unit27 Rules
Conduct defined by the License Law as grounds for the suspension or revocation of a license by the Commission
may serve as grounds for the denial of a license. The conduct defined by law as grounds for the suspension or revocation of a license may serve as grounds for denial of a license, whether that conduct occurred in Georgia or any other state.
Which of the following would a broker NOT have to prove in order to be excused from assuming shared liability with a licensee affiliate who violates a Law or Rule
is the broker was unaware of the violation.
An associate broker has fallen behind on child support payments with no plan in place to make up delinquent payments. In this case, the Commission
may suspend the associate broker's license. OCGA 43-40-15 gives the Commission authority to sanction a licensee who is delinquent in child support payment, without any court order to do so. The Commission is not able to issue injunctions on its own authority
The liability of the Real Estate Education, Research, and Recovery Fund for the actions of one licensee would be terminated after the Fund pays out how much money on behalf of that individual
$75,000
After a listing expires, a broker must remove any sign offering a property for sale within
10 days after the expiration of the listing. All licensees must have written permission to place a sign on any property offering it for sale or lease, and must remove any sign within ten days after the expiration of a listing.
In order to renew a salesperson license after the first four-year license renewal period, a salesperson must satisfy what education requirements?
27 hours of continuing education plus the 25-hour post-license course required by the end of the first year of licensure
The Commission's Rules and Regulations
A) carry the force of law and may be used as grounds for discipline by the Commission.
Broker James leaves his firm to work with another company. He has a transaction underway with his current firm. Which is true regarding James' situation?
Broker James' qualifying broker at his old firm must sign transfer documents and return James' license to the Commission.
Which of the following is an inappropriate relationship under BRRETA
Broker and a hazard insurance policy
With regard to the procedures the Georgia Real Estate Commission must follow when responding to an alleged violation of a licensee
Commission may impose sanctions against the offending licensee, but may not issue an injunction to prevent any further violations by the licensee
In its advertisement of a company listing, a brokerage firm misrepresents the actual terms of this property offering. Aside from violating the Laws and Rules in its fraudulent advertising, the real estate firm would also be in violation of what other Georgia statute?
Fair Business Practice Act
With regard to the organization and operation of the Georgia Real Estate Commission, which of the following is TRUE?
Five of the six Commission members must have active real estate licenses for at least five years.
A candidate for a real estate license must provide documentation to the Real Estate Commission. One of the required documents that outlines any criminal history is the
GCIC report
A broker's advertisement includes only the trade name of her franchise, her name, and her personal cell phone number. The trade name is not the firm's name as registered with the Commission. Has the broker complied with the Commission's advertising regulations
No, as the advertisement must include the name of the firm as registered with the Commission
A Georgia homeowner obtains a judgment for $25,000 against a real estate agent for damages incurred while represented by that licensee in a transaction. In this circumstance, under what conditions might the homeowner receive compensation from the Real Estate Education, Research, and Recovery Fund?
Only if the court is satisfied that the homeowner has exhausted through a writ of possession all legal means to recover the $25,000 damages
A broker advertises on a third-party website not maintained by his franchise. What must the broker do concerning outdated information in his advertisement
Provide a written notice of any updates or outdated information to the third party
The Georgia Real Estate Commission is composed of:
Six members—five industry and one non-industry
Which of the following is true regarding the selection and status of the Real Estate Commission and the Commissioner?
Unlike the Commission whose members, appointed by the governor and confirmed by the State Senate, the Commissioner becomes a state employee hired by the Commission
A broker's website advertising properties for sale includes information that has been outdated for 40 days. Is the broker in violation of Commission rules
Yes, because the broker must remove or update outdated information within 30 days
A Georgia real estate broker rents a storage unit to keep the files from all of the brokerage firm's closings. The storage unit was getting full, so the broker disposed of the files that were four or more years old. In another action later than week, the broker received an earnest money check from a buyer for a home that had been listed by the broker. As the sales contract did not indicate who would receive the interest paid by the brokerage firm's designated escrow account, the broker collected that interest sum. Under the circumstances described in this narrative, have any Unfair Practices occurred?
Yes, the broker's actions on the interest bearing escrow/trust account represents an Unfair Practice
The real estate commission's business is conducted by the real estate commissioner who is
a full time government employee who conducts the day to day activities of the department. The commissioner has no voting interests and can hire support staff.
What is true regarding the funding for the Commission's Education, Research and Recovery Fund
a primary source of money for this fund comes from fees for first time real estate licensees. Currently, the Commission requires the $20 of a new licensee's activation fee go into the Recovery Fund. If the fund falls below one million dollars, all licensees would be required to contribute up to $30 per year at the time of their license renewal. The fund may only pay out to non-licensees.
An agent with a license from another state can obtain a Georgia real estate license through
a reciprocity agreement. Reciprocity agreements have been established with states whose education requirements are similar to Georgia's requirements. Georgia may exempt a nonresident licensee from Georgia's requirements.
