Florida Brokerage Relationships Explained: Transaction Broker vs Single Agent vs No Brokerage

Florida brokerage relationships are where national real estate prep can quietly hurt you.

In many states, students learn agency, dual agency, subagency, buyer agency, seller agency, and disclosed consent rules. Florida does not test that national framework the same way. Florida uses the Brokerage Relationship Disclosure Act in Chapter 475, and the Florida exam expects you to know the state-specific system cold.

That system is simple on the surface:

Relationship	Exam shorthand	What to remember
Transaction broker	Default	Limited, non-fiduciary representation
Single agent	Fiduciary	COLD duties plus the shared duties
No brokerage relationship	Nonrepresentation	DAD duties only

The hard part is not memorizing the three names. The hard part is reading an exam scenario and knowing which duty exists, which disclosure is required, which relationship is presumed, and why a commission payment does not change the answer.

This is one of the most valuable non-math topics to master because it touches two major parts of the Florida sales associate exam: Authorized Relationships, Duties, and Disclosures, and Real Estate Brokerage Activities and Procedures. If you are building a study plan, pair this guide with the Florida real estate exam topics breakdown and the 19-topic exam map.

The exam version of brokerage relationships

Start with F.S. 475.278. That statute is the backbone of this topic.

For exam purposes, every relationship question usually turns on one of six points:

Exam trigger	Correct Florida rule
No written relationship was established	Transaction broker is presumed
A licensee owes loyalty	Single agent
A licensee owes limited confidentiality	Transaction broker
A licensee owes only DAD duties	No brokerage relationship
A broker represents buyer and seller as a fiduciary	Illegal dual agency
Seller pays buyer broker compensation	Payment does not create the relationship

Here is the big mental reset: the relationship is not based on who pays. It is not based on who called first. It is not based on who seems more represented. It is based on Florida law, the written relationship chosen, and the duties that relationship creates.

The three Florida brokerage relationships

Florida candidates should know these three choices first, then memorize the duties.

Transaction broker

A transaction broker provides a limited form of representation to a buyer, a seller, or both. It is not fiduciary representation.

This is the Florida default. If a single agent relationship or no brokerage relationship has not been established in writing, the licensee is presumed to be operating as a transaction broker.

That default matters on exam questions. If a buyer walks into an open house, talks to the listing licensee, and no separate relationship has been established in writing, the answer is usually transaction broker, not no brokerage.

Single agent

A single agent represents either the buyer or the seller as a fiduciary. A single agent cannot represent both sides as fiduciaries in the same transaction.

Single agency is the only relationship with the COLD duties:

Letter	Duty	Plain English
C	Confidentiality	Protect the principal's information
O	Obedience	Follow lawful instructions
L	Loyalty	Put the principal's interest first
D	Full disclosure	Tell the principal all material information

When the exam uses the word fiduciary, think single agent unless the question is describing a prohibited dual agency problem.

No brokerage relationship

No brokerage relationship means the licensee is not representing the buyer or seller. The licensee still owes three minimum duties, but does not owe the transaction broker duties or the single agent fiduciary duties.

Use the DAD mnemonic:

Letter	Duty
D	Deal honestly and fairly
A	Account for all funds entrusted to the licensee
D	Disclose all known facts that materially affect residential value and are not readily observable

No brokerage relationship is not the same thing as "nothing matters." The licensee still has legal duties. The point is that the duty list is much shorter.

Brokerage relationship duties compared

This table is the one to memorize.

Duty	Transaction broker	Single agent	No brokerage
Dealing honestly and fairly	Yes	Yes	Yes
Accounting for all funds	Yes	Yes	Yes
Disclosing known material residential facts not readily observable	Yes	Yes	Yes
Skill, care, and diligence	Yes	Yes	No
Presenting all offers and counteroffers timely	Yes	Yes	No
Limited confidentiality	Yes	No	No
Additional mutually agreed duties	Yes	No statutory COLD substitute	No
Loyalty	No	Yes	No
Full confidentiality	No	Yes	No
Obedience	No	Yes	No
Full disclosure	No	Yes	No
Fiduciary relationship	No	Yes	No
Duty count	7	9	3

The easiest way to remember the table:

Shared by all three	Added for transaction broker and single agent	Single agent only
DAD	Skill, care, diligence and presenting offers	COLD
Deal honestly, account, disclose material facts	These make the licensee more active in the transaction	These make it fiduciary

Exam trap alert: "present all offers"

Students often assume every licensee must present offers. That is not how the duty table works.

