Disclosure Requirements

In the real estate world, the law treats buying a house differently than buying a factory or a shopping mall. The government assumes that a regular person buying a home needs more protection and clarity than a sophisticated investor buying a commercial building. Because of this, Florida law requires you to give a "Disclosure Notice" (a specific piece of paper) to your client that explains exactly what your job is and who you work for. However, you don't have to do this for every single deal.You are only legally required to give these "Relationship Disclosure" forms if you are dealing with a Residential Sale. Think of this as consumer protection for the "little guy." If you are helping a family buy a home, or selling a duplex (2 units) or triplex (3 units), the state wants to make sure those people know if you are on their team (Single Agent) or just a neutral referee (Transaction Broker).The law defines "residential" generally as 4 units or fewer. If the property has 5 units or more, it’s considered "commercial," and the mandatory disclosure rules disappear.