As a buyer, when deciding to work with a real estate brokerage on a transaction, you have three basic options concerning the role the firm will assume for you:

1. The brokerage firm may work as a transaction broker.
2. The brokerage firm may work as a single "buyers" agent (cannot represent both buyer and seller in the same transaction).
3. The brokerage firm will not represent the buyer.  This situation is referred to as no brokerage relationship.  The brokerage firm simply facilitates the transaction.

Under Florida law, it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with the client.  A transaction broker is a broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but who does not represent either party in a fiduciary capacity or as a single agent.

It is important to remember that when working with a transaction broker that they can represent both the buyer and seller on the same transaction.  Because a transaction broker can represent both buyer and seller, they cannot act as a fiduciary, or in other words, enter into a relationship of trust and confidence with you, the buyer.

When working with a buyers agent, you can rest assured that the agent is working with your best interests (and wallet) in mind.  A buyer's agent will work to negotiate the best price, ensure the property is inspected, and make sure you have the representation you need.  Unlike a transaction broker, your buyers agent will operate under the duties of loyalty and full disclosure.  The duty of loyalty includes, for example:

• Obtaining the most favorable price and terms for the buyer.
• Acting on behalf of the buyer.
• Not acting for parties with adverse interest in the same transaction.
• Never advancing the agent's or another person's interest at the expense of the buyer.

Under the duty of full disclosure, it is the agent's responsibility to keep the buyer fully informed at all times of the facts or information that might affect the transaction or the value of the property.  Additionally, the agent is obligated to disclose facts regarding a property's true worth.  Important facts such as the amount of "distress" in a condo development, the health of the condo association, the quality of building construction, and comparable sales are relevant to a property's true worth and will be disclosed when working with a buyer's agent.

At Miami Condo Shop, we act as a buyers agent on behalf of our clients and provide them with all information that could have a material impact on their real estate transaction.  We believe this is the best way to help our clients navigate through a difficult market and make them feel completely comfortable with their purchase.

Tags: brokerage relationship, buyers agent, comparable sales, florida law, transaction broker