MLS UNIT 23

Education (2 of 4) O.C.G.A. § 43-40-8 and Rule 520-1-.05 Prelicensing Education

Prelicensing education consists of the coursework that precedes a candidate's sitting for the license examination.

Your Real Estate Business and the Georgia License Law (8 of 11) Broker Managing Property or Community Association

Brokers who manage real property or community associations may maintain a designated rental or assessment trust account separate from their other trust accounts. There must be enough funds credited and deposited to an owner's or association's account to cover the association's bills. Security deposits must be clearly identified and credited to the tenant and there must always be a balance in the account equal to the total of security deposits. A licensee who manages and owns rental property must maintain security deposits in designated trust accounts and may not post bond in lieu of maintaining security deposits. IN PRACTICE One of the most common public complaints to the Georgia Real Estate Commission relates to how licensees handle earnest money, often on property with which licensees have a personal involvement. Licensees must comply with Georgia laws and rules for the handling of earnest money, whether or not the licensee is personally involved in the property.

The Real Estate Commissioner's Role

The real estate commissioner is appointed by the Commission to be the chief executive officer of the Commission and administers the policies adopted by the Commission. The commissioner's duties include hiring and overseeing staff in its daily activities. The commissioner may not hold an active real estate or related business license, nor can any other Commission employee.

Persons

are defined as individuals and firms.

A franchise name

is any name, the use of which requires obtaining permission from another who has an existing and continuing right in that trade name by virtue of any state or federal law.

A licensee

is any person who is licensed as a community association manager, salesperson, associate broker, or broker.

If a vacancy occurs,

the governor fills the vacancy. A chairperson is appointed by the members. The Commission holds meetings at least once a month. A quorum consists of four members being present.

Disciplinary Provisions and Loss of License (2 of 3) Unfair Practices

Under the Georgia Real Estate License Law (O.C.G.A. § 43-40-25), there are 36 real estate trade practices considered unfair and subject to disciplinary provisions, as follows: Because of race, color, religion, sex, disability, familial status, or national origin, refusing to sell or rent after the making of a bona fide offer, or refusing to negotiate for the sale or rental of, or otherwise making unavailable or denying, real estate to any person; discriminating against any person in the terms, conditions, or privileges of sale or rental of real estate or in the provision of services or facilities in connection therewith; making, printing, or publishing or causing to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of real estate, that indicates any preference, limitation, or discrimination or an intention to make any such preference, limitation, or discrimination; representing to any person that any real estate is not available for inspection, sale, or rental when such real estate is in fact so available; or representing explicitly or implicitly that a change has or will or may occur in a block, neighborhood, or area in order to induce or discourage the listing, purchasing, selling, or renting of real estate Intentionally advertising material that is misleading or inaccurate or that in any way misrepresents any property, terms, values, policies, or services of the business conducted Failing to account for and remit any money belonging to others that comes into the licensee's possession Commingling the money or other property of the licensee's principals with the licensee's own Failing to maintain and deposit in a separate, federally insured checking account all money received by said broker acting in said capacity, or as escrow agent or the temporary custodian of the funds of others, in a real estate transaction unless all parties having an interest in said funds have agreed otherwise in writing Failing to disclose in writing to a principal in a real estate transaction any of the following: The receipt of a fee, rebate, or other thing of value on expenditures made on behalf of the principal for which the principal is reimbursing the licensee; The payment to another broker of a commission, fee, or other thing of value for the referral of the principal for brokerage or relocation services; or The receipt of anything of value for the referral of any service or product in a real estate transaction to a principal Representing or attempting to represent a real estate broker, other than the broker holding the licensee's license, without the express knowledge and consent of the broker holding the licensee's license Accepting a commission or other valuable consideration by a licensee from anyone other than the broker holding that licensee's license without the consent of that broker Acting in the dual capacity of agent and undisclosed principal in any transaction Guaranteeing or authorizing any person to guarantee future profits that may result from the resale of real property Placing a sign on any property offering it for sale or rent without the written consent of the owner or the owner's authorized agent and failing to remove such sign within ten days after the expiration of listing Offering real estate for sale or lease without the knowledge and consent of the owner or the owner's authorized agent or on terms other than those authorized by the owner or the owner's authorized agent Inducing any party to a contract of sale or lease, or a brokerage agreement to break such contract or brokerage agreement for the purpose of substituting in lieu thereof any other contract or brokerage agreement with another principal Negotiating a sale, exchange, or lease of real estate directly with an owner, a lessor, a purchaser, or a tenant if the licensee knows that such owner or lessor has a written outstanding listing contract in connection with such property granting an exclusive agency or an exclusive right to sell to another broker or that such purchaser or tenant has a written outstanding exclusive brokerage agreement with another broker, unless the outstanding listing or brokerage agreement provides that the licensee holding such agreement will not provide negotiation services to the client Indicating that an opinion given to a potential seller, purchaser, landlord, or tenant regarding a listing, lease, rental, or purchase price is an appraisal unless such licensee holds an appraiser classification in accordance with O.C.G.A. § 43-39A Performing or attempting to perform any of the acts of a licensee on property located in another state without first having been properly licensed in that state or otherwise having complied fully with that state's laws regarding real estate brokerage Paying a commission or compensation to any person for performing the services of a real estate licensee who has not first secured the appropriate license under this chapter or is not cooperating as a nonresident who is licensed in such nonresident's state or foreign country of residence, provided that nothing contained in this subsection or any other provision of O.C.G.A. § 43-40-25 is construed so as to prohibit the payment of earned commissions: To the estate or heirs of a deceased real estate licensee when such deceased real estate licensee had a valid Georgia real estate license in effect at the time the commission was earned and at the time of such person's death To a citizen of another country acting as a referral agent if that country does not license real estate brokers and if the Georgia licensee paying such commission or compensation obtains and maintains reasonable written evidence that the payee is a citizen of said other country, is not a resident of this country, and is in the business of brokering real estate in said other country By the brokerage firm holding a licensee's license to an unlicensed firm in which an individual licensee affiliated with the brokerage firm owns more than a 20 percent interest provided such individual licensee earned the commission on behalf of the brokerage firm; such unlicensed firm does not perform real estate brokerage activity; the affiliated licensee and the brokerage firm have a written agreement authorizing the payment to the unlicensed firm; and the brokerage firm obtains and retains written evidence that the affiliated licensee owns more than a 20 percent interest in the unlicensed firm to which the compensation will be paid Failing to include a fixed date of expiration in any written listing agreement and failing to leave a copy of said agreement with the principal Failing to deliver, within a reasonable time, a completed copy of any purchase agreement or offer to buy or sell real estate to the purchaser and to the seller Failure by a broker to deliver to the seller in every real estate transaction, at the time said transaction is consummated, a complete, detailed closing statement showing all the receipts and disbursements handled by such broker for the seller or failure to deliver to the buyer a complete statement showing all money received in said transaction from such buyer and how and for what the same was disbursed; the broker shall retain true copies of such statements in the broker's files Making any substantial misrepresentations Acting for more than one party in a transaction without the express written consent of all parties to the transaction Failure of an associate broker, salesperson, or community association manager to place, as soon after receipt as is practicably possible, in the custody of the broker holding the licensee's license any deposit money or other money or funds entrusted to the licensee by any person dealing with the licensee as the representative of the licensee's licensed broker Filing a listing contract or any document or instrument purporting to create a lien based on a listing contract for the purpose of casting a cloud upon the title to real estate when no valid claim under said listing contract exists Having demonstrated incompetency to act as a real estate licensee in such manner as to safeguard the interest of the public or any other conduct whether of the same or a different character than heretofore specified which constitutes dishonest dealing Obtaining a brokerage agreement, a sales contract, or a lease from any owner, purchaser, or tenant while knowing or having reason to believe that another broker has an exclusive brokerage agreement with such owner, purchaser, or tenant, unless the licensee has written permission from the broker having the first exclusive brokerage agreement; provided, however, that notwithstanding the provisions of this paragraph, a licensee may be permitted to present a proposal or bid for community association management if requested to do so in writing from a community association board of directors Failing to keep for a period of three years a true and correct copy of all sales contracts, closing statements, any offer or other document that resulted in the depositing of trust funds, accounting records related to the maintenance of any trust account required by this chapter, and other documents relating to real estate closings or transactions or failing to produce such documents at the reasonable request of the commission or any of its agents for their inspection Being or becoming a party to any falsification of any portion of any contract or other document involved in any real estate transaction Failing to obtain the written agreement of the parties indicating to whom the broker must pay any interest earned on trust funds deposited into an interest-bearing checking account prior to depositing those funds into such account Failing to disclose in a timely manner to all parties in a real estate transaction any agency relationship that the licensee may have with any of the parties Attempting to perform any act authorized by this chapter to be performed only by a broker, associate broker, or salesperson while licensed as a community association manager Attempting to sell, lease, or exchange the property of any member of a community association to which a licensee is providing community association management services without the express written consent of that association to do so Failure to deliver to a community association terminating a management contract within 30 days of the termination, or within such other time period as the management contract must provide a complete and accurate record of all transactions and funds handled during the period of the contract and not previously accounted for; all records and documents received from the community association or received on the association's behalf; and any funds held on behalf of the community association Failure to deliver to a property owner terminating a management contract within 30 days of the termination, or within such other time period as the management contract must provide a complete and accurate record of all transactions and funds handled during the period of the contract and not previously accounted for; all records and documents received from the property owner or received on the owner's behalf; and any funds held on behalf of the property owner Inducing any person to alter, modify, or change another licensee's fee or commission for real estate brokerage services without that licensee's prior written consent Failing to obtain a person's written agreement to refer that person to another licensed broker for brokerage or relocation services and to inform such person being referred whether or not the licensee will receive a valuable consideration for such referral According to the February 2012 issue of the Commission's GREC RENews, the 2011 Georgia General Assembly passed legislation to amend the Georgia Real Estate License Law regarding the disclosure of referrals and other fees. The law was amended to remove the requirement that an estimate of the referral fee had to be given. The change was made due to the difficulty of making an accurate estimate before a transaction is completed. The licensee that will receive the referral must still obtain a referral authorization but is no longer required to state an estimate for the referral to be received (O.C.G.A. § 43-40-25(b)(36)). IN PRACTICE O.C.G.A. § 43-40-25(14) allows selling agents to present offers directly to sellers when the listing agreement or brokerage engagement involved states that the listing broker is not providing negotiation services to the client. A license cannot be obtained by false or fraudulent representation. When a licensee has been found guilty of violating the Georgia Real Estate License Law or the Commission's Rules and Regulations, the Commission has the power to do any of the following: Refuse to grant or renew a license Administer a reprimand Suspend a license or an approval for any period of time Revoke any license or approval Revoke the license of a broker, qualifying broker, or associate broker and simultaneously issue such licensee a salesperson's license Impose on a licensee monetary assessments to reimburse the Commission for costs and expenses incurred in conducting any proceeding under the statute Impose a fine not to exceed $1,000 for each violation, with fines for multiple violations limited to $5,000 in any one disciplinary proceeding or another amount agreed to by the parties Require completion of a course of study in real estate brokerage Require the filing of periodic reports by an independent accountant on a broker's trust account Limit or restrict any license or approval as the Commission deems necessary to protect the public

