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Georgia curriculum lesson 143 · Real Estate Practice in Georgia

Georgia Brokerage Engagement Requirements and Prohibited Terms

A Georgia brokerage engagement is the written contract through which a broker becomes engaged as agent for a seller, landlord, buyer, or tenant. It should identify services, duration, compensation, parties, property or search scope, and consent or conflict provisions. BRRETA limits certain terms, prevents a broker from disclaiming statutory duties, governs prospective-client conduct, and makes clear that compensation alone does not create the relationship.

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 Georgia brokerage engagement is the written contract through which a broker becomes engaged as agent for a seller, landlord, buyer, or tenant. It should identify services, duration, compensation, parties, property or search scope, and consent or conflict provisions. BRRETA limits certain terms, prevents a broker from disclaiming statutory duties, governs prospective-client conduct, and makes clear that compensation alone does not create the relationship.
Official syllabus mapping for Georgia Brokerage Engagement Requirements and Prohibited Terms
Roadmap lesson143 of 500
Official syllabus topicReal Estate Practice in Georgia: Listings and Agency
Official PSI groupReal Estate Practice in Georgia
Published group count21 of the 52 Georgia questions
Exam portionGeorgia salesperson supplement
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Law checked throughAugust 2, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes 16, 21, and 15 items for the three Georgia groups. It does not publish a guaranteed subtopic count. The statute, current GREC rule, contract, or other cited primary authority controls each lesson.

Complete lesson

Read these concepts as one Georgia decision system. A plausible national rule can still be the wrong answer when the stem supplies a Georgia statute, instrument, role, or procedure.

Broker is the contracting party

The engagement is with the broker or licensed firm, even when an affiliated licensee performs most services.

Defined scope

Services, property or search scope, duration, compensation, exclusivity, and termination should be clear enough to apply without inventing authority.

Statutory floor

An engagement may add duties in writing but cannot erase duties or public-protection requirements that BRRETA and license law make controlling.

Compensation is separate

Section 10-6A-11 says payment or a promise of compensation does not by itself determine whether a brokerage relationship exists.

Decision rule

Read the engagement before assuming authority, and separate contract compensation from statutory relationship status.

Georgia rule and national contrast

BRRETA controls Georgia brokerage engagements. National contract labels do not decide client status or allow prohibited terms in Georgia.

Worked Georgia example

Scenario. A buyer pays a broker a showing fee but signs no buyer brokerage engagement.

Reason it through. Compensation alone does not determine the brokerage relationship under Section 10-6A-11. The broker must look to the actual written engagement and disclosed role.

Answer. The fee by itself does not make the buyer a client.

Common exam traps

  • Using payment as the relationship test
  • Treating the salesperson as the only contracting party
  • Ignoring expiration
  • Assuming every clause can waive statutory duties

Original practice questions with detailed explanations

These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or a live examination. Choose an answer before opening the explanation.

Question 1

Which statement best states the Georgia rule for Georgia Brokerage Engagement Requirements and Prohibited Terms?

  1. A. Any payment to a broker automatically creates agency.
  2. B. A brokerage engagement may waive all BRRETA duties.
  3. C. Only the individual salesperson, never the broker, is party to the engagement.
  4. D. Find the signed engagement, its parties, duration, scope, compensation, conflicts, and termination terms, then compare them with nonwaivable BRRETA duties.
Show answer and explanation →

Answer: D. Find the signed engagement, its parties, duration, scope, compensation, conflicts, and termination terms, then compare them with nonwaivable BRRETA duties.

The correct choice states the controlling rule. The other choices either remove a required element, replace Georgia authority with a generic assumption, or expand an exception beyond the cited source.

Question 2

A buyer pays a broker a showing fee but signs no buyer brokerage engagement.

  1. A. The fee by itself does not make the buyer a client.
  2. B. Ignore the Georgia-specific fact because good intentions control.
  3. C. Apply the nearest national rule without checking Georgia authority.
  4. D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →

Answer: A. The fee by itself does not make the buyer a client.

Compensation alone does not determine the brokerage relationship under Section 10-6A-11. The broker must look to the actual written engagement and disclosed role. The correct option follows that reasoning. The distractors ignore the controlling Georgia source, substitute intent for procedure, or give decision-making authority to the wrong person.

Question 3

When solving Georgia Brokerage Engagement Requirements and Prohibited Terms, what should a candidate identify first?

  1. A. The answer choice that sounds most ethical, without classifying the actor or document.
  2. B. Read the engagement before assuming authority, and separate contract compensation from statutory relationship status.
  3. C. One familiar deadline, applied to every Georgia transaction regardless of the source.
  4. D. A national default, even when the stem identifies a Georgia statute or GREC rule.
Show answer and explanation →

Answer: B. Read the engagement before assuming authority, and separate contract compensation from statutory relationship status.

The decision rule identifies the facts that control this topic. The other choices reward tone, a memorized number, or a national default while skipping the Georgia actor, document, authority, or procedure.

Mastery tracking

Mark this Georgia lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain all four concepts and identify the controlling Georgia source.
  • Solve the worked example after changing one important fact.
  • Reject every listed trap and explain what makes it tempting.
  • Answer all three original questions correctly and explain every distractor.
  • Repeat this topic in mixed Georgia practice on a later day.

Recommended next lesson

Continue with Dual Agency and Designated Agency in Georgia. Continue through the roadmap from lesson 143.

Return to the Real Estate Practice in Georgia hub for the complete official branch and every canonical lesson in this Georgia group.

Georgia Brokerage Engagement Requirements and Prohibited Terms questions

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

Is Georgia Brokerage Engagement Requirements and Prohibited Terms on the Georgia real estate exam?

Yes. It maps to PSI's Real Estate Practice in Georgia group, which has 21 of the 52 Georgia questions. PSI does not publish a guaranteed question count for this individual lesson.

What is the main Georgia rule for Georgia Brokerage Engagement Requirements and Prohibited Terms?

Read the engagement before assuming authority, and separate contract compensation from statutory relationship status.

How is this different from a national real estate rule?

BRRETA controls Georgia brokerage engagements. National contract labels do not decide client status or allow prohibited terms in Georgia.

How do I know I have mastered this Georgia lesson?

State the rule and source without notes, solve the scenario after changing a controlling fact, explain every distractor, and maintain accuracy when this topic is mixed with the other Georgia supplement groups.