Real Estate Course Level 25

Examples of License Violations

That whole investigation and hearing thing sounds like the complete absence of fun, right, Yoni ? Let's take a look at some common examples of license law violations so you know how to stay out of hot water. It's against license law to do stuff you're not qualified for: . practice or attempt to practice real estate without the proper license (It's a misdemeanor!) . practice real estate in another state for which you don't have the proper license or qualifications. . employ or otherwise pay an unlicensed person to perform duties that require a license (with very limited exceptions). . perform the acts of a broker without having a broker license, whether or not your broker permits it. It's against license law to discriminate: . violate fair housing law by discriminating based on any of the seven federally protected classes (race, color, religion, sex, disability, familial status, and national origin), which can take the form of: . offering different terms, conditions, or services to different groups of people . refusing to rent or sell to an otherwise qualified person based on their membership in a protected class. . creating or circulating any notice or advertisement that states or implies a discriminatory preference . claiming that real estate is unavailable to view, rent, or buy, when in fact it is available. . blockbusting: attempting to induce sales by claiming that property values or other qualities of a neighborhood will decrease due to minorities in the area. . steering: suggesting certain neighborhoods or discouraging others based on the identity of the client. It's against license law to omit or misrepresent facts: . engage in false advertising, including any misleading representation of properties or services. . fail to make the required written disclosures in a transaction. . claim or give the impression that you are representing a broker when you do not have that broker's consent. . act as both an agent and a principal in the same transaction without disclosing it. . guarantee that someone will turn a profit from reselling a property. . represent that your price opinion is an appraisal (unless you are also a licensed appraiser). . engage in personal real estate activities without letting your broker know . lie about a material fact. It's against license law to mishandle money: . fail to properly account for other people's money while it's in your possession. . commingle your money with other people's money. . hold others' money anywhere other than a separate, federally insured account at a financial institution (unless the parties agree to a different arrangement in writing). . accept payment or commission from anyone other than your sponsoring broker. . accept a rebate, fee, or gift as a reimbursement from the principal for expenditures you made on the principal's behalf. . take an unreasonably long time to (or fail entirely to) deposit funds with your broker after receiving them fail to get the written agreement of the parties concerning the payment of interest earned on trust funds. . pay a commission or fee to a license holder who is representing another party in the transaction (unless all parties are informed and consent to it in writing). . accept a bonus without your broker's permission. . submit to GREC a check returned unpaid. . fail to monitor and correct any discrepancy in a trust or escrow account. . maintain a trust fund that you haven't registered with GREC. . maintain a trust or escrow account that you have not identified as such to the bank. . take more than three business days to deposit earnest money (unless a different deadline is specified in the contract). It's against license law to break referral rules: . pay another broker for a principal referral via a fee, gift, or commission . accept any form of payment for referring any product or service to a principal . fail to disclose that consideration will be received for a referral. . pay a referral fee to an unlicensed person It's against license law to be negligent: . leave a For Sale sign up for 10 or more days after a listing expires. . fail to give your principal a copy of the listing agreement. . fail to give copies of transaction documents to the involved parties. . take an unreasonable amount of time to deliver purchase agreements or offers to the intended party. . fail to include the financing terms in a sales contract if a financing contingency is present. . create a written listing agreement without an expiration date. . inputting the wrong terms or deposit amounts in a lease or sales contract. It's against license law to withhold information from GREC: . take more than 10 days from the conclusion of a court hearing to notify GREC of the final disposition of any civil, administrative, or criminal action against you. . fail to make the following changes known to GREC via written communication within 30 days: . a change of address. . opening or closing a trust account. . transferring to a new company. . leaving your firm to go inactive. . affiliating with a new company. . applying to go inactive. . responding to a written inquiry from GREC, such as a request for additional information for an application filed with them. . change your mailing address, residential address, or email address without notifying GREC of the change in writing within one month. It's against license law to act unethically: . try to sell or lease property without the owner's knowledge or consent, or to sell or lease it under terms they didn't agree to. . put up a For Sale or For Rent sign without permission from the property owner or their agent . pressure someone to break their contract or brokerage agreement. . ignore a party's exclusive written brokerage agreement in order to try to sell or lease property . represent more than one party in the same transaction without getting all parties' written consent first. . put a cloud on a title by creating a false lien act dishonestly, incompetently, or otherwise not in the interest of the public. . secure a sales contract, lease, or brokerage agreement when you know or suspect that another broker has an exclusive brokerage agreement (except in cases where you have written permission from that broker). . falsify any real estate document, such as a contract. . fail to disclose agency relationships promptly. . pressure someone to change another licensee's fee or commission without that licensee's prior written consent. . do business under a different name than the one you used to register with GREC. . transfer to a new brokerage without returning property belonging to your previous broker.

Education, Research, and Recovery Fund

The Real Estate Education, Research, and Recovery Fund was created by the Georgia Real Estate Commission to meet a few financial needs. What the Fund is For: First, the money in this fund is used to compensate consumers (with the exclusion of bonding companies, sorry y'all) for losses that were caused by license holders who violated the license law or regulations. Additional money from the fund can be used for expenses related to conducting real estate research or improving education for real estate professionals in the state. Who Funds the Fund?: Remember those license application fees we talked about earlier? Well, out of every fee, $20 is contributed to the Real Estate Education, Research, and Recovery Fund. The fund has to keep a balance of at least $1 million at all times to ensure that there is enough money to meet demands. If the amount GREC collects from license application fees isn't sufficient and the balance drops below a cool million, the deficit has to be made up by charging a $30 annual assessment charge with each license renewal. So you'll be paying a little into this fund when you apply for your first license, and you may be contributing a little more at renewal time if needed. Like most other large sums of money kept safely in an account, the Real Estate Education, Research, and Recovery fund has the potential to earn returns. These investment returns go straight to real estate education and research, not recovery claims. Limitations on Collecting: Of course, there are some rules set in place to organize claims. Any aggrieved person who's making a claim against a license holder has to obtain judgment against that licensee from a court of competent jurisdiction. Also, the statute of limitations applies here: The aggrieved person must make a claim for their loss within two years of the incident. The fund can be used to pay out actual and compensatory damages alike, depending on the situation. The maximum amount that can be taken from the fund per transaction - regardless of the number of people who were harmed - is $25,000. No one has or will get more than that amount from the fund for a single judgment, barring any changes to the official policy. There is also a limit on how much the fund will pay out on behalf of one license holder. It's $75,000 tops. The fund can't be used to compensate parties (no matter how many there are) for any amount over the combined total of $75,000 for one license holder's mistakes or bad behavior. Payback Time: The Real Estate Education, Research, and Recovery Fund sounds like a nice, inexpensive insurance policy for licensees, right? Not so fast! The fund shouldn't be viewed that way. First and foremost, it's not exactly taking care of those claims for you. If a claim is made against you, the fund may pay that person for their losses. But you have to pay the fund back in full, plus interest. In an indirect way, you're paying that aggrieved party, and GREC's fund is gonna be your lender. To make matters worse for a licensee who breaks the rules, they will have their real estate license automatically revoked when the fund pays a settlement of judgment in their name. If the judgment is against a firm and not an individual, the qualifying broker's license is immediately revoked. A licensee in this situation can't apply to be relicensed until they repay the fund with interest. Even if the licensee files for bankruptcy, they can't escape this requirement to pay the fund back. Let's review: in file (RecoveryFund)

Level Assessment b) every four years. A real estate license must be renewed every four years.

A real estate license must be renewed at what interval? a) every year. b) every four years. c) every two years. d) every five years.

Level Assessment b) the governor of Georgia. Although the governor appoints members of GREC, the governor is not a member of GREC.

All of the following can be members of the Georgia Real Estate Commission EXCEPT: a) a member of the general public who is not involved in real estate. b) the governor of Georgia. c) a Georgia resident who is actively involved in the real estate business. d) a real estate professional with 5 years of experience.

Chapter 4: Maintaining a License

After completing this chapter, you will be able to: . Describe the requirements for license renewal. . Recognize violations that could result in revocation or suspension of a license. Why It Matters: Getting your license is just the beginning. To stay active as a licensed real estate agent, you've gotta do two things: keep up with renewals and stay out of trouble. Let's go over the license renewal process and the law violations that could put your license in jeopardy.

Chapter 2: License Requirements and Exemptions

After completing this chapter, you will be able to: . Describe the types of real estate licensure regulated by the state. . Categorize activities that require or don't require a real estate license. . Explain how license reciprocity works in Georgia. Why It Matters: Do you need a license to manage an apartment complex? What about to sell your own house? It's important to know what kinds of real estate licenses there are, and what each one permits you to do. Practicing without the appropriate license has serious consequences. Key Terms: . purchaser . associate broker . broker . salesperson . community association manager

Chapter 1: Georgia Real Estate Licensing Law

After completing this chapter, you will be able to: . Explain the purpose of Georgia real estate licensing law and demonstrate an understanding of its basic provisions. . Define the membership requirements and responsibilities of GREC. Why It Matters: Who gets to make and enforce the rules that you will have to follow as a license holder? You'll want to learn about license law and GREC because they have the greatest influence on how you can get and keep your license. Key Term: . commission

Chapter 3: Obtaining a License

After completing this chapter, you will be able to: . List the requirements and steps for obtaining a license, including eligibility and education Why It Matters: You're taking this course right now because you want a real estate license. You're off to a great start, but there are a few more important steps to the process. Know what's coming up so you can get to business ASAP. 👔

Level Assessment d) be at least 18 and have a high school degree or an equivalent certificate. All applicants for any type of real estate license must be at least 18 and have a high school degree or an equivalent certificate

All applicants for a salesperson or community association manager real estate license MUST: a) be at least 21 and have a bachelor's degree. b) be at least 21 and have a high school degree or an equivalent certificate. c) be at least 18 and have a bachelor's degree. d) be at least 18 and have a high school degree or an equivalent certificate.

Level Assessment b) Blake is a homeowner who rents out an extra bedroom on Airbnb when there are large events happening in Atlanta. Homeowners who rent out extra bedrooms are not required to have a real estate license.

All of the following individuals must have a real estate license EXCEPT: a) Erin is a community association manager for a community association in which he is not a member. b) Blake is a homeowner who rents out an extra bedroom on Airbnb when there are large events happening in Atlanta. c) Emily earns commission by helping several landowners lease their property to retail tenants in the Savannah area. d) Thuy earns commission as an agent to first-time homeowners looking to purchase condos in the Athens area.

Quiz Level 25 c) He does not need a real estate license to do his job. Charles does not need a real estate license of any kind to act as property manager of the apartment complex. This is because he is an employee of the property owner, Anika.

Anika owns a small apartment complex. Her employee, Charles, works as the property manager of the apartments. He secures tenants, collects rent, and prepares financial reports for Anika. What can we assume about Charles? a) Charles is exempt from licensure only if he has had this job since before 2003. b) He must have a salesperson license, but he could have a broker license. c) He does not need a real estate license to do his job. d) Charles can only do this job without a license if Anika is his spouse, family member, or business partner.

Quiz Level 25 a) Ariana is the investigator, and Steve is the Commissioner. In this scenario, Ariana is the investigator, and Steve is the Commissioner. The investigator meets with the subject of the investigation and presents their findings to the Commissioner, who makes the initial decision on how to proceed with the case.

Ariana meets with a license holder to investigate a report that they have violated a license law. Ariana presents her findings to Steve, who finds it apparent that a violation occurred and refers the case to the full Commission to decide on the appropriate reprimand. Who's who? a) Ariana is the investigator, and Steve is the Commissioner. b) Ariana is the investigator, and Steve is the Investigations Area Supervisor. c) Ariana is the complainant, and Steve is the Chairperson of GREC. d) Ariana is the Assistant Attorney General, and Steve is the Attorney General.