A franchisee

is a firm licensee authorized to use a franchisor's trade name as part of or in conjunction with the licensee firm's name.

An instructional hour

is a period of time of at least 50 minutes of instruction or other learning activity.

A purchaser

is a person who acquired or attempts to acquire or succeeds to an interest in land.

An associate broker

is a person who acts on behalf of a real estate broker in performing any act authorized by this chapter to be performed by the broker.

A client

is a person who has entered into a brokerage engagement with a real estate broker.

A customer

is a person who has not entered into a brokerage engagement with a broker but for whom a broker may perform ministerial acts in a real estate transaction.

A buyer

is a purchaser—a person who acquired or attempts to acquire or succeeds to an interest in real estate.

A firm

is a sole proprietorship, partnership, limited liability company, or corporation licensed by the Commission as a broker.

Your Real Estate Business and the Georgia License Law (5 of 11) Broker's Funds and Trust Account

A broker may maintain the broker's funds in a trust or escrow account only when they are clearly identified as the broker's deposit and for the following purposes: If the bank requires a minimum balance be maintained to keep the account open, the broker can maintain that amount designated as the broker's funds. If the bank requires a service charge on the account, the broker may maintain in the broker's name a reasonable amount to cover the service charge or other related bank costs. A broker may allow commissions due the broker that are being paid from funds of others held in the broker's designated trust or escrow account to remain in the account provided the broker's accounting system designates those commissions as the broker's funds and properly accounts for them, and each month the broker removes from the account any of the broker's funds that exceed the minimum necessary to comply with the above. Only checks made payable to the broker may be used to withdraw monies designated as the broker's funds from the designated trust or escrow account. A broker is not entitled to any part of the earnest money, security deposit, or other trust funds paid to the broker in connection with a real estate transaction as the broker's commission or fee until the transaction has been consummated or terminated.

License Categories and Requirements (3 of 7) Broker's (and Associate Broker's) License (O.C.G.A. § 43-40-8)

A broker may perform any real estate brokerage act that requires a real estate license in Georgia. Both individuals and firms may be licensed as brokers. In order to be active in real estate brokerage, a licensed broker must be affiliated with a sole proprietorship, corporation, partnership, or limited liability company that is also licensed as a broker. The associate broker acts on behalf of a broker and may perform any real estate brokerage act that requires a real estate license in Georgia. The broker and the associate broker must meet the same educational requirements and conditions. Failure to meet any of these requirements is grounds for the Commission to deny a license without a hearing. To obtain an associate broker or a broker license, a salesperson must be at least 21 years of age to practice (can take the salesperson's examination at age 20 but cannot activate the license until age 21); be a resident of Georgia, unless the salesperson has complied with nonresidency requirements; be a high school graduate or the holder of a certificate of equivalency; comply with statutory requirements regarding any criminal convictions; maintain a license in active status for at least three of the five years immediately prior to filing an application to become a broker; furnish evidence of completing 60 instructional hours in a broker's course of study approved by the Commission, provided that if licensed as a community association manager, the applicant furnishes evidence of completing an additional 75 instructional hours in courses of study approved by the Commission; and pass the real estate examination approved by the Commission after serving as an active licensee for at least three of the five years immediately prior to filing the application. The Commission's rules require a broker or an associate broker to complete 24 instructional hours of continuing education within the four-year renewal period for a license.

