Florida Broker Practice Exam

What is the primary duty of a broker under a single agency agreement that differs from a transaction broker?

1. Accountability

2. Confidentiality

3. Disclose all offers

4. Timeliness in transactions

The correct answer is: Confidentiality

Under a single agency agreement, the primary duty of a broker is to maintain confidentiality regarding the principal's (client's) information. This differs significantly from the role of a transaction broker, who does not owe this same level of fiduciary responsibility. While a transaction broker facilitates a transaction between the parties without representing either as a client, a single agent has a duty to act in the best interest of their client, which includes keeping sensitive information private. In a single agency relationship, the broker's obligation to uphold confidentiality ensures that any confidential information—such as the client's financial situation, motivations for buying or selling, or other private matters—is not disclosed to other parties without the client's consent. This duty fosters a trusting relationship between the broker and the client and is a fundamental aspect of the fiduciary responsibilities that brokers undertake in a single agency arrangement.