Unit 27: Real Estate Commission & License Law

A broker advertises on a third-party website not maintained by his franchise. What must the broker do concerning outdated information in his advertisement? A) Secure a court order to force the third party to update the information B) Provide a written notice of any updates or outdated information to the third party C) Nothing, as the broker is not responsible for a third-party website D) Notify the Commission immediately about the outdated information

Provide a written notice of any updates or outdated information to the third party

T/F: To activate a real estate license, along with submitting a formal application for licensure after passing the qualifying state exam, a candidate would need to include only two documents: a criminal history report no more than 60 days old and a signed, notarized Lawful Presence Affidavit.

False In addition to the two documents identified above, the applicant would also be required to produce a third document: a sponsoring form signed by the qualifying broker of the firm with whom the licensee intends to affiliate.

An applicant for a Georgia salesperson license discloses that his license as a pest control operator in another state was revoked one year prior to his Georgia application. Georgia law permits the Commission to A) issue a sanction against the applicant. B) deny the salesperson license. C) provide the applicant with a provisional license for a five year period. D) license the applicant only as a community association manager.

deny the salesperson license.

With regard to the procedures the Georgia Real Estate Commission must follow when responding to an alleged violation of a licensee A) an investigation will follow any formal hearing for a licensee who has been accused of a violation. B) Whenever any sanctions are imposed on a license, the name of the licensee may be published on the Commission web site. C) the Commission may impose sanctions against the offending licensee, but may not issue an injunction to prevent any further violations by the licensee. D) the Commission will provide a hearing for the licensee before issuing any citation.

the Commission may impose sanctions against the offending licensee, but may not issue an injunction to prevent any further violations by the licensee. Only the Georgia Attorney General may issue an injunction against the offending licensee. The Commission is required to provide a hearing for the licensee when sanctions against the license are imposed, but not for just issuing a citation, which is commonly the result of a minor offense. A hearing would come after an investigation, not before it. Only if a license is revoked or suspended would the Commission publish the licensee's name on the website.

The liability of the Real Estate Education, Research, and Recovery Fund for the actions of one licensee would be terminated after the Fund pays out how much money on behalf of that individual? A) $25,000 B) $100,000 C) $45,000 D) $75,000

$75,000 The fund may pay out no more than $25,000 to one party, or for a single transaction. The $75,000 limit would cover multiple transactions or payouts.

Under Commission Rules, which of the following disclosures is a licensee required to make to both buyer and seller at the time of a contract offer? A) Disclose if the licensee's compensation for services in the transaction will come from a client or a customer B) Disclose who the licensee represents in the transaction and from whom the licensee will be compensated C) Disclose whether the licensee is the broker or an affiliated licensee representing the broker D) Disclose whether the licensee's brokerage firm practices dual agency and/or designated agency

Disclose who the licensee represents in the transaction and from whom the licensee will be compensated

T/F: If a broker collects a commission from both a buyer and seller in a transaction, without representing either party, the broker is committing an Unfair Practice under License Law.

False As long as both parties agree in writing, collecting a commission from both buyer and seller does not represent an Unfair Practice under License Law. Receiving a commission from a party does not require the licensee to represent that party.

An associate broker has fallen behind on child support payments with no plan in place to make up delinquent payments. In this case, the Commission A) must wait for a court order to sanction the licensee. B) has no jurisdiction regarding child support payments. C) may suspend the associate broker's license. D) may impose an injunction against any real estate activity.

may suspend the associate broker's license

A nonresident broker can do business in Georgia with an agreement from a Georgia sponsoring broker. Each contract must include all of the following items except A) that all trust funds will be held in the Georgia broker's account unless otherwise agreed in writing. B) that the contract will include a copy of the reciprocity agreement. C) that the contract will indicate how compensation for the transaction will be divided. D) that the contract identifies the Georgia broker and that the out of state broker is not licensed in Georgia.

that the contract will include a copy of the reciprocity agreement.

T/F: If the Commission rules that a holder must surrender a real estate license as a consequence of multiple Unfair Practices committed, that licensee will be unable to seek reinstatement of that license.

True Surrendering a license returns a licensee to the status of an unlicensed individual and as such, to re-establish a real estate license that party must apply as an original applicant.

T/F: License Law allows a qualifying broker for one firm to serve as an associate broker for another firm.

True In such circumstance, the broker holding the associate broker's license must be notified.

When a licensee advertises on the internet, any viewable web page must disclose A) the licensee's license number and phone number. B) the name and telephone number of the licensee's firm. C) the name and telephone number of the firm's qualifying broker. D) the address and phone number of the firm's main office location.

the name and telephone number of the licensee's firm.