Transaction brokers and single agents owe the duty to present all offers and counteroffers in a timely manner, unless a party has already directed the licensee otherwise in writing. A licensee with no brokerage relationship does not have that statutory duty.

Could a no-brokerage licensee still pass along information if allowed and agreed? Possibly. But if the exam asks whether the no-brokerage duty list includes presenting offers, the answer is no.

Transaction broker: the Florida default

Transaction brokerage is the relationship Florida tests most aggressively because it is different from the national default many students expect.

Under F.S. 475.278, a transaction broker gives limited, non-fiduciary representation to a buyer, a seller, or both.

The seven duties are:

1. Dealing honestly and fairly
2. Accounting for all funds
3. Using skill, care, and diligence in the transaction
4. Disclosing known facts that materially affect the value of residential real property and are not readily observable to the buyer
5. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed otherwise in writing
6. Limited confidentiality, unless waived in writing by a party
7. Any additional duties that are mutually agreed to with a party

What limited confidentiality means

Limited confidentiality is not the same as full confidentiality.

A transaction broker may not disclose certain protected information unless the party waives confidentiality in writing. The protected information includes:

• The seller will accept less than the asking or listed price
• The buyer will pay more than the written offer price
• A party's motivation for buying or selling
• A party will agree to financing terms other than those offered
• Other information a party requests to remain confidential

The word "limited" is the point. A single agent has broader confidentiality. A transaction broker protects the categories listed in the statute.

Seen on the exam

Expect a question like this:

Scenario	Best answer
A buyer tells a transaction broker they would pay $20,000 more than the written offer. Can the broker share that with the seller?	No, not unless the buyer waives limited confidentiality in writing.
A seller tells a transaction broker they need to move because of a divorce. Can the broker disclose that motivation to the buyer?	No, motivation is protected by limited confidentiality.
A transaction broker is working with both buyer and seller. Is that dual agency?	No, if the broker is not acting as fiduciary for both.

Single agent: the fiduciary relationship

A single agent represents one side as a fiduciary.

That means the licensee owes the principal loyalty, full confidentiality, obedience, and full disclosure. Those are the COLD duties, and they are what make single agency different from transaction brokerage.

The nine single agent duties are:

1. Dealing honestly and fairly
2. Loyalty
3. Confidentiality
4. Obedience
5. Full disclosure
6. Accounting for all funds
7. Skill, care, and diligence in the transaction
8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed otherwise in writing
9. Disclosing known facts that materially affect residential value and are not readily observable

What full disclosure means on the exam

Full disclosure belongs to single agency. It means the agent must disclose all information that may affect the principal's decision.

That is broader than the transaction broker's material-fact duty. A transaction broker must disclose known facts materially affecting residential value that are not readily observable. A single agent must give the principal full disclosure because the principal is owed fiduciary loyalty.

Exam trap alert: "my broker represents both sides"

If a broker tries to represent the buyer and seller as fiduciaries in the same transaction, that is dual agency. Florida does not permit that.

The broker may be able to work with both sides as a transaction broker. The broker may not act as a single agent for both sides.

No brokerage relationship: the DAD relationship

No brokerage relationship is the most limited relationship.

The licensee does not represent the buyer or seller, but still owes three duties:

1. Deal honestly and fairly
2. Disclose known facts that materially affect the value of residential real property and are not readily observable to the buyer
3. Account for all funds entrusted to the licensee

That is DAD.

The no-brokerage relationship does not include:

• Loyalty
• Full confidentiality
• Obedience
• Full disclosure
• Limited confidentiality
• Skill, care, and diligence as a transaction-broker duty
• Presenting all offers and counteroffers as a statutory duty

Disclosure timing for no brokerage

This is one place where students blur the rules.

For a single agent relationship, the disclosure must be made before or at the time of entering into a listing agreement, entering an agreement for representation, or before showing property, whichever occurs first.

