Georgia Multiple Listing Service (MLS) Practice Exam 2025 - Free MLS Practice Questions and Study Guide

In the context of real estate transactions and agency relationships, a selling broker typically has a defined role that hinges on their agreement with the parties involved. When it comes to representing a purchaser and simultaneously acting as a subagent of the listing broker, this situation can lead to a conflict of interest, which is why it is crucial to understand the implications of each party's rights and expectations.

The correct answer highlights that the selling broker cannot concurrently represent the buyer while also acting as the seller's subagent. In this dual role, the broker's obligations to the seller could compromise their ability to advocate effectively and transparently for the buyer's interests. Under Georgia law, a broker acting as a subagent of the listing broker essentially serves the seller's interests, which inherently places the broker's duty to the buyer in a position of secondary importance. Thus, the broker must represent the seller's interests while treating the buyer as a customer, which means the buyer would receive no fiduciary representation or loyalty from the broker.

This provision ensures that there are clear boundaries in agency relationships, maintaining transparency and protection for all parties involved in the transaction. When working with buyers, brokers must disclose whom they represent to avoid confusion or potential legal issues stemming from dual agency scenarios. Therefore,