The Commission may impose a sanction on a licensee
after any appeal has been concluded for a conviction of a violation of a federal fair housing law. The Commission will not act on an accusation or conviction of a fair housing law until an appeal of a conviction has been concluded. Such a conviction may in itself be sufficient ground for the imposition of any sanction permitted by law.
With regard to brokerage advertising, which of the following practices would be in violation of Commission Rules
along with the phone number of the affiliated licensee, an ad that identifies the name of the brokerage firm as registered with the Commission.
The county in which a real estate brokerage firm maintains a primary or branch office may
assess the brokerage firm only a business license fee for maintaining an office in the county. Only a county or municipality outside of any county where the brokerage firm operates primary or branch offices may impose a gross receipt sales tax on properties sold by a broker in that county.
If, as an owner occupant, a licensee affiliate decides to sell his or her home, the Commission would require the affiliate's broker to
be notified in writing
With regard to maintaining a brokerage trust account, which of the following statements is true
broker must authorize any reasonable request by the Commission to examine the firm's trust account. A broker is not required to maintain a separate trust account. Escrow/trust accounts remain free from seizure or garnishment. A broker must notify the Commission within 30 days of the bank and account number of any new trust accounts opened.
An applicant for a Georgia salesperson license discloses that his license as a pest control operator in another state was revoked one year prior to his Georgia application. Georgia law permits the Commission to
deny the salesperson license
Standard requirements for a Broker's license in Georgia would include
evidence that in three of the five years immediately prior to making application has held an active real estate license
The Commission may deny a real estate license to an applicant
if that applicant has a disciplinary sanction imposed by any occupational licensing body in Georgia or any other state.
A person whose real estate license is inactive in Georgia may conduct brokerage activities for an unlicensed property developer only
if that licensee surrenders the real estate license to the Commission When inactive, an individual's license is placed with the Commission, not an active broker. Whether a license is active or inactive, the law prohibits the licensee from conducting real estate activities on behalf of an unlicensed individual. Only by giving up the license completely with no ability to reactivate it (surrendering) may an individual (now unlicensed) then work for the unlicensed developer.
The Real Estate Commission would issue a brokerage license to a firm under the condition that
if the firm is set up as a sole proprietorship, the qualifying broker must be the owner of the entire company.
For a licensee, which of the following actions would be considered an Unfair Practice under License Law
indicating that a competitive market analysis done for a client is only an appraisal estimation
Rules and Regulations require that the Real Estate Commission maintain certifications of a licensee's history as well as investigative files relating to such history under what schedules?
investigative files on a licensee's record in which the Commission imposes formal disciplinary action must be maintained for 40 years
A license may lapse for nonpayment of fees or failure to complete certain educational requirements within the time allowed by the Laws and Rules. Under these circumstances, which of the following statements is accurate?
is a lapsed license may be reinstated, if within two years, the licensee pays the reinstatement fee and all other fees due, as long as all CE requirements have been met
The conduct defined by the License Law as grounds for the denial of a license by the Commission
may serve as grounds for sanctions when the conduct is that of a licensee. Such conduct may be grounds for a sanction whether the conduct occurs in Georgia or in any other state.
A broker discovers that a seller who has a brokerage relationship with the broker has distributed his own flyers within the neighborhood which include some misleading information, including the age of the roof. The broker
must take immediate steps with the seller to stop the distribution of the flyers. Rule 520-1-.09 (2) requires a licensee to take immediate steps to stop any misleading or inaccurate advertising by a principal with whom the firm has a brokerage engagement. The broker is not required to report the advertising to the Commission, but should keep a record of his or her efforts to stop the misleading advertising. The advertising in itself does not terminate a brokerage engagement.
Paul is hired by Broker Garcia, whose firm manages a small apartment complex in Georgia. Under the direct supervision of Garcia, Paul collects rent, receives rental applications, and executes leases with perspectives tenants. Under these circumstances, Paul
need not have a real estate license
In its capacity to administer the License Law as created by Georgia statute, the Real Estate Commission may
only pass rules and regulations based on License Law
The following activities are considered a matter of practice for a real estate broker in Georgia except
provides legal advice in the preparation of a residential purchase agreement. Brokers are not allowed to practice law by providing legal advice to clients, customers or parties in a transactional brokerage situation.
Commission Rules prohibit a licensed broker in Georgia from
refusing to process an affiliate's request for a license transfer as soon as practically possible
Should an agent's license be surrendered to the Real Estate Commission the licensee must
return the wall certificate and pocket card to the Commission
With regard to the handling of trust funds, a broker engaging in property management must ensure that
security deposits held in escrow accounts must always reflect a balance equal to the total of all such deposits.
Rita works with ABC Real Estate as an unlicensed assistant. In her position she can perform a significant number of tasks. She can do all of the following except
show a property to a prospect. This is not a ministerial act. During the course of a showing Rita may be asked questions requiring her to make a professional judgement; giving such advice violates Commission rules.
