UNIT 12 REVIEW

Brokerage agreement

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.

Salesperson

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

State

Any state, district, territory, possession, or province of the United States or Canada and any sovereign nation or any political subdivision of such sovereign nation.

Application

Applications that are required to be filed with the Commission, such as for renewal of license, transfer of license, changes in the status of a license or a change in the name of a firm, must be on Commission-approved forms.

The members of the Real Estate commission must be confirmed by who?

Georgia State Senate

Ministerial acts

Those acts related to real estate brokerage activities, which a licensee or a licensee's employees perform and which do not require discretion or the exercise of the licensee's own judgment.

How many broker licenses are needed for a sole proprietorship?

Though it might seem that in the case of a sole proprietorship, there would only be a single broker license needed, this is not true. In fact, a sole proprietorship also needs TWO broker licenses. One of these broker licenses is for the qualifying broker, while the other is - you guessed it! - for the sole proprietorship.

child support

Under the Georgia Code, if an applicant or licensee has been found not in compliance with an order for child support as required by law, this can be considered as grounds for refusal of a license or suspension of a license. In such actions, the hearing and appeal procedures provided for under the law are the ONLY procedures required.

Any person acting as a referral agent, who is not involved in the actual negotiations, execution of documents, collection of rent, management of property, or other related activity, which involves more than the mere referral of one person to another. This person must also meet the following requirements:

--He doesn't receive a fee for such referral from the party being referred; --He doesn't charge an advance fee; and --He doesn't act as a referral agent in more than three transactions per year

Remember that all licensing, renewal, and other related fees collected by the Georgia Real Estate Commission must be deposited by the Commission into the state treasury. Here are additional facts regarding these funds:

-the expenses for the administration and enforcement of this chapter of the law must be paid from these funds. -All expenditures authorized by the Commission must be paid from these funds. -The expenses of the Commission and the Commissioner must always be kept within the income collected and deposited in accordance with this chapter AND must not be supported or paid from any other state fund.

-If the licensee is joining a new firm, that licensee is permitted to make the delivery of the wall license herself to the new broker. At this time, the new broker will sign the transfer application and send it to the Commission. The Commission must also be notified in writing by the former broker that the wall license has been moved. All of these notifications must, under Georgia law, be made within ___ days of the move.

30

The current fees for license renewals are as follows.

-$125.00 for each individual licensee and each approved instructor OR $100.00 if submitted and paid through the Commission's Internet on-line system. -$125.00 for each firm licensed as a broker and each approved school OR $100.00 if submitted and paid through the Commission's Internet on-line system.

Any such application, change of information, or fee that is required to be filed with the Commission may be filed with the Commission by:

---Personal delivery to the Commission's offices during regular business hours ---A letter postmarked by the United States Postal Service ---Private courier or delivery service ---Any application that does not require the payment of a fee may be filed by fax.

A surrendered license

A license can be surrendered to the Georgia Real Estate Commission either voluntarily OR involuntarily (at the Commission's request because of a revocation or suspension of the license). -When surrendering a license, the licensee must forward his or her wall license and pocket card to the Commission immediately. -A surrendered license is not the same as having a license on inactive status, since the right to reactivate the license is different from a license on inactive status. Any licensee who wants to reinstate a surrendered license must apply for licensure as an original applicant. -If a qualifying broker surrenders HIS or HER license, he or she must also surrender the wall licenses and pocket cards of the affiliated agents. -Note: This may not be required, IF a new qualifying broker is named.

Purchaser

A person who acquires or attempts to acquire or succeeds to an interest in land.

Associate broker

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

Community association manager

A person who acts on behalf of a real estate broker in providing only community association management services.

Conviction:

--A finding or verdict of guilty or a plea of guilty, regardless of whether an appeal of the conviction has been brought; OR --A sentencing to first offender treatment without an adjudication of guilt pursuant to a charge of a felony or any crime involving moral turpitude; OR --A plea of nolo contendere to a charge of a felony or any crime involving moral turpitude.

