Transaction Brokers vs. Single Agents, Does Fiduciary Duty Apply?

Many homes are sold across the country via Real Estate Brokers or individual homeowners.  With nearly 6 million homes sold this year, the Real Estate Market is operating at a high level. However, increased activity in the housing market may bring an influx of litigation. As a real estate broker, it is vital to ensure you are shielded from liability and know your rights.

With certain business relationships comes certain duties. A fiduciary is a person who holds a legal or ethical relationship of trust with one or more parties. Certain positions, however, do not have this legal relationship of trust attributed to them. A transaction broker is a broker who represents either the buyer or seller of real estate. To bring an action against a broker for common law breach of fiduciary duty, a transaction broker must elevate their relationship to that of a single agent or no brokerage relationship.

The position or title of an employee determines the fiduciary relationship applicable to their client. This area of law can be very arduous to navigate without an attorney. Kristy Armada is an attorney here at Olive Judd with vast knowledge and expertise in this field of law. She can be reached at 954-334-2250 or karmada@olivejudd.com.