Your Real Estate Business and the Georgia License Law (6 of 11) Disbursal of Funds

A broker who disburses trust funds under the following circumstances is deemed to have properly fulfilled the duty to account for and remit money: Upon the rejection or withdrawal of an offer to buy, sell, rent, lease, exchange, or option real estate At the closing of the transaction Upon securing a written agreement signed by all interested parties and separate from the contract that directs the broker to hold the funds Upon the filing of an interpleader action in a court of law Upon the order of a court of law Upon a reasonable interpretation of the contract that directed the broker to deposit the funds A broker must not disburse funds from a trust account without reasonable assurance that the bank has credited the funds to the broker's trust account. When a broker disburses funds to all parties of a contract where the parties do not expressly agree, the broker must immediately notify all parties of the disbursal in writing. A broker who disburses trust funds from the trust or escrow account contrary to terms of a contract for sale or rental of real estate, or other contract creating the escrow, or who fails to disburse trust funds according to the terms of a contract, is considered by the Commission to have demonstrated incompetence to act as a real estate broker in a way that safeguards the public interest.

License Categories and Requirements (4 of 7) Community Association Manager's License (O.C.G.A. § 43-40-1 and 8)

A community association manager acts on behalf of a broker to manage one or more community associations and provides only community association management services. Community associations include condominium associations and homeowners' associations. In order to be active in community association management, a community association manager must be affiliated with a sole proprietorship, corporation, partnership, or limited liability company that is also licensed as a broker. Georgia law (O.C.G.A. § 43-40-1) defines community association management services as the provision, for a valuable consideration, to others of management or administrative services on, in, or to the operation of the affairs of a community association, including, but not limited to, collecting, controlling, or disbursing the funds; obtaining insurance, arranging for and coordinating maintenance to the association property; and otherwise overseeing the day-to-day operations of the association. A community association is an owner organization of a residential or mixed-use common interest realty association in which membership is mandatory as an incident of ownership within the development, such as condominiums, cooperatives, homeowner associations, timeshares, lot division with restrictions in management, and other forms of common interest or planned developments wherein there is a common management. In order to qualify for a community association manager's license, an applicant must be at least 18 years old; be a resident of the state of Georgia, unless has complied with nonresidency requirements; be a high school graduate or the holder of a certificate of equivalency; comply with statutory requirements regarding any criminal convictions; furnish evidence of completion of at least 25 instructional hours in a community association manager's course or course of study approved by the Commission; and pass a real estate examination approved by the Commission, covering those matters confronting brokers who provide community association management services. The Commission's rules require a community association manager complete 24 hours of continuing education within the four-year renewal period for a license.

The Real Estate Education, Research, and Recovery Fund (4 of 5) Statute of Limitations

A lawsuit that may ultimately result in collection from the Fund must be commenced within two years after the date the alleged violation occurred.

The Real Estate License (10 of 10) Nonresidents and License by Reciprocity (O.C.G.A. § 43-40-9 and Rule 520-1-.05(6)) Reciprocity by written agreement

A licensed broker of another state may enter into a written agreement with a Georgia broker to conduct real estate brokerage in Georgia without first obtaining a Georgia license. Under the written agreement, the Georgia broker is responsible for all real estate brokerage acts of the out-of-state broker and provides assurance that the out-of-state broker has an active license in the other state. The Georgia broker must maintain a copy of the written agreement for at least three years after its expiration. The agreement must provide procedures to be followed when the out-of-state broker performs any acts of a broker on real property in Georgia; how the brokers will divide any earned commissions; that any listing or property management agreement for Georgia real property in which the out-of-state broker will participate will be in the name of the Georgia broker; that the out-of-state broker will conduct negotiations with any client of a Georgia broker only with the express permission of the Georgia broker; that any advertisement of Georgia real property will identify the listing Georgia broker; that any contracts, agreements, or offers on Georgia real property will identify the Georgia and out-of-state broker and indicate that the out-of-state broker is not licensed in Georgia; that the agreement will be construed under Georgia law; and that the superior courts of Georgia will have jurisdiction over any actions brought against either broker; that any trust funds obtained in any transaction involving real property in Georgia by an out-of-state broker will be held in the Georgia broker's trust account unless otherwise agreed in writing by the parties involved; and any other matters as the Commission may require by rule or regulation. Under a written agreement, if an out-of-state broker violates any provision of the Georgia law, the Commission can only suspend or revoke the Georgia broker's right to enter into written agreements with out-of-state brokers, unless the Georgia broker participated in the violation or failed to include in the agreement the provisions listed previously. The Commission may enter into written agreements with similar licensing authorities of other states to allow licensees in those states to conduct real estate brokerage business in Georgia without obtaining a license in Georgia, provided the other states afford the same opportunities to Georgia licensees.

The Real Estate License (7 of 10) Reinstatement of Lapsed Licenses (O.C.G.A. § 43-40-12 and Rule 520-1-.05)

A licensee whose license lapses because of nonpayment of fees or failing to satisfactorily complete all educational requirements cannot engage in real estate brokerage activities until the license is reinstated. Upon lapsing, the wall certificate of licensure and pocket card must be forwarded by the licensee's broker to the Commission. A licensee who did not have to meet continuing education requirements and whose license lapsed for more than one year, and who reinstates it by paying the required fees, is thereafter subject to continuing education requirements. Any licensee who fails to pay a renewal fee and allows an inactive license to lapse may reinstate that license to inactive status within two years of the date of lapsing by paying the required fees. To reinstate an inactive license, a licensee other than a broker must obtain the signature of the broker for whom the licensee acts, and a broker must submit an application to the Commission prior to resuming brokerage activity. Any licensee who wants to activate a license that has been on inactive status must first meet the continuing education requirements for active licensure, unless the licensee has maintained an active license in another state that has continuing education requirements while the licensee's license was on inactive status in Georgia. A licensee who fails to pay a renewal fee and allows an inactive license to lapse may reinstate the license to active status within two years of the date of its lapsing by paying the fees, provided the licensee has completed an approved course totaling at least six instructional hours for each year or portion of year of continuing education due prior to the licensee's going on inactive status, and an approved course totaling at least six instructional hours for each year or portion of year since the date the license was placed on inactive status. A licensee who fails to pay a renewal fee and allows a license to lapse and does not choose to reinstate the license in accordance with the requirements may reinstate the license by furnishing proof of completion of any required prelicensing education and by taking and passing a qualifying exam. A licensee who elects this option of becoming relicensed must take the national portion of the exam as well as the state portion. A licensee who has passed a licensure exam and allows a license to lapse for more than two years but less than five years because of failing to pay a renewal fee may reinstate the license by paying all fees due and successfully completing any educational course the Commission may require. Any licensee whose license has lapsed for more than five years because of failing to pay the renewal fee and wants to reinstate the license must meet the education and examination requirements for licensure.

