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National curriculum lesson 91 · Agency

Brokerage Representation Agreements

A representation agreement establishes the brokerage relationship, scope, property or search, term, duties, consent provisions, compensation, exclusivity, and termination rules. Listings may be exclusive-right-to-sell, exclusive-agency, or open. Buyer and tenant agreements can also be exclusive or nonexclusive. Compensation is negotiable and does not by itself determine agency.

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?

A representation agreement establishes the brokerage relationship, scope, property or search, term, duties, consent provisions, compensation, exclusivity, and termination rules. Listings may be exclusive-right-to-sell, exclusive-agency, or open. Buyer and tenant agreements can also be exclusive or nonexclusive. Compensation is negotiable and does not by itself determine agency.
Official syllabus mapping for Brokerage Representation Agreements
Roadmap lesson91 of 500
Official syllabus topicBrokerage Representation Agreements
Official PSI areaAgency
Published area weight13% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 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.

Listing agreements

An exclusive-right-to-sell listing generally earns the agreed compensation when the property sells during the term, subject to stated exceptions. Exclusive-agency and open listings allocate procuring-cause and owner-sale rights differently.

Buyer and tenant agreements

The agreement defines the search, brokerage services, duration, compensation, exclusivity, and client duties. It should address potential seller or listing-broker payments without implying a fixed market rate.

Protection and termination

A protection period may preserve a compensation claim for specified prospects after expiration. Termination can end future authority without erasing rights or duties already accrued.

Negotiable compensation

Fees and commission structures are negotiated, not set by law, a real estate association, or the MLS. Written agreements should state who owes what and when.

Decision rule

Read the specific agreement for exclusivity, trigger, term, protected prospects, payment source, and termination effect.

Georgia-specific distinction

Georgia Rule 520-1-.06 requires written brokerage engagements to identify the parties, terms, and conditions, and Georgia rules require copies and proper handling. A Georgia licensee must not state that compensation is standard or fixed.

Worked example

Scenario. An exclusive-right-to-sell listing is active when the owner independently finds a buyer and sells, with no owner-sale exclusion.

Reason it through. This listing type generally makes the agreed fee due regardless of who procures the buyer, subject to its actual terms.

Answer. The broker may be entitled to the contractually agreed compensation.

Common exam traps

  • Calling commission rates standard
  • Confusing exclusive agency with exclusive right to sell
  • Assuming agency follows the payment source
  • Ignoring post-term protection language

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

Which listing most broadly protects compensation regardless of who finds the buyer?

  1. A. Exclusive right to sell
  2. B. Open listing
  3. C. Net listing
  4. D. Option
Show answer and explanation →

Answer: A. Exclusive right to sell

The exclusive-right-to-sell structure generally triggers compensation upon sale during the term, subject to its terms.

Question 2

Who fixes real estate commission rates?

  1. A. The state
  2. B. The MLS
  3. C. The parties through negotiation
  4. D. HUD
Show answer and explanation →

Answer: C. The parties through negotiation

Brokerage compensation is negotiable and must not be presented as fixed by an industry body.

Question 3

Does termination always erase accrued rights?

  1. A. Yes
  2. B. No
  3. C. Only for buyers
  4. D. Only if no closing occurs
Show answer and explanation →

Answer: B. No

The agreement may preserve compensation, confidentiality, accounting, or other accrued duties after termination.

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 Non-Agency, Customers, Ministerial Acts, and Authority. Continue to roadmap lesson 92 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.

Brokerage Representation Agreements questions

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

Is Brokerage Representation Agreements 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 Brokerage Representation Agreements?

Read the specific agreement for exclusivity, trigger, term, protected prospects, payment source, and termination effect.

What Georgia-specific distinction should I remember?

Georgia Rule 520-1-.06 requires written brokerage engagements to identify the parties, terms, and conditions, and Georgia rules require copies and proper handling. A Georgia licensee must not state that compensation is standard or fixed.

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.