A licensee is providing customer-level service to both the buyer and the seller in a residential transaction, with no client-level brokerage agreement with either party. The buyer asks the licensee for an opinion on the property's market value and whether to offer the full asking price. Under BRRETA, how should the licensee respond?
Correct Answer
B) Advise the buyer to obtain an independent appraisal for a value opinion
Under BRRETA (O.C.G.A. § 10-6A-14), a licensee providing customer-level service (rather than client-level representation) owes duties of honesty, fairness, and disclosure of material facts, but does not owe fiduciary duties such as loyalty, advocacy, or confidential advice. Because the licensee has no client relationship with the buyer, offering strategic opinions on value or negotiation would exceed the scope of customer-level service. Advising the buyer to seek an independent appraisal is the appropriate response.
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Related Topics & Key Terms
Key Terms:
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.
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
Broker Martinez has a buyer client, Anderson, looking for investment property. Anderson finds a FSBO property and asks Martinez to help negotiate the purchase. The seller, Brown, asks Martinez to also represent him since he's unfamiliar with real estate transactions. Under BRRETA, what must Martinez do to legally represent both parties?
Next Question
Seller Garcia has listed her home with XYZ Realty, with agent Park as the listing agent. Buyer Thompson, who is not represented, submits an offer through agent Lee from ABC Realty. Under BRRETA, what is agent Lee's relationship to the parties?