TL;DR

Florida prohibits traditional dual agency and instead recognizes three brokerage relationships under §475.278, Florida Statutes (the Brokerage Relationship Disclosure Act): single agent, transaction broker, and no brokerage relationship. Florida law presumes that all licensees are operating as transaction brokers unless a single agent relationship or no brokerage relationship is established in writing. The distinction matters because the duties owed to the customer differ dramatically — a single agent owes full fiduciary duties (loyalty, confidentiality, obedience), while a transaction broker owes only limited confidentiality and no fiduciary obligation to either party. The Authorized Relationships, Duties and Disclosures content area is about 7% of the state exam.

Three Relationships, Not Two

Most national real estate prep materials describe a binary model: agency vs. dual agency, with the licensee either fully representing one party or representing both. Florida does not follow that model. Under §475.278, Florida Statutes — the Brokerage Relationship Disclosure Act — Florida recognizes three distinct brokerage relationships, and traditional dual agency is prohibited. Understanding which relationship applies, what duties it carries, and how it is established in writing is core to the Authorized Relationships, Duties and Disclosures portion of the state exam.

The three authorized brokerage relationships are:

The Presumption: Transaction Broker by Default

Section 475.278(1)(b) creates an explicit statutory presumption: "It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer." This is one of the most important sentences in Florida brokerage law, and it is consistently tested on the exam in many forms. The statute is one of the conduct standards that FREC enforces through DBPR's investigative process when a complaint alleges a brokerage-relationship violation.

What this means in practice: if a licensee shows a property to a buyer and the parties have not signed a written disclosure establishing a single agent or no-brokerage relationship, the licensee is presumed by law to be acting as a transaction broker. The licensee does not have to declare the relationship — silence creates transaction-broker status by operation of statute. The rule applies to every Florida sales associate from the first moment of customer contact.

This is the opposite of the rule in many other states, where agency is the default and a non-agent status (such as a "facilitator" role) must be specifically declared. In Florida, the default flips: the limited-representation status applies unless full representation is established in writing.

Single Agent Duties

A single agent relationship is the closest thing Florida has to traditional full agency. Under §475.278(3), a single agent has the following duties to the principal:

Loyalty, confidentiality, and obedience are the three duties that define single-agent representation and that a transaction broker does not owe. If an exam question asks which duties are unique to single-agent status, those three are the answer.

A single agent disclosure must be in writing, must be made before or at the time of entering into a listing agreement or agreement for representation, and must contain specific statutory language. Section 475.278(3)(b) requires that the disclosure be in a separate and distinct section or on a separate page or document, and that the required content be presented in uppercase and bold type so it is clearly readable.

Transaction Broker Duties

A transaction broker provides limited representation to a buyer, seller, or both. Under §475.278(2), the transaction broker's duties are:

"Limited confidentiality" is a defined term under §475.278(2)(b). A transaction broker must keep confidential the fact that the seller will accept less than the listing price, the fact that the buyer will pay more than the offered price, the parties' motivation for buying or selling, any information either party would prefer not be disclosed (unless required to be disclosed by law), and any other information unless disclosure is required by law. This is not full confidentiality — it is a specific list, and information outside that list may be shared.

The transaction broker disclosure requirement is a notable point of statutory change: as amended in 2008, written disclosure of the transaction broker relationship is no longer required for residential sales. The presumption stands without a written disclosure. However, if the brokerage chooses to provide a written transaction broker disclosure (which many do as a best practice), it must contain the language required by §475.278(2)(c).

No Brokerage Relationship

The third option under §475.278(4) is the "no brokerage relationship" status. This applies when a licensee deals with a buyer or seller but does not represent that party at all. The licensee's duties are minimal:

This relationship must be established in writing before showing property or providing any other real estate services to the customer. The disclosure must be in a separate section or page and must contain the statutory language required by §475.278(4)(b), again in uppercase and bold.

Why Florida Prohibits Dual Agency

In states that allow traditional dual agency, a single licensee can represent both the buyer and the seller in the same transaction, owing fiduciary duties to both. The Florida Legislature concluded that this creates an unresolvable conflict — a licensee cannot owe full loyalty to two parties whose interests are by definition opposed. Florida's solution was the transaction broker model: when a licensee assists both sides, neither side receives full fiduciary representation, and both sides understand that going in.

