Florida real estate statutes have recently changed making transactional brokerage the default form of brokerage in the state. Licensees can now present themselves as transactional brokers, single agents and non-representation brokers, according to Dan Berube, broker-owner of Pensacolainformation.com, a virtual real estate office.

Transactional brokerage has created some unique opportunities, he says, as well as some problems.

Single agency and non-agency relationships can be offered consumers, says the new statute, if they are offered in writing. Otherwise, the presumed form of service will be transactional brokerage, a kind of limited agency, says Berube. While it does away with sub-agency, he says, it also opens the door for newer business models like his to come through.

Berube and his partner Shorty Kolb advertise themselves as exclusive buyer's agents, but thanks to the new law, they can serve as single agents to the buyer while serving as a non-broker to the seller. In other words, they can provide limited service to the seller such as listing a seller's home in the MLS and preparing a few documents for a limited service fee, while representing the buyer will full fiduciary duties.

"This is the way real estate should be practiced," says Berube. "It is the buyer who needs representation."

He says, "I wouldn't give you five cents for the services most listing agents provide a seller once they get the listing. We don't provide any services either. Only we aren't asking three percent of the commission to do it. We just charge a flat fee."

Berube, however, is sensitive, to the feelings of his fellow brokers. Their business models are based on charging a commission for listing services. He just simply believes that charging a commission, and then turning around and modifying representation to the seller after they have agreed to the commission is not the way he wants to do business.

"I don't care if listing broker is transaction broker, it helps me look at them and see how I'm going to attack that person, just like an attorney," he explains. "They are an adversary in terms of my representing my client. If I know they are a transactional broker, I know they often don't understand what duties they have or don't have. I can use that to get more information out of them that I can use in the negotiations on behalf of my client."

"I tell that seller that if I list their home, don't tell me details like why you are selling or what you will take for the property," he says. "If I bring the buyer, I will use what you tell me to affect a sale."

Incredibly, many of his former buyers want to list with him. "They want to sell the house," Berube explains. "They know that I have lots of buyers."

Berube worries that the new VOW policy allowing broker opt-out will cause some brokers to backlash against virtual brokers like himself. "Some of these large companies have as much as 35 percent market share," says Berube, "so if they were to pull their listings so I couldn't use them, I'd be out of business."

MLSs around the country have not reported broker opt out with Internet Data Display, but he isn't so sure that wouldn't happen with VOWs.

The reason is that the Internet has allowed aggressive new companies to proliferate, that aren't even in the area. At least he's local competition, says Berube, but how do you fight "lead generation" and referral companies that are coming from other places?

"I'm tired of computer geeks from Chicago coming into the business," he says, "or somebody good at the computer who wants to get into real estate, going after a market they don't have a right to.

One new company, describes Berube, suggests to sellers that they get on the MLS.

"This company is nowhere near Pensacola, and they just showed up a couple of nights ago. They advertise a basic service - $495 to put your home in the MLS, and then they find a local agent who is hungry and they put the property on the MLS. So if you do that enough, they could capture the market on listings."

And that puts pressure on listing agents, who will get madder at Berube and other local agents taking advantage of the new statutes.

That should have the statute writers wondering about unintended consequences - be careful what you wish for, you just might get it.

Berube is taking the moderate road, and not pushing his services in the faces of his peers, but he isn't turning down opportunities either.

"As long as you can provide expert advice, and sellers want to sell homes, I'll never be out of business," he says.

Published: September 2, 2003

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.