Felony:

--Any offense which, if committed in this state, would be deemed a felony, without regard to its designation elsewhere. --Where an applicant for a community association manager's license or a salesperson's license has been convicted of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, or other like offense(s) OR has been convicted of a felony or a crime involving moral turpitude and has been convicted of such in a court of competent jurisdiction of this or any other state, district, or territory of the United States, or of a foreign country, such conviction in itself may be a sufficient ground for refusal of a license.

The rules regarding nonresident brokers state that, in order to work in real estate transactions and earn a fee for such activities in Georgia, the nonresident broker may only do so under one of these THREE conditions:

--The nonresident must have a written agreement with a Georgia broker to conduct the real estate brokerage business in Georgia. If a nonresident licensee wants to do business without first obtaining a Georgia license, this IS permissible if the nonresident broker enters into a written agreement with a Georgia broker. Please note that, under these circumstances, there must be a separate agreement for each transaction, clearly stating the procedures to be followed. --Georgia must have a written reciprocity agreement with the state in which the broker has his or her license. --If the licensed broker of another state is acting as a referral agent, involving only the mere referral of one person to another, the licensed broker in Georgia is permitted to divide a real estate commission with, or pay a referral fee to, the out-of-state broker. (In this case, the referring broker is NOT involved in the actual negotiations, execution of documents, collections of rent, management of property, or any other real estate brokerage activity.)

These original applications include, but are not limited to, those made for the following persons/firms:

-A broker -An associate broker -A salesperson -A community association manager -A sole proprietorship -A corporation -A limited liability corporation -A partnership -An application for approval as a school -An application for approval as an instructor

The following persons are also exempt from the requirements of license law in Georgia:

-A manager of residential properties if the contract has been approved by a federal agency. This means any person who, as owner or through another person engaged by such owner on a full-time basis or as owner of a management company whose principals hold a controlling ownership of such property, provides property management services or community association management services, buys, sells, leases, manages, auctions, or has other dealings with property owned by such person -Full-time employees of the property owner, who have been employed to provide property management services or community association management services, and sell, buy, lease, manage, auction, or otherwise deal with such property. This includes any person employed on a full-time basis by a community association for the purpose of providing community association management services -Any person acting as a referral agent, who is not involved in the actual negotiations, execution of documents, collection of rent, management of property, or other related activity, which involves more than the mere referral of one person to another.

If an occupational licensing body of Georgia, any other state, or any foreign country has revoked the license of an applicant for any license authorized by this chapter OR if the applicant has allowed a license to lapse or has surrendered a license to any occupational licensing body after that body has initiated an investigation or a disciplinary process regarding such applicant's license, the Commission may issue an associate broker's or a broker's license only if:

-A minimum of 10 years has passed since the date that the applicant's occupational license was revoked or surrendered. -No criminal charges are pending against the applicant at the time of application. -The applicant presents to the Commission satisfactory proof that the applicant now bears a good reputation for honesty, trustworthiness, integrity, and competence to transact the business of a licensee in such a manner as to safeguard the interest of the public.

License Exam rules:

-All license applicants must apply to take the exam, and pay a nonrefundable fee. -A score of 75% or higher is considered to be a passing grade and is required for licensure. -Honorably discharged veterans who have one or more years of service (of which at least 90 days was served during wartime) automatically receive a 5-point credit. -Veterans discharged from the military due to injury or illness with at least a 10% disability, will receive a 10-point credit. -A nonresident licensee might be exempt from the education and exam requirements of Georgia, IF the real estate commission in the state in which he was licensed verifies that the applicant has met all of the following criteria. ----He has fulfilled both pre license and continuing education requirements of that state; ----He has passed a licensing exam similar in scope to the one required by Georgia; ----He has not had any disciplinary actions imposed on him; AND ----He has retained an active license with a maximum of 90 days of inactive or lapsed time.

