Broker Tom represents seller Janet under an exclusive listing agreement. Buyer Kevin approaches Tom directly about Janet's property without his own representation. Tom provides Kevin with the Consumer Guide and explains he can work with Kevin as a customer or help him find separate representation. If Kevin chooses to work with Tom as a customer, what is Tom's duty to Kevin?
Correct Answer
A) Honest and fair dealing while maintaining loyalty to Janet
Correct: A - Honest and fair dealing while maintaining loyalty to Janet. When working with a customer (non-client), the broker owes honest and fair dealing but maintains fiduciary loyalty to their client (Janet). BRRETA allows this arrangement with proper disclosure. Why not B: This option is incorrect because "No duties beyond basic honesty in advertising" does not match the rule tested by the question. The correct answer is "Honest and fair dealing while maintaining loyalty to Janet". When working with a customer (non-client), the broker owes honest and fair dealing but maintains fiduciary loyalty to their client (Janet). BRRETA allows this arrangement with proper disclosure. Why not C: This option is incorrect because "Full fiduciary duty including confidentiality and loyalty" does not match the rule tested by the question. The correct answer is "Honest and fair dealing while maintaining loyalty to Janet". When working with a customer (non-client), the broker owes honest and fair dealing but maintains fiduciary loyalty to their client (Janet). BRRETA allows this arrangement with proper disclosure. Why not D: This option is incorrect because "Equal representation of both parties' interests" does not match the rule tested by the question. The correct answer is "Honest and fair dealing while maintaining loyalty to Janet". When working with a customer (non-client), the broker owes honest and fair dealing but maintains fiduciary loyalty to their client (Janet). BRRETA allows this arrangement with proper disclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
More Ga Agency Brreta Questions
Agent Lisa has a signed Exclusive Seller Listing Agreement with homeowner Robert. Which of the following would NOT be required to be disclosed in writing to potential buyers?
Under Georgia law, what distinguishes a transaction broker from a broker acting in a traditional agency capacity?
A Georgia licensee operating as a transaction broker is assisting both parties in a residential lot sale. The licensee wants to know which activities are classified as ministerial acts under BRRETA. Which of the following is correct?
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?
A Georgia broker considers acting for both buyer and seller in one transaction. Under BRRETA, which statement about this dual-agency arrangement is not correct?
- → Two Georgia clients ask whether their broker can continue after becoming a dual agent. Which statement about the required BRRETA arrangement is inaccurate?
- → A licensee in Georgia is acting as a transaction broker and believes that because no client relationship exists, the licensee has no obligations to either party. Under BRRETA, which of the following correctly describes the duties that apply to a transaction broker?
- → Under Georgia law, what is the primary purpose of a written brokerage engagement agreement between a broker and a client?
- → A Georgia licensee is working with a buyer who has not entered into a brokerage engagement agreement. The buyer is therefore a customer rather than a client. Which duties does the licensee owe to this buyer under BRRETA?
- → Agent Carlos is showing properties to prospective buyer Diana. They have not signed any written agreement. What is Carlos's relationship with Diana under BRRETA?
- → A new Georgia licensee asks why the brokerage requires a signed written engagement agreement before working with any client. Which answer best explains the purpose of this requirement under Georgia law?
- → New agent Jennifer is preparing to meet with potential seller clients for the first time at their home to discuss listing their property. What disclosure document must she provide before beginning any substantive discussion about their real estate needs?
- → Under BRRETA, what disclosure must a Georgia licensee provide to a prospective seller at the first substantive contact?
- → A Georgia broker is hired to help a client lease commercial space. Which statement best reflects how BRRETA applies to this engagement?
- → A new Georgia licensee asks whether a verbal understanding with a seller is sufficient to establish a brokerage relationship. Under BRRETA, what is the best practice for documenting a client representation relationship?
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Previous Question
A Georgia licensee assists a tenant in locating a small retail suite for lease but has not signed any brokerage engagement agreement. The tenant begins referring to the licensee as 'my agent.' Which statement correctly describes how the brokerage relationship is determined under Georgia law?
Next Question
Under BRRETA, which document must a Georgia licensee provide to a prospective buyer or seller at the earliest practical opportunity during their first significant contact?