Florida Condo Buyers

Florida is now a "Transaction Broker" state. The Florida Laws requiring every Licensed Real Estate Agent to inform new clients at their very first meeting, who they were working for or who they represented.. has been DROPPED.  WHY ?

Looking out for the Buyers

In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers mistakenly believed that they were represented by the agent who was showing them homes. The fact was that most agents showing homes were representing sellers. And by the legal requirements of "agency representation", a Real Estate agent must negotiate in the best interest of their client. This requires not withholding any information from them (possibly meaning they would reveal such important information as buyer's motivation, financial qualification etc.) and presenting their property in most favorable way. When consumers became aware of this, they demanded their own representation. Consequently, laws requiring disclosing representation were passed all over the country... Enter the "exclusive buyer agent", an agent that does not have a conflict of interest since he/she only represents the buyer in a Real Estate transaction. An Exclusive buyer agent always works in Buyer's best interest getting back to the legal definition of "Agency Representation".

Florida’s Dual Agency Solution ?

Florida is now a "Transaction Brokerage" state. Due to the FTC finding and the widespread practice of "Dual Agency", where the seller’s agent would represent both the Seller and the Buyer… "Conflict of Interest" was a legal problem that more and more brokerages had to deal with. Todays Transaction Brokers must walk a tightrope between the Buyer and the Seller. The Transaction Broker can't provide Full Disclosure or Fiduciary Representation to either the Buyer or Seller (some would call this leveling the field). In fact, They can't represent either one. They are simply "Facilitators". And, this is why they are called Transaction Brokers. Why would an agent choose to do this.... ? Because, he/she is able to collect both commissions, the same as if he/she were a Dual agent.  Many believe that little has changed an they are in fact acting as a Dual Agent.

About Face….

Some have argued that today, Florida Law protects the Buyer's interest from a Seller orientated Real Estate industry and Dual agency. However, in 2008 the state of Florida DROPPED the long standing requirement that a Real Estate Agent must identify who he/she was working for or representing at the very first meeting with a new client. This law was originally written to protect buyers from agents not disclosing they were really working for the seller interest and being paid by the Seller. Since then there has been a rush to "Buyer Brokerages", and Exclusive Buyer Agents.

The Informed Home Buyer

In December 2009, the Department of Housing and Urban Development (HUD.gov) added the following statement to their "Home Buyers Handbook";

"It is your [buyers] responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an "exclusive buyer’s agent", who will be working for you."