For no brokerage relationship, F.S. 475.278 says the written disclosure must be made before showing property.

That is a narrower timing rule than single agency. Do not round it off in your head.

Why dual agency is illegal in Florida

F.S. 475.272 says the purpose of the Brokerage Relationship Disclosure Act is to eliminate confusion and establish authorized forms of representation. It also says disclosed dual agency as an authorized form of representation is revoked.

F.S. 475.278 goes further and says a licensee may not operate as a disclosed or nondisclosed dual agent.

For exam purposes, there are no magic words that make dual agency acceptable:

Answer choice	Florida exam result
Disclosed dual agency	Illegal
Undisclosed dual agency	Illegal
Dual agency with consent	Still illegal
Single agent for buyer and seller	Illegal
Transaction broker for buyer and seller	Legal, because it is non-fiduciary limited representation

What Florida uses instead

Florida uses transaction brokerage as the practical solution when one brokerage assists both buyer and seller.

The reason is simple: a transaction broker does not represent either side as a fiduciary. The broker can facilitate the transaction without owing undivided loyalty to one side against the other.

That is why the exam often gives you a scenario where one licensee is helping both parties. Do not automatically answer "dual agency." First ask whether the licensee is acting as a fiduciary for both. If yes, illegal dual agency. If no, transaction brokerage may be allowed.

How single agent transitions to transaction broker

A single agent relationship can transition to transaction broker during the relationship, but only with the principal's prior written consent.

The statutory transition disclosure is important because this transition changes the duty package.

Before transition	After transition
Single agent	Transaction broker
Fiduciary	Non-fiduciary limited representation
COLD duties	Limited confidentiality instead
Represents one side	May assist both sides

The exam usually tests the direction of the transition.

Single agent to transaction broker is allowed with proper written consent.

Transaction broker to single agent is not the standard statutory "transition" tested in this context. If a different relationship needs to be created, the parties need proper written disclosure and agreement.

Exam trap alert: what the principal gives up

The principal gives up COLD:

• Confidentiality in the full fiduciary sense
• Obedience
• Loyalty
• Full disclosure

The principal still receives the seven transaction broker duties. The relationship does not become no brokerage.

Commission does not create the relationship

This may be the most important sentence in the post:

The relationship does not follow the money.

A seller may pay buyer broker compensation. That payment does not make the buyer's broker the seller's agent. A buyer may sign a compensation agreement. That agreement does not automatically mean single agency. A licensee may be paid while having no brokerage relationship with one party.

The relationship is created by Florida law and the written relationship chosen, not by the check.

Seen on the exam

Scenario	Correct answer
Seller pays the buyer broker through closing	No relationship is created with the seller by payment alone
Buyer signs a written agreement with a broker	Check the relationship type inside the agreement
Listing broker offers compensation to buyer broker outside the MLS	Compensation is negotiable and separate from agency status
A party assumes "I paid them, so they represent me"	Wrong for exam purposes

For related math, pair this with the Florida real estate commission calculation guide. The math tells you how money moves. Brokerage relationships tell you which legal duties exist.

The 2024 NAR settlement and Florida buyer agreements

The NAR settlement changed buyer-agreement practice for many Realtors and MLS participants, but it did not rewrite Florida's brokerage relationship law.

Florida Realtors explains that a Realtor or MLS participant working with a buyer needs a written agreement before touring a home. Their guidance also separates exclusivity from agency. In other words, an agreement may be exclusive or non-exclusive, and it may pair with different Florida relationship choices.

That distinction matters for the exam:

Topic	What changed	What did not change
Written buyer agreements	More common before touring homes	They do not automatically create single agency
Compensation	Must be clear and negotiable in the agreement	Commission still does not define the relationship
MLS compensation offers	Removed from MLS fields for NAR settlement compliance	Florida transaction broker, single agent, and no brokerage rules remain
EBBA forms	Florida Realtors has relationship-specific versions	Dual agency is still illegal

Florida Realtors has described four EBBA relationship versions: no brokerage relationship, transaction broker, single agent, and single agent with consent to transition to transaction broker. That fits the Florida framework students already need to know.

The clean exam rule is this: a written buyer agreement does not by itself mean fiduciary representation. Read the relationship type.

