How Real Estate Commissions Work in Florida

Commissions Are Always Negotiable

There is no standard commission rate in Florida. The rate is negotiated between the broker and the client and documented in a written listing agreement or buyer’s broker agreement. Commissions are typically paid at closing from the sale proceeds — but a broker’s right to a commission can exist even if a deal doesn’t close, depending on the contract language. Understanding what your agreement says about when a commission is earned is the foundation of any Florida commission dispute.

The Three-Part Test for Earning a Commission

Under Florida common law, a real estate broker typically earns a commission when they:

• Are the procuring cause of the sale — they introduced the buyer and seller, or their efforts were the dominant reason the deal happened
• Had a brokerage agreement entitling them to a commission. A written agreement is far easier to enforce, and a claim on one generally has five years under § 95.11 instead of four.
• Had a buyer who was ready, willing, and able to purchase on the agreed terms

If a seller cancels a deal after the broker produced a buyer who was ready and willing — the broker may still be owed their commission even though no closing occurred.

The Most Common Florida Broker Commission Disputes

Seller Refuses to Pay After Deal Falls Through

This is the most frequent dispute. The broker produced a qualified buyer, the seller accepted the offer, and then something went wrong — the seller got cold feet, accepted a higher offer from another buyer, or claimed the first buyer wasn’t truly qualified. Whether the broker is owed a commission depends on the listing agreement language and whether the broker was truly the procuring cause. A Florida real estate litigation attorney can evaluate the specific agreement and facts quickly.

Co-Brokerage and Buyer’s Agent Disputes

When two brokerages are involved — a listing agent and a buyer’s agent — disputes arise over the agreed co-brokerage split. After NAR’s 2024 settlement, buyer’s agent compensation must now be documented separately and is no longer automatically offered through the MLS. If the buyer’s broker agreement or seller’s agreement doesn’t clearly establish the co-brokerage arrangement, disputes are almost guaranteed.

Brokerage Relationships and Dual Agency

Florida does not allow dual agency. Under § 475.278, a licensee may work as a transaction broker or a single agent, and is presumed to be a transaction broker unless another relationship is set up in writing. A licensee may not act as a disclosed or nondisclosed dual agent. When the brokerage relationship was never clearly documented, or a broker acted outside it, that can become a central issue in a commission dispute.

What Florida Courts Look at in Commission Disputes

Frequently Asked Questions

Florida Broker Commission Disputes Require Specific Legal Knowledge to Win

Whether you’re owed a commission or disputing one, Feinstein Law handles Florida broker commission disputes and real estate contract litigation throughout South Florida. Call (954) 767-9662 or reach us at our contact page.

About Feinstein Law: Feinstein Law is a Fort Lauderdale firm handling real estate litigation, business disputes, and contract matters throughout Broward, Miami-Dade, and Palm Beach counties.

The post How to Handle a Broker Commission Dispute in Florida appeared first on Real Estate Litigation & Business Law.

Understanding Fiduciary Duty in Florida

Under Florida law, fiduciary duty in real estate is more than a courtesy — it’s a legally enforceable obligation. As the Florida Real Estate School explains, fiduciary duty is “the legal obligation an agent has to act in the best interests of their client,” a relationship built on trust and loyalty. These duties are defined by statute and enforceable through regulatory channels; violations can lead to the loss of a license, civil liability, and reputational harm.

Florida’s real estate statute, F.S. 475.01, defines a fiduciary as a broker in a relationship of trust between the broker and the seller or buyer. The statute lists the broker’s duties as loyalty, confidentiality, obedience, full disclosure, and accounting, along with a duty to use skill, care, and diligence. Those core obligations form the basis of the five fiduciary duties discussed below.

What Are the Five Fiduciary Duties?

The following table summarizes the core duties owed by a Florida real estate agent to a single‑agency client. Reasonable care and diligence is included with accounting because Florida law links these duties in the same statutory clause.

Duty of Loyalty

The duty of loyalty requires a real estate professional to put the client’s interests first at all times. This means never promoting a property simply to earn a higher commission or using confidential information to benefit another client. Loyalty is especially important in tight markets like Fort Lauderdale, where bidding wars are common and buyers rely heavily on their agent’s guidance. A breach of loyalty can lead to civil damages and disciplinary action under Florida law.

