What Florida Chapter 475 Requires
Florida Statute Chapter 475.278 requires written brokerage relationship disclosure before providing real estate services to any buyer. Florida is unique: the default relationship absent a written agreement is transaction broker, not single agency. Agents who want to serve as true buyer advocates must execute a Single Agent Agreement explicitly.
- Written brokerage relationship disclosure. The type of relationship must be specified in writing before services begin.
- Compensation disclosure. Specific compensation amount or formula must be stated — vague references to cooperative compensation do not comply.
- Defined term. Start and end dates must be specified. Open-ended agreements are non-compliant.
- Buyer signature. Electronic signatures satisfy Florida's requirements under Chapter 668, F.S.
Florida Agreement Types
FR/BAR Exclusive Buyer Brokerage Agreement
Full single agency with fiduciary duties. Requires the Single Agent Notice. Compensation terms must address the gap if the listing pays less than the agreed buyer-side fee — buyers must acknowledge in writing that they may owe additional compensation directly.
FR Non-Exclusive Buyer Brokerage Agreement
Representation without exclusivity. Buyer may work with multiple agents. If buyer closes through another agent, the non-exclusive agreement provides limited remedies.
FR Showing Agreement
For discrete single-property showings only. Does not create a full brokerage relationship. Not appropriate for extended buyer relationships spanning multiple showings.
FREC Penalties
- Administrative fines from ,000 to ,000 per violation
- Mandatory continuing education orders
- License suspension (30 to 180 days for first violations)
- License revocation for willful repeated violations
Florida Statute Chapter 475 — Governs real estate brokerage relationships in Florida. Section 475.278 requires written brokerage relationship disclosure before providing real estate services to buyers. The default brokerage relationship is transaction broker. Single agency requires a separate written agreement and delivery of the Single Agent Notice. Violations are subject to FREC disciplinary action.
The Compensation Gap Problem
When a buyer agreement specifies a fee higher than what the seller offers, the buyer owes the difference at closing. Florida Chapter 475 requires this potential obligation be disclosed in the buyer agreement itself — not at the offer stage. Agents who omit this disclosure face FREC risk and civil liability if the buyer disputes the fee.
Common Mistakes Florida Agents Make
1. Defaulting to transaction broker without disclosure. The default is not permission to avoid written agreements. Providing services without a written brokerage relationship agreement violates Chapter 475.
2. Omitting the compensation gap disclosure. Revealing the gap at closing is too late. It must be in the agreement at execution.
3. Using showing agreements for ongoing relationships. Showing agreements cover discrete events. Agents who use them across weeks of showings operate without adequate written authority for most services provided.