Georgia-Specific Agency, Contract, Disclosure, and Advertising Requirements
Brokerage relationships
Georgia's Brokerage Relationships in Real Estate Transactions Act (BRRETA) governs agency. Brokerage engagements must be in writing - exclusive right to sell, exclusive agency, or open - and the licensee must disclose in writing whom he or she represents. Georgia recognizes seller agency, buyer agency, dual agency, and designated agency. Designated agency lets the broker appoint one licensee to represent the buyer and another to represent the seller in the same transaction, with written consent, while the broker remains a dual agent at the entity level. Undisclosed dual agency is the single most tested violation.
Contracts and closings
Georgia licensees use promulgated forms, most commonly Georgia Association of REALTORS forms, and may complete blanks but may not draft new contract language or give legal advice. Closings are conducted by licensed Georgia attorneys, and the broker's trust account is the proper depository when the broker holds earnest money. The brokerage engagement agreement must state the type of relationship, the duration, and the compensation terms.
Disclosures
Georgia has no statutory seller property condition disclosure form for resale housing, so material latent defects must be disclosed under general fraud principles and licensees must disclose known adverse facts. Sellers of pre-1978 housing must give the federal lead-based paint disclosure. Licensees must disclose any personal interest in the property and any compensation received from another party.
Advertising rules
The brokerage firm's licensed name must appear in advertising, including internet advertising and team-branded materials; a licensee may not advertise property without the firm's authority; and blind ads without the firm name violate Commission rules. Advertising must be truthful and must not create an agency impression that does not exist.
Traps
Do not assume a verbal buyer agency agreement is enforceable in Georgia. Do not use a team name as the required firm name. Do not imply that Georgia requires a seller disclosure form.