for allfunds. But in addition, they
have to use skill care anddiligence. They have to present
all offers and counteroffers.
(16:56:01):
And that's a big one, there's alimited confidentiality. And you
can have additional dutieswritten into that agreement.
That sign and the key here isthose that has to be in writing.
So if there's nothing inwriting, these are the minimum
you can expect from working witha real estate agent, then the
ethics code that governs themand their behavior.
(16:56:25):
So what jumps out to me, and itwas an assumption that I always
had is that you would receiveoffers, but that's not the case.
In that, that initialrelationship. Correct? Exactly.
No brokeragerelationship? Yeah, that's
right. That's right. So I cantell you, and I thought you
(16:56:48):
might have said something alongthese lines. But there are many
transaction brokers or agentsthat don't know, the that
transaction broker as a default,and they don't know they can get
in trouble for not presentingall offers. And that's where a
lot of agents do get in trouble.
And there's a lot of ethicscases opened up because of it.
(16:57:11):
That there's offers that arepocketed, right. One of the
common scenarios where atransaction broker might pocket
an offer is if they get an offerfrom a buyer's agent. And then
they're expecting an offer fromsomebody either on their team or
somebody that contacted them orthat they met at an open house.
(16:57:34):
So the commission is doubled.
They stand to gain double thecommission, if a handle quote
unquote, both sides of thattransaction. So we see a lot of
ethics cases on that. I'm not onan ethics or Grievance
Committee, I just know firsthandfrom speaking with people that
this happens a lot. And it'sreally hard to prove and, and
(16:57:54):
you can know a lot you can't youcan't file an ethics claim
anonymously. So it's sort oflike it's a self governing
mechanism. But it also isprevented in in all those claims
coming forward. Because nobody,you get to confront your
accuser. And you don't want tobe the tattletale in the
(16:58:14):
neighborhood, right? Or in thecommunity, or in the industry.
Yeah. So you walk a fine linewhen you file an ethics ethics
claim against another agent. Butand it's very similar in law as
well. Lawyers are required toreport other lawyers for ethics
violations, and you just don'tsee it as much because of the
due process where you get toconfront your accuser. So I
(16:58:36):
don't wanna get too off on atangent transaction broker most
common form in Florida. I'mgoing to talk to you about
single agency next, and whatadditional duties come with. So
all of those same duties apply.
But there's three really bigones. So there, there's loyalty
and confidentiality, strictconfidentiality. There's
(16:59:00):
obedience. Right? So what doesthat mean? And then, shouldn't I
be obedient? And all that? Ididn't assume that Yeah. And
then finally, full disclosure.
And you might also ask, whatdoes that mean? Right? So if you
are a dealing with a nobrokerage relationship, don't
expect what you say to be heldconfidentiality confidential.
(16:59:22):
Okay. If you're dealing with atransaction broker, expect
limited confidentiality, ifyou're dealing with a single
agency, meaning that you signeda piece of paper, and it says,
single agency definingrelationship, full disclosure is
required. Meaning that we can'thide anything that agents not
(16:59:44):
allowed to hide anything,somebody walked through the
property and, and said,something that is derogatory
towards the value of the home. Imean, there's a number of things
out there. So I don't want toget too caught up in these
scenarios. But they're the theseare the minimum legal duties.
(17:00:04):
And And remember, if transactionbroker is the default in
Florida, then you need somethingin writing to identify anything
else, such as no brokeragerelationship or single agency,
we get a lot of agents thatrelocate here from other states,
(17:00:24):
many other states, I won't evenname them because most other
states, it's very common to havea single agency type
relationship and when they comehere, like, what do you what do
you mean you don't represent meonly Especially these listing
agents that will have atransaction brokerage
relationship with a buyer who'sotherwise unrepresented. And
(17:00:45):
come to find out, you know, theagents playing both sides. Well,
remember, they still have to useskill care and diligence, they
still have to present all offersand counteroffers. And this can
be okay. As long as everybodyunderstands where they stand in
terms of the relationship,what's confidential, what's not,
(17:01:07):
but it creates a disconnect, italmost creates, in some cases of
contention, and there's aninherent conflict when an
agent's doing both sides. I'mnot saying it's not a good idea,
or it's, it's not done, or youshouldn't do it or agree to it.
