The Georgia Association of REALTORS (GAR) will release their NEW contract package on 1/1/2023! Do you want the FIRST LOOK at what the changes include? Watch this series of videos “2023 GAR Changes” and register for our FREE 3 hr CE classes (for Georgia Real Estate Licensees) and be among the first to know of these changes! The following is a synopsis of the latest episode of “Real Estate Made Crystal Clear” with our very own Dana Sparks. You can watch the video in its entirety below.
What is the Beretta Act?
Understanding the different types of agency relationships in real estate transactions is crucial for both agents and clients. The Beretta Act, also known as OCGA 10-6a-1, is a Georgia law that governs brokerage relationships in real estate transactions. It states that if a buyer and seller have not signed a seller brokerage agreement or a buyer brokerage agreement, they are each solely responsible for protecting their own interests, and the broker’s role is limited to performing ministerial acts for that party.
Changes to the Beretta Act in 2023
In 2023, the Beretta Act will be updated to include a provision that states that if the same brokerage firm is representing one party as a client and working with the other party as a customer, the broker and all of their affiliated licensees are representing the client. Additionally, the act includes a section on consent to dual agency, requiring that the buyer and seller both consent to the same and the dual agency disclosure is disclosed throughout a myriad of forms.
Types of Agency and Potential Pitfalls
There are three main types of agency: single agency, dual agency, and designated agency. Single agency is when the public has signed a separate brokerage agreement with the broker and the broker has a client relationship with that party. Dual agency is when the broker has a client relationship with both the buyer and the seller, and there’s only one agent working with both sides. Designated agency is when one broker and two agents have signed with the buyer and the seller, each of whom have signed a buyer of brokerage agreement.
It’s important to note that while dual agency is legal with disclosure and consent, many brokers have a policy against it. Therefore, it’s crucial for agents to check with their broker’s policy and make sure to disclose and get consent from both parties, even if their broker only has a relationship with one party as a client and the other as a customer. To avoid potential dual agency situations, agents should consider turning it into a designated agency situation with the public’s consent. By understanding these different types of agency relationships and following proper protocol, agents can ensure that all parties involved are aware of their roles and responsibilities in the transaction.
Watch the entire video for more information here: