The most misunderstood topic in real estate is Florida Law on Agency.

I’ve studied this topic since the first statutory law in 1994. It’s been changed and revised many times and thus the confusion.

It is a consumer protection law covering the disclosure of the relationship we have with our customers. There is a presumption of Transaction Brokerage unless we establish a different relationship in writing. Now, most of the companies are Transaction Broker companies by an overwhelming number; over 85%. Now there are two things going on; ONE: We have the job of real estate and TWO: the relationship we have with our customer. As Transaction Brokers we are all able to do the entire job of real estate. It’s HOW we do the job that is important. Transaction brokers provide facts, figures, and information; while Agents provide opinions and advise.

Now here is where the confusion is obvious. As Transaction Brokers, WE ARE NOT AGENTS! Sales associates are only agents of the broker, not the customer. So, we should avoid calling ourselves agents! WE DON’T HAVE CLIENTS! We have customers. The term client isn’t even defined in the law, and might create an unintentional agency. Courts have ruled that if it walks like a duck, acts like a duck and talks like a duck…It’s a duck. You can’t act like an agent and hide by saying you’re a transaction broker.

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices. See you next time!