Which of the following is a violation of the Uniform Deceptive Trade Practices Act? A) A broker tells a prospective seller that his or her policy for a commission is 6% B) A broker tells a prospective buyer client that he or she may show the same house to his or her other buyer clients C) Two brokers set a standard commission rate for their community D) A broker tells a prospective seller that the listing time period for marketing the property shall be 120 days

Two brokers set a standard commission rate for their community

Which of the following is true regarding the selection and status of the Real Estate Commission and the Commissioner? A) The Commission members and the Commissioner are appointed by the Governor and confirmed by the State Senate. B) Commission members are elected by the State Senate, and the Commissioner is then selected by the Commission. C) Unlike the Commission whose members, appointed by the governor and confirmed by the State Senate, the Commissioner becomes a state employee hired by the Commission. D) Both Commission members and the Commissioner are salaried employees within the Secretary of State's governmental budge unit.

Unlike the Commission whose members, appointed by the governor and confirmed by the State Senate, the Commissioner becomes a state employee hired by the Commission.

License Law and Commission Rules allow a broker to disburse trust account funds under which of the following circumstances? A) Only upon the closing of a transaction B) Upon a written request from a buyer who has provided earnest money held in trust account by the broker as part of the transactional agreement. C) Upon an interpleader court action filed by either the buyer or seller in the transaction D) Upon a broker's reasonable interpretation of the contract, with written notification to all parties

Upon a broker's reasonable interpretation of the contract, with written notification to all parties The closing of the transaction is one circumstance, but not the only one, in which broker may disburse trust funds. The broker may disburse trust funds by a written request signed by both parties to the transaction, not just one of the parties. Interpleader action would be filed by the broker holding funds, not the buyer or seller in the transaction.

The county in which a real estate brokerage firm maintains a primary or branch office may A) assess the brokerage firm only a business license fee for maintaining an office in the county. B) impose a gross receipt sales tax on all property sales transacted only within the county. C) impose a gross receipt sales tax on all property sales transacted by that firm. D) assess the brokerage firm a business license fee as well as impose a gross receipt sales tax on property sales transacted within the county.

assess the brokerage firm only a business license fee for maintaining an office in the county.

Upon the death, resignation or termination of a qualifying broker the firm A) has 45 days to name a replacement qualifying broker. B) has 30 days to name a replacement qualifying broker. C) can allow the spouse of the qualifying broker to maintain the business until a replacement qualifying broker is named. D) has 60 days to name a replacement qualifying broker.

has 60 days to name a replacement qualifying broker.

Paul is hired by Broker Garcia, whose firm manages a small apartment complex in Georgia. Under the direct supervision of Garcia, Paul collects rent, receives rental applications, and executes leases with perspectives tenants. Under these circumstances, Paul A) need not have a real estate license. B) may be compensated by Garcia for referring tenants to the sales division of the broker's firm. C) must have a property management license as well as a salesperson's real estate license. D) must have a property management real estate license.

need not have a real estate license. As an employee who performs ministerial acts under the direct supervision of the property management firm's broker, Paul needs no real estate license. Paul may not be compensated for referring tenants to the brokerage firm's sales division, as only real estate licensees may receive referral fees.

Commission Rules prohibit a licensed broker in Georgia from A) entering into contracts with unlicensed support personnel. B) refusing to process an affiliate's request for a license transfer as soon as practically possible. C) conducting brokerage business only in the name that is shown on the firm's license. D) representing both a landlord and a tenant in the same leasing transaction.

refusing to process an affiliate's request for a license transfer as soon as practically possible. As long as both parties provide informed written consent, a broker may represent both landlord and tenant in the same transaction. A broker may enter into contract with either licensed or unlicensed personnel, though the latter would be limited to ministerial duties. The broker is required, not prohibited from conducting business in the name as it appears on the brokerage license.

A broker and associate broker's qualifications are the same except A) each must be a resident of Georgia unless he or she qualifies for nonresident status. B) each must complete a Commission approved 60 instructional hours broker course. C) the associate broker has not assumed the responsibilities of contracting directly with consumers. D) each must maintain an active real estate license for at least three of the last five years.

the associate broker has not assumed the responsibilities of contracting directly with consumers.

With regard to maintaining a brokerage trust account, which of the following statements is true? A) A broker must authorize any reasonable request by the Commission to examine the firm's trust account. B) A brokerage firm must maintain a separate trust account for each branch office location. C) A broker must notify the Commission within 60 days of the name of the bank and account number for any new trust accounts opened. D) Bankruptcy by the broker may result in seizure of the account for outstanding debt.

A broker must authorize any reasonable request by the Commission to examine the firm's trust account.