The Real Estate Education, Research, and Recovery Fund (3 of 5) Effect on Licensee

A licensee's license is automatically revoked if the Commission pays a settlement for a judgment against a licensee from the Fund. If the judgment is against a firm, the broker's license is revoked. A licensee is not eligible to receive a new license until the licensee has repaid in full, plus interest, the amount paid from the Fund. If a licensee receives a discharge in bankruptcy from repaying the Fund, this does not relieve the licensee from the penalties provided in the statute.

The Real Estate License (8 of 10) Nonresidents and License by Reciprocity (O.C.G.A. § 43-40-9 and Rule 520-1-.05(6))

A nonresident who holds a license issued on or before July 1, 1991, is not required to meet the requirements of the Georgia license law in order to continue to hold a Georgia license unless the nonresident allows the license to lapse or applies for a different type of license. The Commission may grant a Georgia license to a nonresident who is not licensed in the state of residence if the person meets the age, education, and examination requirements under the Georgia license law. To be licensed in Georgia, nonresidents who are licensed in another state must show proof of current licensure in the applicant's state of residence and copies of records of any disciplinary actions taken; pay any required fees; sign a statement saying they have read the Georgia license law and its rules and regulations, and agree to follow them; affiliate with a broker if they are a community association manager, salesperson, or associate broker; file with the Commission a written statement that appoints the real estate commissioner to act as the licensee's agent, upon whom all judicial and legal notices are to be served; and agree in writing to cooperate with any investigation initiated by the Commission.

License Categories and Requirements (2 of 7) Salesperson's (or Sales Associate) License (O.C.G.A. § 43-40-8)

A salesperson acts on behalf of a broker and in this capacity may perform any real estate brokerage act that requires a real estate license in Georgia. In order to be active in real estate brokerage, a salesperson must be affiliated with a sole proprietorship, corporation, partnership, or limited liability company that is also licensed as a broker. To obtain a salesperson license, an applicant must be at least 18 years of age to practice (can take the salesperson's examination at age 17 but cannot activate the license until age 18); be a resident of Georgia, unless the applicant has complied with nonresidency requirements; be a high school graduate or the holder of a certificate of equivalency; comply with statutory requirements regarding any criminal convictions; successfully complete at least 75 instructional hours in a salesperson's course of study approved by the Commission; and satisfactorily pass a real estate examination approved by the Commission. To keep the salesperson's license in good standing, an applicant must take at least 25 instructional hours of coursework approved by the Commission in the first year of licensure (Failure to complete a postlicensing course during the first year of being licensed will cause the license to lapse. The license may be reinstated by completing the coursework within six months of the lapse. As a condition of satisfactorily completing the course, the licensee must pass an exam that covers the subject matter in the course.); obtain 24 instructional hours of continuing education seminars or courses every four years (the postlicensing course taken during the first year of licensure only counts for six hours of this continuing education requirement); apply for licensure within 12 months of taking the exam; and pay the appropriate licensing fee. There are no experience requirements for a salesperson's license.

License Fees (1 of 4) O.C.G.A. § 43-40-12 and Rule 520-1-.04

Applicants for real estate licenses are subject to appropriate fees in addition to the testing fee paid to Applied Measurement Professionals, Inc. (AMP) for the examination. Licensee fees are established by the Georgia Real Estate Commission. At the time an application for an examination is submitted, the commission collects a fee for the examination and an investigation fee if necessary.

Your Real Estate Business and the Georgia License Law (11 of 11) Broker Business Licenses

According to February 2012 issue of the Commission's GREC RENews, the Georgia Illegal Immigration Reform and Enforcement Act of 2011 applies to business licenses and permits. Many local governments require a real estate broker to obtain and maintain a business license or permit for the principal or branch office where the broker conducts real estate brokerage activity (O.C.G.A. § 48-13-17). In order to renew this business license, the broker will be required to provide a notarized affidavit verifying lawful presence status as required by O.C.G.A. § 50-36-1. Any private employer with more than ten employees must also comply with O.C.G.A. § 36-60-6(d), which addresses the E-Verify affidavit.

The Real Estate License (5 of 10) Active or Inactive License (O.C.G.A. § 43-40-12 and 520-1-.05)

Active Georgia associate brokers, salespersons, and community association managers must be licensed under one active Georgia broker at a time. After making an original application for licensure, a salesperson or community association manager cannot commence work in real estate brokerage activities until the broker has received the licensee's wall certificate of licensure. Licensees released by a broker must not engage in the activities of a real estate broker until they affiliate their license with a new broker and mail a Change Application to the Commission; or they receive a wall certificate of licensure from the Commission authorizing them to serve as the broker of a sole proprietorship or the qualifying broker of a corporation, limited liability company, or partnership. An active Georgia associate broker, salesperson, or community association manager may also affiliate with a license issued by another state's real estate licensing regulatory body with a broker in that state, provided that state's laws allow for affiliations in both states; and the Georgia associate broker, salesperson, or community association manager has written permission to affiliate with a broker in another state and the permission clearly states the duties the licensee can undertake for each broker and that the licensee may not undertake brokerage activity on property located in Georgia except on behalf of the active Georgia broker. Those who have a license that has been on inactive status for two years or longer must attend Commission-approved course(s) of study totaling at least six instructional hours for each year the license was inactive. The course(s) must be taken no more than one year prior to the date of the reactivation of the license. However, this requirement does not apply to an inactive licensee who can furnish evidence of meeting the continuing education requirement for each renewal period during license inactivity. A real estate broker who does not want to be actively engaged in a brokerage business or any licensee who is temporarily not actively engaged on behalf of a broker may continue a license by making a written request to the Commission that the license be placed on inactive status. This must be done within 30 days of ceasing work. A licensee whose license is on inactive status may not engage in real estate brokerage business except in connection with property owned by the licensee.

The Real Estate License (9 of 10) Nonresidents and License by Reciprocity (O.C.G.A. § 43-40-9 and Rule 520-1-.05(6)) Georgia and Florida reciprocity

As noted earlier, Georgia and Florida have a special reciprocity agreement. If a licensee is a Florida resident, the licensee can submit both the Florida licensure certification and an exam registration form and pass only the Georgia portion of the exam in order to practice in Georgia. If the licensee is a Georgia resident but licensed in Florida, the above requirements for nonresidency licensure must be met.

The Real Estate License (1 of 10) Applications (O.C.G.A. § 520-1-.04)

After successfully passing the state examination, a formal application for licensure must be made to the state of Georgia. Applications for licensure, renewal of license, transfer of license, any change in the status of a license, and any change in a firm's name, must be on current Commission-approved forms (click here). Changes to other information, such as address changes, trust accounts, and individuals' names, must be filed with the Commission and may be done by letter. An applicant must supply all requested information. Failure to supply all information may make the application incomplete. Effective January 1, 2012, the Georgia Illegal Immigration Reform and Enforcement Act of 2011 requires all applicants for real estate licensure or appraiser classification, and those applying for of an existing license or classification, appraisal management companies, instructors, and school directors to submit to the Commission a secure and verifiable document for identification purposes as defined in O.C.G.A. § 50-36-2, and a signed and sworn affidavit verifying the applicant's lawful presence in the United States as required in O.C.G.A. § 50-36-1. Applicants who were previously active licensees outside Georgia must present an original certification of licensure from the outside state. If the applicant was a broker in another state, the applicant must present an original certification of licensure of the firm(s) the applicant served as broker. The certification of licensure must have been issued no more than 12 months prior to the application.

