Transaction broker: provides limited representation, deals honestly and fairly, but owes no fiduciary loyalty to either side.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Florida statute generally prohibits a brokerage from practicing which form of agency in a residential transaction?
Answer: C. Florida abolished traditional DUAL AGENCY for residential transactions; a licensee may not act as a fiduciary single agent for both buyer and seller at the same time. The transaction-broker model was created largely to fill that role without the conflicts of dual agency.
Question 2 of 5
Which agency regulates real estate licensees in Florida and issues sales associate and broker licenses?
Answer: A. Real estate licensing in Florida is regulated by the Florida Real Estate Commission (FREC), which operates under the Department of Business and Professional Regulation (DBPR).
Question 3 of 5
Which Florida agency is the parent department that houses the Florida Real Estate Commission (FREC)?
Answer: A. FREC operates within the Department of Business and Professional Regulation (DBPR). The Division of Real Estate, under DBPR, provides administrative support to the Commission.
Question 4 of 5
Which Florida agency is responsible for investigating complaints and imposing discipline against real estate licensees?
Answer: B. The Florida Real Estate Commission (FREC) operates under the Department of Business and Professional Regulation (DBPR) and is the body that adopts rules, investigates complaints, and disciplines licensees for license-law violations.
Question 5 of 5
Which word is generally prohibited in a Florida real-estate team or group name because it implies the team is an independent brokerage?
Answer: C. Team names may use words like 'team' or 'group' but may not include words such as 'realty,' 'real estate,' 'company,' 'corporation,' 'brokerage,' or 'agency' that imply the team is a separately licensed brokerage firm.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Default brokerage relationship in Florida is TRANSACTION BROKER (limited representation), not single agency.
- Transaction broker: provides limited representation, deals honestly and fairly, but owes no fiduciary loyalty to either side.
- Single agent: owes full fiduciary duties (loyalty, confidentiality, obedience, full disclosure, accounting, skill/care) to one party.
- A single agent may transition to transaction broker via the 'Transition to Transaction Broker' disclosure with consent.
- No brokerage relationship: licensee represents neither party but still owes honesty, fair dealing, and disclosure of known material facts.
- Florida abolished mandatory written agency disclosure to the public for the transaction-broker default in residential sales (presumed relationship).
- Always confirm which relationship applies in writing before sharing confidential negotiating information.
Florida Agency Model Cheat Sheet: FAQs
Is Florida Agency Model Cheat Sheet on the real estate exam?
Yes. State License Law is a scored domain on the Florida real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Florida test this differently?
Florida applies its own license law on top of the national portion. This page covers the Florida rules specifically, which is what the state section of your exam tests.
