What does BRRETA require?
- ATimely disclosure of the family relationship to the buyer
- BNothing, because both clients already signed the dual agency consent
- CDisclosure only if the buyer asks about it
- DWithdrawal from the transaction, because relatives cannot be clients
Pick an answer before you read on.
Answer: A
Timely disclosure of the family relationship to the buyer. Section 10-6A-12 requires timely disclosure of a material relationship with the other client. Its test has two parts: the personal, familial, or business relationship must be actually known, and it must be one that would impair fair and independent judgment toward another client. Both are explicit here. The general dual agency consent does not replace disclosure of this particular relationship.
Why each choice is right or wrong
A. Timely disclosure of the family relationship to the buyerCorrect answer
The broker knows of the family tie, and the facts establish that it would impair fair and independent judgment toward the buyer. That makes it a material relationship requiring timely disclosure.
B. Nothing, because both clients already signed the dual agency consent
General consent to dual agency does not replace disclosure of a material relationship with the other client. The buyer still needs this information.
C. Disclosure only if the buyer asks about it
The statutory disclosure is timely and affirmative. It does not depend on the buyer guessing the relationship and asking about it.
D. Withdrawal from the transaction, because relatives cannot be clients
BRRETA does not ban representation of relatives. The issue is the known relationship's effect on judgment and the disclosure that follows.
The trap
Being related is not the statute's entire test. Look for actual knowledge and the effect on fair and independent judgment. This scenario establishes both, so waiting for the buyer to ask is wrong.
The Rule
A dual agent discloses known ties that would impair fair and independent judgment toward another client.
What would change the answer
- If the broker represents only the seller and the buyer is an unrepresented customer, the dual agency consent rules do not apply. The broker still may not knowingly give the buyer false information about the relationship.
- If the relationship is unknown to the broker, there is no duty, because the statute speaks of actually known relationships.
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.
- 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.