Georgia’s Brokerage Relationships in Real Estate Transactions Act (BRRETA)

1. Georgia’s Brokerage Relationships in Real Estate Transactions Act (BRRETA)

2. Purpose of BRRETA Purpose is to govern the agency relationships of brokers with sellers, buyers, landlords, and tenantsThe term broker in the following BRRETA slides means any person holding a real estate license

3. Know these terms • Dual Agency (not illegal, but does have to be in writing) • Designated Agency • Transaction broker • Material facts

4. Creation of an Agency Relationship • Payment of compensation does not create agency • Joining an information source (MLS) does not create agency • Agency can only be created by a written contract. This eliminates unintentional agency • An agent is not a fiduciary. Only reasonable standards of performance are required

5. Seek a sale or lease at the price & on the terms in the contract Present offers ASAP Disclose all material facts Advise clients to seek legal advise for matters beyond broker’s expertise Properly account for all monies received Obey all applicable laws Keep information confidential unless required otherwise by law Broker Duties

6. Antitrust Laws Purpose is to restrict monopolistic practices

7. Applying the Law to Real Estate Brokerage • Brokerage is viewed as a trade, not a profession • Brokerage is classified as interstate commerce

8. Two or more brokers going into collusion to set commission rates or prices on properties Any agreement by brokers not to compete in certain areas Refusals by real estate boards to admit qualified members MLS is not allowed to restrict availability of their services, prohibit membership in more than one service, or refuse to take nonexclusive listings Violations

9. Fraudulent or misleading advertisements Advertisement must have an impact on the public as a whole “Advertising” applies to any media Administered by the governor through the Office of Consumer Affairs Tie-ins are not legal Georgia Fair Business Practices Act

10. Contract Provisions to Avoid • Preprinted commission rates • Predetermined “listing duration” printed on the contract • Predetermined “protection period” printed on the contract Protection period is a time period following the expiration of the contract during which the agent’s commission is protected

11. Listing the Seller • Listing – a broker’s contract of employment with an owner. Authorizes the broker find a buyer/tenant who is “ready, willing, and able” to meet the owner’s terms • The commission has been earned even if the seller refuses the offer, changes the terms, or is unwilling or unable to close

12. Performance Expiration of the term Revocation Renunciation Abandonment Agreement Death of either party Incapacity Extinction Supervening illegality Termination of the Listing (Law of Agency)

13. The Right to a Commission: What to do if They Won’t Pay • When the seller refuses to pay commission that the broker feels he/she has earned, three things must be proven in court • Valid real estate license • Written listing agreement • Broker was “procuring cause” of the sale

14. Proving Procuring Cause • Physically shown the property • Followed through and communicated; or • Provided a service, creating events that, without a break in continuity, contributed to the sale

15. Listing the Buyer • A listing contract is between the seller and the broker with whom the licensee is affiliated