Chapter 1 Summary

As a future real estate agent in Georgia, it's important to understand how the Georgia Real Estate Commission works — just like how an American citizen should understand how the U.S. government works, and how robots like myself should understand The Congressional Order of Electronic Beings (it's a robot thing, I don't expect you to understand, Yoni ). In Chapter 1, you learned: ✅ The purpose of Georgia real estate licensing law and its basic provisions. ✅ The membership requirements and responsibilities of GREC. In the next chapter, you'll learn about the types of activities that require a real estate license.

Salesperson Licensing Process: The License Application

As mentioned, candidates apply for licenses (any of the four real estate license types) in person, right there at the PSI testing center. Service is first-come, first-serve, Monday through Friday (and designated Saturdays) from 9 am to noon and 2 pm to 4:45 pm. Gotta respect the lunch break! 🍔 You can choose to take the exam in the morning and then return to the test center after 2 pm to get your license on the same day. If you sign up for an afternoon testing slot, you'll have to wait until the following day to get your license. If you're not in a rush, feel free to take up to a year after your exam passing date to get your license. Wait any longer, and you'll have to retake the exam. Also, you should know that the license application fee ($170) doubles for a salesperson or community association manager who fails to apply for their license within 90 days of passing the exam. So don't delay! Get that license and get down to business! Application Items: When you apply for your salesperson license, you have to bring several documents to the testing center: . Show a valid photo ID and your unsigned Certification of Accuracy (COA) Statement. You'll sign the COA in front of the staff, then they will scan it, along with your ID, into the GREC computer system. . Bring a completed Sponsoring Broker Statement Form if you have one. You submit it in person at the testing center, not via the mail. Again, this form is applicable if you have a broker picked out already, and it's necessary if you want to receive an active salesperson license. The lucky broker should sign the form confirming that you'll be working on their behalf. It must also be filled out with the brokerage firm number (NOT the broker's personal license number). If you don't submit the Sponsoring Broker Statement Form at the time of your license application, you'll receive an inactive license. . Have your payment ready for the license application fee. That means bringing your credit or debit card or getting a cashier's check or money order payable to the Georgia Real Estate Commission. The fee is $170, and it's not refundable. No checks, please! You won't have to pay another license fee for about four years, so that's nice. The applicant has 3 months after passing the exam to pay the fee. If done after 3 months, the fee doubles to $340. . Submit your certified Criminal History Report issued by the Georgia Crime Information Center of the Georgia Bureau of Investigation. You can get one at most sheriff's offices or police stations throughout the state. There is generally a fee associated with this report, and you'll be responsible for paying it. You'll need to get your hands on this report before you apply for your license, obviously, but be careful not to get it too far in advance of your exam and/or license application day. If the report is more than 60 days old, it's no good. There's a chance your Criminal History Report will show that you have a record in another jurisdiction. If this is the case, you'll have to provide for any fingerprints, authorization, or fees that the Commission needs to get a Federal Crime Information Center report from the Federal Bureau of Investigation. If you do have a criminal conviction on your record, you won't necessarily be disqualified from licensing. Supply GREC with a certified copy of the citation or accusation, as well as a copy of the sentence you served. GREC may request other related documentation, and they will use this info to decide whether to accept or deny your application. . Last but not least, bring your signed and notarized Lawful Presence Affidavit.

Associate Broker Licensing Process

As you'll probably remember from the last chapter, associate brokers have to meet all the same education, experience, and testing requirements as regular brokers. So, the licensing process for an associate broker is essentially the same as it is for a broker. The difference is that an associate broker will get their active license by securing a sponsoring broker and identifying them as part of their application like a salesperson would.

Quiz Level 25 d) Ravi is 30 years old and has been a licensed salesperson for the past 4 years. He took a 60-hour broker pre-license course. The only qualified applicant is Ravi. He is at least 21 years old, has held a license for at least 3 of the past 5 years, and he took a 60-hour broker pre-license course.

Based on the information given, which of these people is qualified for a broker license? a) Nadia is 37. She's been a licensed salesperson for the past 5 years. She took a 50-hour broker pre-license course in another state. b) Madeline is 20 years old. She has been a licensed salesperson for the past 2 years. She took a 60-hour broker pre-license course. c) Andrej is 48 years old. He has been a licensed CAM for the past 10 years. He took a 60-hour broker pre license course. d) Ravi is 30 years old and has been a licensed salesperson for the past 4 years. He took a 60-hour broker pre-license course.

Brokers and Associate Brokers

Brokers and Associate Brokers Let's go into a little more detail about what each of these license types allow a person to do, and what is required for an applicant to qualify. Brokers: In order to become a licensed broker, you must hold an active real estate license (as a salesperson, for example) for at least three years out of the previous five years to qualify for the exam. We'll go deeper into the actual testing and application process later. For now, know that a broker license is required if a person wants to perform a real estate act for someone else and will receive (or expects to receive) compensation for that service. Real estate activities performed by a broker can include: . Giving consultations regarding real estate . Collecting rent . Negotiating or otherwise helping with the listing, purchase, sale, rental, leasing, or exchange of real estate . Selling timeshare intervals for compensation . Advertising that they work in real estate . Engaging in property management or community association services . Auctioning real estate . Acting as a referral agent for real estate transactions . Accepting advance fees (other than advertising fees) for promoting sales in listing publications Whew! That's a long list. Broker license holders are authorized to provide a lot of different services directly to clients. Anyone who is interested in those services can enter a brokerage agreement. According to license law. "Brokerage agreement" means 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. Associate Brokers: An associate broker has the same qualifications as a broker. They even take the same coursework and the same qualifying exam. The difference is that an associate broker opts to work under another broker and does not supervise agents. Associate brokers cannot perform real estate acts independently on their own behalf.

Level Assessment d) the last day of the license holder's birth month on the fourth year of the license cycle. All continuing education hours be completed before the license expires, which happens on the last day of the license holder's birth month on the fourth year of the license cycle.

By what date must all continuing education hours be completed? a) November 1st of the 3rd year of the license cycle. b) October 1st of the final year of the license cycle. c) December 31st of the final year of the license cycle. d) the last day of the license holder's birth month on the fourth year of the license cycle.

Level Assessment d) Claire must submit the Application for Reciprocity. As a non-resident, Claire must submit the Application for Reciprocity before practicing real estate in Georgia.

Claire is an out-of-state salesperson from Alabama. What must she do in order to be qualified to practice real estate in Georgia? a) Claire will need to pass the Georgia Supplement Exam. b) Georgia recognizes all out-of-state licenses, so Claire does not need to do anything in order to practice real estate in Georgia. c) Claire will need to ask her broker to send the Transfer Licensure form to GREC. d) Claire must submit the Application for Reciprocity.

Quiz Level 25 a) She must catch up on continuing education requirements, pay a fee, and have her broker give written notice to GREC. To go from an inactive license to an active license, Daisy must catch up on continuing education requirements, pay a fee, and have her broker give written notice to GREC. Next Page

Daisy's associate broker license has been on inactive status for the past 2 years while she traveled the world. (Lucky!) Now that she's back in Georgia and wants to return to real estate, what steps must she take? a) She must catch up on continuing education requirements, pay a fee, and have her broker give written notice to GREC. b) She must re-take the broker licensing exam, pay a fee, and have her broker give written notice to GREC. c) No action is required unless her license has been inactive for 4 years or longer. d) She can simply mark herself as active on the online system and submit payment for the fee.

Quiz Level 25 b) She should get a CAM license if she wants to save time. The CAM pre-license course is 25 hours, and the salesperson pre-license course is 75 hours. Desiree should get a CAM license if she wants to save time. The CAM pre-license course is 25 hours, and the salesperson pre-license course is 75 hours. Exam and application fees are the same for each. Also, the CAM exam is shorter.

Desiree wants to be a community association manager. She knows she will need either a salesperson license or a CAM license. Which one should she get? a) She should get a salesperson license if she wants to save time. The salesperson pre-license course is 25 hours, and the CAM course is 60 hours. b) She should get a CAM license if she wants to save time. The CAM pre-license course is 25 hours, and the salesperson pre-license course is 75 hours. c) She should get a salesperson license if she want to save money. The exam fee for the salesperson test is $200, and the CAM exam fee is $121. d) She should get a CAM license if she wants to save money. The application fee for salespersons is $170, whereas the fee for CAMs is $75.

It's GREC to Me

Every upstanding profession comes with its own regulatory body. Let's say you were a magician. Then you would probably want to pay attention to any decisions made by the Alliance of Magicians. 🎩 Here's an interesting one: Sect 1011.12: The term "trick" shall not be used to describe what is clearly an illusion and its use is punishable by a $1,000 fine Well, it's the same way with the Georgia Real Estate Commission (GREC, or, the Commission). The Commission is the regulatory body responsible for regulating the brokerage industry and licensing real estate practitioners. You know, the whole reason you are currently taking this course is because it is required by GREC. GREC has already affected your life! So, don't you think it's right if you learn a bit about what they do? GREC Responsibilities: GREC administers the real estate license law relevant to brokers, salespersons, and community association managers in this state. The license law we're talking about is Title 43, Chapter 40 of Georgia Statutes and Codes, to be specific. It's the law that standardizes processes and expectations within the real estate industry to improve outcomes for everyone involved. GREC is also responsible for: . Maintaining licensee records and compiling reports . Regulating the initial licensing and license renewal process for real estate professionals. . Investigating license violations and imposing sanctions. The Public Interest: GREC does these things in order to meet its goal of protecting the public interest. You see, GREC's not here to protect you and your real estate colleagues. It's not designed to protect consumers, either. It's a neutral group whose interest is in the greater good of the public (that's everyone!). So what is the public interested in? Justice and equal opportunity! GREC aims to achieve this by: . Only permitting scrupulous and competent people to practice real estate. . Keeping the real estate industry reasonably accessible to all kinds of people. . Generally staying out of private disputes. . Never using the law to advance the interest of private trade associations. . Encouraging free and open markets. . Remaining neutral and impartial.

CAM Licensing Process: The Exam and License Application

Exam Content: The CAM exam is made up of 48 multiple-choice questions, which you will have two hours to complete. There isn't a national portion of the exam. (In fact, only nine states in the country regulate community association manager licenses). Some of those test questions will involve the simple recall of facts, and others will ask you to apply concepts you've learned or analyze different scenarios. Test takers will want to study the following topics: . property law . law of agency . Georgia real estate license law . forms of real estate ownership . contracts and transaction documents . real estate instruments and conveyances . financing and accounting Exam Scoring: As with the other real estate exams we've covered so far, the passing score for any given CAM test is determined by subject matter experts who analyze the difficulty of the questions. After the exam, test takers receive a score report that tells them how they did. Those who pass get the coveted Certification of Accuracy Statement, which should be presented - along with all the other required documents - to the PSI staff in exchange for a license within 90 days to avoid that doubled license application fee. Broker and Fidelity Bonds: Like salespersons, community association managers need to work under the supervision of a sponsoring broker. The CAM's broker needs to have a fidelity bond: a type of insurance policy that can cover losses that result from an employee's dishonest or fraudulent acts. Specifically, we're talkin' about protection for the funds being handled by the broker and/or CAM as they go about managing the community association. This fidelity bond requirement can be waived if the broker collects, controls, or distributes less than $60,000 in funds. 💰

License Violations

Forgetting to pay your renewal fees isn't the only way you can lose your license. Your privilege of holding a real estate license can be revoked by the Georgia Real Estate Commission at any time if you break the rules. Request for Investigation: GREC has the authority to investigate any applicant or licensee who they believe may be unfit for licensure. If a violation of license law is suspected, GREC steps in. This applies to brokers, associate brokers, salespersons, community association managers, unlicensed people acting as brokers, and even the real estate schools and instructors it approves. That includes me, too! Not GREC's Problem: There are limits to the issues that GREC can and will handle, of course. They're not the police. If someone breaks a law outside of real estate license law, that should be addressed through the general law enforcement channels. And although real estate related conflicts about earnest money, property repairs, and fee payments sound like they might be GREC's business, such things are actually controlled by the law of contracts. The parties can get attorneys and small claims court involved as needed. Even if a complaint is fit for a GREC investigation, the aggrieved party should get an attorney when financial losses are involved. Filing a Complaint: If a concerned person makes a written request to GREC about a license holder's wrongdoing, GREC has to investigate the complaint. Members of the public fill out and submit the Request for Investigation form to get the process started. It's a simple, one-page form that includes the requestor's info, the info of the subject of the investigation, space for a brief summary of the issue, and a section to have the form notarized. The sender should also attach copies of any relevant documents to support their complaint. Unless GREC decides that a formal hearing will be necessary to address the issue, the name of the person who submitted the investigation request will stay confidential.

