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Real estate glossaryNational 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.

Exam area: Agency

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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 wrong 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.

What is the most common exam trap?

Trap correction

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

Original exam check

Apply the definition

A seller has signed a listing engagement with Broker A. Broker B, from another firm, shows the home to a buyer who has signed no brokerage engagement with anyone. Under Georgia's BRRETA framework, how is the buyer best described in relation to Broker B?

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