But just know and understand thedifference is, so you can do
your due diligence on thatproperty, depending on the
relationship you have with theagent or brokerage you're
(17:01:29):
working with.
So Matt, is there a questionthat, you know, consumer,
consumers should ask buying orselling a home? To figure out
what kind of relationship you'reentering into?
Well, one of the most simplestquestions would be, what duties
(17:01:51):
Do you owed to me? And that Ithink, would open a dialog to
the options. If an agent says,Well, I'm a transaction broker.
And here's what that means. Andhere's what I'll have you sign,
well, then you know, where youstand. But you always have the
right as a buyer or seller toprobe and say, Well, can I can I
(17:02:11):
have you as my exclusive agent?
I want to make sure that you'reonly representing my interests,
some agents will agree to it,some won't. And I think the ones
that won't, are so accustomed tooperating under a transaction
brokerage type relationship,that they risk getting
themselves or crossing gettingthemselves in trouble or
crossing ethical boundaries, bydoing anything else, and there's
(17:02:34):
nothing wrong with that. Justunderstand that there's not full
disclosure required, like insingle agency, and there's not
complete loyalty. They're stillsupposed to be honesty, care,
diligence. Yeah, fair enough.
(17:02:55):
But not the obedience,but not the obedience. All
right.
This is, this is interesting.
All new to me, I had no idea.
So here's a question for you.
Can a transaction broker provideloyalty and obedience despite
not being legally obligated todo so? Of course they can. Yeah,
(17:03:17):
right. And and from a legalperspective, is there a distinct
difference and how a singleagent versus a transaction
broker treats the people thatthey're representing? Well, it's
very rare, right? It whenrepresenting only one side in a
transaction, but when you'rerepresenting both sides in the
(17:03:40):
same transaction that changesthe dynamic, and sometimes
unintentionally, mostoftentimes, unintentionally,
we're bias subconsciously, a lotof times we're not realizing it.
That's why I think agents andthe individuals buying and
selling themselves need toreally understand this stuff. I
went to the Florida Realtorsconvention a couple of weeks
ago. And they gave some of thetop topics from the call in on
(17:04:05):
the legal hotline, this was thiswas the main this was one of the
main ones over the last severalmonths, which shows that agents
don't understand that they'regetting this license that gives
them a lot of power orresponsibility, but they don't
understand what their duties andobligations are to and how those
can be changed and what it meansto the public. So written
(17:04:29):
disclosures are required only toform a single agency and no
brokerage relationship withtransaction brokers relationship
is presumed you don't even haveto disclose it, and most
brokerages don't. A signature isnot even required. You have to
prove receipt that thedisclosure was made. So if
(17:04:52):
you're, if you're operating in asingle agency and a no brokerage
relationship, you probablyshould have your customer client
sign that because otherwise, youdefault to a transaction broker.
And we've already gone over someof the differences of what that
can mean. Now, last thing I'lltell you about is there's a
(17:05:14):
hybrid as a single agency, witha consent transitioning to a
transaction broker. So this is athing in Florida that say, the
listing agent, signs up with youas a single agent brokerage
relationship, and they say, youknow, this buyer comes along
without an agent. And this is agood thing for the listing agent
(17:05:38):
because there's more financialgain in the transaction. Right?
No problem, right. But they haveto disclose this transition. So
they say, Mr. Seller, Mrs.
Seller, can you please sign thisdocument, it says I'm
transitioning now to atransaction broker, which helps
protect them in their brokerage.
But unlike single agency, and nobid, no brokerage relationship
(17:06:01):
disclosures, prior writtenconsent is required, and a
signature is required. So ifyou're transitioning after the
fact, from a single agency, to atransaction brokerage, you must
have a signed document thatproves it. And the consent can
be signed any time before thetransition itself. And you can
(17:06:23):
picture this in a situationwhere there's offers coming in,
and the listing agent has aquick decision to make right? Do
they not have them sign it? Orthey haven't signed it? Well,
I'd argue to say that most ofthem don't have them sign
anything. Because they don'tknow what it means. And they
don't want to create any falseconcern or question of the
(17:06:49):
client that they may have beenworking months with to sell that
property. Andso is the client notified? I
mean, how does that do both needto sign a document or
no? So this would be a preexisting single agency
relationship. Okay. And I can'tsee this happening with a
(17:07:14):
buyer's agent unless the FDA forother reasons. So I think more
likely to happen with a listingagent who's going to be
representing both sides, andwants to make sure they don't
cross any ethical boundaries.
