PATH & POSt Real Estate

AGENCY

DEFINITIONS & DISCLOSURES

CLIENT vs CUSTOMER

All brokerage relationships fall into one of two broad categories: (a) broker-client relationships; and (b) broker- customer relationships. In a broker-client relationship, the real estate broker is representing the client and is acting as his or her legal agent in buying, selling, or leasing property. In Georgia, a broker-client relationship can only be formed by the parties entering into a written agreement.

Buyer Agency

Buyer agency occurs when the real estate broker represents the buyer in locating and assisting the buyer in negotiating for the purchase of property suitable to the buyer.

Seller Agency

Seller agency occurs when the real estate broker is representing the seller in selling his or her property. The seller brokerage agreement gives the broker the right to market the property for sale at a specific price and for a defined period of time.

Designated Agency

In some real estate transactions, the real estate agent representing the buyer and the real estate agent representing the seller both work for the same broker or brokerage firm. In such a transaction, the broker may allow each agent to exclusively represent their respective clients.

Dual Agency

Georgia law allows both parties to agree to have one agent represent both buyer and seller in a real estate transaction at the same time. In these situations, neither party is exclusively represented by a designated real estate agent.