Impartial Enforcement

GREC enforces laws regarding real estate, and their goal is to do so impartially, with an eye towards the public interest. How do they do it? In their own words, the members of GREC and its staff must: . understand the attitudes and actions of both consumers and licensees in brokerage transactions and in their relationship with the Commission while relying on their experience as consumers and licensees to provide background for this understanding and to render fair and impartial treatment. . make judgments and reach conclusions only after careful review of all relevant facts and opinions regarding allegations of wrongdoing and recommend modifications to the existing laws or new laws or regulations. . supervise and administer the regulatory and disciplinary powers of the license law to provide that licensees and the public receive due process rights. . generate rules and regulations that are reasonable, within the limits of the legislative law, and economically feasible to administer and enforce. . communicate with licensees and the public to assure the appropriate dissemination of the laws and to obtain opinions and concerns regarding the nature and content of the laws. . develop policies and procedures that are administratively feasible and not unduly burdensome to the public and licensees. . respect and consider all opinions and views concerning the nature of the laws and their administration. . express opinions on matters of conscience and policy in appropriate forums. . cooperate with their colleagues in the real estate community to improve the level of professionalism and knowledge concerning the nature and transaction of real property.

Quiz Level 25 b) by securing a sponsoring broker and identifying them c) as part of their application. An associate broker will get their active license by securing a sponsoring broker and identifying them as part of their application like a salesperson would.

How does an associate broker applicant get their active license? a) by holding their inactive license for a period of 6 months. b) by securing a sponsoring broker and identifying them c) as part of their application. d) by specifying on their application that they would like an active license. d) by sponsoring one or more licensed salespersons.

Quiz Level 25 b) It's funded by fees paid by real estate license holders and applicants. The Real Estate Education, Research, and Recovery Fund is funded by fees paid by real estate license holders and applicants.

How is money collected for the Real Estate Education, Research, and Recovery Fund? a) It's funded by penalty fees paid by license holders who violated rules. b) It's funded by fees paid by real estate license holders and applicants. c) It's funded by Georgia residents via taxpayer dollars. It's funded by dues paid by members of the Georgia d) Real Estate Commission.

Level Assessment d) four years. The real estate license renewal cycle for Georgia associate brokers is four years.

How long is the real estate license renewal cycle for Georgia associate brokers? a) three years. b) two years. c) one year. d) four years.

Level Assessment a) 36 total hours, 3 of which must be regarding license law. To renew their license, a salesperson needs to take 36 total hours of continuing education, 3 of which must be regarding license law.

How many hours of continuing education does a salesperson need to take every four years in order to renew their license? a) 36 total hours, 3 of which must be regarding license law. b) 6 total hours, 2 of which must be regarding laws, rules, and court cases in real estate. c) 2 hours on laws, rules, and court cases in real estate. d) 40 total hours, 4 of which must be on fair housing.

Level Assessment a) 75. Salesperson applicants are required to successfully complete 75 hours of pre-licensure education.

How many hours of pre-licensure education are salesperson applicants required to successfully complete? a) 75. b) 14. c) 60. d) 90.

Level Assessment d) 6. There are six members in the Georgia Real Estate Commission. Five are engaged in the real estate industry, and one is not.

How many members are there in the Georgia Real Estate Commission? a) 12.. b) 10. c) 3. d) 6.

Quiz Level 25 c) 6 members: 5 with real estate experience and 1 with no involvement in the industry. GREC is made up of six members who are Georgia residents. Five must have at least five years of real estate experience, and one must be someone who has an interest in consumer protection, but no business ties to real estate.

How many members make up the Georgia Real Estate Commission? a) 6 members: 3 with real estate experience and 3 with no involvement in the industry. b) 8 members: 6 licensed brokers and 2 salespersons. c) 6 members: 5 with real estate experience and 1 with no involvement in the industry. d) 8 members: 6 with real estate experience and 2 with no involvement in the industry.

The Takeaway

I really outdid myself with the lengthy lists of things to learn in this chapter, didn't I, Yoni ? Sorry about that. It's just that I really want you to know all the steps for renewing your license when the time comes, and I want you to be very aware of all the license violations to avoid. Congrats on another level completed. I think you're gonna have a long career in real estate, full of many memories and many renewals. 🎉 In Chapter 4, you learned: ✅ The requirements for license renewal. ✅ How violations can result in revocation or suspension of a license. In the next level, you'll learn more specifics about real estate practices in Georgia. You wanna ace the state portion of the exam, right?!

Broker Licensing Process: The License Application

I'll spare you the details on the whole process (most of it is the same as the salesperson application process), but here are the important ways in which the broker license application steps are different: . Brokers can only get an active license at the PSI testing center if they are affiliating with a firm as an associate broker. Otherwise, they can only get an inactive license. You can't get an active broker's license directly from the testing center. . Any broker who applies for a new firm license needs to submit the Open A Firm application to the Georgia Real Estate Commission after getting their license . Brokers who plan on being the qualifying broker of an existing firm have to submit the Change of Qualifying Broker application to GREC after receiving their broker's license. . Like salespersons, broker applicants need to apply for their license within 12 months of passing the exam, but they DON'T have to apply within 90 days to avoid a doubled application fee. 💸

Salesperson Licensing Process: Receiving Your License

If you bring all the necessary application items and are approved by GREC, you get your Georgia salesperson license! More specifically, you'll receive a couple of certificates that are a good size for hanging on a wall (Picture that!) and a couple of pocket-sized license cards for carrying around. One of each will go to your brokerage firm, and one of each is for you to keep. Your sponsoring brokerage firm needs to keep at least one of these as proof of your affiliation for as long as you work under that brokerage. And remember: You MUST wait until you are officially licensed - no sooner - to engage in the practice of real estate in Georgia. Don't start advertising or claiming to be an agent until that license is in your hand. Here's a handy guide to the whole salesperson licensing process: in file (GASalespersonLicense_Checklist) Broker Becoming a Salesperson: That's it for the salesperson licensing process! But before we move on, I want to mention how it works when a licensed broker or associate broker wants to switch to holding a salesperson license. The broker or associate broker simply has to surrender their broker license and apply for a salesperson license. They don't have to take the salesperson exam. And if a broker-turned-salesperson wants to change back to being a broker or associate broker at some point? No exam is required. 🙏

Lapsed Licenses

If you don't renew your license before its expiration date, it lapses. This graphic explains the reinstatement requirements. in file (RenewingLapsedLicense)

CAM Licensing Process: Education and Test Application

If you're keeping score, you know there is one more license type that we have to talk about: the community association manager license. Remember: Any aspiring CAM who is not a property-owning member of the community they wish to manage will need a license. You can work as a CAM if you have a salesperson license, but the CAM education and licensing process is more lightweight, and therefore a better choice for those who know they're destined for the CAM life. Education Requirements: CAM candidates (CAMdidates?!) have to pass a CAM Pre-License Course from a provider that is approved by the Georgia Real Estate Commission. This is a 25-hour course, so it's quite a bit shorter than the 75-hour salesperson course. (Sorry.) And here comes another recurring theme: Applicants can skip the official course if they complete a comparable course that's at least 25 hours long and approved by another state or Canadian province. Or, you can get your education hours at a college, university, or law school. You'll need to complete at least four quarter hours or two semester hours of coursework that is based on real estate principles, real estate law, or other directly relevant subjects. Applicants just need to get a transcript to submit to PSI with the license application. Applying for the CAM Exam: The exam application process is the same for the community association manager exam as it is for the others. You can sign up online, or you may need to apply by mail if you will be attaching any transcripts or other required documentation to your application to PSI. The testing center locations, test times, exam fee ($121), payment and scheduling options, and testing center policies are the same.

Real Estate License Renewal

It doesn't matter what kind of license you have - salesperson, broker, associate broker, or community association manager - everyone has to renew their license every four years. This process can be completed online. Check the Expiration Date: There isn't a single, official License Expiration Day. (Some holiday that would be!) You get your own special expiration date - well, one that you share with roughly 1 out of 12 Georgia license holders. Your license will expire on the last day of your birth month. The year will be listed on your license pocket card. The Georgia Real Estate Commission will also mail a renewal notice to your broker a month or two before your license is set to expire, but it's still your responsibility to know when it's time to renew. How to Renew Your License: To prevent your license from lapsing, you'll want to meet your renewal requirements before that expiration date. It's a strict deadline with NO grace period, even if the date falls on a holiday or weekend. It's easier said than done, but don't wait until the last minute. In fact, you can renew your license up to four months before it expires. The renewal requirements are twofold: take the required continuing education hours and pay the renewal fees. Brokers have an extra step: Brokers must complete the renewal form regarding the status of their broker trust account(s) and any trust accounts the broker allows affiliated licensees to maintain. Continuing Education: Here's what the CE requirements look like: . You have to take 9 hours of CE every year, for a total of 36 hours per 4-year renewal period. You're encouraged to space it out this way rather than taking 36 hours all at once when your license is about to expire. . Of those 36 hours per renewal period, at least 3 hours need to be on the subject of license law. For the other 33 hours, you can choose from different real estate topics and find what interests you most. . No exam is required for regular continuing ed courses. Note that this is different from the 25-hour first-year post-license requirement, which does involve a test. That 25-hour course counts towards your license renewal CE requirement (yay!), but it only counts for 9 hours. . Your CE coursework has to be completed before your license expiration date. If it's not, your license will lapse the very next day. If you pay the renewal fee on time, you can be spared the reinstatement fee. Your license will be placed on inactive status until you finish your continuing ed. . A new agent must complete the 25-hour post-license course in the first year of licensure. 9 of the post license course hours will count towards the agent's CE requirements. Over the 3 years after the first year of licensure, the agent will need to take 27 hours of continuing education (accounting for the first four year renewal period). Continuing Ed Exemptions: A few select groups of license holders don't need to worry about completing these continuing education requirements: . U.S. military members who are actively serving are exempt. However, if they take this exemption for more than two years, a 25-hour post-licensure course may be required within 6 months of their duty concluding. . Those who were originally licensed before 1980 are excused. . Those who take acceptable college courses can count four quarter hours or two semester hours as an appropriate substitute. The classes have to relate to real estate, business, finance, marketing, or law. . License holders who want to maintain an inactive license have to pay renewal fees, but they don't have to take continuing education until they apply to reactivate the license. . Anyone who has the misfortune of living in a place that has been declared a disaster area will be granted an extended renewal period. License Renewal Fees: When you renew your Georgia real estate license of any kind, you'll be prompted to pay the renewal fee of $125. That's the price if you renew by mail. If you renew online, you're eligible for a $25 discount.

Quiz Level 25 a) Jake will have to apply for the salesperson license. Jake will have to apply for the salesperson license. He doesn't have to take a course or pass an exam in order to become a licensed salesperson. However, he will have to surrender his broker license.

Jake has his broker license, but he wants to go back to being a salesperson. What is the process for this in Georgia? a) Jake will have to apply for the salesperson license. b) Jake will have to apply for and pass the salesperson exam. c) Jake will have to take a salesperson course and pass the salesperson exam. d) Jake will have to successfully complete a salesperson pre-license course.

Quiz Level 25 b) She must submit an Application for Reciprocity and any supporting information required by GREC. She'll also need a Georgia broker. She must submit an Application for Reciprocity and any supporting information required by GREC. She'll also need a Georgia broker.

