GA License Law 1-3

EXEMPTIONS from licensure requirement (cont. 2)

-Persons acting for another under court order as: executor or administrator of a will receiver or trustee in a bankruptcy guardian for the legally incompetent or a minor -Persons involved in the MANAGEMENT of property as owner, lessor, buyer, or as an employee of the owner, lessor, or buyer -Persons hired by a broker to manage residential rental property for the broker under a written management agreement between broker and owner -Any person who performs community association management services for only one community association of which he or she is a member

Broker

A real estate broker is someone who receives a fee or other valuable consideration from a principal for doing one or more of the following: negotiating a real estate contract assisting in procuring prospects for listing, buying, selling, leasing, or exchanging real property

salesperson

A real estate salesperson is anyone other than an associate broker who acts on behalf of the broker to assist in negotiating contracts or procuring prospects for buying, selling, leasing, or exchanging real property. A salesperson performs generally the same services as a broker, but MUST do so on behalf of a broker. A salesperson may not engage in any of the activities listed previously that define a broker unless operating under the direct authority and supervision of a broker. The salesperson's license must be issued to and held by a broker

Referral Fees

-An UNLICENSED person may receive a referral fee as long as it does not come from: the person being referred a licensed broker, associate broker, or salesperson -The unlicensed person to whom the referral is made may pay a referral fee to another unlicensed person. For example, the manager of an apartment complex may pay a referral to a tenant for referring a new tenant. -A licensed broker, associate broker, or salesperson may NOT pay a referral fee to an unlicensed individual UNDER ANY CIRCUMSTANCES. -Brokers may pay referral fees to other LICENSED individuals, such as their salespersons or other brokers.

NOTE: The Commissioner:

is NOT one of the six members of the Commission has no voting rights on the Commission performs purely administrative duties

If a Commission staff member or the Commissioner is licensed, he/she _____.

is exempt from all fees

A person acting for another in real estate transactions under court order _____.

is exempt from licensing

An attorney-in-fact acting under a power of attorney for a specific transaction _____.

is exempt from licensing requirements

The Governor may remove a member from office if the member:

is unable or neglects to perform the duties required is incompetent exhibits dishonest conduct has a disciplinary sanction imposed by any licensing agency pertaining to his or her right to practice a trade or profession

The Georgia Real Estate Commission is created by the _____.

license law

The office of the Real Estate Commissioner is created by the _____.

license law

Hosting an open house, answering questions about financing, and negotiating a commission are tasks that can be done by_____.

licensed personnel only

A member of the Georgia Real Estate Commission may be removed from the Commission for negligence of duty, incompetence, dishonesty, or disciplinary sanction by _____.

the Governor

The amount of real estate fees are determined by _____.

the Real Estate Commission

The purpose of the Georgia real estate license law is to provide protection for _____.

the public and licensees

A person who acts as a referral agent is exempt from the real estate licensing requirements as long as he/she does not receive compensation from _____.

the referred party or any licensee

The education and examination requirements for licensure as an associate broker are _____.

the same as for a broker

The services provided by a licensed salesperson are generally _____.

the same as those performed by a broker

The sixth member of the Georgia Real Estate Commission must be _____.

unlicensed

Unlicensed Support Personnel

unlicensed assistants and support staff In order to provide reasonable guidelines for licensees, the Real Estate Commission has provided a list of specific tasks that unlicensed assistants and support personnel can and cannot do. (See Rule 520-1-.07.) This list is provided by the Commission in an attempt to help licensees decide when and how to use unlicensed support personnel without attempting to define every permitted or prohibited activity.

When are authorized employees of a government agency, utility company, or lending institution exempt from real estate licensing requirements?

when conducting official business

When is a practicing attorney in Georgia exempt from licensure as a real estate broker?

when real estate work is incidental to law practice

The person appointed to the office of Commissioner must _____ in real estate.

NOT be actively licensed

When an affiliated licensee of a firm employs an unlicensed support person, there must be _____ written agreement(s).

3 When an affiliated licensee employs an unlicensed support person, there must be 3 written agreements: an agreement between the firm and the affiliated licensee, an agreement between the firm and the unlicensed support person, and an agreement between the affiliated licensee and the unlicensed support person.

A quorum for the Georgia Real Estate Commission is _____ members.

4

____ members of the Commission constitute a quorum for conducting official business.

4

How many members of the Georgia Real Estate Commission must have been Georgia residents and active licensees in real estate for 5 years?

5

Members of the Georgia Real Estate Commission serve a term of _____.

5 years

The Commission is composed of ___ members.

6 members 5 of which must have been: state residents for 5 years licensed and active in real estate for 5 years in Georgia 6th member: may NOT be licensed or connected with the real estate business must have a recognized interest in consumer affairs

To receive a salesperson's license in Georgia, a person must obtain a criminal history report no more than _____days before making application.

