Skip to content
Pass Georgia

BRRETA practice question 18 of 31 · Disclosure of property and neighborhood facts

Is an agent liable for repeating a seller's false claim?

A seller tells the listing agent the roof was replaced in 2022. The agent tells buyers, "According to the seller, the roof was replaced in 2022." It turns out the current roof was installed in 2007. The agent had no reason to know the claim was false.

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

Is the listing agent liable to the buyer under BRRETA?

  1. AYes, because every statement an agent makes is guaranteed
  2. BYes, because the agent should have checked the permit records
  3. CNo, because the agent did not know it was false and disclosed the source
  4. DNo, because buyers can never rely on what listing agents say

Pick an answer before you read on.

Answer: C

No, because the agent did not know it was false and disclosed the source. Section 10-6A-5 says a broker may not knowingly give a buyer false information. It also says a broker is not liable to a buyer for false information if the broker did not have actual knowledge that it was false and disclosed the source to the buyer. Both conditions are met here.

Why each choice is right or wrong

  1. A. Yes, because every statement an agent makes is guaranteed

    BRRETA does not make a broker the guarantor of every sourced statement. The statute provides protection when the broker lacks actual knowledge of falsity and identifies the source.

  2. B. Yes, because the agent should have checked the permit records

    This subsection does not impose a general duty to investigate the seller's claim. The stated facts give the agent no actual knowledge that it was false.

  3. C. No, because the agent did not know it was false and disclosed the sourceCorrect answer

    Both statutory conditions are present: the agent did not actually know the statement was false and told buyers the information came from the seller.

  4. D. No, because buyers can never rely on what listing agents say

    Buyers are protected against knowingly false information. This particular protection turns on the broker's knowledge and source disclosure, not a blanket rule that buyers cannot rely on agents.

The trap

Naming the source matters. "The roof was replaced in 2022" stated as the agent's own fact loses half of the protection.

The Rule

Do not knowingly repeat false information. When relaying a claim, identify its source.

What would change the answer

  • If the agent knows the current roof is still the one installed in 2007, the agent knows the 2022 replacement claim is false. Naming the seller as the source does not make repeating it lawful.
  • An invoice for a roof installed in 2007 does not, by itself, rule out another replacement in 2022. The invoice alone does not establish that the agent knows the seller's claim is false.
  • BRRETA also says the broker is not liable for violations of the subsection absent a finding of fraud, but that does not license a knowing falsehood.

Where the rule comes from

  • O.C.G.A. § 10-6A-5, Duties and responsibilities of broker engaged by seller. A seller's broker must perform the engagement, promote the seller's interests (including timely presenting all offers to and from the seller even when the property is under contract, though it need not seek more offers then unless the engagement says so), exercise reasonable skill and care, obey the law, keep requested confidences, and disclose to all parties actually known adverse material facts about the property's physical condition and conditions within one mile that a diligent inspection would not reveal.

This is an original teaching question written from the statute. It is not a PSI exam item, and it is not copied or reconstructed from one. On the exam, BRRETA sits inside the Georgia agency and listing content. The BRRETA guide covers the client and customer table and the dual and designated agency rules in one place.

More on disclosure of property and neighborhood facts