Jenyne lives in Alabama and is licensed to practice real estate there. She would like to be able to list and sell homes in Georgia, too. What does she need to do? a) She has to take and successfully pass the Georgia Supplement Exam. b) She must submit an Application for Reciprocity and any supporting information required by GREC. She'll also need a Georgia broker. c) Nothing. She can practice real estate in Georgia as long as her Alabama license is current. d) She needs to go through the same process as those applying for a new license in Georgia.

Level Assessment c) Jim must take and pass the Georgia Supplement exam. As a Florida resident, Jim must take and pass the Georgia Supplement exam before practicing real estate in Georgia.

Jim is an out-of-state salesperson from Florida. What must Jim do in order to be qualified to practice real estate in Georgia? a) Georgia does not recognize the licensure of any other state, so Jim will have to comply with all pre license requirements as a new salesperson. b) Jim will need to request his broker to send the Transfer Licensure form to GREC. c) Jim must take and pass the Georgia Supplement exam. d) Georgia recognizes all Florida licenses, so Jim does not need to do anything in order to practice real estate in Georgia.

Level Assessment a) He must immediately forfeit the exam. If a test taker is caught with any prohibited item, such as a phone, they must immediately forfeit the exam.

Justin is caught with his phone in the testing room during the licensing exam. He did not use the phone, but it rang briefly. What will happen? a) He must immediately forfeit the exam. b) He must turn the phone over to the test supervisor. c) He must keep it in his pocket, out of sight for the rest of the exam. d) He will be given a warning. If it disturbs other testers again, he will be kicked out.

Quiz Level 25 b) No, she doesn't need a real estate license to sell her own property. No, she doesn't need a real estate license to sell her own property.

Karen wants to sell her own house in Georgia. Does she need a real estate license? a) Yes, an individual needs a real estate license to sell any type of property. b) No, she doesn't need a real estate license to sell her own property. c) Yes, but it can be an inactive license rather than an active license. d) No, she doesn't need a license as long as it's been her primary residence for at least 5 years.

Quiz Level 25 c) Because Kevin didn't bring a Sponsoring Broker Statement Form, he can only get an inactive license. Because Kevin didn't bring a completed Sponsoring Broker Statement Form, he can only get an inactive license. He can activate his license later, once he has secured a sponsoring broker.

Kevin is applying for his salesperson license. He brought his ID, Certification of Accuracy Statement, payment for the fee, Criminal History Report, and Lawful Presence Affidavit. What will happen? a) Because Kevin didn't bring a certificate from his pre license course provider, he cannot get a salesperson license. b) Because Kevin didn't bring a college transcript, he can only get an inactive license. c) Because Kevin didn't bring a Sponsoring Broker Statement Form, he can only get an inactive license. d) Because Kevin didn't bring a Sponsoring Broker Statement Form, he cannot get a salesperson license.

Who is the Georgia Real Estate Commission?

Let's briefly go over who they are, when they meet, and what they can do. Members: GREC is made up of six members. Each member is appointed by the governor and confirmed by the Georgia Senate. Of these six members: . Five members must be Georgia residents who are actively engaged in the real estate industry and have been for at least five years. . One member must be a member of the general public who is NOT involved in the real estate business. This person should have a recognized interest in consumer protection and consumer affairs. This person brings an outside perspective to the group of real estate pros. GREC Make-up: . All 6 members appointed by the governor and confirmed by Georgia Senate. . Five-year terms until a successor is appointed. . Five members must be GA residents and actively engaged in real estate at least 5 years. . One member from the general public, not involved in Real estate, recognized interest in consumer protection. Terms: Each member of GREC serves a five-year term and remains in their position until the governor appoints their successor. The governor also has the power to remove any member (after proper notice and opportunity for a hearing) if they exhibit incompetence, dishonesty, or an inability to perform their duties. Meetings: The Georgia Real Estate Commission meets at least once per month. As long as four members are present (It's hard to match up schedules, ya know?), there is a quorum, meaning enough of the group is present to carry out GREC business. Some of this business may involve taking a vote. Note that a member cannot vote in matters where there is a conflict of interest. With five members being in the real estate biz, this is a possibility. GREC may welcome members of the public during these meetings. Any person or group can make a written request to personally appear in front of the Commission to present an issue. GREC will hear out three people or groups per meeting, allotting 15 minutes for each presentation or discussion. Scheduling is on a first come, first serve basis. GREC can also choose to include additional guests with five-minute slots. For matters that don't require an in-person meeting, there is a process for asking for clarification of rules, or proposing new rules or amendments in writing. The requester can submit a signed and notarized statement to the Commission, who then has 30-60 days to act on the request. GREC can return a written denial to the requester or start the process of amending, adding, or repealing the rule in question. Authority: GREC has the authority to do the following: . Hire and assess staff. . Enter into contracts as needed to perform their duties. . Issue, revoke, and suspend real estate licenses. . Set and enforce rules and regulations for licensee conduct. . Promote due process rights for consumers and licensees. . Collect fees that are reasonable and based on operation costs. (Tax dollars don't go to GREC, so they must fund their agency with fees.) These fees are deposited into the state treasury for administration and license law enforcement. . Collaborate with similar commissions in other states. The Seal: What's a commission without an official seal? GREC's got one. The official seal, when paired with the signature of the commissioner and affixed to a document, gives any record the weight of an original document. A seal is handy for signifying official documents, such as the license histories of real estate licensees.

GREC Investigations

Let's follow the journey of a Request for Investigation. Here's what happens within a few months after someone submits a concern to GREC: An Investigations Area Supervisor (IAS) looks over the request, contacting the sender if they need to clarify or gather any other information. The IAS assigns the case to an investigator. Cases will generally be assigned in the same order in which they are received. It's worth noting here that when the Commission agrees to start an investigation, it should NOT be treated as an indication that they believe a violation occurred. Also note that the Commission becomes the complainant in any investigation they take on - not the person who submitted the form. The investigator assigned to the request will get in touch with the requestor and any other people who may have useful information about the issue. The investor is also collecting evidence during this phase. Any information they collect is kept confidential. Next, the investigator works with the subject of the investigation. The two set up a meeting time that's reasonably convenient for both and allows sufficient time to talk through the complaint. Chances are good that the investigator will want to see some evidence or documentation that is relevant to the case. This could include sales contracts, listing contracts, closing statements, escrow account documents, etc. The license holder should either hand over these documents, make copies of them, or - if they don't feel comfortable providing the documents - talk to their broker or attorney. The investigator and license holder who is under investigation may set up subsequent meetings if they need more time for discussion. Once the investigator is satisfied with their findings, they hand the case back to the Investigations Area Supervisor (IAS). The IAS reviews it and makes sure that it's complete. The investigator then presents their findings to the Commissioner, leaving out the names of the parties involved in the case. This anonymity protects the parties from any potential bias, helping the Commissioner to make their judgments based on the cold, hard facts alone. The Commissioner considers the facts of the case and decides what should happen next. They could choose to: advise the Commission to close the case if it's apparent that there was no violation of the license law refer the case to the full Commission so that they can address the violation of the license law ask the investigator to continue investigating the case send the case to the Attorney General's office (generally reserved for situations in which the accused person may present an imminent danger to the public) The first two actions are the most common outcomes. When the investigator presents to the whole Commission, it's the same procedure as presenting the case to the Commissioner: facts are presented without party names or other identifying information. Then, it's the full Commission's turn to decide whether the case should be investigated further, closed, or referred to the Attorney General's office. If a case is sent to the Attorney General's office, the evidence will be evaluated for legal sufficiency. An Assistant Attorney General assigned to GREC will be responsible for this review. They can decide that the evidence is not sufficient and kick it back to the Commission, or they can escalate the case to a formal hearing.

The Budget

Member Compensation: Members of the Georgia Real Estate Commission do get some compensation for their services. They are only paid for days actually spent on meetings, working on official GREC duties, and any necessary travel time (up to one day of travel). The rate is $25 per day, plus payment for any of the member's expenses that are considered necessary and directly related to carrying out GREC business. Annual GREC Report: The Commission (more specifically, the chairperson) files an annual report of their actions and expenses with the Governor. Both houses of the General Assembly get a copy of this report, too. GREC has to file it by the second Tuesday in January, but the governor can request a preliminary report in advance of the deadline as needed. This report includes: . A summary of everything the Commission did that year . A list of staff. . A financial report showing income and disbursement of funds. . The total number of people licensed by the Commission. . A report on research and education carried out by the Commission to further its goal of protecting the public. . Plans for the coming year regarding additional research and education.

Arrive on Time with Your ID

Next is the moment I've been preparing you for: take the exam! The qualifying exam is administered by a third party called PSI. They provide testing Monday through Friday (and designated Saturdays), at 9 am and 1:30 pm. Walk-ins are not accepted, so make sure you have an appointment! Appointments can be rescheduled once without forfeiting the fee you paid as long as you do so two business days in advance. Please arrive on time and bring two forms of ID. One must be current and government issued and include your photo, name, and signature (example: drivers license or passport). A secondary ID needs to include at least your name and signature (example: credit card or social security card with your signature). If you're more than 15 minutes late or can't be admitted because you don't have ID, you'll be turned away and the exam fee won't be refunded. Testing Center Security: Security is kinda strict at these testing centers. With real estate licenses on the line, PSI just wants to make sure that the process is secure and fair for everyone. There will be video and audio surveillance equipment in use. Here's a handy list of things you cannot bring with you to the exam: . Your phone or other electronic devices (Leave 'em at home or in your locked vehicle.) . Cameras, audio recorders, or paper for note taking (This is to prevent you from recording and sharing the contents of the test with others.) . Programmable calculators with alpha keys and calculators that print or make noise . Visitors or accompaniment of any kind, including family members (They can't wait in the reception area, either.) . Weapons . Valuable items Try to bring the bare minimum: your wallet and keys. You will be provided a soft locker (a bag that can be locked shut) to stash your wallet and keys. Your personal items must fit inside the bag if you want to be eligible to take the test. You can keep the soft locker with you in the testing room, but won't be able to open it until the exam is over. If you're wearing a jacket, you'll need to leave it outside the testing room. If you're wearing a watch or hat, those will need to be stored in your soft locker for the duration of the exam. If you're wearing clothing with pockets, an administrator may ask you to pull out the pockets to prove that they're empty. Anyone who somehow manages to sneak in a prohibited item (accidentally or intentionally) and is caught with it will immediately forfeit the exam. Testing Policies . The test administrator will give you a piece of scratch paper and a pencil to use as needed during the test for notes and calculations. If you need more paper, the single sheet will be replaced so you have one page at a time. You can't take the paper out of the testing center, so be ready to turn it over to the administrator in exchange for your score report. . You can't ask anyone questions about the test content. . No eating, drinking, or smoking is allowed. . Breaks are unlimited, but any time you spend on breaks counts toward your overall time limit for taking the test. . If you attempt to cheat, break the test center rules, talk to other test-takers, or otherwise cause a disturbance, you will be asked to leave. Your score won't be recorded and you won't get a refund. License Issuance: PSI doles out the licenses right there at the test centers, so take the exam in the morning for a shot at getting your license the same day. Note your testing center's specific hours for license issuance. You have your pick of testing centers in Decatur (does not issue licenses), Duluth, Macon Marietta, Savannah, and Smyrna (does not issue licenses). If you want to bring home an active license, you'll need to bring a completed Sponsoring Broker Statement with you to the testing center. (Note: A salesperson can only be licensed under one sponsoring broker, and that broker must be active.) Haven't picked out your broker yet? No problem. You'll receive an inactive license that can be activated later. What's the Test Like? You will take the test on a computer. It will prompt you to enter your social security number and take a photo of yourself (Smile!), both for identification purposes. You can take an untimed practice test to get used to the computer if you'd like. The exam itself is made up of 152 multiple-choice questions regarding a mix of state and national topics. Expect to see questions about agency relationships, real property, forms of ownership, finance, marketing regulations, property management, and real estate math. The whole purpose of the exam is to protect the public interest, so the questions are based on topics deemed relevant to the job by real estate experts and professional educators. You'll be shown one question on the screen at a time. You can freely navigate through the questions and change your answers as many times as you want before submitting the test. You have four hours to complete it. A timer is displayed at the bottom of the screen to help you keep track of the time remaining. You can also disable it if you don't need that kind of pressure in your life.