A license may lapse for nonpayment of fees or failure to complete certain educational requirements within the time allowed by the Laws and Rules. Under these circumstances, which of the following statements is accurate? A) Circumstances for reinstatement of an inactive license are different from those for reinstatement of an active license. B) A lapsed license may be reinstated at any time if the licensee pays a reinstatement fee plus all late charges and renewal fees that would have accrued during the lapsed period, as well as completing any Commission educational requirement. C) A lapsed license may be reinstated, if within two years, the licensee pays the reinstatement fee and all other fees due, as long as long as all CE requirements have been met. D) A lapsed license may only be reinstated if the licensee retakes and passes the qualifying state exam.

A lapsed license may be reinstated, if within two years, the licensee pays the reinstatement fee and all other fees due, as long as long as all CE requirements have been met. If a license has lapsed for more than two years, but less than five, the licensee may reinstate that license by paying all late charges, a reinstatement and renewal fee that would have accrued during the lapsed period plus any Commission educational requirements, such as retaking the prelicense course. If lapsed more than five years, the licensee would also have to retake and pass the qualifying state exam. The reinstatement circumstances are the same for active or inactive licenses.

What is true regarding the funding for the Commission's Education, Research and Recovery Fund? A) The Commission is prohibited from investing the money with the intent of increasing the balance in the fund. B) A primary source of money for this fund comes from fees for first time real estate licensees. C) The fund may compensate any principal or agent in a real estate transaction as long as the aggrieved party follows the proper statutory guidelines under License Law. D) If the fund is at risk of falling below $1,000,000, brokerage firms would share in the payment of a prorated tax to bring the Fund back to its required level.

A primary source of money for this fund comes from fees for first time real estate licensees.

Broker James leaves his firm to work with another company. He has a transaction underway with his current firm. Which is true regarding James' situation? A) Broker James can continue with his transaction even though he has left the firm. B) Broker James' qualifying broker at his old firm must sign transfer documents and return James' license to the Commission. C) Broker James may not receive compensation from his transaction from his old firm. D) Broker James cannot leave his firm until his transaction is complete.

Broker James' qualifying broker at his old firm must sign transfer documents and return James' license to the Commission.

Which of the following is an inappropriate relationship under BRRETA? A) Broker and a hazard insurance policy B) Broker and an exclusive listing agreement C) Broker and a buyer broker agreement D) Broker and a property management agreement

Broker and a hazard insurance policy

The conduct defined by the License Law as grounds for the denial of a license by the Commission A) may serve as grounds for sanctions only if such conduct occurred in Georgia. B) may serve as grounds for sanctions only if such conduct occurred in another state. C) may serve as grounds for sanctions when the conduct is that of a licensee. D) does not serve as grounds for sanctions against a licensee.

May serve as grounds for sanctions when the conduct is that of a licensee

The Georgia Real Estate Commission is composed of: A) Six members—four industry and two non-industry B) Seven members—five industry and two non-industry C) Six members—five industry and one non-industry D) Seven members—six industry and one non-industry

Six members—five industry and one non-industry

A broker's website advertising properties for sale includes information that has been outdated for 40 days. Is the broker in violation of Commission rules? A) Yes, because the broker must remove or update outdated information with 10 days. B) No, as long as the broker removes or updates the outdated information within 45 days. C) No, as long as the broker removes or updates the outdated information within 60 days. D) Yes, because the broker must remove or update outdated information within 30 days.

Yes, because the broker must remove or update outdated information within 30 day

The real estate commission's business is conducted by the real estate commissioner who is A) hired by the real estate commission and a commission staff member. B) a commission member voted on by the six commissioners. C) a licensed member of the real estate industry who has voting privileges with the commission. D) a full time government employee who conducts the day to day activities of the department.

a full time government employee who conducts the day to day activities of the department

An agent with a license from another state can obtain a Georgia real estate license through A) signing an affiliation agreement with his or her home broker. B) having a license form their home state for one year. C) a reciprocity agreement. D) a permission statement from the agent's home broker.

a reciprocity agreement.

The Commission may impose a sanction on a licensee A) when that licensee has been accused of a violation of the federal fair housing law. B) after a licensee has been found guilty of a violation of the federal fair housing law. C) after any appeal has been concluded for a conviction of a violation of a federal fair housing law. D) only if a federal court finds a licensee guilty of a violation of the federal fair housing law.

after any appeal has been concluded for a conviction of a violation of a federal fair housing law.

The Commission's Rules and Regulations A) primarily serve as a basis for the settlement of disputes among licensees by the Commission. B) must be passed by the Georgia General Assembly. C) carry the force of law and may be used as grounds for discipline by the Commission. D) primarily serve as guidelines for the License Law and may not be used as a basis for discipline by the Commission.

carry the force of law and may be used as grounds for discipline by the Commission.

