Georgia BRRETA: What the Exam Actually Tests

The Brokerage Relationships in Real Estate Transactions Act (BRRETA) is Georgia's framework for how real estate licensees relate to consumers. BRRETA defines four relationship types and the duties owed under each.

The exam tests BRRETA 10-12 times across the 52 state questions. Master it and you've handled a major chunk of the state portion.

The four BRRETA relationships

Client relationship:

• The licensee represents the client (buyer OR seller) with full fiduciary duties
• Owes loyalty, confidentiality, obedience, full disclosure, and accounting
• Established by written brokerage engagement agreement

Customer relationship:

• The licensee provides brokerage services without representing the customer
• Owes honesty, fair dealing, and reasonable skill but no fiduciary duties
• Establishes the licensee as a "transaction broker" essentially

Designated agency:

• A broker designates different agents within the same brokerage to represent buyer and seller
• Each designated agent owes full fiduciary duties to their respective client
• Confidentiality is maintained between the two designated agents
• Both parties must consent in writing

Dual agency:

• Same agent represents both buyer and seller
• Modified duties to maintain fairness to both parties
• Limited disclosure obligations
• Both parties must consent in writing
• Rare under BRRETA because designated agency is preferred

Required disclosures

BRRETA requires:

• Written agency disclosure at the first substantive contact with a buyer or seller
• The disclosure must explain the relationship the licensee is offering
• The disclosure must explain duties owed under that relationship
• New disclosure when the relationship changes

The brokerage engagement agreement

BRRETA distinguishes between informal agency relationships and formal engagement agreements:

• An informal client relationship can exist before a written agreement
• The brokerage engagement agreement formalizes the relationship in writing
• The engagement agreement specifies duties, compensation, and termination

The exam tests when a written agreement is required vs. when informal client status applies.

Compensation and BRRETA

BRRETA allows flexible compensation structures:

• Buyer's agent compensation can come from seller, buyer, or both (with disclosure)
• Customer relationships often have different compensation structures
• Designated agency typically uses standard listing agreement terms

Required disclosure: who pays the licensee and how much.

Sample exam questions

Q: A Georgia licensee meets a potential buyer at an open house. They have a substantive conversation about the buyer's home search. What relationship has formed under BRRETA, and what disclosure is required?

A: A customer relationship has formed by default. The licensee must provide written agency disclosure explaining the customer relationship and any duties owed.

Q: A Georgia broker assigns Agent A to represent the seller and Agent B to represent the buyer in the same transaction. Both parties consent in writing. What relationship type is this?

A: Designated agency. Each designated agent owes full fiduciary duties to their respective client.

Q: A Georgia licensee represents a buyer (client) and shows the buyer a property listed by the same brokerage. The licensee continues representing only the buyer. What disclosure is required?

A: The licensee must disclose that the property is listed by the same brokerage and that designated agency or dual agency may apply, depending on whether the listing agent represents the seller.

Why this matters for your career

If you pass the exam and become a Georgia licensee, BRRETA shapes every consumer interaction. Misunderstanding it leads to:

• Incomplete disclosures (regulatory violations)
• Misrepresented relationships (lawsuits)
• Compensation disputes
• License disciplinary action

The exam tests BRRETA because it's the foundation of how Georgia real estate practice works.