Which type of brokerage relationship is prohibited for transactions involving residential sales in Florida?

When a person delegates authority to someone to act on his behalf

Laws Regarding Agency Relationships

(sometimes called unwritten law) is law based on usage, general acceptance, and custom. It is judge-made law manifested in decrees and judgments of the courts (case law). Common law originated in England and was later incorporated into the U.S. legal system. Under English common law, servants owed absolute loyalty to their masters. This absolute loyalty is one of the fundamental principles of the agency relationship. Agency law derives from common law.

is written statutes enacted by a legislature. Chapters 455 and 475 are two Florida statutes enacted by the Florida Legislature pertaining to license law

is a body of law created by administrative agencies in the form of rules, regulations, orders, and decisions. Florida Statute 475 empowers the Florida Real Estate Commission to govern real estate practice in Florida.

A person who delegates authority to another

A person who accepts the authority (and the responsibilities, duties, and obligations associated with that authority) is called a what?

a position of trust and confidence for another.
This owes complete allegiance to the principal.

Conducting negotiations on one’s own behalf without being subject to the other party’s control or influence.

Latin for "let the buyer beware."

is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal.

authorized by the principal (broker or owner-developer) to handle a specific business transaction or to perform a specific act.

The Brokerage Relationship Disclosure Act

This is intended to inform and educate the public regarding the types of authority (brokerage relationships) that can be granted to a broker and the duties brokers have in each type of brokerage relationship.

Non-representation (no brokerage relationship)
Single agency
Transaction broker

3 Brokerage Relationship Options

The broker may only relay information to the parties and may not negotiate on behalf of either party. The parties in a no brokerage relationship are referred to as what?

a member of the public who is or may be a buyer or a seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship

1. Account for all funds. Brokers must account for all funds entrusted to them in a real estate transaction. 2. Deal honestly and fairly. Real estate licensees owe a duty of good faith and honesty to customers. A broker's customers are entitled to rely on material statements related to a real estate transaction. 3.Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. Real estate licensees have a duty to disclose to buyers all known facts (such as defects) that materially affect the value of residential property. Material defects have to do with the property, the structure, and issues not readily observable to a buyer (such as mold that was not remediated but covered with drywall, a pending change in zoning, and so forth)

A broker (and the broker's associates) working in a no brokerage relationship with the parties to a transaction, owe three duties to customers: ???

a broker who represents, as a fiduciary, either the buyer or the seller, but not both, in the same transaction.

The terms principal and client should only be used when referring to a single agent relationship.

Type of Authorized Relationship: Transaction Broker
Fiduciary Relationship: ?
Works with: ?

Type of Authorized Relationship: Non-representation Fiduciary Relationship: ? Works with: ?

Type of Authorized Relationship: Single-Agent Fiduciary Relationship: ? Works with: ?

Representing both principals (buyer and seller) in a transaction (not a legal agency relationship in Florida).

The sales associates and broker associates who work with the principal on behalf of their broker are ? of the broker's principals.

1. Account for all funds. 2. Deal honestly and fairly. 3. Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.. 4. Use skill, care, and diligence. Licensees must keep informed of developments that may affect the value of the property. 5. Present all offers and counteroffers. Unless a party has previously directed the licensee otherwise in writing, the licensee must present all oral and written offers and counteroffers in a timely manner even if a valid contract exists. 6. Confidentiality 7. Obedience: Must do what principal says unless it breaks the law 8. Loyalty:  requires brokers to always place the principal's interests above those of other persons with whom the brokers deal 9. Full Disclosure:

Four of the duties apply only to single agent relationships. C Confidentiality O Obedience L Loyalty D Disclosure (full)

1. Account for all funds. 2. Deal honestly and fairly. 3. Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.. 4. Use skill, care, and diligence. Licensees must keep informed of developments that may affect the value of the property. 5. Present all offers and counteroffers. Unless a party has previously directed the licensee otherwise in writing, the licensee must present all oral and written offers and counteroffers in a timely manner even if a valid contract exists. - Also, Perform Additional Duties & exercise limited confidentiality

Transactional Agent Duties

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

A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.

