A Florida real estate sales associate is hosting an open house. A potential buyer expresses interest in the property and asks the sales associate to represent them in the transaction. The sales associate has an existing single agency relationship with the seller. What is the sales associate's appropriate course of action?
- AThe sales associate can represent the buyer as a single agent, provided they inform the seller of the change in agency relationship.
- BThe sales associate must decline to represent the buyer and refer them to another agent, while continuing single agency with the seller.
- CThe sales associate can represent both the buyer and seller as a transaction broker, with their written consent.
- DThe sales associate can transition to a no brokerage relationship with the buyer, after providing proper disclosure.
Show answer & explanationAnswer & explanation
Correct answer: B. The sales associate must decline to represent the buyer and refer them to another agent, while continuing single agency with the seller.
In Florida, a sales associate (and their broker) operating under a single agency relationship cannot transition to a transaction broker or a no brokerage relationship with the same principal in the same transaction without breaching their fiduciary duty. They also cannot act as a single agent for both parties. Therefore, the sales associate must decline to represent the buyer and refer them to another agent to avoid a conflict of interest and maintain their single agency duty to the seller.
Why the other options are wrong
- A. Acting as a single agent for both buyer and seller in the same transaction is illegal dual agency in Florida.
- C. Transitioning from single agency to transaction broker with the same principal in the same transaction is not permitted in Florida.
- D. Similar to transaction broker, a single agent cannot transition to a 'no brokerage' relationship with the principal they represent in the same transaction.
Single Agent Conflict of Interest (FL)
A situation where a real estate licensee, acting as a single agent for one party, encounters a scenario that creates a conflict with their fiduciary duties to that party.
- Single agency requires undivided loyalty.
- Cannot represent both buyer and seller in the same transaction.
- Cannot switch to transaction broker or no brokerage with the same principal in the same deal.
Memory trick: Single agent: one heart, one loyalty, no switching mid-deal.