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Exam distinction · Agency

Duties to Clients Versus Duties to Customers

A client has a written brokerage engagement and receives the duties BRRETA assigns to that role plus agreed written duties. A customer has no engagement and may receive ministerial assistance without representation. Customer status does not authorize deception, mishandling money, hiding required adverse facts, or failing to present offers.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is the exam-ready distinction?

A client has a written brokerage engagement and receives the duties BRRETA assigns to that role plus agreed written duties. A customer has no engagement and may receive ministerial assistance without representation. Customer status does not authorize deception, mishandling money, hiding required adverse facts, or failing to present offers.
Official syllabus mapping for Duties to Clients Versus Duties to Customers
Official syllabus topicAgency: Duties Owed to Clients, Customers, and Transaction Parties
Official PSI areaAgency
Published weight13% of the 100-question national portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026

The Rule

PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.

Side-by-side comparison

Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.

Comparison of Client duties, Customer duties
Decision dimensionClient dutiesCustomer duties
RelationshipWritten brokerage engagement with the brokerNo brokerage engagement with that broker
Service levelRole-specific BRRETA duties plus signed additional dutiesMinisterial assistance and applicable statutory transaction duties
Advice and advocacyWithin lawful authority and the engagementNo representation or discretionary advocacy for the customer
Duties that still matterHonesty, accounting, confidentiality, care, and role-specific disclosure as applicableHonesty, accounting, offer presentation, and specified adverse-fact disclosure as applicable

Decision rule

Find the written brokerage engagement first, then identify the exact statutory duty instead of applying a memorized fiduciary list to everyone.

Georgia-specific distinction

BRRETA says a broker is not a fiduciary to any party. The duties come from the statute and any signed agreement, so Georgia candidates should reason from those listed duties and keep a customer separate from a client.

Worked example

Scenario. A listing broker gives an unrepresented buyer a blank form, published tax data, and access for an inspection, but no buyer engagement exists.

Reason it through. The buyer may receive ministerial assistance while remaining a customer. The listing broker must not turn that help into undisclosed buyer advocacy.

Answer. The buyer is a customer, not the listing broker's client.

Common exam traps

  • Calling customers clients because they receive help
  • Saying a broker owes customers nothing
  • Importing automatic fiduciary terminology into BRRETA
  • Giving a customer discretionary advice that implies representation

Original practice questions with detailed explanations

These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

A listing broker gives an unrepresented buyer a blank purchase form, published tax records, and access for an inspection. No buyer brokerage engagement exists. What is the buyer's status with that broker?

  1. A. Client, because the broker provided inspection access
  2. B. Customer, receiving ministerial help without representation
  3. C. Client, because the broker gave the buyer a contract form
  4. D. Neither, so the broker owes the buyer no duties at all
Show answer and explanation →

Answer: B. Customer, receiving ministerial help without representation

In Georgia a client has a written brokerage engagement, while a customer has none but may receive ministerial help. Forms, public data and access are ministerial acts, so the buyer stays a customer. Treating help as representation is the trap, and the broker must not slide into advocating for the buyer.

Question 2

Under BRRETA, where do the duties a Georgia broker owes a client come from?

  1. A. Common-law fiduciary duties that attach to every client
  2. B. The duties set out in the local MLS rules the broker joined
  3. C. The duties in the statute plus any agreed to in writing
  4. D. Whatever duties the firm's policy manual chooses to adopt
Show answer and explanation →

Answer: C. The duties in the statute plus any agreed to in writing

BRRETA says a broker is not a fiduciary to any party. The broker's duties come from the statute and any additional duties the parties agree to in writing. Reaching for the traditional fiduciary list is the mistake, because many national textbooks teach it.

Question 3

A listing broker is working with an unrepresented buyer who is a customer. Which statement about the broker's obligations to that buyer is correct?

  1. A. The broker must deal honestly and present the buyer's offers
  2. B. The broker owes the buyer nothing because no engagement exists
  3. C. The broker must advise the buyer on the best price to offer
  4. D. The broker may withhold required adverse facts from a customer
Show answer and explanation →

Answer: A. The broker must deal honestly and present the buyer's offers

Customer status limits representation, not honesty: a broker must still deal truthfully, account for money, present offers, and disclose the adverse facts the law requires. Saying a customer is owed nothing is the error, and advising on price would drift into advocacy the buyer never engaged.

Ready to move on?

You have this distinction down when all of these are true.

  • Define every compared term without using the other term as the definition.
  • Rebuild the comparison table from memory.
  • State the decision rule and Georgia distinction without notes.
  • Solve the worked example after changing one key fact.
  • Explain the rule or fact that makes each distractor wrong.
  • Answer all three original questions correctly in mixed practice on a later day.

Recommended next lesson

Continue with Listing Agreement Versus Buyer Brokerage Agreement. Client status starts with a written engagement, and the next page compares the two main ones: a listing agreement with a seller or landlord and a buyer brokerage agreement with a buyer or tenant, including scope, duration and compensation.

Return to the complete exam-concept library or the Agency hub.

Duties to Clients Versus Duties to Customers questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

Is Duties to Clients Versus Duties to Customers on the Georgia real estate exam?

Yes. It maps to the official Agency area, which represents 13% of the 100-question national portion. PSI does not publish a guaranteed question count for this individual distinction.

What is the fastest way to distinguish Duties to Clients Versus Duties to Customers?

Find the written brokerage engagement first, then identify the exact statutory duty instead of applying a memorized fiduciary list to everyone.

What Georgia-specific point should I remember?

BRRETA says a broker is not a fiduciary to any party. The duties come from the statute and any signed agreement, so Georgia candidates should reason from those listed duties and keep a customer separate from a client.

How should I study similar-looking real estate terms?

Compare the terms across the same dimensions, classify the key fact before reading the choices, explain why each distractor belongs to a different concept, and retest the distinction later in mixed practice.