Because if they're entertainingoffers from an unrepresented
buyer, and they have a singleagency already in writing with
(17:07:35):
the seller, then how are theygoing to be obedient and loyal
to both people and a naturallyadversarial relationship? More
importantly, how are they goingto be confidential to one if it
affects the other? So they it'dbe silly not to sign the or not
(17:07:57):
to request signature? And thereare some agents I've heard out
there that won't work with aclient that I think I mentioned
this earlier that is demanding asingle agency relationship.
Because they know better, orthey don't know what they don't
(17:08:19):
know. Okay. Yeah. Yeah. So, wetalked about a lot today, I just
want to kind of recap a little.
There's, there's there's a lotof increased duties with the
type of agency you have withyour broker's relationship in
Florida. And there's nobrokerage relationship to
(17:08:43):
transaction broker to singleagency transaction broker as the
default doesn't require anythingin writing. The two others do.
The duties increase as you gofrom no brokerage relationship
to transaction broker to singleagency. And of course, you can
have a hybrid where youtransition from single agency to
transaction broker.
(17:09:05):
I think we should end thisepisode before another version
is created. Matt, great, greatstuff, as always very helpful to
your listeners and viewers we'llsee in the next episode.
Thanks, Charlie. Have a goodone, everyone.
Thanks for listening to Goodwinlaw unplugged. To learn more
(17:09:27):
about Goodwin law and to utilizeour services, visit Goodwin
estate law.com or call239-207-3403. Of Llamosa
Spaniel, to submit questions orbe a guest on a future episode.
message us on our website or onsocial media by searching for
Goodwin law pa in Naples,Florida. This has been Goodwin
(17:09:49):
law unplugged. Thanks again forjoining us
Welcome to Goodwin law unplugged, Florida real estate
and more. This podcast featurescandid insight for real estate
industry professionals from allsectors. Your host attorney
Matthew Goodwin, a nativeFloridian and experienced real
estate attorney will provide hispersonal insight on legal
matters and feature otherprofessionals offering their
(16:51:01):
candid advice. Whether you're afirst time homebuyer, seasoned
investor or experienced realestate agent, there is something
for everyone. Thanks for joiningus on Goodwin law unplugged.
Charlie McDermott (16:51:14):
Welcome back listeners and viewers. Charlie
McDermott, co host producer ofthe show here again with Matt
Goodwin met. What's happening.
Matthew Goodwin (16:51:22):
Hey, Charlie, how are you today?
Charlie McDermott (16:51:24):
doing terrific doing terrific. As
always, I mean, I'm excited totalk
Matthew Goodwin (16:51:28):
about this topic. And we try to keep our
episodes short for the quickdrive in the car. And today
we're going to talk aboutsomething that can really
involve in depth conversations,very fact intensive inquiries,
but it involves the brokeragerelationship types in Florida.
(16:51:50):
So there's three types ofbrokerage relationships. I'm
going to talk about those, orintroduce those rather, and the
duties associated with each theduty from the agent to the
customer or client, and thenjust offer some legal commentary
and clarification.
Charlie McDermott (16:52:07):
Like, I didn't know there are three
relationships. So as always, I'mtaking notes, Matt, go for it.
Good.
