Duties of broker engaged by tenant

(a) A broker engaged by a tenant shall: (1) Perform the terms of the brokerage engagement made with the tenant; (2) Promote the interests of the tenant by: (A) Seeking a property to lease at a price and terms acceptable to the tenant; provided, however, that the broker shall not be obligated to seek other properties for the tenant while the tenant is a party to a lease or a letter of intent to lease unless the brokerage engagement so provides; (B) Timely presenting all offers to and from the tenant, even when the tenant is a party to a lease or a letter of intent to lease; (C) Disclosing to the tenant adverse material facts of which the broker has actual knowledge concerning the transaction; (D) Advising the tenant to obtain expert advice as to material matters which are beyond the expertise of the broker; and (E) Timely accounting for all money and property received in which the tenant has or may have an interest; (3) Exercise ordinary skill and care in performing the duties set forth in this subsection and such other duties as may be agreed to by the parties; (4) Comply with all requirements of this chapter and all applicable statutes and regulations, including but not limited to fair housing and civil rights statutes; and 1061 10-6A-8 (5) Keep confidential all information received by the broker during the course of the engagement which is made confidential by an express request or instruction from the tenant unless the tenant permits such disclosure by subsequent word or conduct, or such disclosure is required by law; provided, however, that disclosures between a broker and any of the broker’s affiliated licensees assisting the broker in representing the seller shall not be deemed to breach the duty of confidentiality described above. (b) A broker engaged by a tenant shall timely disclose to a prospective landlord with whom the broker is working all adverse material facts actually known by the broker concerning the tenant’s financial ability to perform the terms of the lease or letter of intent to lease or intent to occupy the property. Brokers shall not knowingly give prospective landlords false information; provided, however, that a broker shall not be liable to a landlord for providing false information to the landlord if the broker did not have actual knowledge that the information was false and the broker discloses to the landlord the source of the information. Nothing in this subsection shall limit any obligation of the prospective tenant under any applicable law to disclose to a prospective landlord all adverse material facts actually known by the tenant concerning the tenant’s financial ability to perform the terms of the lease or letter of intent to lease or intent to occupy the property. No cause of action shall arise on behalf of any person against a broker for revealing information in compliance with this subsection. No broker shall be liable for failure to disclose any matter other than those matters enumerated in this subsection. Violations of this subsection shall not create liability on the part of the broker absent a finding of fraud on the part of the broker. (c) A broker engaged by a tenant in a real estate transaction may provide assistance to the landlord by performing such ministerial acts of the type described in Code Section 10-6A-14; and performing such ministerial acts shall not be construed to violate the broker’s brokerage engagement with the tenant nor shall performing such ministerial acts for the landlord be construed to form a brokerage engagement with the landlord. (d) A broker engaged by a tenant does not breach any duty or obligation by showing properties in which the tenant is interested to other prospective tenants. History. Code 1981, § 10-6A-8, enacted by Ga. L. 1993, p. 376, § 1; Ga. L. 2000, p. 929, § 1; Ga. L. 2024, p. 1052, § 2(54)/SB 448, effective July 1, 2024. Amendments. The 2024 amendment, effective July 1, 2024, part of an Act to revise, modernize, and correct the Code, substituted 1062 10-6A-9 “however, that” for “however,” in subparagraph (a)(2)(A). 10-6A-9. Duration of relationships between brokers and clients; conflict between duties owed to clients and customers. (a) The relationships set forth in Code Sections 10-6A-4 through 10-6A-8, Code Section 10-6A-12, Code Section 10-6A-13, and an option to enter into a brokerage engagement shall commence at the time that the client engages the broker or executes an option to enter into a brokerage engagement, and shall continue until: (1) Completion of performance of the engagement; or (2) If paragraph (1) of this subsection is not applicable, then the earlier of: (A) Any date of expiration agreed upon by the parties in the brokerage engagement, the option to enter into a brokerage engagement, or in any amendments thereto; (B) Any authorized termination of the relationship; or (C) If no expiration is provided and no authorized termination has occurred, then one year after initiation of the brokerage engagement or one year after the date the option to enter into a brokerage engagement was executed. (b) Except as otherwise agreed in writing and as provided in subsection (a) of this Code section, a broker owes no further duties to the client after termination, withdrawal, expiration, or completion of performance of the engagement, except: (1) To account for all moneys and property relating to the engagement; and (2) To keep confidential all information received during the course of the engagement which was made confidential by request or instructions from the client, unless: (A) The client permits the disclosure by subsequent word or conduct; (B) Such disclosure is required by law; or (C) The information becomes public from a source other than the broker. (c) Notwithstanding any other provision to the contrary contained in this chapter, in the event a conflict arises between a broker’s duty to keep the confidence of a client and the duty not to give customers false information, the broker’s duty not to give false information to custom1063 10-6A-10 ers shall prevail and shall govern the broker’s actions. No cause of action shall arise on behalf of any person against a broker or the broker’s affiliated licensees for revealing information in compliance with this subsection. History. Code 1981, § 10-6A-9, enacted by Ga. L. 1993, p. 376, § 1; Ga. L. 2000, p. 929, § 1; Ga. L. 2023, p. 255, § 4/SB 90, effective January 1, 2024. Amendments. The 2023 amendment, effective January 1, 2024, in subsection (a), substituted the present provisions of the introductory paragraph for the former provisions, which read: “The relationships set forth in Code Sections 10-6A-4 through 10-6A-8 and Code Sections 10-6A-12 and 10-6A-13 shall commence at the time that the client engages the broker, and shall continue until:”, inserted “, the option to enter into a brokerage engagement,” in subparagraph (a)(2)(A), and, in subparagraph (a)(2)(C), inserted “authorized”, “brokerage”, and “or one year after the date the option to enter into a brokerage engagement was executed”.