The Commission will charge a fee of $25 for any of the following situations:

-An applicant submits an incomplete application. -A licensee or applicant fails to notify the Commission in writing within 30 days of a change of address, the opening or closing of a designated trust account, a transfer to a new company or leaving a firm to go on inactive status. -A licensee fails to affiliate with a new company or to apply to go on inactive status within 30 days of the Commission's receipt of notice that the broker holding the license no longer wishes to do so and has mailed a letter to the licensee's last known address indicating that the broker is returning the license to the Commission. -The Commission will charge a fee of $100 to any applicant or licensee who submits a check that is returned unpaid or disputes a charge to a credit card for a fee owed to the Commission, when the dispute results in a chargeback to the Commission's account. -The Commission also has the authority to impose "reasonable fees, not to exceed the renewal fee charged broker licensees" on a licensee or applicant who fails to respond within 30 days to a written inquiry from the Commission requesting further information on any application filed with the Commission.

Reinstatement fees

-Any license or approval which lapses solely because the licensee failed to pay the renewal fee may be reinstated IF it is within two years of the date of the lapsing, provided the licensee has completed any required continuing education courses. -In order to do this, the licensee must pay the total amount of all renewal fees and late charges which would have been due during the period that the license was lapsed, plus a reinstatement fee. -If the license or approval is reinstated within 4 months of the date of lapsing, the reinstatement fee is $100.00. -If the license or approval is reinstated more than 4 months after the date of lapsing the reinstatement fee is $100.00, plus an additional fee of $25.00 for an individual or instructor OR $50.00 for a firm or school for each month or portion of a month beyond the 4 months from the date of lapsing.

The licensing regulations required by Georgia real estate license laws do not apply to any individual employed by a broker to assist in property management services on residential property. This exemption applies if the broker has a written management agreement that the broker procured from and negotiated with the owner, provided that such individual's activities are explicitly authorized by the broker in a written agreement between the broker and the employee AND provided that such activities are limited to one or more of the following:

-Delivering a lease application or a lease -Receiving a lease application, lease, security deposit, rental payment, or any related payment (for delivery to and made payable to the broker or the owner) -Showing a rental unit to any person, or executing leases, provided that the employee is acting under the direct instructions of the broker -Providing information authorized by the broker about a rental unit, a lease application, or a lease -Providing information to a tenant about the status of such tenant's security deposit or rent payments, or to an owner about the owner's financial accounts and payments from the owner's tenants -Performing any ministerial acts that are explicitly authorized by the broker in a written agreement between the broker and the employee

At the time an application to take the real estate exam is submitted and the exam is administered by the Commission, a fee for the exam, as well as an investigation fee (if necessary), is collected by the Commission. If the applicant does not pass the exam, he may file a new application and pay an additional fee in order to take another exam. An activation fee must be paid in advance, prior to the issuance of an original license for any of the following:

-Each applicant who has passed the examination -Each firm that is an applicant for a broker's license -Each corporation, limited liability company or partnership that is an applicant for an associate broker license or a salesperson license -To renew a license, a broker must complete a form prescribed by the Commission regarding the status of the broker's trust account(s) and any trust account(s) that the broker allows affiliated licensees to maintain.

Broker to salesperson

-If a broker wishes to be licensed as a salesperson, he is permitted to do so if he surrenders his broker's license and applies for a salesperson's license. He doesn't have to take an exam. If this same person wishes to be relicensed as a broker, he doesn't have to take an additional broker's examination. If the licensee changes status as we've just read, the licensee WILL be required to pay the same fee as an original applicant. On the chance that a license is suspended or revoked, then this will prevent the licensee from changing status in this way.

Important things to know:

-If a licensee on inactive status fails to pay the required renewal fees, the licensee's license will automatically be lapsed. -If a licensee on inactive status changes address, the licensee must notify the Commission of the new address, in writing, within 30 days. -If a check is used to pay ANY fee to the Commission, and that check is returned unpaid, this may be cause for the denial of the license, or for imposing other sanctions.