Broker Licensing Process: Education and Test Application

Now that you know the details about how to get your Georgia salesperson license, let's take a look at how the process differs for brokers. Who knows? You might want to become a broker some day. Broker Qualifications: In addition to the basic qualifications required of anyone who wants a real estate license, broker applicants must have held an active real estate license for at least three years out of the past five years (This would be either a salesperson license or a community association manager license.) GREC will check your license history to make sure you qualify. If you got your real estate experience in another state, that's cool too. Just provide official proof of your license history from that state when you apply. That documentation should be fresh (less than one year old) and make it clear that your license was active, not inactive. Oh, and brokers have to be at least 21 years old. Education Requirements: Salespersons Becoming Brokers: Aspiring brokers have to take a Broker's Pre-License Course from a provider that is approved by the Georgia Real Estate Commission. This is a 60-hour course, so just a little shorter than the 75-hour salesperson course you're working on now. When you complete the course, your school sends that info over to GREC. As with your salesperson education requirement, the State of Georgia likes to give you a couple alternative options. A 60-hour (or longer) broker course that's approved by another state or Canadian province will most likely be an acceptable substitute. Or, you can get your education hours at a college, university, or law school. You'll need to complete at least 15 quarter hours or nine semester hours of course work that is relevant to real estate principles, real estate law, or other directly relevant subjects. Make sure to get your transcript to submit to PSI with your license application. Education Requirements: CAMs Becoming Brokers: There's some extra education involved if someone holds only a community association manager license and wants to make the jump to becoming a broker. They basically need to catch up with the salesperson education requirements (more demanding, compared to CAM requirements) in addition to taking a broker course. CAM license holders need to pass a GREC-approved 75-hour Salesperson Pre-license Course like this one or get the equivalent college credit hours: 10 quarter hours or 6 semester hours in real estate related courses. Applying for the Broker Exam: The exam application process is the same for the broker exam as it is for the salesperson exam. You can sign up online, or you may need to apply by mail if you will be attaching any transcripts or other required documentation to your application to PSI. The testing center locations, test times, exam fee ($121), payment and scheduling options, and testing center policies are the same.

Salesperson Licensing Process: Education and Test Application

Now, let's get specific, starting with the steps to get a Georgia salesperson license. Take a Pre-License Course: You're already pretty close to finishing the first step: Take a 75-hour salesperson's pre-license course. The course and provider must be approved by the Georgia Real Estate Commission. Applicants also have the option of taking college courses instead. They just need 10 quarter hours or six semester hours in classes about the principles and fundamentals of real estate, and they have to have the transcript to prove it. Law school students can qualify with the same number of credits from courses about property law or contract law. (Oh, and continuing ed or college correspondence courses won't cut it for this requirement.) Submit the Application: Next, apply for the licensing exam. You can apply for the test and schedule a time slot on the website, www.goAMP.com. The exam fee is $121, which you can pay by credit card online. You'll have to mail in your application and schedule your exam by phone instead if: . You took your 75-hour pre-license course in another state and must include your certificate of completion with the application. . You're using college credit to meet the education requirement and must include your transcript with the application. . You're a Florida resident who wants to take the Georgia Supplement Exam for reciprocity and must include your certified license history (not more than one year old) with the application. . You have a disability and would like to request special accommodations. . You want to pay the fee with a certified check or money order instead of a credit card. (Make it payable to the Georgia Real Estate Commission. No cash, checks, or rare comic books accepted.) . You've had your fill of convenience from taking Aceable. 😉

Level Assessment b) those who take acceptable college courses as a substitute. Continuing education exemptions are offered for military members, those licensed prior to 1980, and those who take acceptable college courses as a substitute.

Of the below, who is exempt from taking continuing education? a) a broker who has been consecutively licensed for 15 years and who is active in the real estate industry. b) those who take acceptable college courses as a substitute. c) an associate broker who has held dual licensure as a broker since June 1, 2008. d) a salesperson who was an office manager prior to their current position.

The Score Report

Once you've finished the exam, go see the test administrator for your score report. It will show your test results and point out any portion that you did not pass. (But I'm pretty sure you're gonna ace it!) So what's a passing score? 70%? It's more complicated than that, but that's a good thing. Rather than considering every question the same and each version of the test the same, Georgia carefully accounts for the difficulty level of each test. A subject matter expert looks at every question and determines an overall score that should be deemed "passing" based on the minimum level of performance expected by someone who should receive a license. It's called the Angoff method if you're curious. Then they use a statistical process called equating to make sure students are scored fairly in light of the varying difficulty of different versions of the same exam. For reference, a passing score could look like 109 out of 152 questions answered correctly. When You Pass...: A passing score on the exam will earn you a Certification of Accuracy Statement and a copy of the application information submitted to PSI by you or your school. Make sure that info is correct, and DON'T sign the Certification of Accuracy Statement right away. You have to sign it in front of a member of the PSI test center staff when you're applying for your license there. Want an extra copy of that Certification of Accuracy Statement to put up on the refrigerator? You can get a duplicate at the testing center for $15 or you can request one by mail for $3.50. If You Fail...: If your score report is the bearer of bad news, don't take it too hard. The license exam is really challenging! The report will point out areas you can return to and study before trying again. Reapplication instructions will also be included on the score report. You can schedule a re-take online or by phone. Taking the exam again necessitates paying the exam fee again. Veteran's Preference Points: As I mentioned earlier, veterans may be eligible for some bonus points on the licensing exam. These points aren't automatically included on a veteran's score report - there's an application process. To be eligible for veteran's preference points, the person must: . be honorably discharged . have had at least one year of active duty . have served at least 90 days during wartime To apply for veteran's preference points, you have 60 days from the test date to mail a copy of your DD Form 214 and the original score report to:PSI Candidate Services18000 W. 105th St.Olathe, KS 66061-7543 As you can see, it's a whole thing that a veteran would probably only bother with if their score fell slightly short of passing. In those cases, it's a handy bonus that recognizes the skills and service of our vets. If the application for veteran's preference points is approved, PSI will send the veteran another Certification of Accuracy Statement, this time including the extra points. The vet will go back to the testing center and use this new certificate to get their license.

Level Assessment b) have a recognized interest in consumer protection and no involvement in the the real estate industry. One member of the Georgia Real Estate Commission must have a recognized interest in consumer protection and no involvement in the the real estate industry.

One member of the Georgia Real Estate Commission MUST: a) have at least a bachelor's degree in studies related to consumer protection. b) have a recognized interest in consumer protection and no involvement in the the real estate industry. c) meet annually with the real estate agencies of neighboring states. d) have at least 10 years of experience in the real estate business.

Your Post-License Requirement

Picture yourself in the not-so-distant future. You've got your salesperson license. You worked so hard to earn it. You're busy selling homes left and right. You're sporting well tailored blazers. You don't have to worry about any more education until.... within a year?! 25 Hours of Post-License Education: Don't let your post-license requirement sneak up on you. You'll learn a lot in your first year as an agent, and you'll learn a lil' extra by taking 25 hours of mandatory post-license education (CE). The course has to be approved by our friends at the Georgia Real Estate Commission, and you have to pass the exam following the course. Gasp! A Lapse!: If you fail to meet this post-license requirement within a year of getting your first license, your license is considered lapsed, and you have to surrender it. 😱 But don't give up, Yoni . And never surrender! You can get your license reinstated. Here are a couple ways that might happen: . If you already paid for and enrolled in the course within the one year deadline, but you just didn't complete the course or exams in time, you can reinstate your license without any further penalties. You just have to make sure you complete the course within six months of your license lapsing. . If you don't get your license reinstated within six months of it lapsing, you have to pay a penalty to GREC. Oh, and you're still not gettin' out of having to finish that 25-hour course.

Exempt from Licensing

Providing basically any type of real estate related service for someone else in exchange for compensation is gonna call for a real estate license. That's the general rule. Still, there are quite a few exemptions in Georgia that excuse certain people from the licensing requirements. Get ready for 12 of them... Exemption #1: The owner of a property can manage or perform other real estate activities for their own property (or properties) without a license. Sounds obvious, right? But the exemption goes further to include full-time employees of the owner, the spouse of the owner, landlords, prospective purchasers, and general partners of limited partnership. Example: Justin owns a duplex in Edgewood, which he rents out to tenants. Exemption #2: An unlicensed individual acting as an officer of the court can engage in some real estate activities as long as it's in the context of their authority. Example: Edward is the executor of his great aunt's will and has the authority to disperse her real property as needed. Exemption #3: A person can be a referral agent in up to three transactions per year without needing a license. They have to stay out of property management and contract negotiations - nothing more complex than referring one person to another. They can't charge an advance fee, and the fee can't be paid by the person being referred. Example: Sierra is really happy with her apartment, so she suggests her friend move into the same complex. If they let the apartment manager know it's a referral, Sierra can collect a referral fee. Exemption #4: Most employees of government agencies whose jobs involve real estate activities are exempt from license requirements.Example: Eric works for the government finding offices for federal agencies to use. Exemption #5: An attorney in fact can carry out real estate business for another person (and even receive compensation for doing so) without needing a license, as long as the power of attorney was properly executed. Example: Jonathan is an attorney in fact for Malcolm. Jonathan can sign real estate contracts and other documents on Malcolm's behalf. Exemption #6: The employee of a broker can provide real estate services if supervised by that broker. Also, the property owner must have a written management agreement with the broker allowing this. Example: The owner of Vintage Apartments enters a written management agreement with her broker, Lila. Lila employs and supervises unlicensed Glen as the property manager. Exemption #7: Property managers working for extended-stay hotels don't need a real estate license, thanks to the exemption for property that is not designed for permanent occupancy. The rules here are pretty strict in defining the difference between an extended-stay hotel and a permanent residence. The stay must be less than 90 days, the agreement used must not be a lease, zoning laws must be obeyed, taxes must be paid, utilities must be included, and the guest cannot be required to give advanced notice to leave. Example: Stacey provides property management for the Extended Visit hotel without needing a license. Exemption #8: A community association manager who is a member of the association doesn't need a CAM license. Example: Lisa owns a home in a subdivision called Ivy Grove, and she's a member of the homeowner's association. She does community association management duties, but does not need a CAM license. Exemption #9: A practicing attorney can negotiate some terms of a contract without needing a real estate license. They just need to limit their involvement in the transaction to issues that are incidental to their practice of law. Example: Harish is an attorney looking over a contract for his client, who is buying a commercial building. He engages in some limited negotiations with the seller regarding the terms of the contract. Exemption #10: Similar to the attorney exemption, a licensed certified public accountant can discuss real estate matters with the parties of a transaction as long as it's incidental to the accountant's duties. Example: Christina is Jose's accountant. She explains some financial contract terms to him even though she is not a real estate agent. Exemption #11: A utility company employee can practice certain real estate activities on behalf of the company they work for. The company can be private or public. Example: Barbara, an employee of Direct Energy, negotiates easements before new power lines are put up. Exemption #12: Someone who does physical maintenance only on a property does not need a license. Example: Jennie mows lawns in a suburban neighborhood for a fee. Final Note About Exemptions: The exemptions above do not apply to: . Timeshare properties . People who have licenses . Anyone who tries to use these exemptions to evade licensure You may have noticed a theme among the many exemptions. Several of them are designed to relieve the burden from employees who encounter real estate-related tasks in the course of their normal job duties. Another key takeaway is that employees of an owner or broker can engage in property management without a real estate license. In fact, if you have a license and want to practice real estate as an employee of an owner (say, selling new build homes as an employee of the builder), you would need to surrender your real estate license.

Answer 1: Because Don's real estate license has lapsed for more than 5 years, he won't be able to reinstate it by simply paying the fee or taking continuing education. He will need to meet the education and exam requirements to apply for a new license.