The Real Estate Education, Research, and Recovery Fund (2 of 5) Collection from the Fund

Any person aggrieved by an act, representation, transaction, or conduct of a licensee in violation of the Real Estate Licensing Law or the Rules and Regulations of the Commission may recover actual or compensatory damages, not including interests and costs sustained, in the amount of not more than $25,000 per transaction regardless of the number of persons aggrieved or parcels of real estate involved in the transaction. In addition, the liability of the Fund for the acts of a licensee ends when a court order is issued authorizing judgment payments from the Fund, or any unsatisfied portion of judgments, in an aggregate amount of $75,000 on behalf of the licensee; and a licensee acting as principal or agent in a real estate transaction has no claim against the Fund. An aggrieved person must notify the Commission in writing at the time of the start of the action. The Commission has the right to intervene and defend the action. When an aggrieved person recovers a valid judgment against a licensee for an act that occurred on or after July 1, 1973, the aggrieved person may, upon termination of all proceedings, file a claim in the court in which the judgment was entered and, upon ten days' written notice to the Commission, may apply to the court for an order directing payment out of the Fund of the amount unpaid toward the judgment. If the court is satisfied that the aggrieved person has fully exhausted all remedies available for recovering the amount awarded by the court judgment, the court makes an order directing the Commission to pay from the Fund the sum it finds to be payable on the claim.

Civil Penalty for the Unlicensed Practice of Real Estate

Anyone who acts as a licensee without a license or who violates provisions of the Georgia Real Estate License Law will be found guilty of a misdemeanor. The Commission may issue a cease and desist order prohibiting an individual from practicing as a real estate broker without a license. The cease and desist order is final ten days after it is issued unless a hearing is requested before the Commission. If the cease and desist order is violated, the Commission can impose a fine not to exceed $1,000 for each transaction constituting a violation of the order. Each day that an individual practices in violation of the law constitutes a separate violation.

A Georgia real estate broker keeps $500 of his own money in his designated broker trust account because the bank requires $500 as a minimum deposit. The broker's water heater in his residence springs a leak, and he uses an escrow account check in the amount of $240 to pay the plumber. The next day, the broker makes a deposit of $240 of his own money to cover the check. Has the broker committed a violation? A) Yes, a broker can never personally use funds from a designated escrow account. B) Yes, a broker may only withdraw monies designated as the broker's funds by a check made payable to the broker. C) No, he can write a check in any amount from his escrow account for personal expenses as long as he covers the check before it is taken from client funds. D) No, he can pay the plumber with an escrow check because he has more than $250 of his own funds in the account. Explanation The answer is YES, A BROKER MAY ONLY WITHDRAW MONIES DESIGNATED AS THE BROKER'S FUNDS BY A CHECK MADE PAYABLE TO THE BROKER.

B) Yes, a broker may only withdraw monies designated as the broker's funds by a check made payable to the broker.

Your Real Estate Business and the Georgia License Law (2 of 11) Change of Address, Name, or Business Information (O.C.G.A. § 43-40-19)

Brokers who change the address of their place of business must notify the Commission in writing within 30 days of the change. When an affiliated licensee leaves a broker, the broker must immediately forward the licensee's license either to the Commission or to the new broker for whom the licensee will act. When a licensee's license is released by a broker, the licensee cannot engage in real estate activities until the licensee personally delivers to the Commission an approved application to transfer the license to a new broker or mails the application through the postal service, or receives a wall certificate from the Commission. A licensee transferring to a new broker may continue to act as a licensee for the former broker on transactions begun prior to the transfer, provided both brokers agree in writing to the licensee's actions on behalf of the former broker, including enumerating which transactions the broker will be working on; the former broker agrees in writing to assume full responsibility for the licensee's activities in the agreement; and the agreement expresses the terms of compensation. Georgia's License Law does not in any way establish an employer-employee or broker-independent contractor relationship between licensees. If such relationships are established, they are at the discretion of the licensees.

The Licensing Examination Rule 520-1-.04

Candidates for licensure must pass a Commission-approved examination administered by Applied Measurement Professionals, Inc. (AMP). Click here for a candidate handbook that includes topic outlines, procedures for establishing an examination appointment, and rules for the examination. Candidates who are disabled veterans may be eligible for preference points that are added to the examination grade. For further information about eligibility and points, see Rule 520-1-.04(3) and O.C.G.A. § 43-1-9. A candidate for licensure who has moved to Georgia from another state (other than Florida or a province in Canada) or is a candidate for nonresident licensure may be granted a license without further examination or education (see Nonresidents and License by Reciprocity later in this unit). The Commission has discretion to accept an electronic form of certified data from other states instead of written certification. However, if a candidate does not comply with the Commission's directions, the candidate must take and pass the qualifying exam for the Georgia license. Under a special agreement between Georgia and Florida, a candidate who is a resident of Florida and has a current real estate license can submit a certification of license history (not more than one year old) from the Florida Real Estate Commission along with the Georgia exam registration form. The candidate only has to pass the state content areas of the Georgia exam to be eligible for a Georgia real estate license. However, if the candidate is a Georgia resident and has a current real estate license from Florida, the requirements for one who has moved to Georgia from another state apply (see Nonresidents and License by Reciprocity later in this unit).

License Categories and Requirements (1 of 7)

Georgia has four types of real estate licenses: salesperson, associate broker, broker, and community association manager. Georgia law provides requirements and limitations specific to each type of license.

License Fees (4 of 4) O.C.G.A. § 43-40-12 and Rule 520-1-.04 Returned Check and Other Penalty Fees

If a check is returned unpaid or for disputing a charge to a credit card, the applicant's account is charged $100. Under several circumstances, the Commission may charge a $25 fee, such as when a licensee fails to notify the Commission in writing within 30 days of a change of address or the opening or closing of a designated trust account.

The Real Estate License (4 of 10) Hearing after Denial of Application (O.C.G.A. § 520-1-.04(12))

If the Commission denies an application for licensure or reinstatement and the applicant has met all age, education, and exam requirements and paid the required fees, the applicant may request a formal hearing. The hearing request must be made in writing within 60 days of the Commission's mailing notice regarding the application denial. If the hearing is granted and the application is again denied, the applicant may not make another application for a license without again passing a qualified exam and paying required fees.

License Categories and Requirements (7 of 7) Corporations, Limited Liability Companies, and Partnerships (O.C.G.A. § 43-40-18)

In Georgia, the requirements for licensure of sole proprietorships, corporations, partnerships, and limited liability companies include the following: A firm that operates as a sole proprietorship must be owned entirely by a licensed broker. The qualifying broker for a firm that operates as a corporation must be an officer of the corporation. The qualifying broker for a firm operating as a partnership must be a partner. If all partners of a partnership are corporations, the qualifying broker of the partnership must be one of the partner corporation's officers whose actions are binding on the corporation and partnership. The qualifying broker for a firm operating as a limited partnership must be the general partner. If the general partner of a limited partnership is a corporation, the qualifying broker must be one of that corporation's officers whose actions are binding on the corporation and general partner. The qualifying broker for a firm operating as a limited liability company must be a member or, if the articles of the organization or an agreement vests management in a manager, a manager may serve as the qualifying broker. The Commission may deny a license to a corporation, limited liability company, or partnership if a stockholder, member, or partner who owns more than a 20 percent interest does not have a good reputation for honesty, trustworthiness, and integrity; has been convicted of any felonies; or has been sanctioned by a regulatory agency for violating a law in the sale of real estate.

