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On January 1, 1994, the Brokerage Relationships
in Real Estate Transaction Act (“BRRETA”), O.C.G.A.
Section 10-6A-1 et seq., went into effect in Georgia. It requires
each licensed broker to develop
and enforce a brokerage relationship policy and to provide a
copy
of that policy and to make certain disclosures to all prospective
clients before entering into a brokerage engagement relationship.
For purposes of BRRETA:
1. A Client is defined as a
person who has entered into a brokerage engagement with a real
estate broker.
2. A Customer is defined as
a person who has not entered into a brokerage engagement with
a real estate broker,
but for whom
such broker may
perform ministerial acts in a real estate transaction.
3. A Brokerage Engagement means
an express written or oral contract wherein a client promises
to pay the real estate
broker
valuable
consideration or agrees that a real estate broker may receive
valuable consideration from another in consideration of the
broker producing
a seller, buyer, tenant or landlord ready, willing and able
to sell, buy or rent real property or an interest in the property.
It is Broker’s policy to treat each prospective
tenant, who wishes Broker to assist him or her in locating and leasing
property as a Customer unless that prospective tenant enters into
a written contract for it to act as Tenant’s Agent. When a
prospective tenant wishes Broker to act as Tenant’s Agent, a Written
Brokerage Engagement must be signed. If there is such
a Brokerage Engagement, the tenant is a Client.
It is Broker’s policy to treat each prospective landlord, who
wishes Broker to assist him or her in finding tenants and leasing
his or her property, as a Customer, unless that prospective landlord
enters into an Exclusive Leasing Contract with Broker for it to act
as the Landlord’s Agent. When a prospective landlord wishes
Broker to act as Landlord’s Agent, a Written
Exclusive Leasing Contract must be signed. If there is such a Brokerage
Engagement, the landlord is a Client.
It is Broker’s policy to treat each prospective Buyer, who wishes Broker to assist him or her in locating and purchasing
property, as a Customer unless that prospective buyer enters into
a written contract with Broker for it to act as Buyer’s Agent. When a prospective buyer wishes Broker to act as Buyer’s
Agent, a Written Brokerage Engagement contract must
be signed. When this
occurs, the buyer is a Client.
It is Broker’s policy to treat each prospective Seller, who
wishes Broker to assist him or her in selling property, as a Customer, unless that prospective seller wishes Broker to act as Seller’s
Agent. When a prospective seller wishes Broker to act as Seller’s
Agent, a Written Exclusive Right
To Sell Contract must be signed. If there is such a Brokerage Engagement,
the
seller is a Client.
From time to time, one client of
Broker will wish to buy or lease property of another client of
Broker.
In such
a case,
it is the further
brokerage relationship of Broker to represent
both the seller and buyer or landlord/sublandlord and
tenant/subtenant
as
a limited agent.
This Dual Agency is permitted
under Georgia Law, if both
clients consent in writing.
Under Georgia Law, when a seller or landlord
is a client, Broker and its salespersons may still
show
alternative
properties not owned by client to prospective
buyers or prospective
tenants.
In addition,
when a buyer or tenant is a client, Broker
and its salespersons may still show properties in
which the
buyer or tenant
is interested to other prospective buyers or
prospective tenants.
In some instances, in a specific disclosed transaction,
Broker may act as a Transactional
Broker and perform ministerial acts (i.e.,
acts which do not involve the exercise of
its discretion or judgment pursuant to BRRETA), for both seller/landlord
and
buyer/tenant, without
creating an agency relationship with either
party.
Broker’s compensation in representing a seller or landlord
or when acting as a dual agent in a particular transaction will generally
be paid by such sellers or landlords, pursuant to an agency listing
agreement or commission agreement. In those instances in which Broker
represents buyers or tenants, Broker’s
compensation for services rendered to
such buyers or tenants will
be paid by [the
buyer or
tenant] [seller or landlord or its agent,
unless specifically agreed to the contrary
in writing
between Broker and
the buyer or tenant].
Broker will advise its clients of its
compensation payable in connection with
a specific transaction.
Broker will
not receive
any undisclosed
real estate brokerage commission in any
real estate transaction and further will
advise and
obtain consent of all parties
in the event
that more than one party to a specific
transaction pays its compensation.
Generally, Broker will cooperate with
other licensed brokers who are properly
authorized
in writing
to represent another
party in
a transaction; however, Broker will
not recognize such cooperating brokers as
subagents of
Broker’s clients, unless specifically
agreed to in writing by Broker’s clients and such cooperating
brokers. Broker’s compensation to and sharing of commissions
with cooperating brokers will be set forth in the applicable agency
listing agreement or other commission agreement with Broker’s
clients, who are responsible for compensating
Broker.
Broker shall provide a Disclosure
Statement to all parties to a specific transaction
prior to
the execution
of a purchase
and sale contract,
a lease/sublease or other agreements
regarding a transaction involving
real property.
The Disclosure Statement will
provide disclosures
as to whom Broker represents and
from who Broker shall receive compensation
in any
specific
transaction. In
addition, Broker
provides to each
party to any specific transaction,
whether Client or Customer, additional information
and notices
which
appear on the
reverse side of the Disclosure
Statement.
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