Matthew Goodwin (16:52:13):
All right. So you know, there's perpetual
blind spots over confusing areasof law and how Florida's agency
and non agency relationshipworks. So in other states, some
of these relationships areunheard of. And they're just
used to exclusive or singleagency. So I'm going to talk
about how the duties increasefrom in the three relationship
(16:52:39):
types in Florida. Moving from nobrokerage relationship to
transaction broker to singleagent. So no brokerage
relationship, here are theduties, dealing honesty,
honestly, and fairly. Numbertwo, disclosing known facts that
(16:53:01):
materially affect the value ofthe property. And that's for
residential properties only. Andnumber three, accounting for all
funds. So you work with a realestate agent who's part of a
brokerage, you have somethingthat's signed, or that says,
there's no brokeragerelationship here, that agent
(16:53:23):
still has to that broker stillhas to deal honestly and fairly
with you. They still have todisclose known facts that
materially affect the value of aresidential property, and they
still have to account for allfunds.
Unknown (16:53:37):
Okay. And Matt, just for our listeners who aren't
even aware of what a broker is,how would you define a broker?
A broker is the professionalentity represented by an
individual that helps protectyour interests, write up the
(16:53:58):
sales contract, or write up thelisting agreement, market your
property, show you properties,and usually you're dealing with
a real estate agent or a realtour. And that realtor either is
a broker or works for abrokerage. Okay? Okay. So they
(16:54:22):
help you find properties, theyhelp you sell properties, and
they do a lot of other things.
So hopefully that did it justicewith a basic description of real
estate broker, super. So if youthink of those three duties,
when there's no brokeragerelationship, it should give you
some peace of mind, right? Andnow moving on to a transaction
(16:54:43):
broker, we have those sameduties, but then we add these,
these four. One is thattransaction broker is required
to use skill, care, anddiligence. Next, they're
required to present all offersand counter offers. Third,
they're required the required tosort of keep things
(16:55:11):
confidentiality, but it's alimited form of confidentiality.
And finally, you can agree toadditional duties if they're
mutually agreed to, with thatbroker. So in Florida
transaction broker is thedefault. And if there's nothing
in writing, this is the mostcommon type of relationship you
(16:55:37):
You'd expect to have workingwith a real estate agent and or
broker when buying or sellingreal estate. So added peace of
mind, right? So they have tostill have to deal honestly and
fairly, they still have todisclose those known facts
materially affecting the valueof a residential property, they
still have to account for allfunds. But in addition, they
have to use skill care anddiligence. They have to present
all offers and counteroffers.
(16:56:01):
And that's a big one, there's alimited confidentiality. And you
can have additional dutieswritten into that agreement.
That sign and the key here isthose that has to be in writing.
So if there's nothing inwriting, these are the minimum
you can expect from working witha real estate agent, then the
ethics code that governs themand their behavior.
(16:56:25):
So what jumps out to me, and itwas an assumption that I always
had is that you would receiveoffers, but that's not the case.
In that, that initialrelationship. Correct? Exactly.
No brokeragerelationship? Yeah, that's
right. That's right. So I cantell you, and I thought you
(16:56:48):
might have said something alongthese lines. But there are many
transaction brokers or agentsthat don't know, the that
transaction broker as a default,and they don't know they can get
in trouble for not presentingall offers. And that's where a
lot of agents do get in trouble.
And there's a lot of ethicscases opened up because of it.
(16:57:11):
That there's offers that arepocketed, right. One of the
common scenarios where atransaction broker might pocket
an offer is if they get an offerfrom a buyer's agent. And then
they're expecting an offer fromsomebody either on their team or
somebody that contacted them orthat they met at an open house.
(16:57:34):
So the commission is doubled.
They stand to gain double thecommission, if a handle quote
unquote, both sides of thattransaction. So we see a lot of
ethics cases on that. I'm not onan ethics or Grievance
Committee, I just know firsthandfrom speaking with people that
this happens a lot. And it'sreally hard to prove and, and
(16:57:54):
you can know a lot you can't youcan't file an ethics claim
anonymously. So it's sort oflike it's a self governing
mechanism. But it also isprevented in in all those claims
coming forward. Because nobody,you get to confront your
accuser. And you don't want tobe the tattletale in the
(16:58:14):
neighborhood, right? Or in thecommunity, or in the industry.
Yeah. So you walk a fine linewhen you file an ethics ethics
claim against another agent. Butand it's very similar in law as
well. Lawyers are required toreport other lawyers for ethics
violations, and you just don'tsee it as much because of the
due process where you get toconfront your accuser. So I
(16:58:36):
don't wanna get too off on atangent transaction broker most
common form in Florida. I'mgoing to talk to you about
single agency next, and whatadditional duties come with. So
all of those same duties apply.