Standard requirements for a Broker's license in Georgia would include A) evidence that in three of the five years immediately prior to making application, the candidate has held an active or inactive real estate license. B) evidence that the candidate in three of the five years immediately prior to making application has held an active real estate license. C) evidence that in the three years immediately prior to making application, the candidate has held an active real estate license. D) evidence that in three of the four years immediately prior to making application, the candidate has held an active real estate license.

evidence that the candidate in three of the five years immediately prior to making application has held an active real estate license. Holding an inactive license for three of the five years would not qualify the candidate. Active licensure is not required for the three years prior to application for a broker license, only three of five.

The Commission prohibits 'blind ads' in the marketing of real property for sale as these advertisements A) violate Fair Housing Laws with regard to handicap discrimination. B) fail to include the location of the property. C) mislead the public as to the actual purchase price of the property. D) fail to disclosure the real estate licensure of the advertiser.

fail to disclosure the real estate licensure of the advertiser. Ads run by licensees that falsify property prices or discrimination laws are Unfair Practices under License Law, but have nothing to do with "blind ads". Nor do ads run by licensees have to disclose the location of a property.

The Commission has determined a broker to be guilty of commingling trust account funds as well as failing to keep copies of trust fund accounting records for three years. The Commission has the authority to A) revoke the broker's license and fine the offending party up to $10,000. B) fine the broker up to $1,000 and suspend the broker's license. C) fine the broker up to $5,000 and issue a salesperson's license in place of that person's existing broker license. D) file an injunction to stop any further trust account activity on the part of the broker.

fine the broker up to $5,000 and issue a salesperson's license in place of that person's existing broker license

The Commission may deny a real estate license to an applicant A) if that applicant has a disciplinary sanction imposed by any occupational licensing body in Georgia or any other state. B) only if the applicant has allowed a real license to lapse for over five years. C) only if that applicant has a disciplinary sanction imposed by a Georgia occupational licensing body. D) only if that applicant has been denied a real estate license in another state.

if that applicant has a disciplinary sanction imposed by any occupational licensing body in Georgia or any other state.

A person whose real estate license is inactive in Georgia may conduct brokerage activities for an unlicensed property developer only A) if that licensee's broker gives written permission. B) if that licensee reactivates the inactive license. C) if that licensee surrenders the real estate license to the Commission. D) if that licensee remains on inactive status for the duration of such work for the developer.

if that licensee surrenders the real estate license to the Commission.

In its capacity to administer the License Law as created by Georgia statute, the Real Estate Commission may A) pass legislative amendments to License Law. B) settle disputes among licensees regarding brokerage compensation. C) only pass rules and regulations with the approval of the real estate Commissioner. D) only pass rules and regulations based on License Law.

only pass rules and regulations based on License Law The Commission is not a legislative body and as such, may not amend the Law. Settling disputes between licenses does not fall within the authority of the Commission. The Commissioner has responsibility to run the day-to-day operations of the Commission but is not a member of the Commission and has no authority to approve or disapprove of rules and regulations passed.

John Amos is selling his neighbor Jane Ashton's house for $385,000. John and Jane are unrelated and John is not licensed as a real estate agent. In Georgia John is A) practicing real estate without a license and guilty of a felony and a $500.00 fine. B) practicing real estate without a license and guilty of a misdemeanor. C) practicing without a license and guilty of a misdemeanor and subject to a fine of up to $1,000 per day of the violation. D) practicing real estate without a license and subject to a cease and desist order and a $2500.00 fine per day of the violation.

practicing without a license and guilty of a misdemeanor and subject to a fine of up to $1,000 per day of the violation.

Should an agent's license be surrendered to the Real Estate Commission the licensee must A) return the wall certificate and pocket card to the Attorney General. B) return the wall certificate and the pocket card to his or her broker. C) return the wall certificate but keep the pocket card for future use. D) return the wall certificate and pocket card to the Commission.

return the wall certificate and pocket card to the Commission

With regard to the handling of trust funds, a broker engaging in property management must ensure that A) security deposits held in escrow accounts must always reflect a balance equal to the total of all such deposits. B) all trust fund accounts are at least reconciled on a quarterly basis. C) the firm is covered by a Fidelity Insurance Bond whenever managing community associations. D) trust fund accounts that hold rental payments be kept separate from those escrow accounts that hold security deposits.

security deposits held in escrow accounts must always reflect a balance equal to the total of all such deposits.