Where the disclosure rules apply

The disclosure requirements in F.S. 475.278 apply to residential sales.

For this statute, residential sales include:

• Improved residential property of four units or fewer
• Unimproved residential property intended for use of four units or fewer
• Agricultural property of 10 acres or fewer

The statute also lists situations where the disclosure requirements do not apply, including many nonresidential transactions, rentals and leases without an option to purchase, auctions, appraisals, certain open-house or model-home settings, casual conversations, general factual questions, and business-enterprise dispositions except where property with four or fewer residential units is involved.

The exam does not usually ask you to recite every exception. It does ask you to know that the Brokerage Relationship Disclosure Act is mainly a residential-sales framework and that commercial transactions can have different rules.

Designated sales associate is a separate commercial concept

F.S. 475.2755 allows designated sales associates in certain nonresidential transactions when the buyer and seller each have assets of $1 million or more and request that form of representation.

This is not the same as dual agency.

Use this exam distinction:

Concept	When it appears	Key rule
Dual agency	Fiduciary representation of buyer and seller by the same broker	Illegal in Florida
Transaction broker	Limited non-fiduciary representation	Default and may work with both sides
Designated sales associate	Certain nonresidential transactions with $1 million asset threshold	Separate statutory concept

Do not drag designated sales associate rules into a normal residential brokerage-relationship question unless the question specifically gives you the commercial facts.

Five brokerage relationship scenarios

Work these without looking back at the table.

Scenario 1: The open house default

A buyer walks into an open house and asks general questions about the property. No written relationship has been established with the buyer.

Answer: Transaction broker is presumed unless another relationship has been established in writing.

Why students miss it: They assume "nothing was signed" means no brokerage relationship. In Florida, no written alternative usually points to the transaction broker default.

Scenario 2: The seller's bottom line

A seller tells a transaction broker, "I would take $20,000 less if I had to." The buyer asks whether the seller has room to move.

Answer: The transaction broker may not disclose that bottom-line information unless the seller waives limited confidentiality in writing.

Why students miss it: They confuse limited confidentiality with no confidentiality.

Scenario 3: The buyer's offer

A buyer with no brokerage relationship asks a licensee to present an offer to the seller. The exam asks whether presenting offers is one of the no-brokerage statutory duties.

Answer: No. Presenting all offers and counteroffers is a transaction broker and single agent duty, not a no-brokerage duty.

Why students miss it: It feels like every licensee should always have that duty. The exam tests the statutory list.

Scenario 4: The same brokerage has both sides

A brokerage represents the seller as a single agent. A buyer wants the same brokerage to help with the purchase.

Answer: The seller's single agency must be transitioned to transaction brokerage with prior written consent before the brokerage can assist both sides in that limited-representation role.

Why students miss it: They think the buyer can simply sign another single agent disclosure. That would create the dual agency problem.

Scenario 5: The commission payment

The seller agrees to pay the buyer broker's compensation. The question asks what relationship now exists between the seller and the buyer broker.

Answer: Payment alone creates no brokerage relationship.

Why students miss it: They follow the money instead of the relationship disclosure.

Mistakes students make

These are the mistakes that turn a familiar topic into lost points.

Mistake	Fix
Treating Florida like a dual-agency state	Remember that dual agency is illegal in Florida
Saying "no paperwork" means no brokerage	Remember the transaction broker default
Mixing full confidentiality with limited confidentiality	Full belongs to single agent, limited belongs to transaction broker
Forgetting no brokerage still has duties	DAD always matters
Thinking commission controls representation	Relationship does not follow the money
Applying commercial exceptions to residential questions	Stay inside the facts given
Treating buyer agreements as automatic single agency	Read the relationship type

Related exam concepts

Brokerage relationships connect directly to several other high-value exam topics:

Concept	Why it matters
Florida real estate contracts	Buyer agreements, listing agreements, and offers all depend on the relationship facts
Escrow and trust account rules	Accounting for funds is a duty across all three relationships
FREC rules and violations	Dual agency, disclosure failures, and trust-account errors can become discipline issues
Florida Statute 475	Brokerage relationships sit inside Chapter 475
Commission calculations	Commission math is separate from agency status
Florida-specific exam content	National prep often misses the Florida relationship framework

How to study this topic

Do not start by rereading the statute over and over.

