Does An Agent Representing Buyer & Seller Have To Disclose ?

Question

I listed with an agent and he brought me a buyer and we signed a contract. He kept adding more concessions on for me to fulfill that the "buyer" demanded. Now I FINALLY find out he is acting as a I think they are called transactional agent and representing me the seller and the buyer. He never disclosed this to me and I certainly would not have shared all the financial details I did with him if I had known they were being broadcast to the buyer. I guess it is a gray / grey area but I think an ethical agent would disclose if they are acting as buyer and sellers agent !

John Thedford · Answer

@Zana Blue

The default brokerage relationship in Florida is transaction broker. Unless otherwise agreed to in writing, all relationships are transactional which means the agent/agents are representing the transaction and not one party or the other. An agent may therefore be a listing agent and also bring a buyer thereby "double siding" the commission. As stated above, there are duties no matter which form of broker relationship but some duties are more stringent as a single agent vs transaction broker. As mentioned above, an agent may transition from one brokerage relationship to another provided disclosures are provided. Dual agency is not allowed in this state.

A buyer  may make demands, and if the agent delivers those in writing to you as a seller, you do have the right to meet them or not. One should never let an agent pressure them into any agreement. The agent should present offers, possibly give advice (pros, cons, market value, etc) and let the customer make the decision. Agents that pressure buyers or sellers are probably more considerate of their commission than the needs of the customer. If you ever run into that, change agents.

Barry DeGroot · Answer

I don't practice in FL, but here is an excerpt from the FL Statutes which may be on point for you. Based on my review, it appears that you should have been afforded prior notice. See below:

CONSENT TO TRANSITION TOTRANSACTION BROKER

FLORIDA  LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A  SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION  BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES  IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF  REPRESENTATION TO BOTH THE BUYER AND THE SELLER. THIS CHANGE IN  RELATIONSHIP CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.

As a transaction broker,  (insert name of Real Estate Firm and its Associates) , provides to you a limited form of representation that includes the following duties:

1. Dealing honestly and fairly;

2. Accounting for all funds;

3. Using skill, care, and diligence in the transaction;

4. Disclosing  all 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 the licensee otherwise in writing;

6. Limited  confidentiality, unless waived in writing by a party. This limited  confidentiality will prevent disclosure 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, of the  motivation of any party for selling or buying property, that a seller or  buyer will agree to financing terms other than those offered, or of any  other information requested by a party to remain confidential; and

7. Any additional duties that are entered into by this or by separate written agreement.

Limited  representation means that a buyer or seller is not responsible for the  acts of the licensee. Additionally, parties are giving up their rights  to the undivided loyalty of the licensee. This aspect of limited  representation allows a licensee to facilitate a real estate transaction  by assisting both the buyer and the seller, but a licensee will not  work to represent one party to the detriment of the other party when  acting as a transaction broker to both parties.

Mike Cumbie · Answer

I am not licensed in Florida so anyone that is can override me. It is my understanding that in Florida a "transactional Agent" has the duty to the contract. Not either party. @John Thedford can probably give an educated understanding.