Georgia Agency Law: BRRETA and Designated Agency Explained

Georgia's agency law is governed by the Brokerage Relationships in Real Estate Transactions Act (BRRETA). Understanding BRRETA is essential for the state section of the Georgia exam.

BRRETA Overview

BRRETA (Georgia Code Title 10, Chapter 6A) defines the types of brokerage relationships permitted in Georgia and the duties owed in each relationship.

Georgia permits four types of brokerage relationships: 1. Seller's agent 2. Buyer's agent 3. Dual agent (with written consent) 4. Designated agent

Seller's Agent

A broker or salesperson who represents the seller owes fiduciary duties to the seller: - Loyalty, obedience, disclosure, confidentiality, accounting, reasonable care - Must disclose material facts about the property to buyers (but not confidential seller information) - Must disclose to buyers that they represent the seller

The seller's agent relationship is typically established through the listing agreement.

Buyer's Agent

A broker representing the buyer owes full fiduciary duties to the buyer. In Georgia, buyer agency is established through a written Buyer Brokerage Agreement.

Under BRRETA, a licensee who shows property to a buyer without a written buyer brokerage agreement is acting as the seller's agent or subagent — not the buyer's agent.

Dual Agency — Written Consent Required

When a broker represents both the buyer and seller in the same transaction, dual agency exists. This requires: - Written informed consent from both parties before the dual agency begins - The dual agent must remain neutral and cannot fully advocate for either party - Cannot reveal: seller's minimum acceptable price, buyer's maximum willingness to pay, or any motivation that would disadvantage either party

Georgia's dual agency consent form must be signed by both parties before the dual agency arises (not after the offer is made).

Designated Agency — Georgia's Preferred Alternative

Georgia's BRRETA specifically permits designated agency as a practical alternative to dual agency:

• The broker appoints different licensees within the brokerage to represent each party
• The appointed listing agent represents only the seller
• The appointed buyer's agent represents only the buyer
• The broker acts as a "supervisor" but doesn't negotiate for either party
• Both parties must consent in writing

Benefits: Each party gets a true advocate. The appointed agents maintain full fiduciary duties to their respective clients — no loyalty conflict.

Disclosure Requirements Under BRRETA

BRRETA requires brokerage relationship disclosure: - In writing before or at the time of the first substantive discussion about specific property - The disclosure must identify the type of brokerage relationship and the duties owed

Key BRRETA disclosure timing: - Listing agents: Disclose to buyers at first substantive contact - Buyer's agents: Disclose to sellers when presenting offers

Common Exam Scenarios

Q: A Georgia salesperson shows homes to a buyer without a written buyer brokerage agreement. Who does the salesperson represent? A: The seller (as seller's agent or subagent) — not the buyer. Without a written agreement, the salesperson cannot be the buyer's agent under BRRETA.

Q: A Georgia broker's brokerage represents both the buyer and the seller in a transaction, with different salespersons assigned to each. This is: A: Designated agency — the preferred approach under BRRETA.

Q: A Georgia buyer signs a buyer brokerage agreement with a broker. The broker also has the listing for the property the buyer wants to purchase. To proceed without dual agency, the broker should: A: Implement designated agency — appoint a different salesperson to represent the buyer than the one representing the seller.

[Practice Georgia agency questions at CARealestate.com/states/georgia](https://carealestate.com/states/georgia)