But there's three really bigones. So there, there's loyalty
and confidentiality, strictconfidentiality. There's
(16:59:00):
obedience. Right? So what doesthat mean? And then, shouldn't I
be obedient? And all that? Ididn't assume that Yeah. And
then finally, full disclosure.
And you might also ask, whatdoes that mean? Right? So if you
are a dealing with a nobrokerage relationship, don't
expect what you say to be heldconfidentiality confidential.
(16:59:22):
Okay. If you're dealing with atransaction broker, expect
limited confidentiality, ifyou're dealing with a single
agency, meaning that you signeda piece of paper, and it says,
single agency definingrelationship, full disclosure is
required. Meaning that we can'thide anything that agents not
(16:59:44):
allowed to hide anything,somebody walked through the
property and, and said,something that is derogatory
towards the value of the home. Imean, there's a number of things
out there. So I don't want toget too caught up in these
scenarios. But they're the theseare the minimum legal duties.
(17:00:04):
And And remember, if transactionbroker is the default in
Florida, then you need somethingin writing to identify anything
else, such as no brokeragerelationship or single agency,
we get a lot of agents thatrelocate here from other states,
(17:00:24):
many other states, I won't evenname them because most other
states, it's very common to havea single agency type
relationship and when they comehere, like, what do you what do
you mean you don't represent meonly Especially these listing
agents that will have atransaction brokerage
relationship with a buyer who'sotherwise unrepresented. And
(17:00:45):
come to find out, you know, theagents playing both sides. Well,
remember, they still have to useskill care and diligence, they
still have to present all offersand counteroffers. And this can
be okay. As long as everybodyunderstands where they stand in
terms of the relationship,what's confidential, what's not,
(17:01:07):
but it creates a disconnect, italmost creates, in some cases of
contention, and there's aninherent conflict when an
agent's doing both sides. I'mnot saying it's not a good idea,
or it's, it's not done, or youshouldn't do it or agree to it.
But just know and understand thedifference is, so you can do
your due diligence on thatproperty, depending on the
relationship you have with theagent or brokerage you're
(17:01:29):
working with.
So Matt, is there a questionthat, you know, consumer,
consumers should ask buying orselling a home? To figure out
what kind of relationship you'reentering into?
Well, one of the most simplestquestions would be, what duties
(17:01:51):
Do you owed to me? And that Ithink, would open a dialog to
the options. If an agent says,Well, I'm a transaction broker.
And here's what that means. Andhere's what I'll have you sign,
well, then you know, where youstand. But you always have the
right as a buyer or seller toprobe and say, Well, can I can I
(17:02:11):
have you as my exclusive agent?
I want to make sure that you'reonly representing my interests,
some agents will agree to it,some won't. And I think the ones
that won't, are so accustomed tooperating under a transaction
brokerage type relationship,that they risk getting
themselves or crossing gettingthemselves in trouble or
crossing ethical boundaries, bydoing anything else, and there's
(17:02:34):
nothing wrong with that. Justunderstand that there's not full
disclosure required, like insingle agency, and there's not
complete loyalty. They're stillsupposed to be honesty, care,
diligence. Yeah, fair enough.
(17:02:55):
But not the obedience,but not the obedience. All
right.
This is, this is interesting.
All new to me, I had no idea.
So here's a question for you.
Can a transaction broker provideloyalty and obedience despite
not being legally obligated todo so? Of course they can. Yeah,
(17:03:17):
right. And and from a legalperspective, is there a distinct
difference and how a singleagent versus a transaction
broker treats the people thatthey're representing? Well, it's
very rare, right? It whenrepresenting only one side in a
transaction, but when you'rerepresenting both sides in the
(17:03:40):
same transaction that changesthe dynamic, and sometimes
unintentionally, mostoftentimes, unintentionally,
we're bias subconsciously, a lotof times we're not realizing it.
