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BRRETA practice question 28 of 31 · Offers and the duties that keep running

What must a Georgia brokerage engagement disclose?

A broker is drafting the firm's listing agreement and wants to make sure it covers every disclosure BRRETA requires before a seller becomes a client.

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

Which four subjects must the engagement cover under section 10-6A-10?

  1. AThe broker's success rate, average days on market, and agent bios
  2. BEvery other seller and buyer the broker currently represents
  3. CAgency types offered, known conflicting relationships, compensation and any sharing, and confidentiality duties
  4. DThe commission split between the broker and the listing agent

Pick an answer before you read on.

Answer: C

Agency types offered, known conflicting relationships, compensation and any sharing, and confidentiality duties. Section 10-6A-10 says every brokerage engagement must advise the prospective client of the types of agency relationships available through the broker, any actually known brokerage relationship with other parties that would conflict with the client's interests, the broker's compensation and whether it will be shared with brokers representing other parties, and the broker's confidentiality duties.

Why each choice is right or wrong

  1. A. The broker's success rate, average days on market, and agent bios

    Those are marketing details, not the four engagement disclosures listed in section 10-6A-10. They do not explain representation, conflicts, compensation, or confidentiality.

  2. B. Every other seller and buyer the broker currently represents

    The statute excludes routine representation of other clients in other property transactions from this conflict disclosure. It does not demand a client roster.

  3. C. Agency types offered, known conflicting relationships, compensation and any sharing, and confidentiality dutiesCorrect answer

    This choice covers all four required subjects: available agency types, actually known conflicting relationships, the broker's compensation and sharing, and confidentiality duties.

  4. D. The commission split between the broker and the listing agent

    An internal broker-agent commission split is not the full statutory disclosure. The section asks about the broker's compensation and sharing with other brokers representing transaction parties.

The trap

The statute excludes the routine fact that the broker represents other sellers, landlords, buyers, or tenants. Listing every one is not required.

The Rule

The engagement must cover available agency types, known conflicting relationships, compensation and sharing, and confidentiality duties.

What would change the answer

  • If the broker already represents a buyer whose interests conflict with this seller's in a known way, that conflict has to be disclosed.
  • The firm's office policy on dual agency, whether it permits or rejects it, must also be disclosed, as § 10-6A-12 requires.

Where the rule comes from

  • 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.
  • 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.

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