What does BRRETA require of the buyer's broker?
- AKeep both facts confidential, because the buyer is the client
- BDisclose to the seller the known adverse facts about the buyer's ability to pay, and that the buyer does not plan to occupy the home
- CDisclose only the judgments, because occupancy plans are private
- DDisclose nothing unless the seller orders a credit report
Pick an answer before you read on.
Answer: B
Disclose to the seller the known adverse facts about the buyer's ability to pay, and that the buyer does not plan to occupy the home. When the seller is financing or the buyer is assuming a loan, § 10-6A-7 requires the buyer's broker to timely disclose to the seller actually known adverse material facts about the buyer's financial ability to perform. In a residential sale, it must also disclose whether the buyer intends to occupy the property as a principal residence.
Why each choice is right or wrong
A. Keep both facts confidential, because the buyer is the client
The buyer's client status does not override the specific seller-financing disclosures in section 10-6A-7. Both required subjects must be addressed.
B. Disclose to the seller the known adverse facts about the buyer's ability to pay, and that the buyer does not plan to occupy the homeCorrect answer
The seller is financing a residential sale. The known adverse financial facts and the buyer's intention not to occupy it as a principal residence both fall within the disclosure provision.
C. Disclose only the judgments, because occupancy plans are private
In this residential financing arrangement, occupancy intent is expressly included. Disclosing the financial problems alone leaves out a required subject.
D. Disclose nothing unless the seller orders a credit report
A seller's credit report is not the trigger for the broker's duty. The financing arrangement and the broker's actual knowledge establish it here.
The trap
Do not limit this rule to a seller carrying the whole loan. Section 10-6A-7 also covers partial seller financing and loan assumptions. In a residential transaction, occupancy intent is a separate required disclosure.
The Rule
With seller financing or a loan assumption, disclose known adverse financial facts and, for a home, intent to occupy as a principal residence.
What would change the answer
- If the buyer gets an ordinary bank loan instead, this subsection does not apply, and the buyer's financial details stay confidential if the buyer asks.
- The buyer's broker still may not knowingly give the seller false information about the buyer.
Where the rule comes from
- O.C.G.A. § 10-6A-7, Duties of broker engaged by buyer. A buyer's broker must perform the engagement, promote the buyer's interests (seeking a property at acceptable price and terms, timely presenting all offers to and from the buyer even when the buyer is under contract, disclosing actually known adverse material facts concerning the transaction, advising expert help, and accounting for money), use ordinary skill and care, obey the law, and keep confidences the buyer expressly requests; in a seller-financed sale or loan assumption it must also disclose to the seller actually known adverse material facts about the buyer's financial ability and, in a residential sale, whether the buyer intends to occupy the property as a principal residence.
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.