Key Takeaways
- Georgia brokers must disclose adverse material facts about property condition that are not discoverable by reasonable inspection
- The "Exhibit A" form is the standard Georgia agency disclosure provided at first substantive contact
- Sellers' agents must disclose known physical defects to buyers even in this caveat emptor state
- Agency disclosure must occur before confidential information is shared
- Brokers must keep copies of all disclosure forms for at least 3 years
Agency Disclosure Requirements in Georgia
Georgia has specific requirements for when and how agency relationships must be disclosed. Proper disclosure protects all parties and ensures informed consent.
Timing of Disclosures
First Substantive Contact
Agency disclosure must occur at first substantive contact:
| Trigger | Disclosure Required |
|---|---|
| Discussion of property needs | Yes |
| Sharing financial information | Yes |
| Discussing motivation to buy/sell | Yes |
| Viewing specific properties | Yes |
| Casual open house visit | No (not substantive) |
Before Confidential Information
Agency disclosure should occur BEFORE:
- A party shares confidential information
- Financial details are discussed
- Negotiation strategy is revealed
- Motivation or urgency is disclosed
Why This Matters: If someone shares confidential information before knowing who the broker represents, that information could inadvertently be used against them.
Common Agency Disclosure Forms
Exhibit A - Brokerage Relationships Disclosure
The Exhibit A form is the standard Georgia disclosure that:
- Explains different types of brokerage relationships
- Identifies who the broker represents
- Describes duties owed in each relationship type
- Must be provided at first substantive contact
Brokerage Engagement Agreement
Required elements for creating a client relationship:
| Element | Description |
|---|---|
| Parties | Broker and client names |
| Property | Description or type of property |
| Duration | Start and end dates |
| Compensation | Commission terms |
| Services | What broker will provide |
| Dual Agency Policy | Whether permitted |
Agent Disclosure Duties for Property Condition
Georgia is a "caveat emptor" (buyer beware) state—sellers have limited mandatory disclosure requirements. However, agents have separate duties:
Agent Must Disclose (O.C.G.A. § 10-6A-5)
Sellers' agents must disclose to buyers:
- Adverse material facts about the property's physical condition
- Environmental contamination if known
- Facts required by law to be disclosed
- Any fact the agent knows that could not be discovered by reasonable inspection
What Agents Don't Have to Disclose
Under Georgia law, agents are NOT required to disclose:
| Category | Examples |
|---|---|
| Stigmatized property facts | Murder, suicide, death on property |
| Health-related history | Prior occupant had illness/disease |
| Certain crimes | Violent crimes at the property |
| Natural hazard zones | Flood zones (no state requirement) |
Note: While Georgia doesn't require flood zone disclosure, federal law may require it for federally-related loans.
Documentation and Record Retention
Required Records
Brokers must maintain:
- All brokerage engagement agreements
- Agency disclosure forms
- Transaction files and correspondence
- Trust account records
Retention Period
All transaction records must be kept for a minimum of 3 years after:
- The transaction closes, OR
- The listing/engagement expires or terminates
Record Storage
Records can be maintained:
- At the main office
- At a branch office
- In electronic format (if properly secured)
Georgia Disclosure Requirements Summary
| Disclosure Type | When Required | To Whom | Form/Method |
|---|---|---|---|
| Agency Relationship | First substantive contact | All parties | Exhibit A or similar |
| Dual Agency | Before acting as dual agent | Both parties | Written consent |
| Brokerage Policies | In engagement agreement | Clients | Written in agreement |
| Material Defects (Agent knows) | Before offer | Buyers | Written or verbal |
| Lead-Based Paint | Before contract | All buyers (pre-1978 homes) | Federal disclosure form |
What must a Georgia seller's agent disclose to buyers?
How long must Georgia brokers retain transaction records?