60

To receive a salesperson's license in Georgia, a resident must successfully complete an approved prelicense course of at least _____ hours.

75

To take the salesperson's licensing exam, a resident of Georgia must successfully complete an approved prelicense course of at least _____ hours.

75

Who may sign transfer and release forms for the broker?

an associate broker with the broker's written permission

If a person wishes to act as a referral agent WITHOUT a real estate license, the only source from which he/she may receive compensation is _____.

an unlicensed party to whom the referral is made

The Commission must file a report with the Governor _____.

annually

Who may hold a resident salesperson's license in Georgia after completing the education, examination, and background clearance requirements?

any resident high school graduate 18 or older

The Real Estate Commissioner is _____.

appointed by the Commission

The members of the Commission are selected how? Pay for member of the Commission

appointed by the governor and confirmed by the Senate paid $25 per day plus expenses incurred in Commission business

Vacancies on the Georgia Real Estate Commission are filled by _____.

appointment by the Governor WITHOUT confirmation

Full time employees of a property owner who handle only the property of that owner _____.

are exempt from licensing

The following is a list of ministerial tasks that unlicensed assistants and support personnel CAN do:

-answer the phone and forward calls and emails to a licensee -submit data on listings to a multiple listing service -check on the status of loan commitments after a contract has been negotiated -assemble documents for closings -secure documents that are public information from a courthouse and other sources available to the public -have keys made for firm listings and install or -remove lock boxes from firm listings -write ads and promotional materials for the approval of the firm and any affiliated licensee place advertising in the media as defined in Commission Rule 520-1-.09 (1)(b) and as directed by the firm -record and deposit earnest money, security deposits, and rents type contract forms as directed by the firm or affiliated licensee -monitor personnel files and license reports from the Commission -compute commission checks

EXEMPTIONS from licensure requirement (cont.):

-authorized employees of a government agency, utility company, or lending institution, while acting in the conduct of official business -persons who act as referral agents, as long as they: DO NOT actually perform any services of a broker DO NOT receive any compensation from the referred party DO NOT charge advance fees DO NOT act as referral agents in more than three transactions per year DO NOT receive any compensation from a licensed broker, associate broker, or salesperson (NOTE: Referral agents are exempt from licensing ONLY if they receive a referral fee from an unlicensed person to whom the referral is made.)

Rule 520-1-.07 also provides the following list of specific tasks that unlicensed assistants and support personnel (or inactive licensees) can NOT do: cont.

-discuss the attributes or amenities of real estate, under any circumstances, with a prospective purchaser or lessee -discuss with the owner of real estate, the terms and conditions of the real estate offered for sale or lease -collect or hold deposit monies, rent, other monies, or anything of value received from the owner of real estate or from a prospective purchaser or lessee -provide owners of real estate or prospective purchasers or lessees with any advice, recommendations, or suggestions as to the sale, purchase, exchange, or leasing of real estate that is listed, to be listed, or currently available for sale or lease -hold themselves out in any manner, orally or in writing, as being actively licensed or affiliated with a particular firm or real estate broker as a licensee

Rule 520-1-.07 also provides the following list of specific tasks that unlicensed assistants and support personnel (or inactive licensees) can NOT do:

-make cold calls by telephone, in person, or through any media as defined in Rule 520-1-.09 (1) (b) or otherwise contact the public for the purposes of securing prospects for listings, leasing, sales, exchanges, or property management of real estate -host open houses, kiosks, home show booths, or fairs -prepare promotional materials or ads without the review and approval of an affiliated licensee and the firm -show real estate -answer any questions on title, financing, or closings (other than the time and place) -answer any questions regarding a listing except for information on price and amenities expressly authorized in writing by the licensee -discuss or explain a contract, listing, lease arrangement, or other real estate document with anyone outside the firm -negotiate or agree to any commission, commission split, management fee, or referral fee on behalf of a licensee

The following is a list of ministerial tasks that unlicensed assistants and support personnel CAN do: cont.

-place signs on real estate and remove such signs -order items of routine repair as directed by the firm or an affiliated licensee -act as courier or such purposes as delivering documents or obtaining documents and keys -schedule appointments with an owner or the owner's agent in order for a licensee to show real estate -arrange dates and times for inspections -arrange dates and times for a mortgage application, a pre-closing walk-through, or a closing schedule an open house -accompany a licensee to an open house or a showing only for security purposes -perform physical maintenance on real estate

EXEMPTIONS RELATED TO RESORT "TIME SHARE" PROPERTY All of the exemptions just covered do not apply if the real property involved is "time share" property. The ONLY individuals exempt from licensure requirements in the case of time share property are:

-the owner of the property -full-time employees of the owner

If a firm (or an affiliated licensee of the firm) uses an UNLICENSED person or a person with an INACTIVE license in a support position, Commission rules require three (where applicable) specific written agreements be created. The firm must:

1. enter into a written agreement with the SUPPORT PERSONNEL specifying any duties the support personnel may undertake on behalf of the firm or an affiliated licensee of the firm, and the tasks that support personnel are prohibited from performing on behalf of the firm or an affiliated licensee of the firm 2. if applicable (when the support personnel are employed by an affiliated licensee), enter into a written agreement with the AFFILIATED LICENSEE authorizing the use of the support personnel, and specifying the duties the support personnel may perform and the duties the support personnel may not perform; and approving any compensation arrangement the affiliated licensee has with the support personnel 3. f applicable (when the support personnel are employed by an affiliated licensee), ensure that the AFFILIATED LICENSEE of the firm and the SUPPORT PERSONNEL have entered into a separate written agreement specifying the duties that the support personnel may perform and those duties the support personnel cannot perform; and the compensation agreement the affiliated licensee has with the support personnel

In order to receive a salesperson's license in Georgia, a person must be _____ years old.

18

Associate broker

An associate broker is someone who: has met the same qualifications as a broker, but works for and acts on behalf of another broker. An associate broker may change his/her status to broker by simply filing the necessary forms with the Commission and paying applicable fees.

The members of the Georgia Real Estate Commission are _____. elected appointed by the Senate nominated by the Commission appointed by the Governor

Appointed by the governor

The Commissioner's powers and responsibilities are delegated by the _____.

Commission

The Commissioner's salary is set by the _____.

Commission

Prelicense Requirements

In order to receive a salesperson's license, a candidate for licensure must: -be 18 years of age or older (The licensing exam may be taken at 17.) -be a resident of the state of Georgia at the time of activation of the license (unless applying for non-resident licensure) -be a high school graduate or have a certificate of equivalency -furnish proof of successful completion of at least 75 instructional hours of instruction or course of study approved by the Commission -pass a state exam after completing the educational requirements above -no more than 60 days before making application, secure a certified criminal history report (available from most sheriff or police departments in Georgia) attach the certified criminal history report to the application -submit a legible copy of one document verifying the candidate's lawful presence

Violations of the License Law Regarding Licensure

It is a violation of the license law for any unlicensed person or inactive licensee to engage in any one or more of the tasks listed earlier that qualify as acts requiring a real estate license. The Commission may issue a cease and desist order requiring the unlicensed person or inactive licensee to stop all activities requiring a real estate license. A violation of this provision is punishable by a $1,000 fine if an unlicensed person or inactive licensee violates a cease and desist order from the Commission. The Commission may impose a fine of $1,000 for each day that an unlicensed person or inactive licensee engages in brokerage activity in violation of a cease and desist order.

Real Estate Commission term

Members serve a 5-year term. The terms are staggered so there is normally only one vacancy per year. Members serve until their successors are appointed and qualified. A member must recuse himself/herself from voting on matters in which the member has a conflict of interest. Vacancies due to unexpired terms are filled by the Governor. (No Senate confirmation is required.)

Ministerial acts

Ministerial acts are tasks that do not require the discretion or judgment of a real estate licensee. For example, setting up a closing date for a licensee with a closing attorney is considered a ministerial task.

Determination of Fees

The Commission is authorized to establish the amount of any fee which it is authorized by law for the Commission to charge and collect. According to the license law, these fees must: be reasonable approximate the cost of the operations to the Commission

Enactment of The license law

The legal basis for the license law is derived from the state's police powers. The license law is contained in the Official Code of Georgia (O.C.G.A.) in Title 43, Chapter 40. You may find a link to the complete text of the license law at www.grec.state.ga.us. The license law concept has been tested in courts in other states and found to be constitutional.

Appointment of Commissioner

The license law creates the Office of the Real Estate Commissioner. The Commissioner is: a full-time employee of the Commission the Chief Executive Officer for the Commission The Commission appoints the Commissioner and sets his/her salary. The Commissioner's powers and responsibilities are delegated by the Commission.

Post-License Course

Within 1 year of licensure (either active or inactive), the licensed salesperson must complete a Commission-approved 25-hour course. The licensee must pass an examination covering the post-license course. This exam is administered by the approved school, not the state.

