National curriculum lesson 94 · Agency

Agency Disclosures, Dual Agency, and Conflicts

Agency disclosure tells parties whom the brokerage represents and identifies limited or conflicting roles. Dual agency requires informed consent where permitted because one agent cannot provide undivided loyalty to opposing clients. Designated agency can assign separate affiliated licensees under applicable law. Ownership interests, related parties, compensation arrangements, and other conflicts must be disclosed as required before affected consent or action.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Official syllabus mapping for Agency Disclosures, Dual Agency, and Conflicts
Roadmap lesson	94 of 500
Official syllabus topic	Agency Disclosures, Dual Agency, and Conflicts
Official PSI area	Agency
Published area weight	13% of the 100-question national portion
Exam portion	National salesperson portion
Source edition	PSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verified	August 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Disclosure timing

Disclosure must occur at the time required by law and early enough for a person to understand whose advice is loyal before sharing confidential information or making a decision.

Dual agency

The brokerage or licensee represents both sides with informed consent, and advocacy and confidentiality are limited. Secret dual agency violates core duties.

Designated agency

Where permitted, the broker designates different affiliated licensees for different clients, with statutory procedures for supervision and confidentiality.

Personal and financial conflicts

A licensee's ownership, family interest, contemplated purchase, referral arrangement, or compensation source can be material and require clear disclosure.

Decision rule

Disclose the relationship and conflict before the party relies on advice or gives the required informed consent.

Georgia-specific distinction

Georgia BRRETA provides for written consent to dual agency and designated agency under defined conditions. Georgia rules also require a licensee acting as principal or with specified interests to disclose licensed status and interest as applicable.

Worked example

Scenario. One affiliated licensee has a seller client and another has a buyer client in the same transaction under their broker's designated-agency procedure.

Reason it through. Separate licensees can advocate for their designated clients if Georgia's statutory consent, designation, supervision, and confidentiality requirements are met.

Answer. This can be designated agency rather than both individual licensees personally acting as dual agents.

Common exam traps

Disclosing after confidential advice
Treating designated agency as automatic
Hiding a licensee ownership interest
Assuming payment determines representation

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

What is essential for lawful dual agency where permitted?

A. Secret agreement
B. Informed consent
C. No written documents
D. Fixed commission

Show answer and explanation →

Answer: B. Informed consent

The conflicting representation must be disclosed and consented to as governing law requires.

Question 2

Does receiving compensation from one side necessarily determine agency?

A. Yes
B. No
C. Only in leases
D. Only for commercial property

Show answer and explanation →

Answer: B. No

Agency comes from the relationship and agreement, not merely the source of compensation.

Question 3

When should a material conflict be disclosed?

A. After closing
B. Before affected consent or reliance
C. Only if asked
D. After commission payment

Show answer and explanation →

Answer: B. Before affected consent or reliance

Timely disclosure lets the party make an informed decision before being affected.

Mastery tracking

Mark this lesson mastered only when every statement is true.

State the direct answer and decision rule without notes.
Explain every core concept in plain English.
Solve the worked example after changing one important fact.
Identify the Georgia distinction before reading answer choices.
Answer all three questions correctly and reject every distractor.
Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Termination of Agency. Continue to roadmap lesson 95 and build on this decision rule.

Return to the Agency hub to see every official branch and the complete lesson sequence for this content area.

Agency Disclosures, Dual Agency, and Conflicts questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Agency Disclosures, Dual Agency, and Conflicts on the Georgia real estate exam?

Yes. It belongs to PSI's Agency content area, which is 13% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Agency Disclosures, Dual Agency, and Conflicts?

Disclose the relationship and conflict before the party relies on advice or gives the required informed consent.

What Georgia-specific distinction should I remember?

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.