In Florida for example, the main difference between a transaction broker and a single agent comes down to the level of fiduciary duties owed to the client. Here’s how they compare:

1. Transaction Broker (Default in Florida)

• Represents both parties in a transaction in a limited capacity.
• Does not owe full fiduciary duties.
• Provides limited confidentiality (e.g., cannot disclose a seller is willing to take less or a buyer is willing to pay more).
• Facilitates the transaction fairly and honestly without loyalty to either side.
• Required to provide accounting and skillful representation but without undivided loyalty.
• This is the default relationship in Florida unless a single agency is established in writing.

2. Single Agent

• Represents only one party (either buyer or seller) exclusively.
• Owes full fiduciary duties, including:
  • Loyalty
  • Confidentiality
  • Obedience
  • Full disclosure
  • Accounting
  • Reasonable skill and care
• Has a duty to act in the best interest of the client.

Key Takeaways

• As a realtor, transaction broker has the most flexibility in commissions to represent both the buyer and seller.
• As a client, if you want a real estate agent to be fully committed to your best interests, you’d probably prefer a single agent agreement but that doesn’t means your realtor shouldn’t be compensated from the other side if they were unrepresented, and single agent would prevent them from getting commission despite the additional work guiding the close. If you’re comfortable with the agent representing both parties fairly but without full loyalty to you, then transaction broker status is acceptable.
• Most Florida real estate transactions default to transaction brokers unless explicitly changed to a single agency in writing.