In Florida real estate, what is the difference between a single-agent relationship and a transaction broker relationship?

• A. A transaction broker provides limited representation to both sides without fiduciary duties.
• B. A single agent represents both sides; a transaction broker represents a buyer only.
• C. A single agent represents and owes fiduciary duties to one client; a transaction broker provides limited representation to both sides without fiduciary duties.
• D. A single agent is only for commercial properties; a transaction broker is for residential.

Answer: (C)

In Florida real estate, two common ways a licensee can represent people in a transaction are single-agent and transaction broker arrangements. A single agent represents one client only and owes fiduciary duties to that client—loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care. The agent must put that client’s interests first and advocate for them in negotiations, even if it might conflict with the other party’s interests.

A transaction broker, on the other hand, provides limited representation to both sides. The licensee does not owe fiduciary duties to either side but instead assists both parties in a neutral, facilitative role. They must deal honestly and fairly, present known material facts, and help with the transaction, but they don’t advocate for one side as a fiduciary.

This aligns with the statement that a single agent represents and owes fiduciary duties to one client, while a transaction broker provides limited representation to both sides without fiduciary duties. The other descriptions don’t fit Florida’s framework—for example, single agents do not represent both sides, and a transaction broker is not limited to buyers or sellers exclusively or defined by property type.