Engaging in the activities of a licensed broker, associate broker, or salesperson without a license makes a person subject to _____.

a $1,000 fine

A salesperson's license is issued to and held by _____.

a broker

A licensed community association manager may work for _____.

a broker only

A licensed salesperson may work as a licensee for _____.

a broker only

To receive a salesperson's license in Georgia, which candidates for licensure are required to submit a certified criminal history report with application?

all candidates

Unlicensed personnel can _____. perform physical maintenance answer the phone secure documents that are public information all of the answers shown

all of answers shown

The operating costs for the Georgia Real Estate Commission are acquired _____.

almost entirely from fees

Anyone who receives compensation for conducting activities related to the purchase or sale or lease of real estate must _____.

be licensed

If a Commission staff member or the Commissioner is licensed, he/she must _____.

be on inactive status

Someone who receives compensation from a principal for negotiating a contract or procuring prospects for buying, selling, or listing real property is a real estate _____. professional broker salesperson agent

broker

Who may manage a branch office of a real estate brokerage?

broker, associate broker, or salesperson

The Georgia Real Estate License Law requires that the following categories of individuals be licensed to engage in activities related to the real estate business in Georgia:

brokers associate brokers salespersons community association managers

Appointment to the Georgia Real Estate Commission by the Governor requires _____. 5 years experience in real estate confirmation by the House a Georgia real estate license confirmation by the Senate

confirmation by the Senate

The sixth member of the Georgia Real Estate Commission must not be licensed but must have a recognized interest in _____.

consumer affairs

Unlicensed personnel can perform any of the following tasks EXCEPT _____. have keys made discuss the merits of a property with a buyer place signs on property assemble documents for closing

discuss the merits of a property with a buyer

The Commission will:

elect a chairperson from among its members who have served at least 1 year meet at least monthly; the Commission may hold meetings by webinar or teleconferencing if necessary file a report with the Governor every January do everything necessary to implement the provisions of the license law (Title 43, Chapter 40)

The chairperson of the Commission is _____.

elected by Commission members

The relationship of the Real Estate Commissioner to the Commission is _____.

employee and chief executive officer

To remove a member, the Governor must first:

give notice of the proposed removal hold a hearing

An associate broker may:

manage a branch office sign transfer and release forms (with the broker's written permission) when a licensee terminates affiliation with one broker and transfers to another broker

The person appointed to the office of Commissioner _____ active in a real estate business.

may NOT be

A salesperson may:

may manage a branch office may NOT sign transfer and release forms for other licensees affiliated with the supervising broker

The Commission must meet at least _____.

monthly

A person who manages property for several owners but is not involved in buying or selling property _____.

must be licensed

The person appointed to the Office of Commissioner:

must be of good moral character must not have an active real estate license If he/she is licensed, the license must be inactive. must not be actively engaged in any: real estate business (such as a brokerage), or real estate related business (such as a school); however, her/she may own investment property

The fees set by the Commission _____. require Senate approval cover only 50% of operations are limited by law must be reasonable

must be reasonable

The Commissioner (and any other employees of the Commission):

must place their licenses on inactive status if licensed are exempt from any fees while on inactive status as employees may return to active status when no longer employed by the Commission

When is a real estate licensee allowed to pay a referral fee to an UNLICENSED party?

never

The Georgia Real Estate Commissioner has _____.

no voting rights

Before a Commission member may be removed by the Governor, the member must receive _____.

notice of proposed action and a hearing

Under the Georgia license law, certain individuals are exempt from licensing requirements even though they may perform the services of a broker. (See O.C.G.A. 40-43-29.) The exemptions to licensing include:

owners of real estate or spouses of owners in dealing with their own property owners of property management companies full time employees of a property owner if the employee handles property ONLY for that one owner an attorney-in-fact under a duly authorized power of attorney to carry out a specific real estate transaction an attorney at law (a lawyer), when services related to a real estate transaction are performed as a part of and incidental to professional duties for a client

Under the authority of the Georgia license law, the Commission is given a number of powers and responsibilities. The most important of these include:

passing rules and regulations to implement the license law setting fees issuing licenses insuring compliance with the license law, its rules and regulations, and fair business practices appointing a Commissioner initiating investigations into improper conduct investigating charges from the public on improper conduct

The legal basis for the Georgia license law is derived from the state's _____.

police power

The purpose of the Georgia real estate license law is to:

protect the public against incompetence or dishonesty in real estate transactions enhance standards for brokers, salespersons, and community association managers protect licensees from improper or unfair competition

A person must be 18 years old in Georgia in order to _____.

receive a salesperson license

Whenever a Commission member encounters matters in which the member has a conflict of interest, the member must _____.

recuse him/herself from voting

Which of the following is NOT a purpose of the Georgia real estate license law? protect the public against incompetence enhance standards for brokers and salespersons regulate commission rates protect licensees from unfair competition

regulate commission rates

Someone who acts on behalf of a broker to assist in negotiating contracts, or procuring prospects for buying, selling, or listing real property is a real estate _____.

salesperson or associate broker

The Georgia Real Estate License Law requires a license for _____. salespersons only brokers and salespersons only brokers only salespersons, associate brokers, brokers, and community association managers

salespersons, associate brokers, brokers, and community association managers

community association manager

someone who acts on behalf of a broker to provide only community association management services, including: collecting, controlling, and disbursing funds obtaining insurance arranging for maintenance of the property overseeing daily operations of the association A community association manager must perform these services on behalf of a broker.