Ministerial Acts Explained; Required Actions of Transaction Brokers; False Information

  1. Law
  2. Georgia Code
  3. Commerce and Trade
  4. Brokerage Relationships in Real Estate Transactions
  5. Ministerial Acts Explained; Required Actions of Transaction Brokers; False Information

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  1. A broker acting as a transaction broker may provide assistance to buyers, sellers, tenants, and landlords by performing ministerial acts. Examples of ministerial acts which can be performed by the transaction broker on behalf of any of the parties in a real estate transaction include without limitation the following:
    1. Identifying property for sale, lease, or exchange;
    2. Providing real estate statistics and information on property;
    3. Providing preprinted real estate form contracts, leases, and related exhibits and addenda;
    4. Acting as a scribe in the preparation of real estate form contracts, leases, and related exhibits and addenda;
    5. Locating architects, engineers, surveyors, inspectors, lenders, insurance agents, attorneys, and other professionals; and
    6. Identifying schools, shopping facilities, places of worship, and other similar facilities on behalf of any of the parties in a real estate transaction.
  2. A broker acting as a transaction broker shall do the following:
    1. Timely present all offers to and from the parties involving the sale, lease, and exchange of property;
    2. Timely account for all money and property received by the broker on behalf of a party in a real estate transaction; and
    3. Timely disclose the following to all buyers and tenants with whom the broker is working:
      1. All adverse material facts pertaining to the physical condition of the property and improvements located thereon including but not limited to material defects in the property, environmental contamination, and facts required by statute or regulation to be disclosed which are actually known by the broker which could not be discovered by a reasonably diligent inspection of the property by the buyer; and
      2. All material facts pertaining to existing adverse physical conditions in the immediate neighborhood within one mile of the property which are actually known to the broker and which could not be discovered by the buyer upon a diligent inspection of the neighborhood or through the review of reasonably available governmental regulations, documents, records, maps, and statistics. Examples of reasonably available governmental regulations, documents, records, maps, and statistics shall include without limitation: land use maps and plans; zoning ordinances; recorded plats and surveys; transportation maps and plans; maps of flood plains; crime statistics; tax maps; school district boundary maps; and maps showing the boundary lines of governmental jurisdictions.
  3. Transaction brokers shall not knowingly give any party in a real estate transaction false information; provided, however, that a broker shall not be liable to a party for providing false information to the party if broker did not have actual knowledge that the information was false and discloses to the party the source of the information. Nothing in this subsection shall limit any obligation of a seller under any applicable law to disclose to prospective buyers all adverse material facts actually known by the seller pertaining to the physical condition of the property nor shall it limit the obligation of prospective buyers to inspect and to familiarize themselves with potentially adverse conditions related to the physical condition of the property, any improvements located thereon, and the neighborhood in which the property is located. No cause of action shall arise on behalf of any person against a broker for revealing information in compliance with this subsection. No broker shall be liable for failure to disclose any matter other than those matters enumerated in this subsection. Violations of this subsection shall not create liability on the part of the broker absent a finding of fraud on the part of the broker.

(Code 1981, §10-6A-14, enacted by Ga. L. 2000, p. 929, § 1; Ga. L. 2017, p. 774, § 10/HB 323.)

The 2017 amendment, effective May 9, 2017, part of an Act to revise, modernize, and correct the Code, revised punctuation in paragraph (a)(3) and added "and" at the end of paragraph (b)(2).

Editor's notes.

- Ga. L. 2000, p. 929, § 1, effective July 1, 2000, renumbered former Code Section 10-6A-14 as present Code Section 10-6A-16.

JUDICIAL DECISIONS

Section imposes no special duties regarding pets.

- O.C.G.A. §§ 10-6A-5,10-6A-14,43-40-15(a), and43-40-25(b)(25), and related Code sections fail to impose any duties regarding pets other than the general duty to exercise reasonable skill and care in performing all duties; thus, a trial court's summary judgment dismissing claims against real estate agents and brokers for injuries arising from a dog bite while the injured person was viewing listed property for sale was affirmed. Gibson v. Rezvanpour, 268 Ga. App. 377, 601 S.E.2d 848 (2004).

In a purchaser's suit asserting fraud, rescission, breach of contract, and negligence with regard to the purchase of a townhome, the trial court properly granted summary judgment to the listing real estate agent, a listing broker, a listing brokerage, and a seller on all claims as the evidence established conclusively that a mold report that identified the water issues was disclosed to the purchaser's real estate agent (who the purchaser did not sue). However, the court found an exception to the general rule of caveat emptor with regard to the purchaser's claim asserting negligent repair against the seller and found the grant of summary judgment on that claim only was in error since the seller had superior knowledge of the water issues, failed to repair the water issues as advised by an engineer, and covered up the defects with sheetrock. Asuamah v. Haley, 293 Ga. App. 112, 666 S.E.2d 426 (2008).


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