Rita works with ABC Real Estate as an unlicensed assistant. In her position she can perform a significant number of tasks. She can do all of the following except A) submit a listing into the MLS system. B) show a property to a prospect. C) set up appointments for inspections. D) put together closing documents.

show a property to a prospect.

The following actions are unfair trade practices under the License Law except A) failure to account for or remit escrow/trust funds collected by the licensee. B) telling a prospective purchaser that a property is under contract and not available to be shown. C) community client funds are mixed with the licensee's funds. D) practicing with discrimination toward protected classes under fair housing laws.

telling a prospective purchaser that a property is under contract and not available to be shown.

T/F: When affiliate licensees sell their own property, they must always deposit earnest money in their broker's trust account.

False In this circumstance, licensees may deposit earnest money into their own trust accounts as long as it is approved by their broker and properly registered with the Commission.

T/F: If a qualifying broker's license has been suspended, the wall and pocket card real estate licenses of all affiliates must be forwarded to the Real Estate Commission.

True When a qualifying broker's license is suspended, the broker not only has to forward his or her wall and pocket card license to the commission but also those of any licensee affiliate.

If, as an owner occupant, a licensee affiliate decides to sell his or her home, the Commission would require the affiliate's broker to A) to list the property in the broker's name. B) be notified in writing. C) advertise the property only in the broker's name. D) provide written permission for the transaction.

be notified in writing. The broker does not have to give written permission for an affiliate to buy or sell a property. The affiliate may advertise the property without using the broker's name, if the broker gives written permission and approves the ad. The Commission has no requirement that an affiliate's property must be listed by that licensee's broker.

The Real Estate Commission would issue a brokerage license to a firm under the condition that A) If the firm is set up as a partnership, the qualifying broker may be a general or a limited partner B) if the firm is set up as a sole proprietorship, the qualifying broker must be the owner of the entire company. C) if the firm is set up as a corporation, the qualifying broker must be the majority shareholder. D) If the firm is set up as a limited liability company (LLC), the qualifying broker must be an officer of the LLC.

if the firm is set up as a sole proprietorship, the qualifying broker must be the owner of the entire company The qualifying broker of a corporation must be an officer of the corporation. The qualifying broker of an LLC must be a member or a manager. The qualifying broker in a partnership must be a general partner.

The Conduct defined by the License Law as grounds for the suspension or revocation of a license by the Commission A) may only serve as grounds if such conduct occurred in another state. B) may serve as grounds for the denial of a license. C) may only serve as grounds if such conduct occurred within the state of Georgia. D) may not be grounds for the denial of a license.

may serve as grounds for the denial of a license

A broker discovers that a seller who has a brokerage relationship with the broker has distributed his own flyers within the neighborhood which include some misleading information, including the age of the roof. The broker A) must report the advertising to the Commission immediately. B) is not responsible for advertising that he does not distribute. C) must take immediate steps with the seller to stop the distribution of the flyers. D) may terminate the brokerage engagement immediately.

must take immediate steps with the seller to stop the distribution of the flyers.

The following activities are considered a matter of practice for a real estate broker in Georgia except A) collects or attempts to collect rents, assessments or other trust funds. B) auctions, offers to auction, or agrees to auction real estate. C) performs property management services or community association management. D) provides legal advice in the preparation of a residential purchase agreement.

provides legal advice in the preparation of a residential purchase agreement

The investigative process carried out by the Commission which entitles the accused licensee to a formal hearing as well as an appeal right if that party is dissatisfied with the hearing's outcome derives its legal basis from A) Rules and Regulations of the Commission. B) the Georgia Administrative Procedures Act, which is found in the License Law. C) the Georgia Administrative Procedures Act, a statute separate from License Law and Commission Rules. D) Georgia License Law.

the Georgia Administrative Procedures Act, a statute separate from License Law and Commission Rules.

Brokers may place the firm's operating funds in a trust account provided that A) the broker is managing property and the funds are designated for either corrective or preventive property maintenance. B) the money is used to satisfy the bank's minimum balance as well as to cover any other account maintenance fees required. C) the money is only used to satisfy the bank's minimum balance for the trust account and the sum is identified for such purposes in trust records. D) the money is designated as funds to cover repairs to a listed property for which they will be reimbursed by the owner.

the money is used to satisfy the bank's minimum balance as well as to cover any other account maintenance fees required.

An applicant that has served in the military who does not pass a licensing examination can get five points applied to his or her license exam score if A) the veteran has a minimum of two years' service of which 120 days were in an armed conflict. B) the veteran has three years of military service. C) the veteran has a minimum of one year service. D) the veteran has a minimum of one year's service of which 90 days were in a period of an armed conflict.

the veteran has a minimum of one year's service of which 90 days were in a period of an armed conflict.

