Own Luxury Homes®
Transaction Brokerage: State-by-State Guide
Transaction brokerage: facilitates transaction with no fiduciary duty to buyer or seller. No loyalty, no negotiation advocacy, limited confidentiality. FL §475.278: default for all residential. Colorado: same default; single agency requires written agreement. Oklahoma: transaction brokerage or single agency only (dual agency banned 2000). Texas: "intermediary brokerage" with written consent; same neutrality limits. Protection: in FL/CO, ask broker to establish single agency and sign the disclosure form first. 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.
Transaction Brokerage Explained: The State-by-State Guide to When Your Agent Isn't Really Your Agent
Transaction brokerage is the real estate industry's answer to the dual agency problem. Instead of one agent representing both sides — which creates obvious conflicts — the agent represents neither side. They are a neutral facilitator: keeping the paperwork moving, disclosing material facts, and helping both parties get to closing. What they are not doing: fighting for your best price, keeping your financial position confidential from the other side, or advising you to walk away from a deal that doesn't serve you. Consumer advocates argue transaction brokerage is a step backward from dual agency — at least a dual agent has nominal obligations to both parties. A transaction broker has fiduciary obligations to neither.
What a Transaction Broker Can and Cannot Do
| Transaction Broker CAN | Transaction Broker CANNOT | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Present all offers and counteroffers | Advise you on the strength of an offer relative to market or your goals | ||||||||
| Prepare and explain contract forms | Negotiate on your behalf to improve price or terms | ||||||||
| Account for all funds | Keep your negotiating position confidential from the other party | ||||||||
| Disclose known material defects (both parties) | Exercise undivided loyalty to either party | ||||||||
| Use skill and care in carrying out their duties | Recommend you walk away from a deal they are equally motivated to close | ||||||||
| Assist with the transaction process | Advocate for a lower price (buyer) or higher price (seller) without compromising neutrality | ||||||||
| The transaction broker's obligations under Florida Statute §475.278(2) include: deal honestly and fairly, account for all funds, use skill/care/diligence, disclose latent defects, present all offers in a timely manner. Not included: loyalty, negotiation advocacy, confidentiality of your position. | |||||||||
State-by-State Transaction Brokerage Rules
| State | Transaction Brokerage Status | Key Rule | What Buyers/Sellers Should Know | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Florida | DEFAULT for all residential transactions | FL §475.278: presumed unless single agency is elected in writing | Sign the single agent disclosure to get full fiduciary representation; ask your broker for it before any other agreement | ||||||
| Colorado | DEFAULT relationship | Sellers and buyers default to transaction brokerage; single agency requires written agreement | Colorado banned dual agency; transaction brokerage is the permitted alternative; elect single agency in writing | ||||||
| Oklahoma | Only permitted relationship (no dual agency, no single agency) | Oklahoma banned both dual agency (2000) and requires transaction brokerage or single agency only; single agency most common | Oklahoma agents commonly practice single agency; confirm which relationship you're in | ||||||
| Texas | Called "intermediary brokerage" | TX Occupations Code §1101.559: broker can represent both parties as intermediary with written consent of both | Texas "intermediary" = transaction broker; requires written disclosure; same neutrality limitations apply | ||||||
| Georgia | Permitted as alternative to single agency | Must be disclosed and elected in writing; not the default | Rarer in practice; most GA agents practice single agency | ||||||
| Alabama, Arizona, Illinois, Louisiana, Michigan, MN, MT, NV, NM, ND, OR, PA, SC, SD, TN, UT, VA, WA | Permitted as an option | Must be elected with written disclosure; not the default in most of these states | Verify which relationship your agent is establishing before signing | ||||||
| Alaska, Kansas, Maryland, Vermont, Wyoming | Not permitted (dual agency banned; designated agency used instead) | These states use designated agency as the primary same-brokerage alternative | You receive single agency or designated agency representation; not transaction brokerage | ||||||
| State laws change. This table reflects 2026 understanding based on available sources. Verify current rules with your state's real estate commission or a licensed attorney. | |||||||||
Transaction Brokerage vs Dual Agency: Which Is Worse for Consumers?
The Consumer Advocate's Argument
Dual agency is controversial because the agent has fiduciary duties they cannot fully fulfill for both parties simultaneously. But at least a dual agent has SOME obligation to each side. Transaction brokerage removes the obligation entirely. A transaction broker owes you honest dealing and disclosure of material facts — the same obligations a used car salesman has in most states. No loyalty. No confidentiality of your negotiating position. No advocacy. Transaction brokerage replaced dual agency in Florida and Colorado not because it better serves consumers — but because it better protects brokerages from liability. You cannot sue a transaction broker for failing to advocate for you because advocacy was never their obligation.
How to Protect Yourself in Transaction Broker States
| If You're In... | What to Do | Key Step |
|---|---|---|
| Florida | Affirmatively elect single agency before signing any representation agreement | Ask: "Can you establish single agency with me and provide the required disclosure form?" |
| Colorado | Request a written single agency (buyer's agent or seller's agent) agreement at first meeting | Confirm in writing before any property tours or substantive services |
| Texas | Ask whether the agent is establishing intermediary brokerage or exclusive representation | Request exclusive buyer's agent or seller's agent agreement if available; confirm no intermediary |
| Any state where TB is permitted | Ask directly before signing: "Are you my single agent with full fiduciary duties or a transaction broker?" | Get the answer in writing; it affects your legal protections throughout the transaction |
“The conversation I have with buyers before any agreement in Florida: "In this state, unless we specifically elect single agency, I am presumed to be your transaction broker. That means I have no duty of loyalty, no obligation to negotiate for you, and limited confidentiality of your position. I operate as a single agent. I want you to have full fiduciary representation. Here is the single agent disclosure form. Sign it before we do anything else." Most Florida buyers have never been offered this choice. Their agents defaulted to transaction brokerage without ever explaining the difference. One conversation, one form, and the relationship changes entirely.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What is transaction brokerage?
A real estate relationship where the licensed broker facilitates the transaction without representing either the buyer or seller. No fiduciary duty. No loyalty. No negotiation advocacy. Limited confidentiality. The broker's obligation: deal honestly, disclose material facts, use skill and care. Not their obligation: fight for your price, keep your bottom line private, advise you to walk away.
Is transaction brokerage bad for consumers?
It removes the core protections most consumers believe they have when they hire a "real estate agent." No duty of loyalty means the broker has no obligation to prioritize your interests over closing the deal. No full confidentiality means your negotiating position can be shared. No negotiation advocacy means the broker is not fighting for your best price. In states like Florida and Colorado where it's the default: most consumers don't know their agent isn't their advocate.
What's the difference between a transaction broker and a buyer's agent?
A buyer's agent (single agency): fights for you. Full fiduciary. Negotiates for your best price and terms. Keeps your position confidential. Must put your interests first. Transaction broker: facilitates for both sides. No fiduciary. No negotiation advocacy. Limited confidentiality. In simple terms: a buyer's agent is your coach; a transaction broker is the referee.
How do I get full representation in Florida?
Ask your broker to establish single agency before signing any agreement. They are required to provide a "Single Agent Disclosure" form under Florida law. Sign that form — it establishes single agency with full fiduciary duties. If your broker won't offer single agency, find a broker who will. Your right to full fiduciary representation is available in Florida; it is simply not the default.
Own Luxury Homes® — single agency in every state we serve. Full fiduciary. No transaction brokerage. 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)