1. © 2008 by South-Western, Cengage Learning Chapter 24 Charles J. Jacobus Thomas E. Gillett

2. © 2008 by South-Western, Cengage Learning Georgia Real Estate An Introduction to the Profession Seventh Edition Georgia Real Estate An Introduction to the Profession Seventh Edition Chapter 24 Georgia License Law

3. © 2008 by South-Western, Cengage Learning License Law Passed by Legislature Signed by the Governor GREC www.grec.state.ga.us

4. © 2008 by South-Western, Cengage Learning Georgia License Law Georgia License Law Broker Performs acts of real estate for another for compensation Associate Broker Meets the requirements to be a broker but chooses to act on behalf of another broker

5. © 2008 by South-Western, Cengage Learning Georgia License Law Georgia License Law Salesperson Licensee who acts on behalf of a Broker in real estate transactions Brokerage Agreement Written contract to represent another in a real estate transaction for compensation

6. © 2008 by South-Western, Cengage Learning Georgia License Law Georgia License Law Commission GREC Commissioner Administrative head of GREC Licensee Any person with a real estate license

7. © 2008 by South-Western, Cengage Learning Georgia License Law Georgia License Law Person Individual or firm Firm Any business entity Real Estate Any interest in real property

8. © 2008 by South-Western, Cengage Learning Georgia License Law Six Members Appointed by the governor Confirmed by the senate 5 are licensed for 5 years

9. © 2008 by South-Western, Cengage Learning Georgia License Law Georgia residents for 5 years 6 th Member is a consumer Chairperson is elected Meet once per month

10. © 2008 by South-Western, Cengage Learning Georgia License Law Quorum is 4 Pass rules and regulations Yearly report to the Governor

11. © 2008 by South-Western, Cengage Learning Georgia License Law Establishes & collects fees No tax dollars Full time employee Runs the department Hires and is responsible for staff

12. © 2008 by South-Western, Cengage Learning Georgia License Law No active license Official seal & signature May certify licensee history for 5 years

13. © 2008 by South-Western, Cengage Learning Georgia License Law May request any info deemed necessary Kept confidential Not confidential: Licensee’s name, license number, status, & disciplinary action http://www.grec.state.ga.us

14. © 2008 by South-Western, Cengage Learning Georgia License Law Community Association Manager 18 years old State resident High school graduate or equivalency 25 in class hours State exam

15. © 2008 by South-Western, Cengage Learning Georgia License Law Salesperson 18 years old State resident High school graduate or equivalency 75 in class hours State exam Post-license requirement

16. © 2008 by South-Western, Cengage Learning Georgia License Law Broker 21 years old State resident High school graduate or equivalency Actively licensed for 3 of previous 5 years 60 in class hours State exam

17. © 2008 by South-Western, Cengage Learning Georgia License Law Continuing Education 6 hours per year Renewal period: 4 years Exemptions Active military duty General assembly

18. © 2008 by South-Western, Cengage Learning Georgia License Law Not licensed in home state Same requirements for age, education and exam

19. © 2008 by South-Western, Cengage Learning Georgia License Law GA license if licensed in home state

20. © 2008 by South-Western, Cengage Learning Georgia License Law GA license if licensed in home state Proof of licensure Pay fees Has read & understands the law & rules and will abide

21. © 2008 by South-Western, Cengage Learning Georgia License Law GA license if licensed in home state Affiliation with a GA broker Documentation of disciplinary action Commissioner appointed as agent Will cooperate with investigations

22. © 2008 by South-Western, Cengage Learning Georgia License Law Out of state licensee without a GA license Written Agreement with GA Broker: How commission will be shared Any agreements to be in name of GA Broker Negotiate only with express permission of GA Broker

23. © 2008 by South-Western, Cengage Learning Georgia License Law Out of state licensee without a GA license Written Agreement with GA Broker Advertising identifies GA Broker Trust Funds in GA Brokers Trust Account Violations of law

24. © 2008 by South-Western, Cengage Learning Georgia License Law Qualifying Broker Bind the firm in matters before the commission Firm & licensees comply with the law Properly licensed

25. © 2008 by South-Western, Cengage Learning Georgia License Law Qualifying Broker Subject to sanctions for violations Payment may be made to non-licensed corporations Written instrument 20% of stock owned by the licensee

26. © 2008 by South-Western, Cengage Learning Georgia License Law Wall license & pocket card Broker has custody 1.Examination Fee 2.Activation Fee 3.Renewal Fee

