Florida Real Estate Broker ExaminationReal Estate Law and RegulationsMedium
A Florida real estate broker is acting as a transaction broker for a buyer and a seller. The buyer asks the broker for advice on the best offer price to submit, while the seller asks the broker if they should accept a lower offer. What is the broker's appropriate response in this situation?
- AThe broker should provide limited advice to both parties, focusing on factual information and market data without recommending specific prices.
- BThe broker should decline to provide any advice to either party, as this would violate the transaction broker duties.
- CThe broker should refer both parties to an attorney for pricing advice, as it falls outside the scope of transaction brokerage.
- DThe broker should advise both parties on the best negotiation strategies to achieve their individual goals.
Show answer & explanationAnswer & explanation
Correct answer: A. The broker should provide limited advice to both parties, focusing on factual information and market data without recommending specific prices.
A transaction broker provides limited representation to both parties in a transaction but does not represent either in a fiduciary capacity. They must deal honestly and fairly, present all offers, and use skill, care, and diligence, but they cannot advocate for one party over the other or provide full fiduciary advice on specific prices.
Why the other options are wrong
- B. A transaction broker is expected to provide some level of service and factual information, not complete silence.
- C. While an attorney can advise, the broker can still provide factual market information within their scope.
- D. This would constitute a breach of the transaction broker's duty of limited confidentiality and impartial dealing.
Transaction Broker Duties
A real estate broker in Florida providing limited representation to both the buyer and seller, working with both to facilitate a transaction.
- No fiduciary relationship with either party.
- Duties include dealing honestly and fairly, presenting all offers, limited confidentiality.
- Cannot advocate for one party over another.
- Can provide market data and factual information.
Memory trick: Balanced advice, never taking a side.