With regard to brokerage advertising, which of the following practices would be in violation of Commission Rules? A) Removing the internet advertising of a property 10 days after the listing's expiration date. B) An ad in which an affiliate licensee's name and phone number is of equal lettering size as that of the brokerage firm. C) Within a brokerage firm's block ad for multiple listings, the firm's name though prominent in lettering size and appearance, shows up only once in the advertisement. D) Along with the phone number of the affiliated licensee, an ad that identifies the name of the brokerage firm's name as registered with the Commission.

Along with the phone number of the affiliated licensee, an ad that identifies the name of the brokerage firm's name as registered with the Commission. The phone number of the brokerage firm, not the affiliated licensee is required as the other part of this answer. A 10-day removal of an internet ad is in compliance with Commission rules. As long as the affiliate's name and number is not larger than the firm's name, the ad is in compliance. In a block ad with several of a brokerage firm's listing, as long as the firm's name is larger and more prominent than the various affiliate names in such an ad, the firm's identification need only appear one time.

A candidate for a real estate license must provide documentation to the Real Estate Commission. One of the required documents that outlines any criminal history is the A) lawful presence notarized affidavit. B) GCIC report. C) Georgia administrative report. D) Real Estate Commission broker transcript report.

GCIC report

T/F: The real estate license that enables the holder to manage community associations does not authorize that licensee, in exchange for valuable consideration, to assist a seller, buyer, landlords and tenant in transactions.

True The CAM license only enables the holder to manage homeowner associations. To assist clients and customers in sales or rental transactions, the CAM licensee would also have to hold a Salesperson's or Broker's license.

When the Real Estate Commission denies a candidate's application for license in Georgia, the applicant is granted a legal process of appeal authorized under A) The Georgia Fair Business Practice Act (FBPA). B) The Georgia Governmental Agency Protection Act. C) The Rules and Regulations of the Commission. D) The Georgia Administrative Procedures Act.

The Georgia Administrative Procedures Act.

In order to renew a salesperson license after the first four-year license renewal period, a salesperson must satisfy what education requirements? A) 27 hours of continuing education plus the 25 hour post-license course required by the end of the first year of licensure B) 27 hours of continuing education plus the 25 hour post-license course required prior to the end of the first license renewal period C) Only 36 hours of continuing education course work D) 36 hours of continuing education plus the 25 hour post-license course required in year one of licensure

27 hours of continuing education plus the 25 hour post-license course required by the end of the first year of licensure though 36 hours of continuing education is required for each four-year license renewal period, the 25-hour post license course required within year one of licensure counts as 9 hours of CE. Consequently, in this initial four year license renewal period, the licensee would need to complete only 27 CE hours which when added to the 9 hours awarded for the post license course, would satisfy the 36 total CE hours needed. Remember, the 25-hour post license requirement must be completed within the first year of licensure.

After a listing expires, a broker must remove any sign offering a property for sale within A) 10 days after the expiration of the listing. B) 10 days after the end of the month in which the listing expired. C) 14 days after the expiration of the listing. D) 14 days after the end of the month in which the listing expired.

10 days after the expiration of the listing.

T/F: Any real estate licensee in Georgia who also holds an auctioneer's license may auction real property for sale.

False Only a person who holds an auctioneer's license and a real estate broker's license in Georgia may auction real property for sale.

With regard to the organization and operation of the Georgia Real Estate Commission, which of the following is TRUE? A) All Commission members must have active real estate licenses for at least five years. B) All commission members must place their real estate licenses on inactive status. C) Five of the six Commission members must have active real estate licenses for at least five years. D) As a Commission member, the Real Estate Commissioner serves as the chief executive officer.

Five of the six Commission members must have active real estate licenses for at least five years. The sixth member of the Commission shall have no connection to the real estate industry, but will have a recognized interest in consumer affairs and protection. Though hired to conduct the daily operations of the Commission and serve as that body's CEO, the Commissioner is not a member of the Commission.

For a licensee, which of the following actions would be considered an Unfair Practice under License Law? A) Acting in a disclosed dual capacity as both a principal and an agent in a real estate transaction B) Receiving compensation from another broker even with the written authorization of the affiliate's broker C) Paying a referral fee to a broker in Florida D) Indicating that the a competitive market analysis done for a client is an appraisal estimation

Indicating that the a competitive market analysis done for a client is an appraisal estimation A licensee's market analysis may not, in any way, identify that document as an appraisal. An Unfair Practice would occur only if the licensure was undisclosed in a dual capacity circumstance. A licensee affiliate may receive compensation from another broker with written authorization from affiliate's broker. Paying a referral fee to broker in another state is not an Unfair Practice, as long as it is disclosed to the party being referred.

