Buyer Representation in Real Estate. It’s a confusing topic because it varies by state. In Florida, ALL real estate transactions are presumed to be “transactional unless otherwise stated.” — What does that mean?
Buyer Representation – Presumed Transactional
In Florida, there is no Dual Agency representation, where the agent “equally” represents both the buyer and seller. We are one of a dozen states that moved to a transactional relationship after numerous lawsuits occurred in the 1990s from mistreated buyers and sellers within the Dual Agency model of real estate.
With a Transactional Agency model, the real estate agent holds a neutral position between both parties, essentially becoming a facilitator with no fiduciary responsibility to either the buyer or seller. This was Florida’s solution for ensuring a fair relationship when representing both sides of a transaction.
In fact, if you purchase one of our McCallion & McCallion listings, we have both parties sign a “transition to transactional brokerage agreement” where you acknowledge we have a neutral position between both parties. In other words, we can’t share confidential information of yours with the seller, or vice versa.
Important note: Don’t mistake this as we no longer care about your best interest! In fact, we take EXTRA precaution to make sure both parties are honestly and fairly walked through a smooth transaction.
Single Agency Representation Explained
You may be thinking, “Why do I need to sign a transition to transactional agreement if Florida is presumed transactional to begin with?” — You are so smart. That’s because we at McCallion & McCallion act as a single agency, where we represent the buyer or the seller exclusively. Realtors® who act as a single agency often have their buyers sign the “Exclusive Buyer Brokerage Agreement” which states the agent’s fiduciary responsibility in representing you as the buyer.
The same thing goes for sellers who sign the “Exclusive Right of Sale Listing Agreement.” We have a fiduciary responsibility to represent them as a single agency in a transaction. Hence the need to transition to a transactional brokerage if we bring the buyer who purchases their home.
I hope this all makes sense still. I’ve linked examples of both types of agreements above, for those of you who’d like to read the official contract wording. You can see more of the Florida Statutes surrounding Real Estate Brokerage Relationships by clicking here.
Why Do You Care?
You might be wondering why we’re telling you all of this. Well, for one, our goal is to be as transparent as possible about our relationship with you and the legal restrictions and responsibilities that come with it.
Two, there’s often a misconception that working with the listing agent will “get you the best deal.” So many people tell me they’ll only work with the listing agent. In Florida, that doesn’t really prove beneficial like it might in a state who handles dual agency transactions, and even then, they should be presenting all offers fairly.
We take great responsibility in how we represent our clients. Our buyer’s agents have a vast knowledge of the area. Once they learn your buying needs and tastes, they can recommend other options that you might not have considered or even known about. They can do this since they represent you! The same goes for our listing broker, Susan McCallion, who knows the market like the back of her hand.
As always, we’re happy to further explain buyer representation and seller representation in Florida. You don’t have to wait until you purchase or list your home to ask questions. We’re here for you now! Email us at firstname.lastname@example.org or call us at 239-472-1950. Click here to learn more about Florida Real Estate from similar articles we’ve written.