A transaction broker is showing a property to potential buyers. During the showing, the buyers ask the transaction broker what they think the sellers would accept as an offer price. How should the transaction broker respond?
Correct Answer
D) Explain they cannot provide advice on negotiation strategy but can present any offer
Correct: D - Explain they cannot provide advice on negotiation strategy but can present any offer. Transaction brokers cannot provide advice or opinions that would constitute advocacy for either party. They can only perform ministerial acts. Why not A: This option is incorrect because "Suggest they make an offer at least 10% below asking price" does not match the rule tested by the question. The correct answer is "Explain they cannot provide advice on negotiation strategy but can present any offer". Transaction brokers cannot provide advice or opinions that would constitute advocacy for either party. They can only perform ministerial acts. Why not B: This option is incorrect because "Provide their professional opinion on what the sellers might accept" does not match the rule tested by the question. The correct answer is "Explain they cannot provide advice on negotiation strategy but can present any offer". Transaction brokers cannot provide advice or opinions that would constitute advocacy for either party. They can only perform ministerial acts. Why not C: This option is incorrect because "Contact the sellers directly to ask about their bottom line" does not match the rule tested by the question. The correct answer is "Explain they cannot provide advice on negotiation strategy but can present any offer". Transaction brokers cannot provide advice or opinions that would constitute advocacy for either party. They can only perform ministerial acts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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
Under Georgia's BRRETA, a licensee acting as a transaction broker performs ministerial acts for the parties. Which of the following statements correctly describes the limits of ministerial acts in a transaction brokerage relationship?
Next Question
Which of the following activities can a transaction broker legally perform under BRRETA?