What is the exam-ready distinction?
| Official syllabus topic | Agency: Brokerage Agreements, Authority, Compensation, and Ending |
|---|---|
| Official PSI area | Agency |
| Published weight | 13% of the 100-question national portion |
| Source edition | PSI 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.
| Decision dimension | Listing agreement | Buyer brokerage agreement |
|---|---|---|
| Client | Seller or landlord | Buyer or tenant |
| Core brokerage job | Market property and seek an acceptable transaction | Help locate, evaluate, negotiate, and acquire or lease property as agreed |
| Property scope | Usually identified property or portfolio | May cover an area, property type, or identified property |
| Compensation | Method and conditions stated in the engagement | Method and conditions stated in the engagement; negotiable and not set by law |
Decision rule
Georgia-specific distinction
Worked example
Scenario. A buyer signs an exclusive buyer brokerage agreement with Firm A, then asks Firm B's listing licensee for confidential negotiation advice.
Reason it through. The buyer's engagement is with Firm A. Firm B's listing licensee represents the seller and may treat the buyer as a customer unless another lawful relationship is created.
Answer. The buyer brokerage agreement identifies Firm A as the buyer's broker; the listing agreement identifies Firm B's seller client.
Common exam traps
- Assuming the cooperating broker always represents the buyer
- Treating compensation as the source of agency
- Ignoring exclusivity and protection periods
- Claiming commissions are fixed or standard
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 1A landlord hires a Georgia brokerage to find tenants for an office building. Which engagement is this?
- A. A listing agreement
- B. A buyer brokerage agreement
- C. A tenant brokerage agreement
- D. A customer relationship
Show answer and explanation →
Answer: A. A listing agreement
A listing agreement engages a broker for a seller or landlord who wants to sell or lease property. The client here is the landlord. Tenant brokerage is a form of buyer brokerage, so it would represent the tenant, not the owner.
Question 2Under Georgia license law, which term must a written listing agreement include?
- A. A commission of at least 6%
- B. A definite expiration date
- C. A 90-day protection period
- D. An automatic renewal clause
Show answer and explanation →
Answer: B. A definite expiration date
Georgia license law makes it an unfair practice to leave a fixed expiration date out of a written listing agreement, or to fail to give the client a copy. Compensation is negotiable and never set by law. A protection period is common, but it is a negotiated term, not a required one.
Question 3A listing broker offers to share compensation with any firm that produces a buyer. Firm B shows the home to a buyer who has no brokerage engagement with Firm B. What is the buyer's status with Firm B?
- A. A client, because Firm B found the home for the buyer
- B. A client of both firms, because the fee is shared
- C. A customer, because no engagement exists
- D. A client, as soon as Firm B writes the offer
Show answer and explanation →
Answer: C. A customer, because no engagement exists
Under BRRETA a client relationship requires a brokerage engagement, and the buyer has none with Firm B. Compensation does not create representation, and neither do showings or writing an offer. Treating the cooperating firm as the buyer's representative by default is the trap.
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 Material Fact Versus Material Defect. Once you know which party is the client under each agreement, Material Fact Versus Material Defect covers what a licensee in either role must disclose about adverse conditions under BRRETA.
Return to the complete exam-concept library or the Agency hub.