Under Georgia BRRETA, which statement correctly describes the distinction between a client and a customer and the duties owed to each?
Correct Answer
B) Under Georgia BRRETA, a client is a party who enters a brokerage engagement with the broker, while a customer receives only limited statutory duties without fiduciary representation.
Under BRRETA (O.C.G.A. § 10-6A-3), a 'client' is defined as a person who has entered into a brokerage engagement with a broker. The broker then owes that client the full range of duties set out in O.C.G.A. § 10-6A-5, including loyalty, confidentiality, and obedience. A 'customer,' by contrast, has no brokerage engagement and is owed only the limited duties specified in O.C.G.A. § 10-6A-14, such as honesty and fair dealing—not fiduciary representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
More Ga Agency Brreta Questions
Under Georgia's BRRETA, which statement accurately describes a broker's obligations regarding confidential information when a dual agency relationship has been established?
Agent Lisa represents buyer Kevin under a written buyer brokerage engagement. During their property search, they encounter a home listed by Lisa's brokerage where Lisa would be the dual agent. What disclosure requirements must Lisa fulfill?
Under Georgia law, which of the following best describes how dual agency is created and what is required for it to be valid?
A Georgia broker realizes mid-transaction that dual agency may have been created without proper consent. Under BRRETA, which statement correctly addresses the consent requirements for dual agency?
In Georgia, when can a brokerage firm establish designated agency?
- → Under Georgia's BRRETA, which of the following accurately describes the legal effect of performing ministerial acts for a party in a real estate transaction?
- → Under Georgia's BRRETA, which of the following best describes the duties a licensee owes to a customer (a party who has NOT entered into a brokerage engagement)?
- → A newly licensed Georgia agent asks her broker to explain the primary obligation that distinguishes designated agency from dual agency when a single firm represents both parties. Which answer best describes this key distinction?
- → Under Georgia's BRRETA, which statement accurately describes the relationship between compensation and brokerage status?
- → Under BRRETA, which statement correctly describes the scope and effect of ministerial acts performed by a Georgia licensee?
- → Agent Sarah is working as a transaction broker for both buyer and seller in a residential sale. The buyer asks Sarah what she thinks the property is worth compared to the listing price. Under BRRETA, how should Sarah respond?
- → Under Georgia's BRRETA, which statement about dual agency is NOT correct?
- → Under Georgia's BRRETA, what distinguishes a 'client' from a 'customer' in a real estate transaction?
- → Under BRRETA, if a brokerage relationship needs to change from one type to another during the course of a transaction, what does Georgia law require?
- → A Georgia brokerage firm uses designated agency, assigning Agent Lopez to represent the seller and Agent Marsh to represent the buyer. Agent Lopez unexpectedly becomes unavailable mid-transaction. Which statement best describes the firm's obligations under BRRETA?
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Under Georgia's BRRETA and related license law, which statement is NOT correct regarding brokerage relationships, client versus customer status, and the scope of licensee duties?
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Regarding the formation of brokerage relationships under Georgia BRRETA, which statement is correct?