That's why I think agents andthe individuals buying and
selling themselves need toreally understand this stuff. I
went to the Florida Realtorsconvention a couple of weeks
ago. And they gave some of thetop topics from the call in on
(17:04:05):
the legal hotline, this was thiswas the main this was one of the
main ones over the last severalmonths, which shows that agents
don't understand that they'regetting this license that gives
them a lot of power orresponsibility, but they don't
understand what their duties andobligations are to and how those
can be changed and what it meansto the public. So written
(17:04:29):
disclosures are required only toform a single agency and no
brokerage relationship withtransaction brokers relationship
is presumed you don't even haveto disclose it, and most
brokerages don't. A signature isnot even required. You have to
prove receipt that thedisclosure was made. So if
(17:04:52):
you're, if you're operating in asingle agency and a no brokerage
relationship, you probablyshould have your customer client
sign that because otherwise, youdefault to a transaction broker.
And we've already gone over someof the differences of what that
can mean. Now, last thing I'lltell you about is there's a
(17:05:14):
hybrid as a single agency, witha consent transitioning to a
transaction broker. So this is athing in Florida that say, the
listing agent, signs up with youas a single agent brokerage
relationship, and they say, youknow, this buyer comes along
without an agent. And this is agood thing for the listing agent
(17:05:38):
because there's more financialgain in the transaction. Right?
No problem, right. But they haveto disclose this transition. So
they say, Mr. Seller, Mrs.
Seller, can you please sign thisdocument, it says I'm
transitioning now to atransaction broker, which helps
protect them in their brokerage.
But unlike single agency, and nobid, no brokerage relationship
(17:06:01):
disclosures, prior writtenconsent is required, and a
signature is required. So ifyou're transitioning after the
fact, from a single agency, to atransaction brokerage, you must
have a signed document thatproves it. And the consent can
be signed any time before thetransition itself. And you can
(17:06:23):
picture this in a situationwhere there's offers coming in,
and the listing agent has aquick decision to make right? Do
they not have them sign it? Orthey haven't signed it? Well,
I'd argue to say that most ofthem don't have them sign
anything. Because they don'tknow what it means. And they
don't want to create any falseconcern or question of the
(17:06:49):
client that they may have beenworking months with to sell that
property. Andso is the client notified? I
mean, how does that do both needto sign a document or
no? So this would be a preexisting single agency
relationship. Okay. And I can'tsee this happening with a
(17:07:14):
buyer's agent unless the FDA forother reasons. So I think more
likely to happen with a listingagent who's going to be
representing both sides, andwants to make sure they don't
cross any ethical boundaries.
Because if they're entertainingoffers from an unrepresented
buyer, and they have a singleagency already in writing with
(17:07:35):
the seller, then how are theygoing to be obedient and loyal
to both people and a naturallyadversarial relationship? More
importantly, how are they goingto be confidential to one if it
affects the other? So they it'dbe silly not to sign the or not
(17:07:57):
to request signature? And thereare some agents I've heard out
there that won't work with aclient that I think I mentioned
this earlier that is demanding asingle agency relationship.
Because they know better, orthey don't know what they don't
(17:08:19):
know. Okay. Yeah. Yeah. So, wetalked about a lot today, I just
want to kind of recap a little.
There's, there's there's a lotof increased duties with the
type of agency you have withyour broker's relationship in
Florida. And there's nobrokerage relationship to
(17:08:43):
transaction broker to singleagency transaction broker as the
default doesn't require anythingin writing. The two others do.
The duties increase as you gofrom no brokerage relationship
to transaction broker to singleagency. And of course, you can
have a hybrid where youtransition from single agency to
transaction broker.
(17:09:05):
I think we should end thisepisode before another version
is created. Matt, great, greatstuff, as always very helpful to
your listeners and viewers we'llsee in the next episode.
Thanks, Charlie. Have a goodone, everyone.
Thanks for listening to Goodwinlaw unplugged. To learn more
(17:09:27):
about Goodwin law and to utilizeour services, visit Goodwin
estate law.com or call239-207-3403. Of Llamosa
Spaniel, to submit questions orbe a guest on a future episode.
message us on our website or onsocial media by searching for
Goodwin law pa in Naples,Florida. This has been Goodwin
(17:09:49):
law unplugged. Thanks again forjoining us
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