Real Estate Agents Leverage Legal Forms to Limit Their Client’s Liability

In the past the legal forms simply stated what the real estate broker/agent will do for the seller, and what the seller is to expect, since the agent usually represented the interests of the seller as a single agent, and not the interests of the buyer. Later, the buyer had a form stating that the agent represents the seller, and is therefore not representing the buyer. Now, the buyer is aware of the agents role in the purchase transaction. The concept of buyer representation and single agency for the buyer came later, and disclosure forms changed so that the buyer could not see that his/her interests will be represented by the agent.

In some circumstances, the broker does not represent any party to the transaction, and in this case, disclosure is provided to both seller and buyer. This is a no agency transaction. In Florida and elsewhere, a real estate licensee cannot be a dual agent. Many problems and court cases have developed around the issue of dual agency, and dual agency was eventually revoked as an legal agency relationship. Many older agents have the mindset of representing the seller and sometimes the buyer. That mindset is starting to wash away as now, there is a relatively new type of relationship between broker/agent, seller and buyer. It is called the transaction broker. For many real estate professionals, this type of brokerage relationship has come as a needed relief.

A transaction broker is a real estate licensee who provides limited representation to both buyer and seller, or one of the two parties to the transaction. There is no longer single agency status along with the fiduciary requirements of a single agent. The real estate licensee’s role is that of a coordinator, or facilitator, getting both seller and buyer to settlement with as few problems or issues as possible.

The licensee is responsible for making sure both parties have completed the necessary legal forms and deadlines have been met. Basically, the transaction broker/agent has to be professional, honest, and skillful, to everyone involved in the real estate transaction. All funds must be accounted for, and any thing that materially affects the real estate being marketed for sale, must be disclosed or made available for disclosure to all the participants in the transaction. The big difference between this type of relationship in real estate versus the old ways, is the limited confidentiality of the transaction broker. In a single agency relationship, confidentiality is a big obligation between licensee and the party being represented. In a transaction brokerage relationship, confidentiality is typically limited to what the seller is asking for his/her property.

In Florida, as of 2003, all real estate licensees are considered to be transaction brokers, working for the entire real estate transaction from the time a potential buyer expresses interest in a piece of property until after the settlement date occurs.

James is an expert in writing about legal forms and documents that may help you when your in the search of the right legal document. He writes many articles about forms ranging from, power of attorney forms, landlord tenant forms, and most any legal form that your searching for.