27. © 2008 by South-Western, Cengage Learning Georgia License Law License lapses due to failure to pay fees Within 2 Years Renewal fees, late charges & reinstatement fee Greater than 2 but less than 5 Years Renewal fees, late charges & reinstatement fee Education course as required Pre-license course for license reinstated

28. © 2008 by South-Western, Cengage Learning Georgia License Law License lapses due to failure to pay fees More than 5 Years Must qualify as an original applicant Continuing Education Exemption

29. © 2008 by South-Western, Cengage Learning Georgia License Law Inactive Status Written request Within 30 days No brokerage activity Renewal fees To reactivate: Continuing education

30. © 2008 by South-Western, Cengage Learning Georgia License Law Penalty fees imposed: 1. Failure to notify the commission within 30 days Change of address Opening or closing a trust account Transferring to a new company Departing a firm Inactive

31. © 2008 by South-Western, Cengage Learning Georgia License Law Penalty fees imposed: 2. Failure to join a new company within 30 days. 3. Failure to respond to commission inquiries within 30 days 4. Returned check

32. © 2008 by South-Western, Cengage Learning Georgia License Law Expenses paid from fees collected Not supported by tax dollars May enter into contracts with others

33. © 2008 by South-Western, Cengage Learning Georgia License Law Granting a License Reputation for honesty, trustworthiness, integrity, & competence Denying a License to a company An owner with more than 20% interest Bad reputation Convicted of a crime

34. © 2008 by South-Western, Cengage Learning Georgia License Law Conviction: Felony or crime of moral turpitude May not apply until Term of sentence completed Single offense: 2 Years since satisfaction of terms Multiple: 5 Years since satisfaction of terms

35. © 2008 by South-Western, Cengage Learning Georgia License Law Associate Broker: 1. 10 years since conviction or release 2. No charges pending 3. Proof of reputation for honesty, trustworthiness, integrity, and competence

36. © 2008 by South-Western, Cengage Learning Georgia License Law False statements on applications Infractions or sanctions by an occupational body Notification of convictions 60 days to request hearing

37. © 2008 by South-Western, Cengage Learning Georgia License Law Noncompliance with Child support Default on Student loans Georgia Administrative Procedures Act

38. © 2008 by South-Western, Cengage Learning Georgia License Law Limitation of Liability 1. Procedure for supervision 2. Did not participate in the violation 3. Did not ratify the violation

39. © 2008 by South-Western, Cengage Learning Georgia License Law LLC Must be a member Sole Proprietorship Broker is only owner Qualifying Broker must have authority to sign on all trust accounts Partnership Must be a partner Corporation Must be an officer

40. © 2008 by South-Western, Cengage Learning Georgia License Law Procedures Advertising Training on law and rules Review of all contracts within 30 days

41. © 2008 by South-Western, Cengage Learning Georgia License Law Procedures Trust Accounts Properly licensed Trust account disbursements

42. © 2008 by South-Western, Cengage Learning Georgia License Law Procedures Safekeeping of transaction records Policy and procedures manual

43. © 2008 by South-Western, Cengage Learning Georgia License Law Procedures Written agreement How to be paid How paid for work begun but not completed Management authority reasonably available

44. © 2008 by South-Western, Cengage Learning Georgia License Law Change of Business address Notify commission within 30 days Licensee changes Brokers License forwarded to commission Forwarded to new broker with notification to commission

45. © 2008 by South-Western, Cengage Learning Georgia License Law Exception: may work for more than one Georgia Broker if: Agree in writing Transactions identified Former Broker accepts responsibility Agreement states compensation

46. © 2008 by South-Western, Cengage Learning Georgia License Law Protects funds from garnishment or attachment May have more than one Notify the commission of name of bank & acct. #

47. © 2008 by South-Western, Cengage Learning Georgia License Law Allow audits Minimum once per renewal period Licensee as a principal Money received on obligation must be placed in Trust Account

48. © 2008 by South-Western, Cengage Learning Georgia License Law Security deposits May use brokers Trust Account Licensee Trust Account Approved by broker Notification to commission Quarterly reports

49. © 2008 by South-Western, Cengage Learning Georgia License Law Failure to maintain account per 43-42-20 Failure to allow audit Reported to Attorney General

50. © 2008 by South-Western, Cengage Learning Georgia License Law New licensees pay $20 into the fund $1,000,000 Minimum balance $30 per renewal year if below the minimum Limitations $15,000 per transaction $45,000 per licensee $15,000 per person

51. © 2008 by South-Western, Cengage Learning Georgia License Law Prohibited from colleting: Bonding Company Licensee Relative of licensee Action begun within 2 years Commission notified

