2.1 Brokerage Relationship Disclosure Act & Statutory Presumption

🎯 Key Florida Real Estate Statutory Takeaways

• Florida recognizes only three authorized brokerage relationships: Transaction Broker, Single Agent, and No Brokerage Relationship (Nonrepresentation).
• Under F.S. § 475.278(1)(b), licensees are legally presumed to operate as Transaction Brokers unless an alternative written disclosure is executed.
• Transaction brokers provide limited representation to buyers, sellers, or both without fiduciary loyalty.
• Written disclosure notices are required ONLY for Single Agent relationships and No Brokerage relationships in residential transactions.

The Florida Brokerage Relationship Disclosure Act (F.S. § 475.278) governs the legal relationships that real estate licensees establish with members of the public. The statute establishes a clear legal presumption: all licensees are presumed to operate as transaction brokers unless an express single agent or no brokerage relationship is established in writing.

Under Florida law, residential transactions are defined as: (1) sales of improved residential property of four or fewer units; (2) sales of unimproved residential property intended for four or fewer units; or (3) sales of agricultural property of 10 or fewer acres. Brokerage disclosure requirements apply exclusively to these residential transactions; nonresidential commercial sales, business opportunities, auctions, and leases are exempt from standard statutory disclosure forms.

Because transaction brokerage is the baseline statutory presumption, no initial written transaction broker disclosure notice is required to be signed by the customer. A transaction broker provides a limited form of representation, facilitating the deal neutrally between buyer and seller.

If a brokerage chooses instead to represent a consumer as a fiduciary Single Agent or under No Brokerage Relationship, a statutory written disclosure notice must be delivered before entering into a listing agreement or showing property.

⚠️ Common Pearson VUE / FREC Exam Traps

• Assuming a written disclosure is required to establish transaction broker status — transaction brokerage is presumed by statute and requires no initial disclosure.
• Believing transaction brokers represent parties in a fiduciary capacity — transaction brokers owe limited representation with no fiduciary loyalty.
• Applying residential disclosure rules to commercial leases — disclosure mandates apply strictly to residential sales transactions.