Use this sequence instead:

1. Memorize the relationship table.
2. Say COLD and DAD out loud until they are automatic.
3. Drill scenarios that force you to identify the relationship from the duties.
4. Practice disclosure-timing questions separately.
5. Review dual agency and commission-payment traps the day before the exam.

This topic rewards pattern recognition. If you can spot which duty exists, you can usually eliminate two answer choices immediately.

Methodology

This guide was built from the current Florida Statutes on brokerage relationships, dual agency, discipline, and designated sales associates, then mapped to the Florida sales associate exam outline and common exam-style traps. The duty table follows the statutory duty lists in F.S. 475.278. The buyer-agreement discussion was checked against Florida Realtors guidance on post-settlement buyer agreements and 2026 form updates.

The teaching order is deliberate: default relationship first, duties second, disclosures third, then scenario practice. That is the order students usually need on exam day.

Sources

Sources verified May 22, 2026.

• F.S. 475.278, Authorized brokerage relationships, presumption of transaction brokerage, required disclosures
• F.S. 475.272, Purpose of the Brokerage Relationship Disclosure Act
• F.S. 475.25, Discipline
• F.S. 475.2755, Designated sales associate
• Florida Realtors, The Difference Between Exclusivity and Agency
• Florida Realtors, NAR Settlement Buyer Broker Agreement FAQs
• Florida Realtors, 2026 New and Updated Forms
• DBPR Real Estate Sales Associate Candidate Information Booklet

FAQ

What are the three brokerage relationships in Florida?

Florida brokerage relationship choices are transaction broker, single agent, and no brokerage relationship. Transaction broker is the default unless single agency or no brokerage is established in writing.

Is dual agency legal in Florida?

No. Dual agency is illegal in Florida. A licensee may not act as a disclosed or nondisclosed dual agent. Florida uses transaction brokerage as the legal limited-representation option when one brokerage assists both buyer and seller.

What is the default brokerage relationship in Florida?

Transaction broker. If a single agent relationship or no brokerage relationship has not been established in writing, Florida presumes the licensee is operating as a transaction broker.

What does COLD mean in Florida real estate?

COLD means confidentiality, obedience, loyalty, and full disclosure. These are the four fiduciary duties that make single agency different from transaction brokerage.

What does DAD mean in Florida real estate?

DAD means deal honestly and fairly, account for all funds, and disclose known material facts about residential property that are not readily observable. Those are the three no-brokerage duties and also the three duties shared across all relationship types.

What is the difference between transaction broker and single agent?

A transaction broker gives limited, non-fiduciary representation and may work with buyer, seller, or both. A single agent gives fiduciary representation to one side and owes loyalty, full confidentiality, obedience, and full disclosure.

Does a buyer agreement make the broker a single agent?

Not automatically. A buyer agreement can be paired with different Florida relationship choices. Read the relationship type in the agreement. The agreement itself does not erase the transaction broker default or create single agency by magic.

Does paying commission create a brokerage relationship?

No. Commission does not create, define, or change the brokerage relationship. The relationship is based on the written relationship and Florida law, not on who pays the broker.

When must a single agent disclosure be given?

Before or at the time of entering into a listing agreement, entering into an agreement for representation, or before showing property, whichever occurs first.

When must a no brokerage relationship disclosure be given?

The no-brokerage disclosure must be made in writing before showing property.

Can a single agent transition to transaction broker?

Yes. A single agent relationship may transition to transaction broker if the principal first gives written consent using the required transition disclosure. The key exam point is that the principal gives up the COLD fiduciary duties.

Do brokerage relationship disclosure rules apply to commercial real estate?

The disclosure requirements in F.S. 475.278 are focused on residential sales as defined in the statute. Nonresidential transactions are listed among the disclosure exceptions. Certain nonresidential transactions may involve designated sales associates under F.S. 475.2755 when the statutory asset threshold and request requirements are met.

Keep Reading

• Florida real estate exam topics breakdown
• Florida real estate contracts guide
• Florida escrow and trust account rules
• FREC rules and violations for the Florida exam
• Florida Statute 475 real estate exam guide
• How to pass the Florida real estate exam