2.2 Dual Agency and Designated Agency
Key Takeaways
Dual agency (O.C.G.A. § 10-6A-12) is lawful in Georgia only with the prior written consent of all clients, and that consent must contain four specific statutory statements.
Once a client signs a consent that includes the four required statements, the consent is deemed conclusively given and informed.
Designated agency (O.C.G.A. § 10-6A-13) lets a broker assign separate licensees to each client; the firm and broker are then NOT dual agents.
A dual agent must remain neutral and cannot disclose one party's confidential price or motivation to the other without permission.
Each Georgia firm must adopt a written office policy stating whether dual agency and designated agency are permitted.
Dual Agency Under O.C.G.A. § 10-6A-12
Dual agency exists when a single broker represents both the buyer and the seller (or landlord and tenant) as clients in the same transaction. Georgia permits it, but only with the prior written consent of all clients. Importantly, the consent must contain four statutory statements; a generic 'I agree to dual agency' is insufficient.
The four required statements in a dual-agency consent
| # | The consent must state... |
|---|---|
| 1 | A description of the transaction(s) in which the broker will serve as a dual agent |
| 2 | That the broker is representing two clients whose interests may be different or even adverse |
| 3 | That a dual agent will disclose all adverse material facts known to the broker and not otherwise known to the parties |
| 4 | That the broker will keep confidential, and not disclose, information the parties have not authorized (price, terms, motivation) |
When a client signs a written consent that contains these statements, O.C.G.A. § 10-6A-12 deems the consent conclusively given and informed. That phrase is heavily tested: it means a client cannot later claim ignorance if the signed form met the statutory content.
What a dual agent must NOT reveal
A dual agent acts as a neutral facilitator. Without express authorization, the agent cannot reveal:
| To the buyer | To the seller |
|---|---|
| The seller's lowest acceptable price | The buyer's highest price/ceiling |
| The seller's reason or urgency to sell | The buyer's motivation or urgency to buy |
| That the seller will accept other terms | The buyer's financing flexibility |
The dual agent must still disclose adverse material facts about the property's physical condition to the buyer — neutrality on price never excuses hiding a known defect.
Worked Scenario
Firm X lists the Patel home; later, a buyer-client of the same firm wants to make an offer. If Firm X obtains a properly worded dual-agency consent from both the Patels and the buyer before negotiating, the firm may proceed as a dual agent. If either party refuses to sign, Firm X may not act as a dual agent and must either obtain a designated-agency arrangement (next) or refer one party to another firm.
Exam Tip: Disclosure alone is never enough for dual agency — the statute requires written consent with the four statements, obtained before acting as a dual agent.
Designated Agency Under O.C.G.A. § 10-6A-13
Designated agency is Georgia's preferred solution when one firm has clients on both sides. The broker assigns one affiliated licensee to represent the seller exclusively and a different affiliated licensee to represent the buyer exclusively. Each designated agent owes that client the full set of statutory duties — full advocacy, not neutrality.
The statute provides a critical legal shield: when a broker properly appoints designated agents, neither the broker, the firm, nor the licensees are deemed dual agents. This avoids the neutrality limits of dual agency while keeping the transaction inside one firm.
Core rules for designated agency
| Rule | Explanation |
|---|---|
| Separate licensees | Two different agents — one per client |
| Broker cannot be a designated agent for either side | The broker supervises both and would otherwise be a dual agent |
| Information walls | Designated agents keep their client's confidences from each other |
| Sharing with the broker is allowed | A designated agent may share information with the supervising broker without breaching duty |
| Written office policy | The firm must permit designated agency in its written policy and disclose it in engagements |
Because each designated agent advocates fully for one client, designated agency is generally more protective of clients than dual agency, which is why many Georgia firms prefer it.
Dual Agency vs. Designated Agency
| Aspect | Dual Agency (§ 10-6A-12) | Designated Agency (§ 10-6A-13) |
|---|---|---|
| Licensee(s) | One agent/broker for both | Different agent for each client |
| Advocacy | Neutral; cannot favor either | Full advocacy for each client |
| Confidentiality | Shared neutrality; cannot reveal strategy | Maintained separately behind an information wall |
| Required consent | Written consent w/ four statements | Office policy + engagement disclosure |
| Deemed dual agent? | Yes — the broker is the dual agent | No — statute expressly says not |
Office Policy and Common Traps
Every Georgia brokerage must adopt a written office policy stating whether it permits dual agency, designated agency, or neither, and that policy must be disclosed in the brokerage engagement. A firm may lawfully prohibit dual agency entirely; if it does and a conflict arises, one party must seek representation elsewhere.
- Trap: assuming designated agents are dual agents — the statute says they are not.
- Trap: thinking the supervising broker can be one of the two designated agents — the broker cannot.
- Trap: treating verbal dual-agency consent as valid — it must be written and contain the four statements.
Under O.C.G.A. § 10-6A-12, a Georgia broker may lawfully act as a dual agent only if:
The broker verbally informs both parties at closing
GREC approves the dual arrangement in advance
The supervising broker personally represents only the seller
All clients give prior written consent containing the four required statements
When a Georgia broker properly appoints designated agents under O.C.G.A. § 10-6A-13, what is the legal effect?
Neither the broker, the firm, nor the licensees are deemed dual agents
The broker and firm are treated as dual agents of both clients
Each client must waive the right to confidentiality
The two clients must use the same designated agent
In Georgia designated agency, which statement is correct about the supervising broker?
The broker may serve as the designated agent for the buyer
The broker may serve as the designated agent for the seller
The broker cannot be a designated agent but may receive shared information from them
The broker must remain unaware of both clients' confidential information
Sections you finish are checked off in the contents.