52. © 2008 by South-Western, Cengage Learning Georgia License Law Upon failure to recover Court order Payment from fund = Revocation of license Monies received are invested

53. © 2008 by South-Western, Cengage Learning Georgia License Law No tax unless Broker maintains an office in jurisdiction Gross receipts tax

54. © 2008 by South-Western, Cengage Learning Georgia License Law Properly licensed Sanctions Refusal to grant or renew Formal reprimand

55. © 2008 by South-Western, Cengage Learning Georgia License Law Sanctions Suspension Revocation Downgrading of license Reimbursement of expenses

56. © 2008 by South-Western, Cengage Learning Georgia License Law Sanctions Fines $1,000 per violation $5,000 per hearing Education Periodic reports

57. © 2008 by South-Western, Cengage Learning Georgia License Law Sanctions Limits or restrictions on license Violations (1) Fair Housing (2) Misleading or inaccurate advertising

58. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (3) Failure to account for other’s money (4) Commingling (5) Failure to deposit funds ASAP

59. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (6) Accepting, giving or charging undisclosed fees (7) Representing a broker other than the broker holding the license without permission

60. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (8) Accepting a commission not from the broker (9) Failure to disclose licensure as a principal (10) Guaranteeing a profit

61. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (11) Sign placement without written consent Removal within 10 days of expiration (12) Unauthorized offerings (13) Inducing a person to break one contract to enter into another

62. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (14) Negotiating directly with the client of another broker EXCEPTION (15) Expressing an opinion as an appraisal

63. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (16) Acting as a licensee in another state without proper licensure (17) Payment to an unlicensed person for acts of real estate (18) Listings without a definite termination date

64. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (19) Failure to give copies of contracts or offers to all parties (20) Failure to provide copies of closing statements (21) Any substantial misrepresentation

65. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (22) Dual Agency without written consent (23) Failure to turn over funds to the Broker ASAP (24) Filing a lien without a valid claim

66. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (25) Actions which may endanger the public (26) Entering into an agreement or contact when an exclusive brokerage engagement exits with another broker

67. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (27) Failure to maintain copies of all documents for 3 years (28) Falsification of any document (29) RESERVED: only an attorney may conduct a closing

68. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (30) Deposits in interest bearing accounts without written agreement as to (31) Failure to timely disclose agency relationships who receives the interest

69. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (32) Performing acts of Brokers or salespersons with a CAM license (33) When performing CAM duties, failure to obtain permission to perform other acts of real estate Accounting of all records within 30 days of termination

70. © 2008 by South-Western, Cengage Learning Georgia License Law Violations (34) Changing compensation of another (35) Failure to disclose to a person that they are being referred Compensation will or will not be paid licensee without prior written permission

71. © 2008 by South-Western, Cengage Learning Georgia License Law Licensees may complete preprinted forms Citation may be issued without a hearing Request by licensee for hearing within 30 days

72. © 2008 by South-Western, Cengage Learning Georgia License Law Georgia Administrative Procedures Act May have a hearing prior to censuring Superior court judicial review

73. © 2008 by South-Western, Cengage Learning Georgia License Law Commission MAY investigate on its own MUST investigate sworn written complaint Name published on web site Attorney General stops acts & practices which may violate the law

74. © 2008 by South-Western, Cengage Learning Georgia License Law (1) Owner, spouse, general partner, or manager of apartments for federal agency (2) Attorney in Fact (3) Attorney acting solely incidental to the practice of law

75. © 2008 by South-Western, Cengage Learning Georgia License Law (4) Officer of the court (5) Employee of the government (6) Employee of utility company (7) Owner or a full time employee of a person engaged by the owner

76. © 2008 by South-Western, Cengage Learning Georgia License Law (8) Full time employee of the owner (9) Referral agent Fee cannot be paid by the person being referred No fee in advance No more than 3 transactions per year (10) Employee of the broker Written management agreement with the owner

77. © 2008 by South-Western, Cengage Learning Georgia License Law (11) Property management for property available for less than 90 days (12) A member of a community association providing community association services (13) Maintenance Services (14) CPA

78. © 2008 by South-Western, Cengage Learning Georgia License Law Commission may issue cease and desist order Fine of $1,000 per day Misdemeanor

79. © 2008 by South-Western, Cengage Learning Key Terms Key Terms Associate broker Broker Brokerage engagement Commission Commissioner Licensee Real estate Real estate education, research, and recovery fund Salesperson