Quote:
Originally Posted by Laker14
From Florida Statute:
"A real estate licensee may not operate as a disclosed or nondisclosed dual agent. As used in this section, the term “dual agent” means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction"
If you are buying in the MLS system, and you have your own agent, your own agent gets a share of the commission paid by the seller.
In a VLS transaction, the buyer's agent gets no share of the commission paid by the seller. If I understand the language of the statute I quoted above, the VLS agent cannot, by law, be a fiduciary for both parties.
Perhaps I am misunderstanding the language.
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Being a fiduciary and being an agent are two different things. An agent is paid to represent a client in selling a house. It is a legal agreement between the seller and the broker that is clearly defined in the listing contract. The buyer is not a party to the listing contract. The seller expects the broker to act in his/her best interest and find a willing buyer for the best possible price without violating the legal ethical standards. For example, if a buyer tells the broker that they want to offer $300K for a house, but that they are willing to pay $350K, the broker would be obligated to convey that information to the seller, as long as the buyer has not been deceived about the broker/seller relationship. But, being a fidicuary means that the broker must treat all parties in a fair and honest manner. So, if the buyer asks the broker how long the house has been on the market, the broker cannot lie and must provide an honest and accurate answer. The only recourse the buyer would have against a broker would be if the broker violates an ethical or fiduciary obligation established by Florida law. But, the seller can sue the broker for breach of contract if the broker fails to represent the seller adequately when negotiating the sales price or other terms of the sale. The difference is that the seller has a legal and binding contract with the broker, but the buyer has no contract. This is because the seller has agreed to pay a cash commission to the broker to be their agent, but the buyer has not agreed to pay anything. So, there is no contractual relationship between the buyer and the broker, and the broker or any licensed agent they interact with is not their agent. The only thing that a buyer is entitled to expect is that all licensed agents they deal with will follow the Florida laws of ethics.