It often happens that a RE/MAX Around Atlanta agent represents a buyer and another RE/MAX Around Atlanta agent represents a seller in the same transaction. The Brokerage Relationships in Real Estate Transactions, BRETTA, a Georgia statute, controls the legal relationship of brokers to clients in this situation.In these cases, BRETTA allows the managing broker to legally assigns different licensees as designated agents to exclusively represent different clients in the same transaction. The reason for the designation of different agents as exclusive representatives of the different parties is to properly to perform the duties owed to the individual clients, particularly, to maintain the confidential information of the parties.
BRETTA avoids the dual agency position by allowing for Designated Agency by law. RMAA does not allow dual agency, except in unique, unavoidable situations with the permission of the managing broker.
The GAR Purchase and Sale Agreement requires the disclosure of designated agency at the section 10, Brokerage Relationships in this Transaction. The proper way to complete the section is with RE/MAX Around Atlanta as the Broker for both parties, but with the individual designated agents providing exclusive representation for the buyer and for the seller.
10. Brokerage Relationships in this Transaction.
In a designated agency transaction, the designated agent for the buyer owes the same duties to the buyer as if the agent was acting only as a buyer’s agent. Similarly, the designated agent for the seller owes the same duties to the seller as if the agent was acting only as the seller’s agent. With designated agency, each designated agent is prohibited from disclosing to anyone other than his or her broker any information requested to be kept confidential by the client unless the information is otherwise required to be disclosed by law. Therefore, designated agents may not disclose such confidential information to other agents in the company. The broker is also prohibited from revealing any confidential information he or she has received from one designated agent to the other designated agent, unless the information is otherwise required to be disclosed by law. Confidential information is defined as any information that could harm the client’s negotiating position which information the client has not consented to be disclosed.
3/30/2022 09:23:41 pm
I like that you said that it is necessary to secure documentation to prevent misunderstandings. My uncle told me that he hoped to find a reliable broker that could help with the proper management to avoid property problems in his apartment, and he asked if I had any idea what could be the best option to do. Thanks to this helpful article, I'll be sure to tell him that it will be much better if he consults a trusted designated broker as they can help him throughout the process.
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