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Ga Agency BrretaBrreta_brokerage_relationshipsEASY

A Georgia licensee assists a tenant in locating a rental property but has not entered into any written brokerage engagement with the tenant. Under BRRETA, which statement best describes the licensee's relationship with the tenant?

Correct Answer

B) The tenant is a customer to whom the licensee owes limited statutory duties, since no brokerage engagement has been established.

Under BRRETA (O.C.G.A. Title 10, Chapter 6A), the existence of a brokerage engagement—not the type of transaction—determines whether a party is a client or a customer. Since no brokerage engagement was established, the tenant is a customer. The licensee still owes the tenant limited statutory duties (such as honesty, fair dealing, and disclosure of known material defects) but does not owe the full fiduciary duties reserved for clients. BRRETA applies to both sales and lease transactions.

Answer Options
A
The licensee has no obligations to the tenant because BRRETA does not apply to lease transactions.
B
The tenant is a customer to whom the licensee owes limited statutory duties, since no brokerage engagement has been established.
C
The licensee has created an implied client relationship by actively assisting the tenant in finding a rental property.
D
The tenant automatically becomes the licensee's client once the licensee shows more than two rental properties.

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Related Topics & Key Terms

Key Terms:

georgiastate_portionbrreta_brokerage_relationshipsga_agency_and_brreta

Related Concepts

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

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