Transaction brokers provide a limited form of nonfiduciary representation to a buyer, a seller, or both in a real estate transaction.

That the seller will accept a price less than the asking or listed price
That the buyer will pay a price greater than the price submitted in a written offer
The motivation of the parties for selling (if the seller) and/or buying (if the buyer) of the property
That a seller or a buyer will agree to financing terms other than those previously disclosed in writing (for example, in the original listing or during the contract negotiations)
Any other information requested by a party to remain confidential

What information for a transaction broker is considered limited confidentiality? 

Transaction broker relationship is presumed in all residential and nonresidential transactions
Limited representation to a buyer, a seller, or both the buyer and the seller (in the same transaction within the same brokerage) No fiduciary relationship with the buyer or the seller Parties are represented as customers

Key Points of a Transaction Broker Relationship

Written Consent aka Consent to Transition. This notice is set forth in Ch. 475. 

A single agent relationship may be changed to a transaction broker relationship if their is what from the buyer or seller?

If there’s a transaction broker working for the seller then they are able to have transaction broker or no brokerage relationship with the buyer.
If there’s a single agent for the seller then there’s a no brokerage relationship with the buyer.

written disclosures are required only for ? sale transactions when the brokerage firm acts in the capacity of a single agent or in a no brokerage relationship.

Residential Sales Transactions

improved residential property of four or fewer units;
unimproved residential property zoned for four or fewer units; and
agricultural property of 10 or fewer acres.

not, non-residential, auction

Brokerage relationship disclosure requirements do ? apply to transactions involving ? real estate, business opportunities, and lease agreements (see the following text box). Furthermore, brokerage relationship disclosure documents are not required for the ? or appraisal of real estate.

Nonresidential transactions
Rent or lease agreements (except when there is an option to purchase residential property)
Business opportunities (except for property with four or fewer residential units)
Auctions
Appraisals

Types of Transactions That Do Not Require Brokerage Relationship Disclosures

The no brokerage relationship notice must be disclosed in writing before the showing of property

The ? disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation, or before the showing of property, whichever occurs first

Brokers must retain brokerage relationship disclosure documents for ? years for all residential transactions that result in a written contract to purchase and sell real property. 

Exceptions to disclosure agreements

When the licensee knows that a single agent or a transaction broker represents a prospective seller or a prospective buyer
At a bona fide "open house" or model home showing that does not involve eliciting confidential information; the execution of a contractual offer or an agreement for representation; or negotiations concerning price, terms, or conditions of potential sale
During unanticipated casual encounters between a licensee and a prospective seller or a prospective buyer that do not involve eliciting confidential information; the execution of a contractual offer or an agreement for representation; or negotiations concerning price, terms, or conditions of a potential sale
When responding to general factual questions from a prospective seller or a prospective buyer concerning properties that have been advertised for sale
Situations in which a licensee's communications with a prospective buyer or a prospective seller are limited to providing either written or oral communication that is general, factual information about the qualifications, background, and services of the licensee or the licensee's brokerage firm
When an owner is selling new residential units built by the owner and the circumstances or setting should reasonably inform the potential buyer that the owner's employee or single agent is acting on behalf of the owner, whether because of the location of the sales office or because of office signage or placards or identification badges worn by the owner's employee or single agent

Designated Sales Associates

Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and the seller must have assets of $1 million or more and sign disclosures stating that their assets meet the required threshold.
*Note that in a residential transaction this is an illegal dual agency.
The broker serves as an advisor to each designated sales associate—not to the buyer or the seller.

Brokers must retain brokerage relationship disclosure documents for ? years for all nonresidential transactions that use designated sales associates.

What kind of authorized brokerage relationships are allowed under Florida law?

What is a no brokerage relationship in Florida?

What are the three types of brokerage relationships?

Which agency is not allowed under Florida law?