© 2008 by South-Western, Cengage Learning Chapter 2 Chapter 2 Thomas E. Gillett Charles J. Jacobus Thomas E. Gillett

© 2008 by South-Western, Cengage Learning Georgia Real Estate An Introduction to the Profession Seventh Edition Chapter 2 Licensing Laws and Professional Affiliation

© 2008 by South-Western, Cengage Learning Licensee Licensee Rational for Licensing Loyalty, Honetsty, Truthfulness

© 2008 by South-Western, Cengage Learning Licensee Licensee One who for another and for promise of or for compensation: Lists or offers to List Sells or offers to Sell Buys or offers to Buy Negotiates or offers to Negotiate Purpose of: Sale, Purchase, Option, Exchange, Auction, Lease, Rental of Real Estate

© 2008 by South-Western, Cengage Learning Licensee Classes Real Estate Broker Licensed to act independently in conducting real estate brokerage business. Real Estate Salesperson Employed by a broker. Sales Associate

© 2008 by South-Western, Cengage Learning Qualifications Examination Education Requirements Continuing Education

© 2008 by South-Western, Cengage Learning Licensing Procedure Renewal Nonresident Licensing Reciprocity Notice of Consent Moving

© 2008 by South-Western, Cengage Learning Licensing Business Firm Fictitious Business Name Branch Offices

© 2008 by South-Western, Cengage Learning Real Estate Regulation

© 2008 by South-Western, Cengage Learning Suspension & Revocation Reasons for suspension or revocation Investigations by the Commission Statements taken Conference Formal Hearing Appeal

© 2008 by South-Western, Cengage Learning Bonds & Recovery Funds Bond Requirements $1,000 - $100,000 Recovery Fund Funded w/ Licensing fees Georgia Minimum balance - $1,000,000 $15,000 per Transaction $45,000 per Licensee

© 2008 by South-Western, Cengage Learning Training – complement, enhance, and encourage personal development. Compensation Percentage of earned commissions Co-op 100% Commission Broker Affiliation

© 2008 by South-Western, Cengage Learning Broker Affiliation Support – Services offered. Interviewing Brokers Employment Contract

© 2008 by South-Western, Cengage Learning Independent Contractor Independent Contractor Paid only if a sale produces a commission Responsible for income taxes and social security.

© 2008 by South-Western, Cengage Learning Brokerage Companies Franchises National identification National Real Estate Firms “Full Service”

© 2008 by South-Western, Cengage Learning REALTOR® Registered trade name Member of NAR not synonymous with real estate agent Code of ethics first adopted in 1913 Standards of practice GRI designation by taking sponsored education courses by NAR

© 2008 by South-Western, Cengage Learning Key Terms Key Terms Broker Independent contractor License revocation License suspension Licensee Principal broker Real estate commission REALTOR® Recovery fund Sales associate Salesperson