Key Takeaways
- Dual agency occurs when one broker represents both buyer and seller in the same transaction
- Georgia permits dual agency only with written consent from both parties
- Designated agency assigns specific licensees to represent each party exclusively
- In designated agency, the broker cannot be one of the designated agents
- Each brokerage must have a written office policy on whether dual and designated agency are permitted
Dual Agency and Designated Agency in Georgia
Georgia permits both dual agency and designated agency, but each has specific requirements and limitations.
Dual Agency
Dual agency occurs when a broker simultaneously represents both the buyer and seller (or landlord and tenant) in the same transaction.
Requirements for Dual Agency
- Written consent from both parties before acting as dual agent
- Disclosure of the dual agency relationship
- Office policy - Must have written policy permitting dual agency
- Agreement - Both parties must agree in their brokerage engagement
Dual Agent Duties
A dual agent:
- Owes limited duties to both parties equally
- Cannot advocate for one party over the other
- Cannot disclose confidential information from one party to the other
- Must treat both parties honestly and fairly
What a Dual Agent CANNOT Disclose
Without written permission, a dual agent cannot reveal:
| To Buyer | To Seller |
|---|---|
| Seller's lowest acceptable price | Buyer's highest offering price |
| Seller's motivation to sell | Buyer's motivation to buy |
| Seller's willingness to accept financing | Buyer's financial qualifications beyond what buyer authorizes |
Exam Tip: Many buyers and sellers choose NOT to consent to dual agency because they want an agent fully advocating for their interests.
Designated Agency
Designated agency is Georgia's solution to provide better representation when a brokerage has potential for dual agency.
How Designated Agency Works
When a single brokerage has clients on both sides of a transaction:
- Broker assigns designated agents - One agent represents the buyer exclusively, another represents the seller exclusively
- Full fiduciary duties - Each designated agent owes full fiduciary duties to their assigned client
- Confidentiality maintained - Designated agents keep client information confidential, even from each other
Key Rules for Designated Agency
| Rule | Explanation |
|---|---|
| Broker cannot be designated agent | Since broker supervises all agents, they cannot be assigned to one party |
| Written assignment required | The designation must be documented |
| Office policy required | Brokerage must have policy permitting designated agency |
| Sharing with broker allowed | Designated agents may share information with supervising broker without breaching duty |
Designated Agent Duties
Each designated agent:
- Represents ONLY their assigned client
- Owes full fiduciary duties to that client
- Keeps confidential information privileged
- Can advocate fully for their client's interests
Comparison: Dual Agency vs. Designated Agency
| Aspect | Dual Agency | Designated Agency |
|---|---|---|
| Number of agents | Same agent/broker for both | Different agents for each |
| Advocacy | Limited/neutral | Full advocacy |
| Confidentiality | Shared (limited) | Maintained separately |
| Fiduciary duties | Limited to both | Full to assigned client |
| Client preference | Less common | Generally preferred |
Office Policy Requirements
Every Georgia brokerage must have written policies addressing:
- Whether dual agency is permitted or prohibited
- Whether designated agency is permitted or prohibited
- These policies must be disclosed to clients in the brokerage engagement
Note: A brokerage can choose to prohibit dual agency entirely. If so, when a conflict arises, one party would need to find different representation.
In Georgia designated agency, who assigns licensees to represent each party?
What must a Georgia brokerage have regarding dual agency?
In designated agency, can a designated agent share confidential client information with the supervising broker?