Your Real Estate Business and the Georgia License Law (3 of 11) Managing Trust Accounts and Trust Funds (O.C.G.A. § 43-40-20 and Rule 520-1-.08)

In a real estate brokerage transaction, any broker who accepts down payments, earnest money deposits, security deposits, rents, association fees, or other trust funds or whose affiliated licensees accept trust funds must maintain a separate, federally insured bank checking account in Georgia designated as a trust or escrow for the deposit of these funds. A broker must notify the Commission of the name of the bank where the account is maintained and the account number or the name of the account on the bank's form within one month of opening an account. Each deposit in a trust account or escrow account must include the following: Names of buyer and seller, tenant and landlord, member and community association, or broker Amount and date of deposit Identification of property involved Amount, payee, and date of each check drawn on escrow account in connection with the deposit If a broker elects to deposit any funds into an interest-bearing account, the broker must obtain a written agreement by the parties before depositing the funds indicating to whom any earned interest is to be paid. The Commission may examine a trust account at any time upon reasonable cause and will examine an account during each renewal period. In lieu of an examination, the Commission may decide to accept a written report of the account from a certified public accountant. Also, in lieu of the renewal period examination, a data summary may be provided on a Commission form, so long as the data is complete and does not contain irregularities. A broker may maintain more than one trust account but must notify the Commission of the additional accounts.

License Categories and Requirements (5 of 7) Auctioneer's License

In addition to the four licenses mentioned, in Georgia, auctioneers of any commodity or property need an auctioneer's license. If the auctioneer is selling real estate, a salesperson's or a broker's license is also required.

Education (4 of 4) O.C.G.A. § 43-40-8 and Rule 520-1-.05 Continuing Education

Individuals licensed after January 1, 1980, must furnish the Commission with evidence of satisfactorily completing continuing education course(s) approved by the Commission before renewing a license. The renewal period is four years, and at least 24 instructional hours must be earned per renewal period. There is no examination requirement. The Commission currently offers three free continuing education courses. Individuals on active duty in the armed forces of the United States or in the Georgia General Assembly may choose to not meet this requirement while on active duty or during their terms of office but must complete the course(s) within six months of the conclusion of active duty or term of office.

The Real Estate License (2 of 10) Criminal History Report (O.C.G.A. § 520-1-.04(7))

No more than 60 days prior to submitting an application, each applicant must submit the following: A certified criminal history report issued by the Georgia Crime Information Center of the Georgia Bureau of Investigation, indicating whether the applicant has any record of a criminal past For applicants who have not lived in Georgia, a certified criminal history report from their resident state, province or territory that is equivalent to the report required in the bullet above If the report indicates that an applicant has a criminal record in another state, or if the Commission is unable to obtain a criminal history report, the applicant must (at the applicant's expense) provide any necessary fingerprints, fees, authorization, or other requirements in order for the Commission to obtain a Federal Crime Information Center Report from the Federal Bureau of Investigation.

Exempt Persons and Entities-The requirement for holding a broker, salesperson, or community association manager license does not apply to the following:

Owners or lessors or their regular employees who perform any real estate transaction act in the regular course of the management of property and the investment of anyone who manages residential apartment complexes under a contract approved by a federal agency for an organization exempt under 501(c)(3) of the Internal Revenue Code prior to January 1, 1989 Attorneys-in-fact acting under duly executed power of attorney to convey real estate from owner or lessor Attorneys acting solely as an incident to the practice of law Any person acting as receiver, trustee in bankruptcy, administrator, executor, or guardian or acting under a will or trust Any officer or employee of government agency conducting official duties Any person employed by a public or private utility who performs any act on property owned, leased, or acquired in the regular course of, or incident to, the management of property Any person who as owner, employed full time by the owner, or as owner of a management company provides property management services or community association management services Any person employed on a full-time basis by a community association for the purpose of providing community association management services Any person acting as a referral agent who is not involved in the performance of the real estate transaction (e.g., negotiations, execution of documents) that involves more than the mere referral of one person to another and who does not receive a fee and does not act as a referral agent in more than three transactions per year Any individual employed by a broker to assist in property management services on property where the broker has a written management agreement, provided that the individual's activities are authorized by the broker in a written agreement and that the activities are limited (e.g., delivering or receiving a lease application, showing a rental unit, providing information to a tenant about a security deposit or rent payment) Any person who provides property management services on properties available for less than 90 days' occupancy and meets certain conditions Any person who is a member of a community association and who provides community association management services only to one community association of which the person is a member Any person who performs solely physical maintenance on a property A licensed certified public accountant acting solely as an incident to the practice of public accounting

The Real Estate License (6 of 10) Renewals (O.C.G.A. § 520-1-.05)

Renewal fees are required and, if not paid, licenses lapse according to the following schedule: For an individual license, it lapses on the last day of the month of the birthday of the individual licensee; and for a firm licensed as a broker, it lapses on the last day of the month of the fourth anniversary of its original licensure. 1997101

The Real Estate Education, Research, and Recovery Fund (1 of 5) O.C.G.A. § 43-40-22

The Commission maintains a Real Estate Education, Research, and Recovery Fund with the primary purpose of compensating consumers who suffer damages from a licensee and are not able to recover through normal legal channels.

Your Real Estate Business and the Georgia License Law (7 of 11) Nonresident Broker's Trust Funds

The Commission may allow a nonresident broker who accepts trust funds to maintain the trust account in a bank of the nonresident broker's state of residence, provided the Commission may examine the account.

The Real Estate License (3 of 10) Preliminary Decisions on Convictions or Sanctions (O.C.G.A. § 43-40-15 and 520-1-.04(11))

The Commission may deny a license to an applicant who has a prior criminal conviction or disciplinary sanction imposed by an occupational licensing body. Georgia Senate Bill 114, passed in 2007, provides that no person who has a criminal conviction is eligible to become an applicant for a real estate license unless the person has successfully completed all terms and conditions of any sentence imposed for the conviction. If the person has multiple convictions, at least five years must have passed after satisfying all the terms of the conviction before applying for licensure; if the person has a single conviction, at least two years must have passed. If any of the following criminal charges are pending, one cannot apply for licensure: forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, a felony, a sex offense, a probation violation, or a crime involving moral turpitude. An applicant for licensure as a broker or associate broker who has been convicted of any of these offenses may be licensed only if at least ten years have passed since the conviction, sentence, or release from incarceration, whichever is later; no criminal charges are pending against the applicant; and the applicant presents proof of bearing a good reputation for honesty, trustworthiness, and integrity. Because of the time and expense involved in becoming an applicant for licensure, an applicant can request that the Commission make a preliminary decision on the conviction or sanction before taking the required education and examination. The preliminary decision is advisory and not binding.

