Definitions

1. Law
2. Georgia Code
3. Commerce and Trade
4. Brokerage Relationships in Real Estate Transactions
5. Definitions

As used in this chapter, the term:

1. "Agency" means every relationship in which a real estate broker acts for or represents another as a client by the latter's written authority in a real property transaction.
2. "Broker" means any individual or entity issued a broker's real estate license by the Georgia Real Estate Commission pursuant to Chapter 40 of Title 43. The term "broker" includes the broker's affiliated licensees except where the context would otherwise indicate.
3. "Brokerage" means the business or occupation of a real estate broker.
4. "Brokerage engagement" means a written contract wherein the seller, buyer, landlord, or tenant becomes the client of the broker and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another in consideration of the broker producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property or performing other brokerage services.
5. "Brokerage relationship" means the agency and nonagency relationships which may be formed between the broker and the broker's clients and customers, as described in this chapter.
6. "Client" means a person who is being represented by a real estate broker in an agency capacity pursuant to a brokerage engagement.
7. "Common source information companies" means any person, firm, or corporation that is a source, compiler, or supplier of information regarding real estate for sale or lease and other data and includes but is not limited to multiple listing services.
8. "Customer" means a person who is not being represented by a real estate broker in an agency capacity pursuant to a brokerage engagement but for whom a broker may perform ministerial acts in a real estate transaction pursuant to either a verbal or written agreement.
9. "Designated agent" means one or more licensees affiliated with a broker who are assigned by the broker to represent solely one client to the exclusion of all other clients in the same transaction and to the exclusion of all other licensees affiliated with the broker.
10. "Dual agent" means a broker who simultaneously has a client relationship with both seller and buyer or both landlord and tenant in the same real estate transaction.
11. "Material facts" means those facts that a party does not know, could not reasonably discover, and would reasonably want to know.
12. "Ministerial acts" means those acts described in Code Section 10-6A-14 and such other acts which do not require the exercise of the broker's or the broker's affiliated licensee's professional judgment or skill.
13. "Timely" means a reasonable time under the particular circumstances.
14. "Transaction broker" means a broker who has not entered into a client relationship with any of the parties to a particular real estate transaction and who performs only ministerial acts on behalf of one or more of the parties, but who is paid valuable consideration by one or more parties to the transaction pursuant to a verbal or written agreement for performing brokerage services.

(Code 1981, §10-6A-3, enacted by Ga. L. 1993, p. 376, § 1; Ga. L. 2000, p. 929, § 1; Ga. L. 2002, p. 415, § 10.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1993, the subsection (a) designation was deleted from the beginning, as there is no subsection (b).

Law reviews.

- For annual survey of real property law, see 68 Mercer L. Rev. 231 (2016).

JUDICIAL DECISIONS

Business brokers.

- O.C.G.A. § 10-6A-4(a), regarding a broker's legal relationship to customers or clients, which is in derogation of common law and must therefore be limited in strict accordance with its language, applies only to real estate brokers, not to business brokers, under O.C.G.A. § 10-6A-3. Bienert v. Dickerson, 276 Ga. App. 621, 624 S.E.2d 245 (2005).

Reasonable care exercised by real estate broker.

- Trial court erred in denying motions for directed verdict and judgment notwithstanding the verdict, O.C.G.A. § 9-11-50, because a real estate broker and a real estate agent owed no duty to a potential buyer of property when the buyer did not engage the broker as defined in the Brokerage Relationships in Real Estate Transactions Act, O.C.G.A. § 10-6A-1 et seq.; the buyer was, at most, a "customer" of the broker pursuant to O.C.G.A. § 10-6A-3(8), and the broker exercised reasonable care in locating a property owner and checking on the status of desired property pursuant to § 10-6A-3. Harrouk v. Fierman, 291 Ga. App. 818, 662 S.E.2d 892 (2008).

Brokerage agreement.

- Real estate broker was not entitled to recover a commission from buyers who elected not to close because the required brokerage agreement under O.C.G.A. § 10-6A-3(4) had the pertinent commission paragraph stricken and, thus, did not advise the buyers that any commission had to be paid under O.C.G.A. § 10-6A-10(3); although the broker sought to rely on, inter alia, an FMLS listing indicating the commission, that particular document was unsigned and indicated no assent to any contractual terms. Pargar, LLC v. Jackson, 294 Ga. App. 882, 670 S.E.2d 547 (2008).

No breach of duties.

- Trial court did not err in dismissing buyers' action against a real estate company and a real estate agent because any broker-client relationship between them and the company and the agent that could have been created when the agent executed the first purchase and sale agreement as both the buyers' agent and the seller's agent ended when that agreement failed due to a low appraisal, and since the buyers engaged a buyer's agent, the relationship between the company, agent, and buyers was that of broker-customer; in the absence of a written agreement between them, the duties of the company and the agent were those set out in the Brokerage Relationships in Real Estate Transactions Act, O.C.G.A. § 10-6A-5, and although a broker who was engaged only by a seller owed a buyer, who was a "customer" rather than a "client" under the Act, O.C.G.A. § 10-6A-3(8), certain duties in terms of disclosure of information, the buyers' complaint did not aver that the company and agent breached any of those duties. Jones v. Bill Garlen Real Estate, 311 Ga. App. 372, 715 S.E.2d 777 (2011).

Cited in Campbell v. State, 286 Ga. App. 72, 648 S.E.2d 684 (2007).

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