Question 1: Don has his Georgia salesperson's license, but it has been lapsed for 6 years. What does he need to do if he wants to start practicing real estate again?

Answer 1: Yes, Leighton violated the license law in this situation by accepting the money. The license law states that a salesperson cannot accept payment for their services from anyone other than their broker. GREC could reprimand her for this action.

Question1: Leighton helped Juan find the perfect house to buy. Juan thought she was such an excellent agent that he offered her an envelope with a $500 cash bonus. Leighton accepted the tip and thanked him for being a great client. Was this a violation of the license law? Why or why not?

Salespersons and CAMs

Salespersons: When you get your salesperson license, you can do the same things that brokers can do, but the difference is that you must be sponsored by a broker and be performing those activities on behalf of the broker. The broker supervises your real estate activities. Community Association Managers: Like a salesperson, a community association manager can only act on behalf of a licensed broker. But what exactly is a community association? To quote the license law, 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 divisions with restrictions in management, and other forms of common interest or planned developments wherein there is a common management. A community association is sometimes referred to as a homeowners association. If you want to earn money by managing a place like that, you'll want to get the specific CAM license. People who have salesperson or broker licenses can work as community association managers, but those who hold only a CAM license cannot act as salespersons or brokers (no selling, leasing, or listing property). The CAM license requires less educational hours than the salesperson license, and also qualifies the license holder for a more limited scope of real estate activities. Community association managers are responsible for handling finances, insurance, maintenance, and other day-to-day administrative tasks for their community association. It's the kind of work that the average broker or salesperson may not be familiar with, so CAMs do well to get their own kind of training.

Broker Licensing Process: Receive Your Score

Similar to the salesperson exam, the broker exam is scored using the input of subject matter experts who carefully consider the content of the exam. They decide what an acceptable passing score should be for those specific simulation problems. Broker applicants need to pass both the information gathering and decision making sections of the test. Test takers will get their score report on site right after completing the test. Those who pass will get the Certification of Accuracy Statement and can go on to apply for their broker license at the testing center as soon as that afternoon.

Inactive Licenses

Some license holders want to take a breather from the real estate business, but they don't want to lose their license and have to get a new one when they're ready to return. Maintaining an inactive license could be the right choice for them. This involves simply making a written request to GREC to put their license on inactive status. When a person's license is inactive, they can't legally engage in any professional real estate activities. Reactivating a License: Returning from inactive to active status is easier than getting a new license. An inactive salesperson who is ready to get back in action must meet the following requirements: . Have their broker sign and submit a Real Estate Change Application to reinstate the license. . Meet any outstanding continuing education requirements, unless they already took continuing ed to maintain an active salesperson license in another state. . Pay the license renewal fee. . Notify GREC within 30 days of any address change.

The Takeaway

That was a lot of nitty gritty information, Yoni . Thanks for sticking with me. Now you know about the important steps still to come in your real estate licensing journey. This course will come to an end before you know it, so I want you to be ready to sail through those state exam and license application requirements. ⛵️ In Chapter 3, you learned: ✅ The requirements and steps for obtaining a license, including eligibility and education. In the next chapter, you'll learn about how to maintain your real estate license once you have it!

Level Assessment b) revocation. Revocation is the official cancellation of a licensee's license by the Georgia Real Estate Commission.

The Georgia Real Estate Commission cancelled Jaselle's broker license for violating real estate law. What is this an example of? a) application. b) revocation. c) suspension. d) renewal.

Quiz Level 25 b) protect the public interest. The Georgia Real Estate Commission's main purpose is to protect the public interest.

The Georgia Real Estate Commission's main purpose is to: a) generate revenue for the state. b) protect the public interest. c) protect the interests of license holders. d) recruit and incentivize new brokers.

Quiz Level 25 c) active broker licenses. The PSI testing center does NOT distribute active broker licenses. Unless the broker applicant is going to be an associate broker and has proof of the firm they will be affiliated with, the broker will receive an inactive broker license.

The PSI testing center does NOT distribute: a) inactive broker licenses. b) active associate broker licenses. c) active broker licenses. d) inactive salesperson licenses.

Broker Licensing Process: The Exam

The broker exam is quite different from the salesperson exam. Instead of answering a bunch of multiple-choice questions, you'll be responding to 11 simulation problems. Nine of these simulations will count toward your grade and the remaining two are experimental questions being considered for future exams. You won't know which is which, so try your best on all 11. You get three hours to complete the exam. The Simulations: The simulations you'll see on the broker exam will involve a variety of property types and topics (a primary issue and secondary issue) to muse over. Topics may include: . Agency relationships and property representations . Fair housing . Governmental regulations . Handling money . Training and supervision of licensees . Contracts . Freehold and leasehold property . Finance . Private restrictions . Land description and measurement . Valuation . Conveyance . Calculations . Ethical behavior Each simulation will have multiple sections made up of these basic components: . The scenario, which sets the scene by describing the area of real estate (residential, commercial, or property management) and clients involved. . The information gathering sections, in which you select all the relevant info you will need to answer the questions. . The decision making sections, in which you make judgments about the issues. The test will prompt you to choose either the single best option or multiple options from a selection of possible choices. Be careful! When they say "best option," they do mean best - other options could be acceptable but not ideal. Selecting multiple options is sometimes necessary for multi-step processes. PSI sells a sample exam if you plan on taking this test and want to get familiar with the format.

Qualifications for Everyone

The prerequisites for each type of license - broker, associate broker, salesperson, and community association manager - can vary slightly. Still, there are a few basic qualifications that pretty much everyone will need to have if they want to work in real estate in Georgia. Let's go over those first. Real estate license applicants must: . Be at least 18 years old. . Have a reputation of being honest, trustworthy, and competent. . Be a resident of the state of Georgia (unless you're applying for reciprocity, as discussed in the previous chapter). . Have a high school degree or an equivalent certificate. Check out the image below to see how the requirements for specific licenses build upon the general requirements for all license types: in file (LicensePrerequisitesVenn) A couple groups of people have a nice advantage in getting licensed: . Those who already have a real estate license from another state (whether they just moved to Georgia or only plan to do business here occasionally) may qualify to skip over some education and testing requirements. . Veterans can apply to receive veterans preference points on the licensing exam.

Formal Hearings

The process for a formal hearing of a complaint is a bit different. Let's go over it! 1. The Attorney General's office creates a Notice of Hearing to outline the charges the Commission is making. That Notice is delivered to the respondent (person who is the subject of the investigation) by the Office of State Administrative Hearings (OSAH), along with a letter describing the hearing process and the person's options. 2. The license holder can either opt into the formal hearing, or, to end the ordeal more quickly and simply, agree to a consent settlement with the Commission. Basically, a consent settlement is a deal between the accused person and the Commission in which they agree to cancel the hearing. Instead of participating in the hearing, the parties skip straight to the punishment for the violation. This could be a license revocation, license suspension, a fine, or an extra continuing education requirement, all depending on the seriousness of the license law violation. The Commission can still dismiss the charges at this stage in the process if the license holder makes their case well enough. If they don't, and if they don't agree to a consent settlement, the formal hearing is on. The accused license holder is advised to get a lawyer. 3. The hearing is scheduled to be held in front of an Administrative Law Judge (ALJ). Up until the day of the hearing, either the Commission or the license holder can file a Motion for Summary Determination with the ALJ. This gives the ALJ the green light to look at the case and make a decision without calling in witnesses. Of course, the other party who did not suggest summary determination can object to it and insist on the hearing. It's up to the ALJ to decide what's most appropriate for the situation. 4. The hearing - if it's happening - is held. They must not be very fun events. There are so many chances to avoid them! 5. After the formal hearing, the ALJ declares their initial decision. A good initial decision will include: . the facts of the case. . a statement on which laws the licensee broke, if any. . a sanction to punish the licensee OR a dismissal of the charges. 6. If the ALJ decides that the license holder has violated the law, the person has one more shot at getting their charges dismissed. The licensee can stand before the Commission to give an oral presentation and submit a written brief. The Commission makes the final decision. 7. Plot twist! Even the "final decision" can be appealed in court. This type of legal journey can stretch across many months, or even years. If you think it's exhausting just to read my summary of this stuff, do yourself a favor: follow the rules and avoid the drama!

Similarities and differences between a salesperson and a broker's licensing exam.

The similarities between the broker and salesperson exam include the test provider, sign-up process, and testing center rules. The approach to determining a passing score is the same for both exams, as is the process of getting a Certificate of Accuracy Statement to use for the license application. The main differences between the exams is the number of questions and the format of those questions - salespersons take multiple-choice questions, whereas brokers complete simulation problems.

Special GREC Roles: Chairperson and Commissioner

There are a couple of special positions related to the Commission. The Chairperson: The Commission selects one of its six members to serve as chairperson. This happens during the first scheduled meeting of the calendar year. The chairperson determines the cadence and length of meetings, and otherwise organizes the group's efforts. A vice-chairperson may also be selected to take on the responsibilities of the chairperson in their absence. The Commissioner: In addition to the six GREC members, there is a Commissioner who serves as the CEO and full-time employee of GREC. The Commissioner is appointed by the Commission members, who also set the Commissioner's salary. This role involves leading the day-to-day business of the agency and hiring investigators and other staff as needed. The Commissioner must meet GREC's standards for qualification and good moral character. Additionally, this person should not have an interest in any real estate business while serving as Commissioner. They don't need to have a real estate license, but if they do, it must be inactive for the duration of their GREC employment.

Additional Examples of License Violations

There are a few more license law violations that apply to community association managers and brokers. For CAMs, it's against license law to: . perform or attempt to perform an act that requires a broker, associate broker, or salesperson license if they only have a community association manager license. . fail to submit the following things to a community association within 30 days (or another specified date) of terminating your management contract: . complete, accurate record of all funds and transactions you handled during the contract period (unless they were previously accounted for). . any records or documents received from the community association or on its behalf. . all funds held on behalf of the community association For brokers, it's against license law to: . fail to deliver the completed closing statement to the seller at closing. . fail to deliver to the buyer the complete statement of all money received from them and how those funds were disbursed. . fail to keep all records regarding trust funds and real estate transactions for three years. . fail to give GREC requested documents. disburse funds before getting the agreement of all involved parties. . continue to allow an affiliated licensee to handle transactions after their license has lapsed for more than a month. . fail to sign a release form immediately upon personally receiving someone's request to be released from your firm, whether they are a community association manager, salesperson, or associate broker.

Types of Real Estate Licenses

There are four different types of real estate licensees in Georgia: brokers, associate brokers, salespersons, and community association managers. These real estate pros provide services to sellers (people who sell or attempt to sell an interest in land), purchasers (people who acquire or attempt to acquire an interest in land), renters, landlords, and community association members. Let's do an overview of what distinguishes each type of licensee. Broker: A broker is a person who is licensed to represent one of the parties in a real estate transaction in exchange for a commission or other valuable consideration. Associate Broker: An associate broker is an individual who meets the licensure requirements to be a real estate broker but provides real estate brokerage services as an independent contractor to a real estate broker. Salesperson: A salesperson is a real estate license holder who is associated with a licensed broker for the purpose of performing real estate brokerage acts on the broker's behalf. A salesperson can't accept compensation directly from a principal; it must come from their own broker. Community Association Manager: A community association manager is an individual who provides administrative and operational services to a community association in exchange for consideration. (If a person wants to work as a CAM, they can do so with any of these license types, but a specific CAM license is advisable.)