A licensee cannot serve as a single agent for both buyer and seller in the same transaction. If a single-agent listing broker also represents a buyer who wants to make an offer on that listing, the licensee must transition to transaction broker status before the offer is made — and that transition requires the principal's prior written consent.

Transitioning From Single Agent to Transaction Broker

Section 475.278(3)(c) allows a single agent to transition to transaction broker status, but only with the principal's prior written consent. The consent must be obtained on a separate disclosure form, must include specific statutory language, and must be signed by the principal before the transition occurs.

The most common scenario: a listing broker is acting as a single agent for the seller. A buyer the broker also represents (as the buyer's single agent) becomes interested in the listing. Before either side can move forward, both principals must consent in writing to the licensee transitioning to transaction broker status for the remainder of the transaction.

Once the transition occurs, the licensee can no longer advocate for either party — the loyalty and full-disclosure duties that come with single-agent status fall away, replaced by the limited duties of a transaction broker. The principals trade full representation for the ability to complete the transaction with the same licensee.

Common Misconceptions

Frequently Asked Questions

What's the default brokerage relationship in Florida?
Transaction broker. Under §475.278(1)(b), Florida law presumes all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established in writing. The presumption applies automatically — no written disclosure is required to make the licensee a transaction broker.
Can a Florida licensee represent both the buyer and the seller?
Not as a single agent for both — that would be dual agency, which Florida prohibits. A licensee can act as a transaction broker for both buyer and seller in the same transaction, providing limited representation to each side. If the licensee started as a single agent for one party and now needs to assist the other, the licensee must transition to transaction broker status with both principals' prior written consent.
What are the three fiduciary duties unique to single-agent status in Florida?
Loyalty, confidentiality, and obedience. These three duties are owed by a single agent but not by a transaction broker. The remaining single-agent duties (dealing honestly and fairly, accounting, skill care and diligence, presenting offers, disclosing material facts) are also required of transaction brokers — though the transaction broker version of confidentiality is "limited confidentiality," which covers a specific list rather than all confidential information.
What does "limited confidentiality" actually mean for a transaction broker?
Under §475.278(2)(b), limited confidentiality requires the transaction broker to keep confidential: that the seller will accept less than the listing price, that the buyer will pay more than the offered price, the parties' motivation for the transaction, any information either party would prefer not be disclosed, and any other information unless disclosure is required by law. Information outside this list may be shared.
Does a transaction broker disclosure have to be in writing?
For residential sales, no. As amended in 2008, the transaction broker disclosure requirement was removed for residential sales — the statutory presumption operates without a written disclosure. However, many brokerages still provide a written transaction broker notice as a best practice, and a single-agent or no-brokerage-relationship disclosure must always be in writing, in uppercase and bold, and separate or set apart from other content.
Can a transaction broker disclose to the buyer what the seller will accept?
No — that is one of the specific items covered by the transaction broker's limited confidentiality duty under §475.278(2)(b). Without written authorization from the seller, the transaction broker may not disclose that the seller will accept less than the listing price. This is a common exam scenario — the correct answer is usually that the transaction broker stays silent unless the affected party has authorized the disclosure in writing.

Bottom Line

The transaction-broker-vs-single-agent distinction is one of the most heavily tested topics on the Florida real estate exam, and it is also where candidates who studied with generic national prep materials are most likely to lose points — the Florida model has no direct analog in most other states. Lock in the three relationships (single agent, transaction broker, no brokerage relationship), the statutory presumption that transaction broker is the default, the three fiduciary duties unique to single-agent status (loyalty, confidentiality, obedience), the prohibition on dual agency, and the written-consent requirement to transition from single agent to transaction broker. For the full exam blueprint and the other Florida-specific topics you'll need to know, see our Florida real estate exam complete guide.

Source: Florida Statutes §475.278 (Brokerage Relationship Disclosure Act) · Florida Statutes Chapter 475, Part I · Florida Administrative Code Chapter 61J2