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Complete glossary lessonNational exam concept

Agency

Agency is a legal relationship in which an agent is authorized to act for a principal and owes duties arising from the relationship, the agreement, and applicable law.

Official area

Agency

Knowledge cluster

Agency foundations

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Agency mean in real estate?

Agency is a legal relationship in which an agent is authorized to act for a principal and owes duties arising from the relationship, the agreement, and applicable law.

How is Agency different from the closest exam answer?

Agency involves representation and authority. A transaction broker may perform ministerial acts without representing the customer as an agent.

What is the Georgia-specific rule?

BRRETA governs brokerage relationships in Georgia and centers the written brokerage engagement. Common-law vocabulary helps, but Georgia statutory duties and labels control exam scenarios.

Worked exam example

Scenario

A seller signs a listing engagement authorizing a broker to market the property and negotiate within the authority granted.

Decision rule

Agency involves representation and authority. A transaction broker may perform ministerial acts without representing the customer as an agent.

What is the most common exam trap?

Trap correction

Do not assume every licensee in a transaction is every party's agent.

Memory cue: Do not assume every licensee in a transaction is every party's agent.

Original exam check

Apply the definition

Which statement correctly explains Agency?

Mastery tracker

Do not mark this term complete until you can retrieve it.

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Related terms to learn next

Fiduciary duty

Fiduciary duty is the heightened obligation of loyalty, obedience within lawful authority, disclosure, confidentiality, accounting, and reasonable care that an agent owes the principal, as shaped by statute and agreement.

Brokerage engagement

A brokerage engagement is a written contract in which a seller, buyer, landlord, or tenant becomes a client of a Georgia broker and the parties state the brokerage services, duties, terms, and compensation arrangement.

Transaction broker

A transaction broker is a Georgia broker who has not entered a client relationship with a party but performs permitted ministerial acts and the statutory duties owed without representing that party as an agent.

Client

A client is a person who enters a brokerage engagement with a broker.

Recommended next complete lesson

Continue with Agency complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
Previous termRight of first refusalNext term Fiduciary duty

Agency quick answers

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

What is Agency?

Agency is a legal relationship in which an agent is authorized to act for a principal and owes duties arising from the relationship, the agreement, and applicable law.

What is Agency commonly confused with?

Agency involves representation and authority. A transaction broker may perform ministerial acts without representing the customer as an agent.

How does Georgia treat Agency?

BRRETA governs brokerage relationships in Georgia and centers the written brokerage engagement. Common-law vocabulary helps, but Georgia statutory duties and labels control exam scenarios.