A Georgia broker begins representing a buyer in a residential transaction but later realizes the brokerage also has a listing agreement with the seller of the same property. The broker proceeds to work with both parties without first obtaining written dual agency consent. Under BRRETA, what is the most significant compliance concern with this broker's conduct?
Correct Answer
D) The broker's failure to obtain informed written consent before acting as a dual agent is a serious violation because dual agency cannot be established retroactively.
Under BRRETA (O.C.G.A. § 10-6A-12), a broker may act as a dual agent only after obtaining the informed written consent of all parties to the transaction. The consent must be secured before the broker undertakes dual representation—not during or after the fact. Proceeding without prior written consent exposes the broker to disciplinary action by the Georgia Real Estate Commission and potential civil liability, as the dual agency relationship is not validly created without compliant consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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
In a properly disclosed dual agency transaction in Georgia, the buyer client asks the broker to negotiate the lowest possible price while the seller client asks the broker to obtain the highest possible price. How should the broker handle these competing requests?
Next Question
Under Georgia's BRRETA, which statement about dual agency is NOT correct?