Transaction broker Lisa is helping seller Mike prepare for showings. Mike asks Lisa to suggest what price reduction would make the property more competitive since it's been on the market for 60 days with limited interest. What should Lisa do under BRRETA?
Correct Answer
A) Explain that she cannot advise on pricing strategy and suggest Mike consult with an agent who can represent him or do his own market research
Correct: A - Explain that she cannot advise on pricing strategy and suggest Mike consult with an agent who can represent him or do his own market research. Transaction brokers cannot provide pricing advice or strategy, as this constitutes representation beyond ministerial acts. Why not B: This option is incorrect because "Offer to become Mike's seller's agent so she can provide pricing advice" does not match the rule tested by the question. The correct answer is "Explain that she cannot advise on pricing strategy and suggest Mike consult with an agent who can represent him or do his own market research". Transaction brokers cannot provide pricing advice or strategy, as this constitutes representation beyond ministerial acts. Why not C: This option is incorrect because "Provide a comparative market analysis and recommend a specific price reduction amount" does not match the rule tested by the question. The correct answer is "Explain that she cannot advise on pricing strategy and suggest Mike consult with an agent who can represent him or do his own market research". Transaction brokers cannot provide pricing advice or strategy, as this constitutes representation beyond ministerial acts. Why not D: This option is incorrect because "Suggest Mike reduce the price by 5-10% to generate more interest" does not match the rule tested by the question. The correct answer is "Explain that she cannot advise on pricing strategy and suggest Mike consult with an agent who can represent him or do his own market research". Transaction brokers cannot provide pricing advice or strategy, as this constitutes representation beyond ministerial acts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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.
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
Sarah, a transaction broker, is working with buyer Tom who asks her to review a property inspection report and advise him whether the foundation issues mentioned are serious enough to justify backing out of the contract. How should Sarah respond under Georgia law?
Next Question
Which of the following actions would NOT be considered a proper ministerial act for a transaction broker under Georgia law?