The following actions are unfair trade practices under the License Law except
telling a prospective purchaser that a property is under contract and not available to be shown. When a property is under contract it is off the market and typically unavailable for showing. The other actions are defined as unfair practices by the License Law
Which of the following statements would be accurate with regard to an individual residing in another state, who holds a broker's license in that state, and who wishes to acquire a broker's license in Georgia
that individual may acquire a nonresident license in Georgia through a reciprocity agreement that exempts the applicant from educational and exam requirements.
The investigative process carried out by the Commission which entitles the accused licensee to a formal hearing as well as an appeal right if that party is dissatisfied with the hearing's outcome derives its legal basis from
the Georgia Administrative Procedures Act, a statute separate from License Law and Commission Rules.
A broker and associate broker's qualifications are the same except
the associate broker has not assumed the responsibilities of contracting directly with consumers. An associate broker works as a licensee affiliate of another broker.
In an effort to secure a listing from a property owner, a broker promises to purchase the property for $250,000, if a ready willing and able buyer is not found by the termination date of the brokerage engagement with the seller. Under what conditions might the rules of the Commission allow this agreement?
the broker must enter into a written agreement to purchase the seller's property for $250,000 before signing any listing engagement with the homeowner
Brokers may place the firm's operating funds in a trust account provided that
the money is used to satisfy the bank's minimum balance as well to cover any other account maintenance fees required.. When managing property, a broker may maintain a trust account separate from the escrow account required for security deposits, but that account may not be funded by the brokerage firm's own money.
When a licensee advertises on the internet, any viewable web page must disclose
the name and telephone number of the licensee's firm. The internet ad may include the licensee's name, and the firm's address, as long as the name and telephone number of the licensee's firm is displayed on any viewable page.
An applicant that has served in the military who does not pass a licensing examination can get five points applied to his or her license exam score if
the veteran has a minimum of one year's service of which 90 days were in a period of an armed conflict. If discharged due to injury or illness with at least 10% disability the veteran may receive a 10 point credit on the exam.
License Law and Commission Rules allow a broker to disburse trust account funds under which of the following circumstances
upon a broker's reasonable interpretation of the contract, with written notification to all parties
What matter(s) may be resolved when the Real Estate Commission issues a declaratory ruling?
whether or not the Commission decides that an existing Rule or Regulation applies to a particular situation as set forth in any person's written, notarized request
Under Commission Rules, which of the following disclosures is a licensee required to make to both buyer and seller at the time of a contract offer?
disclose who the licensee represents in the transaction and from whom the licensee will be compensated. A firm's agency practice is disclosed at the time of brokerage engagements. Licensee's status as broker or affiliate of a broker is not relevant to this question, nor is whether the party who compensates the licensee is a customer or client.
The Real Estate Commission may impose disciplinary actions against a licensee for which of the following practices
paying an unlicensed assistant a percentage of the licensee's commission split with the broker
John Amos is selling his neighbor Jane Ashton's house for $385,000. John and Jane are unrelated and John is not licensed as a real estate agent. In Georgia John is
practicing real estate without a license and guilty of a misdemeanor and subject to a fine of up to $1,000 per each day of the violation. The Commission can issue a cease and desist order that becomes final after issuance unless the party requests a hearing.
When a candidate for a salesperson licensure passes the qualifying state exam
the candidate may make a formal license application within three months of the exam date, pay regular license fees, and then place the license on active or inactive status
A nonresident broker can do business in Georgia with an agreement from a Georgia sponsoring broker. Each contract must include all of the following items except
the contract will contain a copy of the reciprocity agreement. The contract written by an out of state broker sponsored by a Georgia broker does not require a copy of the reciprocity agreement between the State and the broker. An agreement signed between the resident and nonresident is all that is necessary.
The Real Estate Commission operates as a budget unit of Georgia assigned to the office of the Secretary of State, and as such
the costs to conduct the Commission's operations must be equal to those fees the Commission charges to and receives from licensees
Upon the death, resignation or termination of a qualifying broker the firm
has 60 days to name a replacement qualifying broker. According to Commission rules a firm will have 60 days to name a replacement qualifying broker. A broker may serve as the qualifying broker for more than one firm.
The Commission prohibits 'blind ads' in the marketing of real property for sale as these advertisements
fail to disclosure the real estate licensure of the advertiser.
The Commission has determined a broker to be guilty of commingling trust account funds as well as failing to keep copies of trust fund accounting records for three years. The Commission has the authority to
fine the broker up to $5,000 and issue a salesperson's license in place of that person's existing broker license.
When the Real Estate Commission denies a candidate's application for licensure in Georgia, the applicant is granted a legal process of appeal authorized under
the Georgia Administrative Procedures Act. This statute provides that when a license is denied, the applicant is entitled to a hearing and can appeal for a judicial review if not satisfied with the findings of hearing.
Which of the following is a violation of the Uniform Deceptive Trade Practices Act?
two brokers set a standard commission rate for their community. The brokers would also violate the Act if they conspire to initiate a boycott against another broker who would not agree to their action. This law covers actions with or without a transaction taking place. The other actions are not violations of the law.
