What does BRRETA require of the broker?
- ANothing, because the buyer is not affected
- BTimely disclosure of the new relationship to everyone in the transaction
- CDisclosure only to the seller, who is the new client
- DDisclosure only at closing
Pick an answer before you read on.
Answer: B
Timely disclosure of the new relationship to everyone in the transaction. Section 10-6A-4 says a broker who has a brokerage relationship with a customer or client, and then enters into a new brokerage relationship with that customer or client, must timely disclose that fact and the new relationship to all parties to the contemplated real estate transaction.
Why each choice is right or wrong
A. Nothing, because the buyer is not affected
The buyer is affected: the broker now promotes the seller's interests rather than serving both solely through ministerial acts.
B. Timely disclosure of the new relationship to everyone in the transactionCorrect answer
Section 10-6A-4 requires timely disclosure of the change and the new relationship to all brokers, customers, and clients involved in the contemplated transaction.
C. Disclosure only to the seller, who is the new client
Telling only the new client leaves the buyer and other involved brokers uninformed. The statutory recipients extend beyond the person signing the engagement.
D. Disclosure only at closing
The rule calls for timely disclosure of the new relationship. Waiting until closing leaves the parties proceeding under an outdated understanding of the broker's role.
The trap
The buyer is the person most affected, because the broker now represents the other side. That is why the statute requires telling everyone.
The Rule
A changed relationship gets disclosed to every party, on time.
What would change the answer
- If the buyer also signs an engagement with the same broker, the broker would be a dual agent and would need written consent from both under § 10-6A-12.
- Before the seller signs, § 10-6A-10 requires the engagement itself to describe the agency types the broker offers, known conflicts, compensation, and confidentiality duties.
Where the rule comes from
- O.C.G.A. § 10-6A-4, Broker's legal relationship to customers or clients. A broker owes a client or customer only the duties set out in BRRETA unless the parties expressly agree otherwise in a signed writing, is not deemed to have a fiduciary relationship with any party, and is responsible only for reasonable care in performing those duties; a broker who enters a new brokerage relationship with an existing customer or client must timely disclose it to everyone involved in the transaction.
- 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.
- O.C.G.A. § 10-6A-10, Disclosures required before entering a brokerage engagement. Every brokerage engagement must advise the prospective client of the types of agency relationships the broker offers, any actually known brokerage relationship with other parties that would conflict with the client's interests (not counting the routine fact of representing other sellers, landlords, buyers, or tenants), the broker's compensation and whether it will be shared with brokers representing other parties, and the broker's confidentiality duties.
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.