Working as a Transaction Broker

[Bryant Tutas]

At Tutas Towne Realty we work as Transaction Brokers. This article is to make sure you understand what that means.

In Florida all licensees are presumed to be "Transaction Brokers" unless disclosed differently. We do not have to have any additional forms or disclosures that need to be signed by the public. Personally, I think this was a great change in how we as licensees 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 licensees and the general public alike. Let me repeat it again, so all Florida licensees 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 licensee 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 interests. 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 (if working as a single agent) is essential if you are going to do your job properly.

Here are some links if you need additional information.

Florida Statutes 475.278

Authorized Brokerage Relationships in Florida

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, sales associate, broker or broker associate not an Agent.

5. All State laws vary when it comes to "Agency." This post relates to Florida law.