What may the broker do?
- ARepresent both sides anyway, because the seller has consented
- BWithdraw from representing the buyer without liability and refer the buyer to another firm
- CDrop both clients and the listing
- DKeep the buyer as a client and stop representing the seller without telling either
Pick an answer before you read on.
Answer: B
Withdraw from representing the buyer without liability and refer the buyer to another firm. Section 10-6A-12 lets a broker, before a dual agency exists, withdraw without liability from representing a client who has not consented to disclosed dual agency. The broker can keep representing the other client and can represent the withdrawn client in unrelated transactions. It may also receive a referral fee for referring the withdrawn client to a broker in another firm.
Why each choice is right or wrong
A. Represent both sides anyway, because the seller has consented
The seller cannot consent for the buyer. Representing both without the buyer's written consent would fail section 10-6A-12.
B. Withdraw from representing the buyer without liability and refer the buyer to another firmCorrect answer
Before dual agency exists, the broker may withdraw without liability from representing the nonconsenting client and refer that client to a different firm.
C. Drop both clients and the listing
The statute expressly lets the broker continue representing the other client. It does not require abandoning the listing as well.
D. Keep the buyer as a client and stop representing the seller without telling either
A quiet switch leaves the parties with a false picture of representation. BRRETA requires timely disclosure when a brokerage relationship changes.
The trap
Withdrawal is from one client, not from the whole deal. The broker keeps the seller.
The Rule
No consent, no dual agency. The broker may step back from one client and refer them out.
What would change the answer
- If the buyer signs a compliant consent and the office policy permits dual agency, the broker may represent both.
- If the firm instead designates a different licensee for the buyer, the firm is not a dual agent and no dual agency consent is needed.
Where the rule comes from
- O.C.G.A. § 10-6A-12, Broker acting as dual agent. A broker may act as a dual agent only with written consent from all clients that contains the disclosures specified by the statute.
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.