Rules and Regulations require that the Real Estate Commission maintain certifications of a licensee's history as well as investigative files relating to such history under what schedules? A) Investigative files on a licensee's record in which the Commission imposes formal disciplinary action must be maintained for 15 years B) All investigative files on a licensee's record must be maintained 10 years. C) Upon written request, Commission must provide only up to a four year certification history of a licensee's record D) Investigative files on a licensee's record in which the Commission imposes formal disciplinary action must be maintained for 40 years

Investigative files on a licensee's record in which the Commission imposes formal disciplinary action must be maintained for 40 years

A broker's advertisement includes only the trade name of her franchise, her name, and her personal cell phone number. The trade name is not the firm's name as registered with the Commission. Has the broker complied with the Commission's advertising regulations? A) Yes, as long as her advertisement properly identifies her and the trade name B) No, because Commission regulations prohibit the inclusion of a personal cell number. C) No, as the advertisement must include the name of the firm as registered with the Commission. D) Yes, as only her phone number and name are required on an advertisement.

No, as the advertisement must include the name of the firm as registered with the Commission

A Georgia homeowner obtains a judgment for $25,000 against a real estate agent for damages incurred while represented by that licensee in a transaction. In this circumstance, under what conditions might the homeowner receive compensation from the Real Estate Education, Research, and Recovery Fund? A) Only if the court action were started within one year of the alleged wrong doing by the license B) Only if the court is satisfied that the homeowner has exhausted through a writ of possession all legal means to recover the $25,000 damages C) Only after the Commission has determined that the Court ruled correctly as to the licensee's guilt and that the judgment ordered is appropriate D) If the homeowner has through a writ of possession recovered the court ordered $25,000 damage, but determines that sum to be insufficient for the grievance

Only if the court is satisfied that the homeowner has exhausted through a writ of possession all legal means to recover the $25,000 damages

The Real Estate Commission may impose disciplinary actions against a licensee for which of the following practices? A) Receiving a share of the broker's compensation earned in a sales transaction B) Paying an unlicensed assistant a percentage of the licensee's commission split with the broker C) Depositing earnest money funds into an licensee affiliate's trust account rather than in the broker's trust account D) Waiting 10 days after the termination of a listing engagement to remove the brokerage firm's sign from the owner's property

Paying an unlicensed assistant a percentage of the licensee's commission split with the broker Commissions may only be paid to licensed affiliates. The unlicensed assistant may be paid a salary or hourly wage. A licensee commits an Unfair Practice if waiting more than 10 days after listing expiration to remove a sign from a property. A licensee affiliate may deposit trust funds into that person's own trust account as long as the broker authorizes such an account and ensures its proper operation as required under Laws and Rules. Sharing in the broker's commission is the customary manner in which an affiliated licensee is compensated in a sales transaction.

Which of the following statements would be accurate with regard to an individual residing in another state, who holds a broker's license in that state, and who wishes to acquire a broker's license in Georgia? A) That individual must affiliate as an associate broker with a brokerage firm in Georgia. B) That individual may acquire a nonresident broker's license in Georgia through a reciprocity agreement that exempts the applicant from educational and exam requirements. C) That individual must acquire a non-resident broker's license in Georgia to conduct brokerage business in Georgia. D) That individual may get a temporarily transaction license in Georgia good for only one year.

That individual may acquire a nonresident broker's license in Georgia through a reciprocity agreement that exempts the applicant from educational and exam requirements. A broker in another state does not have to acquire a broker's license in Georgia, but may enter into a written agreement with a Georgia broker to conduct real estate business in Georgia. Under such an agreement, the Georgia broker will be responsible for all real estate brokerage acts of the out of state broker and provide assurances that that broker is properly licensed in the state of residence. There is no such thing as a temporary non- resident real estate license in Georgia, nor does a broker licensed in another state have to affiliate as an associate broker with a firm in Georgia, in order to conduct real estate business here.

In its advertisement of a company listing, a brokerage firm misrepresents the actual terms of this property offering. Aside from violating the Laws and Rules in its fraudulent advertising, the real estate firm would also be in violation of what other Georgia statute? A) The Uniform Deceptive Trade Practice Act B) The Fair Business Practice Act C) The Georgia Administrative Procedures Act D) Unfair Trade Practices

The Fair Business Practice Act

In an effort to secure a listing from a property owner, a broker promises to purchase the property for $250,000, if a ready willing and able buyer is not found by the termination date of the brokerage engagement with the seller. Under what conditions might the rules of the Commission allow this agreement? A) Under no condition; such guaranteed sales plans are prohibited by the Commission. B) The broker must enter into a written agreement to purchase the seller's property for $250,000 before signing any listing engagement with the homeowner. C) The brokerage engagement with the property owner must include a non-refundable earnest money check from the broker. D) The broker must enter into a contract with the seller to purchase the property for $250,000 on the day after the listing engagement terminates.