Disciplinary Actions

There's a whole menu of reprimands GREC can pick from if you don't conduct yourself like a license holder should: Cease and desist orders: If a licensee is acting in a way that puts the public in danger (or an unlicensed person is running around making real estate deals), GREC may need to put a stop to it immediately with a cease and desist order. This quells the issue without having to wait for legal proceedings. Additional required education: All license holders take continuing education as part of their regular license maintenance, but education hours can also be assigned as a consequence to rule-breaking. Fines: GREC can require a licensee to pay fines. The upper limits are set at $1,000 for each violation and $5,000 total for multiple violations found in one hearing. These fines may be used to reimburse GREC for expenses. Refusal to grant or renew a license: 'Nuff said. Demotions: In some cases, GREC can reprimand a broker by demoting their broker license to a salesperson license. The former broker can carry on as a salesperson, but they must be under the supervision of a sponsoring broker. Required reports: GREC can require periodic reports by an independent accountant of a broker's designated trust account. This is obviously a specific reprimand for violations involving the management of funds. License suspension: When a license is suspended, it's not valid. GREC can suspend a real estate license for indefinite periods, during which the license holder can't perform real estate activities. License revocation: This is the the official cancellation of a licensee's license by the Georgia Real Estate Commission. The licensee has to give their licenses (yes, the wall certificate and the pocket card) back to GREC. If they're a broker, they also have to turn in the licenses of their affiliated licensees, who are no longer eligible to work. And no, they don't give refunds for those now-revoked license fees. License reinstatement is an option after a license is suspended or revoked, but it involves applying for a new license as an original applicant. Brokers and associate brokers have to wait for 10 years before they are eligible to reapply! The Georgia Real Estate Commission maintains lists of people and firms that have had their licenses suspended or revoked. They're published on the website, right there for anyone to see.

Quiz Level 25 c) be at least 18 and have a high school degree or equivalent. To qualify for a salesperson license, applicants must be at least 18 and have a high school degree or equivalent. Broker applicants need to be at least 21. College degrees are not required for any real estate license type.

To qualify for a salesperson license, applicants must: a) be at least 18 and have a bachelor's degree. b) be at least 21 and have a high school degree or equivalent. c) be at least 18 and have a high school degree or equivalent. d) be at least 21 and have a bachelor's degree.

Quiz Level 25 b) Tom's license will lapse (he didn't get the course done within his first year), but he can get it reinstated by finishing the course within 6 months. Tom's license will lapse because he didn't get the course done within his first year of licensure. He can get his license reinstated by finishing the course within 6 months. If more than 6 months pass, he will also have to pay a fee.

Tom got his first real estate salesperson license exactly one year ago. He signed up and paid for a 25-hour post-license course, but he hasn't started the coursework yet. What will happen to Tom? a) Nothing. Tom has three more years until he has to have his post-license education done for his license renewal. b) Tom's license will lapse (he didn't get the course done within his first year), but he can get it reinstated by finishing the course within 6 months. c) Tom's license will be revoked. Unless he completes the course within 60 days, he will have to reapply for a license. d) Tom's license will lapse, and he will have to pay a fee to GREC in addition to completing the course within 6 months in order to reinstate it.

Quiz Level 25 b) the commissioner. Tyler must be the commissioner, who is appointed by GREC as a full-time employee.

Tyler was selected by GREC to carry out Commission business as a full-time employee. Tyler must be: a) the 1 member who does not have a business interest in real estate. b) the commissioner. c) one of the 5 members with experience in real estate. d) the chairperson.

Denied Applicants

Unfortunately, GREC must sometimes deny real estate licenses to applicants. In these cases, the applicant can make a written request for a formal hearing within 60 days of GREC's denial. If more than 60 days pass, the application lapses. At that point, the applicant has to pass the qualifying exam again and pay all the associated fees again if they want another shot. When a formal hearing is requested, a couple different outcomes are possible: . GREC may retract the denial and approve licensure of the applicant. . GREC could affirm the denial. In that situation, the person would have to re-take the exam and pay the fees again.

Level 25: Regulatory Structure in Georgia

Welcome to Level 25! We are going to learn about the agency that will issue your future real estate license. We'll also learn about the licensing requirements for real estate. This is an important topic since you're taking a course to get your real estate license. Basically, this level is all about you. Objectives: By the end of this level, you will be able to: . Explain the purpose of Georgia real estate licensing law and demonstrate an understanding of its basic provisions . Describe both the activities requiring a license, and exemptions to this requirement . Describe the types of licensure regulated by the state as well as requirements for obtaining and maintaining a license, including eligibility, education, renewal requirements, and a license change or transfer Overview: This level is approximately two hours long, which is a little shorter than the Guinness World Record for the fastest marathon run by someone without shoes. There are four chapters: Chapter 1: Georgia Real Estate Licensing Law Chapter 2: License Requirements and Exemptions Chapter 3: Obtaining a License Chapter 4: Maintaining a License

The Takeaway

Well done, Yoni . You completed another chapter, and now you're 100% wiser about what practices do and don't require a real estate license in the great state of Georgia. You took it a step further and figured out which specific type of real estate license would be required for various activities. As you get ever closer to earning your license, it's important to know what powers it bestows on you. In Chapter 2, you learned: ✅ The types of real estate licensure regulated by the state. ✅ The activities that require or don't require a real estate license. ✅ How license reciprocity works in Georgia. In the next chapter, you'll learn about the process for obtaining a real estate license. Seems relevant to your interests...

Level Assessment b) They don't need a license, but if they have one, it must be inactive for the duration of their GREC employment. The Commissioner doesn't need to have a real estate license, but if they have one, it must be inactive for the duration of their GREC employment.

What are the real estate licensure requirements for the Commissioner? a) They must have a real estate license, but it must be inactive for the duration of the GREC employment. b) They don't need a license, but if they have one, it must be inactive for the duration of their GREC employment. c) They must have an active broker's license. d) They must have either an active broker's license or an active salesperson license they've held for at least 3 years.

Level Assessment b) broker, associate broker, salesperson, and community association manager. The Georgia Real Estate Commission regulates four types of real estate licenses: broker, associate broker, salesperson, and community association manager.

What are the types of real estate licenses regulated by GREC? a) broker, salesperson, and apartment manager. b) broker, associate broker, salesperson, and community association manager. c) broker, commercial broker, agent, and community association manager. d) broker, salesperson, assistant, and office manager.

Quiz Level 25 b) The applicant can make a written request for a formal hearing within 60 days of GREC's denial. If an applicant is denied a real estate license, they can make a written request for a formal hearing within 60 days of GREC's denial.

What can an applicant do if they are denied a real estate license? a) The applicant can re-take the test and apply again, but they must wait at least two years to do so. b) The applicant can make a written request for a formal hearing within 60 days of GREC's denial. c) There is nothing that the applicant can do, as GREC's decision is considered final. d) The applicant can make a written request for a formal hearing within 6 months of GREC's denial.

Level Assessment d) the Georgia Real Estate Commission. The Georgia Real Estate Commission is in charge of administering Georgia real estate licenses.

What governing body is in charge of administering Georgia real estate licenses? a) the Attorney General. b) the National Real Estate Commission. c) the Bureau of Real Estate Licensing. d) the Georgia Real Estate Commission.

Quiz Level 25 c) The application fee is doubled. If someone fails to apply for their salesperson license or community association manager license within 90 days of passing the exam, the application fee is doubled. This rule does not apply to brokers.

What happens if someone fails to apply for their salesperson license or community association manager license within 90 days of passing the exam? a) They have to re-take the course and the exam. b) They have to re-take the exam. c) The application fee is doubled. d) They apply in person rather than applying online.

Level Assessment d) an individual who provides administrative and operational services to a community association in exchange for consideration. A community association manager is an individual who provides administrative and operational services to a community association in exchange for consideration.

What is a community association manager? a) a real estate license holder who is associated with a licensed broker for the purpose of performing real estate brokerage acts on the broker's behalf. b) a person who is licensed to represent one of the parties in a real estate transaction in exchange for a commission or other valuable consideration. c) an individual who meets the licensure requirements to be a broker but provides brokerage services as an independent contractor to a real estate broker. d) an individual who provides administrative and operational services to a community association in exchange for consideration.

Quiz Level 25 d) consent settlement. A consent settlement is a deal between the accused person and the Commission in which they cancel the hearing, and instead the accused accepts a punishment for the violation.

What is a deal between the accused person and the Commission in which they cancel the hearing, and instead the accused accepts a punishment for the violation? a) administrative settlement. b) motion for summary determination. c) final decision. d) consent settlement.

Level Assessment d) a person who meets the requirements to be a broker but provides real estate brokerage services as an independent contractor to a real estate broker. An associate broker is a person who meets the requirements to be a broker but provides real estate brokerage services as an independent contractor to a real estate broker.

What is an associate broker? a) a real estate license holder who is associated with a licensed broker for the purpose of performing real estate brokerage acts on the broker's behalf. b) an individual authorized by the state to perform appraisals, which estimate the value of real property. c) a person who furnishes a customer with information concerning the location and availability of residential rental property in exchange for a fee. d) a person who meets the requirements to be a broker but provides real estate brokerage services as an independent contractor to a real estate broker.

Level Assessment a) the official cancellation of a licensee's license by the Georgia Real Estate Commission. Revocation is the official cancellation of a licensee's license by the Georgia Real Estate Commission.

What is revocation? a) the official cancellation of a licensee's license by the Georgia Real Estate Commission. b) the requirement that a supervising broker notify the state in the event that their salesperson or associate broker wishes to terminate the association. c) the disciplinary measure resulting in the temporary withdrawal of an individual's real estate license. d) the rejection of an agreement by the person who accepted it, such as when an agent terminates an agency relationship.

Quiz Level 25 d) Both have the same qualifications, but an associate broker opts to work under the sponsorship of another broker and does not supervise salespersons. Both a broker and an associate broker have the same qualifications, but an associate broker chooses to work under the sponsorship of another broker and does not supervise salespersons.

What is the difference between a broker and an associate broker? a) An associate broker is associated with one or more salespersons, but a broker does not work with anyone else. b) A broker must have at least 3 years of experience as an associate broker before becoming a broker. c) A broker supervises salespersons on their own, whereas associate brokers team up to share that responsibility. d) Both have the same qualifications, but an associate broker opts to work under the sponsorship of another broker and does not supervise salespersons.

Quiz Leve 25 a) The salesperson exam is made up of multiple-choice questions, while the broker exam is composed of 11 simulation problems. The main difference between the salesperson exam and the broker exam is that the salesperson exam is made up of multiple-choice questions, while the broker exam is composed of 11 simulation problems.

What is the difference between the salesperson exam and the broker exam? a) The salesperson exam is made up of multiple-choice questions, while the broker exam is composed of 11 simulation problems. b) The salesperson exam is based exclusively on national laws, and the broker exam is only about Georgia laws. c) PSI administers the salesperson exam, but GREC administers the broker exam. d) The salesperson exam is timed, but there is no time limit for completing the broker exam.

Level Assessment c) to protect the public interest. The main goal of the Georgia Real Estate Commission is to protect the public interest.

What is the main goal of the Georgia Real Estate Commission? a) to recruit successful real estate professionals. b) to protect the interests of license holders. c) to protect the public interest. d) to enforce federal property laws.

Level Assessment d) The sponsoring broker supervises the salesperson. The sponsoring broker supervises the salesperson.

What is the relationship between a sponsoring broker and their salesperson? a) The sponsoring broker employs the salesperson as the office manager. b) The sponsoring broker employs the salesperson for a period of two years, at which point a change of association is required. c) The sponsoring broker is paid a fee by the salesperson in order to practice in their office. d) The sponsoring broker supervises the salesperson.

Quiz Level 25 c) every four years, by the last day of the license holder's birth month. Real estate licenses need to be renewed every four years, by the last day of the license holder's birth month.

When do real estate licenses need to be renewed? a) every three years from the date of issuance, excluding holidays. b) every four years, by the license holder's birthday. c) every four years, by the last day of the license holder's birth month. d) every three years, by the final day of the year.

Level Assessment b) investigation. An investigation occurs after a complaint is filed.

Which of these is a standard step in GREC's disciplinary process? a) the Director's judgement. b) investigation. c) court proceedings. d) summary suspension.

Level Assessment d) Billy completed 75 hours of prelicensure education, passed the state examination, and is sponsored by a licensed broker. Completing 75 hours of prelicensure education, passing the state examination, and being sponsored by a licensed broker are requirements to get your active Georgia salesperson license.

