Under Georgia's BRRETA, how does dual agency arise and what is required of the broker?
Correct Answer
A) Dual agency arises when the broker or firm represents both the buyer and the seller in the same transaction, and the broker must obtain informed written consent from all affected clients.
Under BRRETA (O.C.G.A. § 10-6A-5 and 10-6A-12), dual agency arises when the same broker or brokerage firm undertakes to represent both the buyer and the seller in a single real estate transaction. Because this creates an inherent conflict of interest—the broker owes duties to parties with opposing interests—Georgia law requires the broker to make full disclosure of the limitations of dual agency and obtain informed written consent from all affected clients before or at the time the dual agency relationship begins. Without this consent, the dual agency is not authorized.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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
A Georgia broker's firm currently has a buyer client and a seller client in the same transaction. The broker is considering how to structure the representation. Under BRRETA, which statement correctly distinguishes the available brokerage relationship options?
Next Question
Broker Sarah represents the seller in a transaction. During the listing period, her associate agent Mark brings a buyer who wants to make an offer on the same property. Under Georgia law, what must occur before dual agency can be established?