Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.
Use the map in order
01
Is there a written brokerage engagement?
This is the relationship gate.
Yes or applies
Client path. Identify whom the broker represents.
No or contrast
Customer path. Assistance is not representation.
Trap control: Time, showings, advice, and offer drafting do not replace the writing.
02
Whom does the broker represent?
Name the client before naming the duty.
Yes or applies
Buyer, seller, landlord, or tenant client.
No or contrast
Unrepresented person receiving customer-level assistance.
Trap control: Do not assume a licensee represents everyone they help.
03
Are opposing clients represented in the same transaction?
Classify dual or designated agency precisely.
Yes or applies
Test structure, disclosure, and written informed consent.
No or contrast
Apply the ordinary single-client path.
Trap control: Dual and designated agency are not interchangeable labels.
04
What information is involved?
Sort property fact from party confidence.
Yes or applies
Known material property fact: disclosure analysis.
No or contrast
Client motivation, price flexibility, or confidential instruction: confidentiality analysis.
Trap control: A fact can matter to negotiations without being a material fact about the property.
05
Does consent or authority need to be in writing?
Find the required documentation before accepting oral permission.
Yes or applies
Use the written-consent rule that fits the relationship.
No or contrast
Still apply honesty, lawful instruction, and scope limits.
Trap control: Oral comfort with dual agency is not written informed consent.
06
Which duty controls the action?
Select the narrow duty triggered by the facts.
Yes or applies
Client duties include loyalty, lawful obedience, disclosure, confidentiality, accounting, and care.
No or contrast
A customer is still owed honesty and disclosure of known material facts.
Trap control: Do not use the whole duty list when the question turns on one specific obligation.
The direct answer
A written brokerage engagement creates a client relationship. Without it, assistance and repeated contact do not by themselves turn a customer into a client.
Distinction ledger
Definitions and exam contrasts in the BRRETA Decision Tree
Term
Meaning
Keep it separate from
Client
A person represented under a written brokerage engagement.
Receives representation and applicable client duties.
Customer
A person not represented by the licensee.
May receive assistance, honesty, and known material-fact disclosure.
Dual agency
The same broker or agent represents opposing clients.
Requires written informed consent from affected clients.
Designated agency
Separate agents in one firm represent opposing clients.
Each advocate protects their own client's confidences.
Material property fact
A known fact about property that can matter to a reasonable decision.
Not the same as a client's private negotiating position.
Worked example
Stem: A listing agent knows the seller would take $20,000 less. An unrepresented buyer asks whether the seller is desperate. Must the agent answer?
No buyer brokerage engagement
Buyer is a customer
Information concerns the seller's negotiating position
Client confidentiality controls
Answer: No. The agent must remain honest but may not reveal the seller client's confidential negotiating position.
Why: Customer-level honesty does not convert a client's confidence into a material property fact.
Original mastery questions
1.A buyer has toured homes for a month but signed nothing. Client or customer?
Answer: Customer.
Explanation: A written brokerage engagement is the relationship gate.
2.Two separate agents in one firm represent buyer and seller. What structure?
Answer: Designated agency.
Explanation: Separate designated advocates within one firm are different from one agent acting for both clients.
3.Can a designated agent pass a buyer's maximum budget to the seller's designated agent?
Answer: No.
Explanation: Sharing a firm does not make client confidences transferable.
Mastery check and next lesson
You are ready to move on when you can travel the map without the labels, explain each contrast in your own words, and answer all three check questions for the rule rather than by recognition.