The Georgia Real Estate Commission

The Georgia Real Estate Commission's role is to regulate the real estate brokerage industry through the licensing of practitioners with a goal of protecting the public interest. The commission is appointed by the governor and confirmed by the Georgia Senate. It is composed of six members with five-year terms. Of the six members, five must be actively licensed and residents of Georgia for at least five years. The sixth member must have an interest in consumer affairs and not have any interest in the real estate industry. Members serve until successors are appointed and qualified.

Disciplinary Provisions and Loss of License (1 of 3)

The Georgia Real Estate License Law prohibits certain trade practices in order to protect the public's interest. The Commission has authority to respond at its discretion to any unfair trade practice.

License Fees (2 of 4) O.C.G.A. § 43-40-12 and Rule 520-1-.04 Original License Fee

The activation fee for an original licensure as an individual broker, associate broker, salesperson, or community association manager is $45. The activation fee for a firm is $75. Both fees include $20 for the Real Estate Education, Research, and Recovery Fund (discussed later in this unit).

Your Real Estate Business and the Georgia License Law (1 of 11) O.C.G.A. § 43-40-18 and 43-40-30.1

The brokerage activities of a firm are under the direct management and supervision of a broker. The Georgia Real Estate License Law provides rules for brokers in managing their firms and affiliated licensees. The broker is responsible for establishing, implementing, and updating procedures for the sound operation of the firm, such as reviewing advertisements, contracts, and offers (review must take place within 30 days of the date of the offer or contract), the firm's trust accounting practices, and providing good safe-keeping for all records, policies, and procedures for at least three years. A broker will be held responsible for any affiliated licensee's violation of the Georgia Real Estate License Law, unless the broker had reasonable procedures in place for supervising the affiliate's actions, did not participate in the violation, and did not ratify the violation. As noted in Unit 5, on occasion, real estate teams are created in brokerage firms. When this happens, the qualifying broker is responsible for the supervision and accountability of each team member. Real estate assistants are required to be licensed with their employing agent's broker and a signed agreement is required between the agent/broker/assistant. See Unit 5 for information on rules pertaining to unlicensed support personnel.

The Georgia Real Estate License Law (O.C.G.A. § 43-40) was adopted by the state legislature in 1925 and has undergone many revisions since that time. The law provides the standards by which licensees perform their duties and regulates the real estate industry for the protection of the public. It establishes the Georgia Real Estate Commission as the authoritative body over all real estate licensees. The text of the law can be found at www.grec.state.ga.us/about/relaw.html. This Web site also provides links to BRRETA (O.C.G.A. § 10-6A) and Rule 520, which contains the Commission's Rules and Regulations. The Georgia Real Estate License Law (O.C.G.A. § 43-40-1) presents specific definitions for certain terms and entities.

The text of the law can be found at www.grec.state.ga.us/about/relaw.html. This Web site also provides links to BRRETA (O.C.G.A. § 10-6A) and Rule 520, which contains the Commission's Rules and Regulations.

Disciplinary Provisions and Loss of License (3 of 3) Investigation Process (O.C.G.A. § 43-40-27, 43-40-25.2, 43-40-26, and 43-40-29)

The investigation process of any applicant for licensure or any licensee may be initiated under two circumstances: the Commission on its own motion or a written request to the Commission. In the course of an investigation, the Commission may issue subpoenas to compel the production of materials. The results of all investigations are reported only to the Commission or the commissioner, and the records of the investigation are not subject to subpoena in civil actions. The investigative report includes a conclusion as to whether a possible violation has occurred. If no violation is found, the matter is closed. If evidence is found of a violation, the Commission has the authority to impose a sanction and issue a citation. Before the Commission censures a licensee, or revokes or suspends a license, it provides an opportunity for a hearing in the county of the Commission's domicile. After receiving a hearing notice, a licensee has the right to obtain a copy of the investigative record. At this point, a licensee may choose to hire an attorney. After hearing the evidence, the hearing officer reports the hearing's findings to the Commission, which then decides what disciplinary action should be taken. For a more serious matter, the case is referred to the attorney general. The attorney general may file an injunctive action to prevent the licensee from committing further violations. For violations involving real estate trust or escrow accounts or if a broker refuses to submit records to an inspector, the Commission concludes that the trust account is unsafe. The Commission immediately submits a report to the attorney general. A legal action may be brought by the state of Georgia preventing the broker from engaging in further violations. Any person who has exhausted all administrative remedies and who is aggrieved by the Commission's final decision is entitled to a judicial review in the superior court of the county of the Commission's domicile. Whenever the Commission revokes or suspends a license or when a licensee surrenders a license, the Commission may publish the licensee's name on its Web site or in any official publication of the agency. Click here for a list of those with current sanctions and disciplinary actions since January 1, 1995.

License Fees (3 of 4) O.C.G.A. § 43-40-12 and Rule 520-1-.04 Expiration and Renewal of Licenses

The renewal fee for the four-year renewal period for both individual licensees and firms is $125. If filed online, the fee is $100. In addition to the renewal fee, reinstatement fees after license expiration due to nonpayment of fees have a separate fee structure.

License Categories and Requirements (6 of 7) Broker Firm Requirements (O.C.G.A. § 43-40-10)

The requirements for a firm to be granted a broker's license include the following: the firm designates an individual licensed as a broker as its qualifying broker who is responsible for assuring the firm, and its licensees comply with all laws and regulations; and the firm authorizes its qualifying broker to commit the firm to any settlement of a contested lawsuit before the commission. In addition, a broker's license is only granted to a firm when every person who acts as a licensee for the firm holds a real estate license.

Education (1 of 4) O.C.G.A. § 43-40-8 and Rule 520-1-.05

There are three levels of education required by Georgia license law: prelicensing, post-licensing, and periodic continuing education.

Your Real Estate Business and the Georgia License Law (4 of 11) Affiliated Licensee Trust Accounts

When affiliated licensees own a trust or escrow account, they must provide their brokers with a written reconciliation statement comparing their total trust liability with the reconciled bank balance of the their trust account on at least a quarterly basis. The broker must notify the Commission when affiliated licensees own their own trust account. Licensees' trust accounts must comply with Commission trust account rules and regulations.

The Real Estate Education, Research, and Recovery Fund (5 of 5) Financing the Fund

When applying for an original license, licensees pay a fee that is deposited in the Fund. At its discretion, the Commission can assess each licensee, only upon license renewal, an amount not to exceed $30 per year. If at any time the balance in the fund is not sufficient to pay a claim, when there is sufficient money, the aggrieved person must be paid the ordered amount plus interest at the rate of 4 percent per year. The Commission may use monies from the fund to help underwrite costs of developing courses, conducting seminars or research, or other education for the benefit of licensees and the public. However, use of monies for these purposes cannot cause the fund balance to go below $1 million.

Your Real Estate Business and the Georgia License Law (9 of 11) Introduction Trust Fund Abandonment

When licensees believe a person who placed trust funds in their care has abandoned those funds, the licensees may not disburse the funds unless there is written authorization by the licensee for disbursal of funds, the licensees have complied with the requirements of the Disposition of Unretained Property Act (O.C.G.A. § 44-12-191 et seq.), or the licensees have complied with state law or a court order.

