Brokerage & Agency

    Transaction Broker

    Florida's default brokerage relationship, in which a licensee gives limited representation to a buyer or seller without full fiduciary duties.

    A transaction broker provides limited representation to a buyer, a seller, or both in the same transaction. The licensee helps the deal move forward but does not owe the full set of fiduciary duties a single agent owes. Florida law presumes every licensee works as a transaction broker unless a single agent or no brokerage relationship is established in writing.

    The limited duties a transaction broker owes are set by statute: deal honestly and fairly, account for all funds, use skill and care, disclose known facts that materially affect the value of residential property and are not readily observable, present all offers and counteroffers, and exercise limited confidentiality. The licensee may not disclose that a seller will accept less than the asking price or that a buyer will pay more than the offered price unless authorized.

    On the exam

    If a scenario gives no written single-agent or no-brokerage notice, the licensee is a transaction broker by default. Questions often test the limited-confidentiality duty.

    Exam trap

    Transaction brokerage is not dual agency. Dual agency is prohibited in Florida. A transaction broker gives limited representation, not full representation to both sides.

    Tested in

    Authorized Relationships (7% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.