Which of the following applicants has successfully complied with the State of Georgia requirements for an active salesperson license? a) Shane passed the state examination and completed his first transaction with a good review. b) Madison is sponsored by a licensed broker and completed her first transaction. c) Adam completed 18 hours of prelicensure education. d) Billy completed 75 hours of prelicensure education, passed the state examination, and is sponsored by a licensed broker.

Level Assessment d) Only brokers may perform real estate acts independently on their own behalf. Only brokers may perform real estate acts independently.

Which of the following is TRUE about the difference between brokers and associate brokers? a) Only associate brokers must be 21 years old or older. b) Only associate brokers may receive compensation from clients. c) Only brokers are required to have at least three years of real estate experience. d) Only brokers may perform real estate acts independently on their own behalf.

Level Assessment c) Licensed brokers can receive compensation from clients. Only brokers may receive compensation from clients for real estate acts.

Which of the following is TRUE about the difference between brokers and salespersons? a) Salespersons can receive compensation from clients. b) Licensed brokers must be under the supervision of a salesperson. c) Licensed brokers can receive compensation from clients. d) Only salespersons must be licensed by GREC.

Level Assessment a) A salesperson can only be licensed under one sponsoring broker, and that broker must be active. A salesperson can only be licensed under one sponsoring broker, and that broker must be active.

Which of the following is TRUE about the sponsoring broker requirement for salesperson applicants? a) A salesperson can only be licensed under one sponsoring broker, and that broker must be active. b) Salesperson applicants MUST have an employing broker within the first year of real estate practice. c) GREC will NOT let salesperson applicants schedule their licensing exam until they have record of their sponsoring broker. d) Salesperson applicants must have an employing broker identified in order to take the licensing exam.

Level Assessment b) Montana works as a buyer's agent. Her commission is generally paid for by the sellers, not her own clients. Property management requires a real estate license unless the person is managing the property on behalf of their employer.

Which of the following is an example of someone who GREC considers to be engaging in the sale of real estate and would need a license? a) Jenna has owned and sold three of her own homes in the past twelve months. b) Montana works as a buyer's agent. Her commission is generally paid for by the sellers, not her own clients. c) Candi is an accountant who performs services to people who are in the process of selling a home. d) James invests in real estate and acts as property manager for his own properties.

Level Assessment d) All licenses have a 4-year duration that expires on the last day of the holder's birth month. All licenses have a 4-year duration that expires on the last day of the holder's birth month.

Which of the following is true in regards to the Georgia real estate licensure cycle? a) All license terms end every December 31st. b) License terms are renewed every two years on January 1st. c) License terms are renewed annually. d) All licenses have a 4-year duration that expires on the last day of the holder's birth month.

Level Assessment a) appoint and confirm new members. the Georgia Real Estate Commission does not have the authority to appoint and confirm its own members. GREC members are appointed by the governor and confirmed by the Georgia senate.

Which of these actions does the Georgia Real Estate Commission NOT have the authority to do? a) appoint and confirm new members. b) revoke real estate licenses. c) enforce rules for licensee conduct. d) create rules for licensee conduct.

Level Assessment a) mandatory periodic training requirement that licensees must complete as a condition of license renewal. Continuing education is the mandatory periodic training requirement licensees must complete as a condition of license renewal.

Which of these best describes continuing education? a) mandatory periodic training requirement that licensees must complete as a condition of license renewal. b) coursework that licensees must complete after being found guilty of committing license violations. c) online certification courses that licensees can complete in lieu of actual classroom time. d) graduate classes that licensees must complete to advance in classes of licensure.

Level Assessment b) Request for Investigation. GREC has a Request for Investigation form that a complainant can fill out.

Which of these documents would a member of the public use to file a complaint against a real estate license holder? a) Complainant's Issuance of Complaint. b) Request for Investigation. c) Appeal to GREC. d) Violation Agreement.

Quiz Level 25 a) community service. GREC may revoke or suspend someone's license or make them take additional required education, but they do not require community service.

Which of these is NOT a type of reprimand administered by GREC? a) community service. b) license revocation. c) required education. d) license suspension.

Quiz Level 25 c) It must be signed in front of a PSI staff member when applying for a license. The Certification of Accuracy Statement must be signed in front of a PSI staff member when applying for a license. Don't sign it any sooner!

Which of these is TRUE regarding the Certification of Accuracy Statement? a) It is issued to everyone who completes the exam, whether they pass or fail. b) This certificate is issued by the course provider after a student finishes pre-license education. c) It must be signed in front of a PSI staff member when applying for a license. d) Duplicate copies are not allowed, so applicants must be very careful not to lose it.

Quiz Level 25 c) broker, associate broker, salesperson, and community association manager. The four real estate license types in Georgia are broker, associate broker, salesperson, and community association manager.

Which of these is a complete list of the real estate license types regulated by the state of Georgia? a) broker, salesperson, and multifamily residence manager. b) independent broker, sponsored broker, and salesperson. c) broker, associate broker, salesperson, and community association manager. d) broker, assistant broker, agent, and homeowners association manager.

Quiz Level 25 c) License holder Tory is suspected of commingling her clients' money with her own personal funds. GREC investigates potential license law violations made by real estate license holders. They don't take cases that are governed by contract law, and they are not the authority regarding crimes outside of real estate license law.

Which of these issues is the best example of a case that the Georgia Real Estate Commission would investigate? a) License holder Poppy is accused of physically assaulting someone at an open house. b) Seller Grace failed to make the repairs to the roof that she agreed to in the sales contract. c) License holder Tory is suspected of commingling her clients' money with her own personal funds. d) Buyer Kat terminated her offer to purchase condo, and is upset that the seller won't return the earnest money.

Level Assessment c) the Commissioner. The Commissioner is a full-time employee of GREC. This person is appointed by GREC to serve as its CEO, leading the day-to-day business of the agency.

Which of these people would be a full-time employee of GREC? a) the Chairperson. b) a licensed broker. c) the Commissioner. d) the governor.

Quiz Level 25 d) Anna, who took a GREC-approved salesperson pre license course. Anna, who took a GREC-approved salesperson pre-license course, is eligible to apply for the state exam online as long as she plans to pay the fee with a credit card.

Which of these real estate license applicants is eligible to apply for the state exam online? a) Natalie, who is using college credits to meet the education requirement. b) Josh, who took an equivalent salesperson pre-license course in a different state. c) Philip, who wants to request special accommodations at the test center. d) Anna, who took a GREC-approved salesperson pre license course.

Quiz Level 25 b) the average sales price of all houses sold in Georgia that year. GREC's annual report to the governor pertains to their actions and budget as a regulatory body. It does not include information about the state's housing market.

Which of these would NOT likely be included in the annual report GREC submits to the governor? a) the number of people licensed by GREC that year. b) the average sales price of all houses sold in Georgia that year. c) a summary of actions taken by GREC that year. d) the amount of funds collected and disbursed by GREC that year.

Quiz Level 25 a) increasing the profits of brokerages. GREC enforces the license law, administers real estate licenses, and oversees the license renewal process. They are not concerned with brokerage profits.

Which one of these is NOT a responsibility of GREC? a) increasing the profits of brokerages. b) administering real estate licenses. c) enforcing the license law. d) overseeing the license renewal process.

Level Assessment d) community association manager license. The community association manager license requires the fewest pre-license education hours.

Which real estate license type requires the fewest pre-license education hours? a) salesperson license. b) associate broker license. c) broker license. d) community association manager license.

Quiz Level 25 a) wallet and keys, as long as they are secured in a soft locker. Test takers can bring their wallet and keys with them, but they must be secured in a soft locker for the duration of the exam. Phones, jackets, food, and outside note-taking materials are not allowed.

Which set of items is acceptable to bring with you into the testing room? a) wallet and keys, as long as they are secured in a soft locker. b) wallet, keys, and a phone (as long as it turned off for the duration of the test). c) a jacket and a snack. d) one piece of scratch paper and a pen or pencil.

Level Assessment c) purchaser. A purchaser is someone who acquires or attempts to acquire an interest in land.

Which term best describes someone who acquires or attempts to acquire an interest in land? a) salesperson. b) seller. c) purchaser. d) client.

Level Assessment b) neither Josh nor Matt. Neither Josh nor Matt needs a real estate license to do their jobs. Both are exempt from the real estate licensing requirement.

Who needs to have a real estate license? a) Josh, the property manager of an extended-stay hotel. b) neither Josh nor Matt. c) Matt, who does physical maintenance on residential properties. d) both Josh and Matt.

Level Assessment d) are a veteran. You can apply for additional points to be added to your licensing exam score if you are a veteran.

You can apply for additional points to be added to your licensing exam score if you: a) have a college degree. b) have held a real estate license before. c) currently hold a license in another state. d) are a veteran.

Reciprocity in Georgia

You don't have to be a Georgia resident to get your Georgia real estate license. Plenty of folks in our neighboring states (Tennessee, North Carolina, South Carolina, Alabama, and Florida) want to be able to practice real estate legally in the Peach State. 🍑 For unlicensed non-residents: If a person has no real estate license at all, they can apply for a Georgia real estate license as a non-resident by meeting the same age, education, and testing requirements as a resident. For licensed non-residents: If the applicant is already a license holder in their own state, they don't have to repeat the whole licensing process like a newbie. But they do have take several steps to earn reciprocity in Georgia: 1. Submit proof of their current (not lapsed or expired!) real estate license. 2. Pay a fee. 3. Submit the Application for Reciprocity, which is available on the GREC website. 4. Secure a sponsoring broker (unless the applicant is a broker themselves). 5. Provide any other documents or signed agreements requested by GREC. For Florida Residents: Our license-holding friends in Florida have slightly different requirements that must be met before they can practice real estate in Georgia. They can't use the Application for Reciprocity. Instead, they must take and pass the Georgia Supplement Exam. The sign-up process and administration of the exam is similar to the salesperson and broker exams - it's scheduled and conducted by a third party testing provider.The Georgia Supplement Exam tests applicants on Georgia law and real estate practices that are specific to Georgia. It includes 52 multiple-choice questions.

Selling or Buying Your Own Property

You may find yourself personally involved in a real estate transaction of your own. Maybe all those showings will get you excited to buy your first home, list your current property, or invest in properties. (Get it, Yoni !) Once you have your real estate license, it can affect the protocol for being a party to a real estate deal. When a licensed salesperson decides to buy, sell, or lease a property in their own name (or on behalf of a corporation in which they have an interest), they have to tell their supervising broker in writing. In cases where the salesperson is selling or leasing out their own property, they must get written permission from their broker for any advertisements they wish to use. (And it's worth noting here that anyone can sell or lease their own property without needing to have a real estate license.) Easy enough, right? Just keep your broker in the loop, and make that an official, written loop! ✍️

Facts of a Feather c) community association manager.

cannot sell, lease, or list property. a) associate broker. b) salesperson. c) community association manager. d) broker.

Facts of a Feather c) community association manager.

does administrative work for a homeowners association. a) associate broker. b) salesperson. c) community association manager. d) broker.

Facts of a Feather d) broker.

does not need to be supervised by anyone. a) associate broker. b) salesperson. c) community association manager. d) broker.

Facts of a Feather a) associate broker.

does not supervise other agents and has passed the broker exam. a) associate broker. b) salesperson. c) community association manager. d) broker. no

Facts of a Feather a) associate broker.

has the qualifications of a broker, but works under a broker. a) associate broker. b) salesperson. c) community association manager. d) broker.

Facts of a Feather b) salesperson.

not a broker, but can list real estate for sale on broker's behalf a) associate broker. b) salesperson. c) community association manager. d) broker.

Facts of a Feather b) salesperson.

not a broker, but can manage a community association or sell properties. a) associate broker. b) salesperson. c) community association manager. d) broker.

Facts of a Feather d) broker.

supervises salespersons and has at least 3 years experience. a) associate broker. b) salesperson. c) community association manager. d) broker.