The broker must enter into a written agreement to purchase the seller's property for $250,000 before signing any listing engagement with the homeowner. This guaranteed sales plan is allowed as long as two separate contracts are established at the beginning of the arrangement: one for the listing, and one for the purchase and sale. An earnest money check is not necessarily required in such an arrangement.

Which of the following would a broker NOT have to prove in order to be excused from assuming shared liability with a licensee affiliate who violates a Law or Rule? A) The broker did not participate in the violation. B) Reasonable supervisory procedures were available to the affiliate licensee. C) The broker was unaware of the violation. D) The broker did not ratify the violation.

The broker was unaware of the violation. Even if the broker can show a lack of awareness regarding the violation, without clearly proving all of the elements identified in the other answers, the broker would still assume liability in the eyes of the law.

What matter(s) may be resolved when the Real Estate Commission issues a declaratory ruling? A) Whether or not a licensee has been found to commit a violation of license law, and if so, how will the Commission discipline that licensee B) Whether or not a real estate licensee from another state meets the requirements to be issued a nonresident license in Georgia C) Whether or not the Commission decides that an existing Rule or Regulation applies to a particular situation as set forth in any person's written, notarized request D) Whether or not the Commission approves or denies a written, notarized petition from a party who requests a change in an existing Rule or Regulation

Whether or not the Commission decides that an existing Rule or Regulation applies to a particular situation as set forth in any person's written, notarized request Any person may also through a written, notarized petition request that a rule be changed, or even that the Commission pass a new rule; Commission response to such requests, however, are not designated as a 'declaratory ruling.' Neither is the Commission's response to a licensee from another state termed a 'declaratory ruling'. The Commission does keep tabs on licensees' violations and these are a matter of public record, but again, are not a part of any 'declaratory ruling'.

A Georgia real estate broker rents a storage unit to keep the files from all of the brokerage firm's closings. The storage unit was getting full, so the broker disposed of the files that were four or more years old. In another action later than week, the broker received an earnest money check from a buyer for a home that had been listed by the broker. As the sales contract did not indicate who would receive the interest paid by the brokerage firm's designated escrow account, the broker collected that interest sum. Under the circumstances described in this narrative, have any Unfair Practices occurred? A) Yes, the broker's actions on the interest bearing escrow/trust account represents an Unfair Practice. B) No, the narrative does not describe any Unfair Practice violations. C) Yes, the broker's disposing of the files from the firm's closings. D) Yes, the broker's disposing of the files, and the action on the interest bearing escrow/trust account.

Yes, the broker's actions on the interest bearing escrow/trust account represents an Unfair Practice.

When a candidate for a salesperson licensure passes the qualifying state exam A) The candidate may not make a formal license application until they have a sponsoring form from the broker with whom the licensee intends to affiliate. B) The candidate will automatically receive the wall license certificate and pocket card to hold onto, until the licensee selects a broker with whom to affiliate. C) the candidate may make a formal license application within three months of the exam date, pay regular license fees, and then place the license on active or inactive status. D) the candidate may make a formal license application within one year of the exam date, pay regular license fees, and then affiliate with a brokerage firm.

the candidate may make a formal license application within three months of the exam date, pay regular license fees, and then place the license on active or inactive status. Whether activating a license or placing it on inactive status with the Commission, the candidate has three months from the exam date to take either action and only pay regular license fees. If waiting more than three months, but less than a year from exam date, to make formal license application, the candidate will have to pay double license fees. Exam results are only good for one year from exam date, so waiting longer than one year to formally apply would require the candidate to retake the qualifying state exam. The candidate would not receive the wall license certificate or pocket card until presenting a sponsoring broker form indicating with whom the licensee will affiliate.

The Real Estate Commission operates as a budget unit of Georgia assigned to the office of the Secretary of State, and as such A) the Commission's budget shall be subject to review by the Secretary of State. B) the costs to conduct the Commission's operations must be equal to those fees the Commission charges to and receives from licensees. C) the Commission's operations are funded by the requisite state taxes for such governmental entities. D) the Commission must consult the Secretary of State before issuing sanctions against any licensees.

the costs to conduct the Commission's operations must be equal to those fees the Commission charges to and receives from licensees. The Commission receives no public tax support for its operations and its budget is not subject to review or approval by the Secretary of State. The Commission's disciplinary authority is established under License Law and sanctions for licenses do not require consultation with Secretary of State.