A Florida real estate broker is acting as a transaction broker in a sale. The buyer asks the broker for advice on the best price to offer, and the seller asks the broker if they should accept a low offer. What is the appropriate response from the transaction broker to both parties?
- AProvide both parties with relevant market data and explain their options, but do not recommend a specific price or action.
- BAdvise the buyer on a strong offer price and tell the seller to counter if the offer is too low.
- CRecommend the highest possible price to the buyer and the lowest acceptable price to the seller to facilitate a quick sale.
- DRefuse to communicate with either party, as a transaction broker has limited duties.
Show answer & explanationAnswer & explanation
Correct answer: A. Provide both parties with relevant market data and explain their options, but do not recommend a specific price or action.
A transaction broker provides limited representation to both parties, facilitating the transaction without representing either as a fiduciary or single agent. Their duty is to deal honestly and fairly, present all offers and counteroffers, and use skill, care, and diligence. They are not to provide advice that would compromise their neutral position or advocate for one party over the other, but they can provide factual market information.
Why the other options are wrong
- B. Recommending a specific price for either party goes beyond the duties of a transaction broker and could be seen as advocacy.
- C. This is advocacy for both sides, which is inconsistent with the limited representation of a transaction broker.
- D. A transaction broker has duties that include disclosure and use of skill and care; refusing to communicate is a breach of these duties.
Transaction Broker Duties
A transaction broker in Florida provides limited representation to both the buyer and seller in a real estate transaction, facilitating the deal without acting as a fiduciary agent for either party.
- Honesty and fair dealing.
- Limited confidentiality.
- Skill, care, and diligence.
- Present all offers and counteroffers.
- No advocacy for either party.
Memory trick: Transaction Broker: The neutral referee, helping both sides play fair, but not coaching either team.