Transition from single agent to transaction broker, and designated sales associates

Transition requires consent first

In Florida, a single agent may transition to transaction broker at any time during the relationship, but must first obtain the principal's written consent using the statutory transition disclosure. Oral permission, silence, and later approval do not satisfy prior written consent. The transaction broker presumption does not override an established single agent relationship.

The disclosure may be separate or incorporated into a listing or other representation agreement. An incorporated notice must be conspicuous and in type at least as large as the other provisions; the specified first sentence must be uppercase and bold. The consent acknowledgment must be initialed or signed. Use the statutory notice; this lesson is an explanation, not a substitute form.

What changes

Single agency includes loyalty, confidentiality, obedience, and full disclosure. Transaction brokerage is limited, nonfiduciary representation of a buyer, seller, or both. Parties give up undivided loyalty, but honesty, accounting, skill, care, diligence, and other transaction broker duties remain. Limited confidentiality protects negotiating information unless waived in writing. Florida prohibits disclosed and undisclosed dual agency.

Designated sales associates are a separate route

Under Florida Statutes section 475.2755, in a transaction other than a residential sale, where the buyer and seller have assets of $1 million or more, the broker may designate sales associates as single agents for different customers at their request. Both customers must sign disclosures stating that their assets meet the threshold and requesting this representation. The asset requirement is not a purchase-price requirement.

A residential sale includes improved residential property of four units or fewer, unimproved residential property intended for four units or fewer, and agricultural property of 10 acres or fewer. Wealth does not make a residential sale eligible.

Designated associates owe single agent duties, with the associated disclosures. Their special confidentiality notice replaces the transition notice. Confidential information may be shared with the broker or persons specified by the broker for advice or assistance benefiting the customer, and disclosures allowed or required by law remain permitted. The broker must keep the information confidential and may not use it to the other party's detriment. For this section, buyer includes a transferee or lessee, and seller includes a transferor or lessor.