Duty of Obedience

The duty of obedience compels agents to follow lawful instructions from their clients. For instance, if a seller wants to reject a full‑price offer because they prefer a longer closing date, the agent must comply. Disobeying lawful directives — such as deliberately ignoring a buyer’s price limit — can lead to lawsuits and loss of licensure. In Broward County, many disputes begin when brokers take unilateral actions that contradict their client’s wishes.

Duty of Disclosure

Agents must provide full disclosure of all known material facts that could affect a client’s decision. This includes issues like hidden water damage, unrecorded easements, or pending liens on a property. Under Florida’s transaction broker relationship, limited duties still require honest dealing and disclosure of known facts. Failure to disclose material defects is one of the most common reasons buyers pursue litigation. If your transaction involved nondisclosure, our Broward real estate litigation team can review your case.

Duty of Confidentiality

Maintaining confidentiality means never revealing personal or financial information shared by the client. This duty survives closing and lasts indefinitely. Sharing a buyer’s budget or a seller’s motivation with another party is a clear breach. In practice, an agent must separate conversations with different clients and avoid casual remarks that could reveal private details. Our firm regularly handles matters where former agents disclosed sensitive information, leading to lawsuits and license suspension.

Duty of Accounting & Reasonable Care

Accounting requires an agent to accurately handle all funds and documents involved in a transaction. Earnest money deposits, escrow funds, and keys must be logged and safeguarded. Florida law also pairs accounting with reasonable care and diligence, meaning the agent must use their knowledge and skill to competently represent the client. This includes preparing accurate contracts, coordinating inspections, and meeting statutory deadlines. Poor record‑keeping or careless management of funds can quickly become grounds for a breach of fiduciary duty claim.

Consequences of Breaching Fiduciary Duties

Breach of fiduciary duty carries serious consequences. Violations can result in civil lawsuits, administrative penalties from the Department of Business and Professional Regulation, and a loss of trust that can end a career. Florida’s real estate statute emphasizes that brokers are bound by loyalty, confidentiality, obedience, full disclosure, and accounting with skill and care. If a broker fails to meet these obligations, a buyer or seller may sue for damages and file a complaint with the state.

Because fiduciary duties are codified, claims often intersect with broader legal issues like complex civil litigation and real estate contracts. Courts in Fort Lauderdale and throughout Florida look to statute and case law to determine whether a duty was breached. Evidence of undisclosed defects, diverted funds, or unauthorized disclosures can support a claim for compensatory damages and potentially punitive damages.

Local Guidance & Getting Help

Real estate transactions in Miami‑Dade and Broward counties often involve intricate local regulations. Planning and zoning decisions made by the Broward County Planning Council can affect property values, while agency relationships under F.S. 475.01 dictate how agents must behave. Understanding fiduciary duty helps protect your interests and avoid costly disputes.

If you suspect a broker or partner has violated these duties, it’s vital to act quickly. Document the conduct, gather communications and contracts, and consult with a qualified attorney. Our firm helps clients in Fort Lauderdale and across South Florida pursue damages and negotiate resolutions. Whether you’re dealing with a breach of fiduciary duty, a partnership dispute, or a commission issue, we’re here to help.

Frequently Asked Questions

Do transaction brokers owe fiduciary duties in Florida?

No. In a transaction broker relationship — the default in Florida — the agent provides limited representation and does not owe fiduciary duties. Instead, they must deal honestly and fairly, account for funds, and disclose known facts.

Can an agent represent both buyer and seller?

Yes, but only as a transaction broker. Single agents cannot represent both sides because they would be unable to fulfill the duties of loyalty and confidentiality.

Is confidentiality still required after closing?

Absolutely. The duty of confidentiality continues indefinitely, meaning an agent may not disclose information about past clients even years after the transaction.

What happens if a broker breaches fiduciary duties?

A breach can lead to civil lawsuits for damages, administrative penalties, and suspension or revocation of the broker’s license. Courts will examine evidence of nondisclosure, self‑dealing, or mishandling of funds to determine liability.

Are fiduciary duties only for real estate agents?

No. Corporate officers, trustees, and other professionals also owe fiduciary duties, such as the duty of loyalty and care. The concept applies broadly wherever one party is entrusted with another’s financial interests.

If you believe a fiduciary duty has been breached or you’re facing a dispute over commissions or disclosure, contact Feinstein Law for a confidential consultation. Our attorneys understand local real estate law and are dedicated to protecting your rights.

The post What Are the 5 Fiduciary Duties in Real Estate? appeared first on Real Estate Litigation & Business Law.