Florida and the Transaction Broker mess. Speak up. Make a difference!
Remember 5 years ago, when you could read everywhere
As of July 1st 2008 Florida Real Estate agents do not have to disclose transaction brokerage anymore. It can be assumed that a Realtor is a transaction broker.
Back than I did not pay too much attention because I though "they have 5 years to come to their senses" and by 2008 they will have changed their mind 55 times.
Well, since I had not seen any updates I e mailed FAR, asking for an update
I got an answer within hour (see below) and I e mailed back, saying
"we should keep the form"
To my surprise I immediately got an e mail back (not automated) saying "thank you for your input, we will forward your opinion to the forms committee.
Wow, someone is listening.
So, What do you think?
Lets' create this blog, we, the Realtors and our Clients are the once who have to live the decision, lets speak up. (It might make a difference)
Hi Anne
The FAR Business Forms committee will be voting as to whether FAR will keep the forms as they are, or remove them. So, for the next few months, the Transaction Brokerage forms will remain as they have been on floridarealtors.org.
Here's an e-mail prepared for the Business Forms Forum:
As of July 1, 2008 the requirement to give the transaction broker notice will no longer exist. For the last 5 years, there has been a presumption in 475.278 of the Florida Statutes of transaction broker. Though the presumption existed for the last 5 years, real estate licensees acting in a transaction broker capacity were still obligated to give the transaction broker notice. Effective July 1, 2008, that will no longer be the case. Accordingly, the question now is whether FAR should delete forms containing the transaction broker notice (BRD-6 Brokerage Relationship Disclosure and ERL 11tbx Exclusive Right of Sale) from the website and from the vendor lists. The forms containing single agency, no brokerage relationship and consent to transition to transaction broker would still remain.
What say you? Keep or delete? The obvious reason to delete would be that the notice will no longer be required. On the other hand, a reason for keeping the forms would be to use the forms as a means to educate the consumer on the duties of a transaction broker (dealing honestly and fairly; accounting for all funds; using skill, care, and diligence in the transaction; disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer; presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; limited confidentiality, unless waived in writing by a party and any additional duties that are mutually agreed to with a party).
floridarealtors.org support
support@floridarealtors.org
Anne Hensel
Real Estate Broker ABR, E-PRO,
C-CREC, TRC, ASR, RECS, AHS
St. Petersburg Florida
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Very interesting...you will need to keep us posted on what happens with the new rule.
I am not a Florida Realtor But it seems like, and I just may be old fashion, that to presume creates problems. I think you should always disclose and in writing
Anne~ I am a Florida REALTOR and believe we should KEEP the form. Just because we aren't REQUIRED to give notice as to our relationship and our duties doesn't mean we shouldn't. I'd prefer to over disclose...always!
Yes, I really want to keep the form.
The "General pubic" and some realtors are confused enough the way it is.
Taking away the disclosure form will create a mess.
Anne Hensel
Anne, I am a HUGE fan of transaction brokerage as I feel agency is too high of a standard for most REALTORS(R). Don't get me wrong though, I feel agency would be the way to go if REALTORS(R) understood it better, the consumer was protected and REALTORS(R) could NEVER work both sides of the transaction with the same duties to both parties i.e. be an agent for one party and non-rep for the other or be a transaction broker for one party and a non-rep for the other.
As for the forms, I will continue to use them. Even if they are discontinued it's very easy to just make your own disclosure using the proper verbiage. I agree the forms should be made available whether they are required or not.
This is an important topic so thanks for bringing it up.
Anne,
Although no longer required we have decided to continue using the form.
We want our clients to be well informed..
Hi Bryant
Thanks for your input, and yes, I agree in a perfect world a Realtor would work on one side and one side only !
Anne Hensel
Real Estate Broker ABR, E-PRO,
C-CREC, TRC, ASR, RECS, AHS
St. Petersburg Florida
www.AnneHensel.com
Thanks for your comment Scott and YES I will also continue to disclose transaction brokerage.
Anne Hensel
Real Estate Broker ABR, E-PRO,
C-CREC, TRC, ASR, RECS, AHS
St. Petersburg Florida
www.AnneHensel.com
Anne, this IS an important topic and I thank you for writing about it. I, too, believe we should keep using the form. I prefer to err on the side of caution.
Maggie Dokic
I don't see the need to continue with the form. In dealing with customers who had met with other agents prior to our meeting, the vast majority said that we were the ONLY agents who had them sign it. Of course, we explain that it is Florida law and the reason for it but many seemed 'suspicious' because no other agent had ever presented it to them.
It seems to me that our diligence in following the law and explaining our brokerage responsibilities to them would be a positive thing but I can't say that has been true in most instances. In cases where we were the first/only agent they had met, most just signed it without much thought or consideration.
I am content that we are no longer required to get it signed, however I am fairly certain that I will continue to explain agency at the first meeting since it is now a 'habit'. One less document to have to keep up with is fine with me.
Anne - I vote for keeping the forms. The more disclosures and explanations to the client the better!
Anne- I will always explain to the seller or the buyer how we respresent them. I like the idea that they don't have to sign the paper upon first contact. I will always disclose our transaction duties.
Bryant- I would be very happy with fiduciary duties as single agency if we could be better protected from law suits, until then, I will stick with transaction brokerage.
I will continue to use the form. I believe the client will have a better grasp if they see it in writing.
Hi Gary
thanks for your input, I run into so many clients that are confused about the brokerage disclosure, I will keep using the form
Anne
Dear Nestor and Katherina
Thanks for your opinion, appreciate it. lets see what happens
Anne
Hi Sharon, thanks for your comment, hope they will hear us
Anne
Dear Tim and Susan
Thank you for your input, and unfortunately I have heard this before "You are the first agent that wants me to sign this. . . .
Well, lets hope not presenting the form does not mean not explaining the brokerage relationship
Anne
Dear maffie
Yes, this is my concern too , better be save than sorry
Anne
Hi Anne,
I'm a licensed Realtor in Florida and practice here in SWFL. I am all for disclosing my relationship upfront whether using a form or just in conversation. I belive this to be good for all parties involved.
Nedy Blanchard
Bill and I always work as SINGLE AGENTS, so we have heard about it but don't really worry about it.
Hi Anne,
My parents purchases a lot in port saint lucie florida in 2005. Was it the law that all florida realtors use the single agent or transaction brokerage relationship disclosure? If the realtor did not use the form in 2005 would he/she be able to be sued? The realtor not only did not use that form, he did not properly fill out the agreement of sales, nor disclosed a huge issue that effects the value of his property. Plus my parents never received copies of the signed agreement of sale, even the closing papers until 2 years after the closing. This is amazing! How important was this single agent disclosure, if the realtor never signed one at the time is there any recourse of action? Thanks for your help!