Attitude & News Home

Directories
  Int'l Realty
  US Realty

Shifting Sands

As the sands along the Gulf of Mexico shift with time and nature, the sands of buying real property in Florida have shifted.

You and your mate have worked hard to enjoy your retirement in the sunny State of Florida. You have raised your children, paid your mortgage, earned your gold watch or have been downsized. Your thoughts are to now enjoy YOUR life on the beaches of Florida! This is YOUR time and you have earned the right to enjoy it.

However, being from out-of-state, you must 1st learn how the real estate transactions are changing in this sunny state.

The State of Florida requires that every real estate licensee inform you of the various types of Agency relationships that are available to you. They are: Exclusive Seller's Agent; Exclusive Buyer's Agent; Disclosed Dual Agent. These have very specific duties for the licensee to perform for you.

Now you should be very aware of another relationship; "Transactional Notification", which is NOT an agency relationship. This relationship notifies you that the real estate licensee has NO duty to counsel or advise you. It merely operates as an Introduction between buyer and seller and gives the licensee the right to compensation (and limits that licensee's liability to you). Basically, it is for the licensee's benefit and not the Seller or the Buyer.

You can easily recognize a transactional licensee by their use of the following:
Jane Jones, Real Estate Consultant
Jane Jones, Real Estate Specialist
Jane Jones, Real Estate Licensee
What is missing?
Jane Jones, Real Estate AGENT.

You may think of Jane Jones as your Agent...but she is not working in an Agent capacity for your best interests.

Now, to further muddy the waters against your rights to know and be protected... The Florida Legislature's Bill #82, the "Paper Reduction Bill", becomes effective October 01, 1997. When a prospective Buyer goes to an Open House, calls on an ad or lawn sign, the Seller's Licensee does NOT have to inform you of her relationship with the Seller. The Buyer, without any written notification, AUTOMATICALLY becomes that agent's customer in a "Transactional Notification" relationship.

Why? YOU INITIATED the contact with the Seller's licensee. The Seller's licensee did not go to you....You went to the licensee and you are now that licensee's customer whether you like it or not!

To even further complicate the issue: If you then hire a Buyer's Agent to protect your best interests, and that Buyer's Agent gets you through: selection of the property; writes the offer and negotiates the contract; home, termite, well & septic, roof, pool inspections; lending; title commitment and closing.... the Seller's licensee can claim the Buyer's Agents compensation through Arbitration at their Board of REALTORS. Why? The Seller's licensee can claim that he/she was the procuring cause of the Buyer because the Buyer WENT TO the Seller's licensee for information.

The Seller's Agent and the Buyer's Agent are both members of the Board of REALTORS and subscribe to the Code of Ethics of the National Association of REALTORS. Therefore, the Buyer's Agent must submit to the claim for compensation through arbitration (according to standard of practice 17-4) .

Home Buyers should be aware of these implied relationships which may occur while house hunting. Also keep in mind the following:

TRANSACTIONAL NOTIFICATION=BUYER AS A CUSTOMER
EXCLUSIVE BUYER'S AGENT=BUYER AS A CLIENT.

To simplify this and protect yourself, use the following:
PROSPECTIVE BUYER'S SAFETY SHEET

I maybe interested in learning about your Seller's property. However, I may wish to have the services of an Exclusive Buyer's Agent, to represent me with FULL FIDUCIARY DUTIES. Please understand that should I have an Exclusive Buyer's Agent, I am NOT accepting you as a "Transactional Licensee" on my behalf in this transaction. Kindly signify your acceptance by agreeing and signing (or verbal acceptance) the form below:

Date-Property Address-Real Estate Licensee-Real Estate Firm

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

This is not intended to be legal advice and it is suggested that you seek the services of an attorney in state where you wish to purchase property.

Lois Hekker is an Exclusive Buyer's Broker
Buyer's Agents International Realty