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
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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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?
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Which of the following actions would NOT be considered a proper ministerial act for a transaction broker under Georgia law?