Own Luxury Homes®
Single Agency vs Dual Agency vs Transaction Broker
Single agency: full fiduciary (OLDCAR: obedience, loyalty, disclosure, confidentiality, accounting, care). Dual agency: loyalty split; confidentiality lost; banned in 9 states. Transaction brokerage: no fiduciary, no loyalty, no negotiation advocacy; facilitates only. Florida: transaction brokerage is the DEFAULT (§475.278); must affirmatively elect single agency in writing. Colorado: same default; transaction brokerage unless written single agency agreement established. Own Luxury Homes® single agency only; 12-Point Agent Integrity Audit™.
Own Luxury Homes® is a licensed real estate brokerage, not a law firm. This guide is provided for educational purposes and does not constitute legal advice. Agency law varies by state and changes frequently. Nothing here creates an attorney–client relationship. Before making decisions about representation, understand the specific laws in your state. If you have questions about how your agent is representing you, ask them in writing.
Single Agency vs Dual Agency vs Transaction Broker: The Full Comparison and What Each Actually Means for You
Three words that look similar on paper describe fundamentally different legal relationships: single agency, dual agency, and transaction brokerage. One creates a full legal obligation to fight for your interests. One creates a compromised obligation split between two competing parties. One creates no obligation to fight for you at all. Millions of buyers and sellers in the US today are in transaction brokerage relationships without knowing it — because in Florida, Colorado, and ~23 other states, it's the default.
The Three Relationships: Complete Comparison
| Feature | Single Agency | Dual Agency | Transaction Brokerage |
|---|---|---|---|
| Who the agent works for | YOU exclusively | Both buyer AND seller | Neither party — facilitates the transaction |
| Fiduciary duty | YES — full fiduciary: loyalty, confidentiality, disclosure, obedience, accounting | Reduced — cannot fully advocate for either; limited confidentiality | NO fiduciary duty — duty to deal honestly and disclose material facts only |
| Loyalty | Full — agent must put your interests first | Split — cannot fully advocate for either party | None — agent owes no loyalty to buyer or seller |
| Confidentiality | Full — your bottom line, motivation, and financial position stay confidential | Limited — cannot keep your position confidential from the person they also represent | Limited — must disclose material facts; your negotiating position is not fully protected |
| Negotiation advocacy | Full — agent actively negotiates for your best price and terms | Neutralized — cannot recommend you push harder or walk away | None — agent facilitates, does not negotiate on your behalf |
| Advice to walk away from a bad deal | Yes — if the deal doesn't serve you, agent should say so | Compromised — walking away eliminates both commissions | No — transaction broker's role is to facilitate, not advise on whether to proceed |
| Legal in all states? | Yes | No — banned in 9 states | Not in all states; FL/CO make it the default; ~25 states allow it |
| Agent compensation incentive | Aligned with client outcome | Doubled when representing both sides — strong incentive to close | Incentive to close the transaction regardless of terms |
The Fiduciary Duties of Single Agency: What "Working for You" Actually Means
The OLDCAR Framework
In single agency, your agent owes you six fiduciary duties, often remembered as OLDCAR: Obedience — follow your lawful instructions; Loyalty — put your interests first, always; Disclosure — tell you everything relevant, even if you didn't ask; Confidentiality — protect your negotiating position, motivation, and financial limits; Accounting — handle your money properly; Reasonable care — use professional skill and diligence. In dual agency: confidentiality and loyalty are severely compromised. In transaction brokerage: loyalty and advocacy are eliminated entirely.
Florida: Why Your Agent May Not Be "Your Agent"
Florida is the most important state to understand on this issue because of its sheer size and because its law is counterintuitive.
| Florida Reality | What It Means for You | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Transaction brokerage is the DEFAULT for all Florida residential real estate brokers | Unless you SPECIFICALLY elect single agency in writing, your Florida agent is a transaction broker — not your fiduciary | ||||||||
| Under transaction brokerage (FL §475.278): no duty of loyalty, limited confidentiality | Your agent can legally share your bottom line with the other side; they have no duty to advocate for your best price | ||||||||
| Single agency is available in Florida but must be affirmatively elected | Before you sign any buyer representation or listing agreement in Florida: ask your agent to establish single agency in writing | ||||||||
| The "single agent disclosure" form is required before establishing single agency | You will sign a specific form; if you are not asked to sign this form, you are in transaction brokerage by default | ||||||||
| The practical implication: most Florida buyers who believe they have full representation actually have transaction brokerage. They've never been told the difference. Their agent is legally permitted to share their financial limits with the seller. This is not a fringe scenario — it is the statutory default. | |||||||||
Colorado: The Intermediary Default
| Colorado Reality | What It Means for You |
|---|---|
| Transaction brokerage is the default relationship in Colorado | Like Florida: if no written single agency agreement exists, your Colorado agent operates as a transaction broker |
| Single agency (called "buyer's agent" or "seller's agent") is available with written consent | Must be established in writing before or at the time of the first substantive service |
| Colorado prohibits dual agency; transaction brokerage is the permitted alternative when same brokerage represents both parties | When one Colorado brokerage would otherwise be dual agency, they become transaction brokers to both |
States Where Transaction Brokerage Is Permitted (But Not the Default)
Approximately 23 additional states permit transaction brokerage as an alternative to single agency, though it is not the statutory default. In these states, transaction brokerage typically requires: written disclosure and consent; the client must elect transaction brokerage over single agency. These states include: Georgia, Alabama, Arizona, Illinois, Louisiana, Michigan, Minnesota, Montana, Nevada, New Mexico, North Dakota, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, Washington, and others. State law changes; verify with your state's real estate commission.
“When I talk to buyers and sellers in states with transaction brokerage defaults, the first question I ask is: "Do you know what kind of representation you currently have?" The answer is almost always: "I thought I had an agent." In Florida, that belief may be incorrect by statute. The single agency election in Florida — a two-page form your agent should offer you — transforms the relationship from "neutral facilitator" to "your advocate." It takes five minutes to sign. Most buyers in Florida have never been offered it. Ask for it.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What is single agency in real estate?
A representation relationship where an agent exclusively represents one party — either the buyer OR the seller, never both. Creates full fiduciary duties: loyalty, confidentiality, disclosure, obedience, accounting, reasonable care. The agent is legally required to put your interests first, negotiate on your behalf, and keep your position confidential.
What is a transaction broker?
A licensed real estate professional who facilitates a transaction without representing either party. Has no fiduciary duty; owes honest dealing and disclosure of material facts. Cannot negotiate on your behalf; cannot keep your bottom line confidential; owes you no loyalty. The statutory default in Florida and Colorado. Permitted in approximately 25 states total.
What is the difference between single agency and transaction brokerage?
Single agency: your agent fights for you. Full fiduciary. Loyalty, confidentiality of your negotiating position, active negotiation advocacy. Transaction brokerage: the agent facilitates the process. No fiduciary. No loyalty, limited confidentiality, no negotiation on your behalf. In states where transaction brokerage is the default (FL, CO): you must affirmatively elect single agency in writing to get full representation.
Do I have full representation if I'm in Florida or Colorado?
Not automatically. Both states default to transaction brokerage. In Florida: you must sign the single agent disclosure form and elect single agency with your broker. In Colorado: written single agency agreement must be established before first substantive service. If you haven't done this, you have transaction brokerage — not full fiduciary representation.
Own Luxury Homes® — single agency only; full fiduciary on every transaction. 12-Point Agent Integrity Audit™. Talk to a specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)