No brokerage relationship: duties and disclosure

No representation, three duties

Florida permits a customer to remain unrepresented. However, transaction brokerage is presumed unless single agency or no brokerage relationship is established in writing. No brokerage relationship does not mean no duties.

Under Fla. Stat. § 475.278(4)(a), the licensee must:

Deal honestly and fairly.
Disclose all known facts materially affecting the value of residential real property that are not readily observable to the buyer.
Account for all funds entrusted to the licensee.

No brokerage relationship branches into three duties: honesty and fairness, disclosure of known facts materially affecting residential property value that are not readily observable to the buyer, and accounting for entrusted funds. A separate bar states that covered sales require written disclosure of the duties before showing property. — Florida's three duties and the before-showing disclosure deadline.

A known, concealed water-intrusion problem materially affecting a home's value must be disclosed to the buyer even without representation. This is a known-facts rule, not a promise to discover every hidden defect. An entrusted deposit still requires accounting.

Keep the lists separate

Loyalty, obedience, confidentiality, and full disclosure belong to single agency. Limited confidentiality belongs to transaction brokerage. Skill, care, and diligence and timely offer presentation appear in the representation lists, not the no brokerage relationship list in this section. This comparison does not eliminate obligations arising under other law.

Written notice before showing

For a covered Florida residential sale, fully describe and disclose the duties in writing before showing property. An oral explanation or notice after the tour is insufficient. Use the statutory No Brokerage Relationship Notice, identifying the entity and its associates and listing the three duties, with date and signature spaces. Within another document, make the notice conspicuous and at least the same type size as other provisions; its first sentence must be uppercase and bold.

Check disclosure applicability

Residential sales include improved residential property of four units or fewer, unimproved residential property intended for four units or fewer, and agricultural property of ten acres or fewer. Disclosure exceptions include known representation by a single agent or transaction broker, nonresidential transactions, and qualifying open houses or casual conversations. The open house exception does not encompass eliciting confidential information, executing an offer or representation agreement, or negotiating sale terms. Ordinary rentals are exempt, but an option to purchase property improved with four or fewer residential units is an exception to that exemption. A disclosure exception is not permission to act dishonestly.