Your Real Estate Business and the Georgia License Law (10 of 11) Licensee Acting as Principal (O.C.G.A. § 520-1-.11(1))

When listing, selling, buying, exchanging, renting, leasing, or optioning real estate in their own name, licensees must advise their broker in writing. Licensees must not advertise in a manner indicating that such advertising is made by a private party not licensed by the Commission. All advertising by a licensee must be under the name of the broker who holds the licensee's license, unless the broker has been notified of the specific property to be advertised and gives permission for such advertisement. A licensee must disclose that the licensee is acting as a principal in the transaction by including one of the following legends in the advertisement: ". . . seller/buyer/landlord holds a real estate license" ". . . Georgia Real Estate License #_____" ". . . G.A.R.E. Lic. #_____"

A dual agent

is a broker who simultaneously has a brokerage relationship with both seller and buyer or both landlord and tenant in the same real estate transaction.

Education (3 of 4) O.C.G.A. § 43-40-8 and Rule 520-1-.05 Postlicensing Education

Within one year of receiving a license, a salesperson must satisfactorily complete a postlicensing education course of study of at least 25 instructional hours (other than the salespersons prelicensing course or broker's prelicensing course) approved by the Commission. The course must be completed no earlier than one year before the date of issuance of the original salesperson's license, or no later than either one year after the date of issuance of an original salesperson's license or 18 months after the date of issuance of an original salesperson's license if the salesperson qualifies for a six-month extension. If the salesperson is a nonresident and has successfully completed in the state of residence a postlicensing course substantially similar to Georgia's salespersons postlicensing course prior to the issuance of a Georgia's salesperson's license (or in the first year after being issued such a license), the course will meet the statutory requirements.

Property management services

are the provision, for a valuable consideration, to another of marketing, including referring prospective tenants; leasing; physical, administrative, or financial maintenance; and overall management of real property; or supervision of the foregoing activities for another pursuant to a property management agreement.

Ministerial acts

are those acts that the broker or affiliated licensee performs for a person that do not require discretion or the exercise of the broker or affiliated licensee's own judgment.

Real estate

defined as condominiums and leaseholds, as well as any other interest or estate in land, whether corporeal, incorporeal, freehold or nonfreehold and whether the real estate is situated in this state or elsewhere; and shall also include a mobile home when such mobile home is affixed to land. As used in this definition, mobile home means any factory-built structure or structures equipped with the necessary service connections and made so as to be readily movable as a unit or units and designed to be used as a dwelling unit or units.

The License Law (O.C.G.A. § 43-40) and the Rules and Regulations of the Commission (Rule 520)

determine who may obtain a real estate license, who is exempt from licensing requirements, and the types and requirements for real estate licenses in Georgia.

Statutory overnight delivery means delivery of a document through the U.S. Postal Service or through a commercial firm regularly engaged in the business of document delivery or document and package delivery in which the sender

has directed that delivery be not later than the next business day following the day on which the document is received for delivery by the U.S. Postal Service or the commercial firm, and receives a receipt acknowledging receipt of the document signed by addressee or an agent of the addressee.

The Commission

has the authority to pass rules and regulations (discussed later in this unit) that focus on the licenses and the professional conduct of licensees.The Commission does not receive tax dollars from the State of Georgia. It collects licensing fees and carries out its operations from these fees. It is authorized to establish the level of the fees that approximate its operational costs, and it is authorized to collect those fees.

The governor

has the authority to remove a Commission member for dishonesty, incompetence, neglect of duties, inability to perform the necessary duties, or being the subject of a disciplinary sanction, other than authorized by the Georgia Real Estate License Law (O.C.G.A. § 43-40), imposed by any professional licensing agency on the member's right to practice a trade or profession.

A franchisor

is a business entity owning a trade name whose use by others is controlled and authorized by the owner of the trade name.

A brokerage engagement

is a written contract wherein the seller, buyer, landlord, or tenant becomes the client of the broker and promises to pay the broker a valuable consideration or agrees that the real estate broker may receive a valuable consideration from another in consideration of the broker's producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property or in consideration of the broker's performing property management services or performing community association management services. Contracts or agreements such as an exclusive listing contract, an open listing contract, a buyer broker agreement, a property management agreement, a community association management agreement, and an exclusive tenant representation contract are examples of brokerage engagements.

A brokerage agreement

is an express written contract wherein the client promises to pay the real estate broker a valuable consideration or agrees that the real estate broker may receive a valuable consideration from another in consideration of the broker's producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property or in consideration of the broker's performing property management services or performing community association management services. A firm is any business entity, including, but not limited to, a corporation, partnership, limited liability company, or sole proprietorship.

A firm

is any business entity, including, but not limited to, a corporation, partnership, limited liability company, or sole proprietorship.

A bank

is any financial institution regulated by a member of the Federal Financial Institutions Examination Council and authorized to provide federally insured checking accounts.

An applicant

is any person who has completed all the requirements for a license or an approval as set forth in O.C.G.A. § 43-40 and in any chapter of the Commission's Rules and Regulations and who has submitted a complete application on the proper form accompanied by the correct fee.

A candidate for licensure

is any person who is in the process of completing the requirements for a license or an approval as set forth in O.C.G.A. § 43-40 and in any chapter of the Commission's Rules and Regulations but who has not successfully completed all of them.

A broker

is any person who, for another, and who, for a fee, commission, or any other valuable consideration or with the intent or expectation of receiving the same from another, negotiates or attempts to negotiate, or assists in procuring prospects for the listing, sale, purchase, exchange, renting, lease, or option for any real estate or of the improvements thereon; claims to be a referral agent for the purpose of securing prospects for the listing, sale, purchase, exchange, renting, lease, or option for any real estate; collects rents, assessments, or other trust funds or attempts to collect rents, assessments, or other trust funds; is employed by or on behalf of the owner or owners of lots, time-share intervals, or other parcels of real estate at a salary, fee, commission, or any other valuable consideration to sell such real estate or any part thereof in lots or parcels or intervals or other disposition thereof; engages in the business of charging an advance fee or contracting for collecting of a fee, other than an advertising fee, in connection with any contract whereby he or she undertakes primarily to promote the sale of real estate either through its listing in a publication issued primarily for such purpose, or for referral of information concerning such real estate to brokers, or both; auctions or offers or attempts or agrees to auction real estate; buys or offers to buy, sells or offers to sell, or otherwise deals in options to buy real estate; performs property management services or community association management services; provides or attempts to provide to any party to a real estate transaction consulting services designed to assist the party in the negotiations or procurement of prospects for the listing, sale, purchase, exchange, renting, lease, or option for any real estate or the improvements thereon; or advertises or holds himself or herself out as engaged in any of the foregoing.

A salesperson

is any person, other than an associate broker, who acts on behalf of a real estate broker in performing any act authorized by this chapter to be performed by the broker.

Agency

is every relationship in which a real estate broker acts for or represents another by the latter's express authority in a real property transaction.

Timely

means a reasonable time under the particular circumstances.

A brokerage relationship

refers to the agency and non-agency relationships that may be formed between the broker and the broker's clients and customers as a result of the brokerage engagement.