The Commission may initiate an investigation at any time to determine whether a licensee has violated any provision of this chapter or its rules and regulations.

-If a licensee voluntarily surrenders his or her license or lets the license lapse after the Commission has filed a notice of hearing alleging a violation but before the Commission enters a final order in the matter, then when that licensee submits a new application, the matters asserted in the notice of the hearing are considered "admitted" and the Commission can use them as grounds to refuse a new license to the licensee. -If this surrender or lapsing takes place before the Commission files the notice of hearing but after the Commission initiates an investigation, then it is within the authority of the Commission to issue an order revoking that licensee's license. -An order of revocation is final ten days after it is issued unless the licensee named in the order requests a hearing before the Commission. If he requests a hearing, the Commission must then file a notice of hearing and provide a hearing for such licensee.

What can they do while they are looking for a new broker?

-If the firm is a partnership, designate a partner. -If the firm is a limited liability company, designate a member. -If the firm is a corporation, designate an officer. This designated person then has the authority to sign any documents and applications that must be filed with the Commission AND approve disbursal of trust funds from the firm's designated trust account(s), if such disbursements are required by any contracts or agreements.

The final of the Commission members' responsibilities is to actively communicate with both licensees and the public, which requires the following:

-Informing licensees and the public of Commission actions and changes in the law; AND -Providing opportunities for licensees and the public to discuss matters of interest with a Commission member. Such opportunities are provided when the Commission holds open forums to allow for licensees and the public to ask questions and express opinions. Such meetings are held often, in the interest of encouraging active communication. Also, the Commission encourages licensees and the public to see that the regulatory process works efficiently and fairly by communicating ideas and suggestions in writing to its offices. Both licensees and the general public are encouraged to put forth their ideas in this manner.

An applicant who wishes to be licensed as an associate broker or a broker AND who has been convicted of any offense set forth here may be licensed by the Commission as an associate broker or a broker only if:

-It has been a minimum of 10 years since the conviction, sentence, or release from any incarceration, whichever is latest. -There are no criminal charges pending against the applicant. -The applicant presents the Commission with satisfactory proof that the applicant now bears a good reputation for honesty, trustworthiness, integrity and competence to transact the business of a licensee in such a manner as to safeguard the public interest.

If the license has lapsed for a period longer than two years and less than ten years due solely to a failure to pay a renewal fee, the licensee may reinstate that license by doing all of the following:

-Paying the total amount of all renewal fees and late charges that would have been due during the period when the license was lapsed -Paying a reinstatement fee -Completing successfully any educational course or courses that the Commission requires --If the license has lapsed for longer than ten years for failure to pay a renewal fee, the licensee must meet the education and examination requirements of a new licensee.

lapsed licenses

-Remember, if a salesperson does NOT complete the course in a satisfactory and timely manner, his license will LAPSE, and his wall certificate of licensure and pocket card must immediately be surrendered to the Commission. -Any salesperson whose license lapses for failure to complete the post-license course may reinstate the license by completing the course within six months of the lapsing of the license, if all the following conditions have been met. The licensee enrolled in the post-license course within one year of the issuance of an original license. He or she paid all required fees for the course. The licensee failed to complete the class requirements, can produce a medical doctor's certificate explaining the incapacitation which caused the failure to complete the course ORshows proof that the failure was due to cancellation of the course by the approved school. If the previous conditions exist, the individual may reinstate the license by completing the course within six months of the lapsing of the license.

The Importance of a Good Reputation

-Remember, licenses are only to be granted to those individuals who possess good reputations for honesty, trustworthiness, integrity, and competence to transact the business of a licensee in such manner as to safeguard the interest of the public and only after satisfactory proof of such qualifications has been presented to the Commission. -It is within the Commission's authority to deny a license to any corporation, limited liability company, or partnership if a stockholder, member, or partner or any combination of that firm, who owns more than a 20 percent interest in the firm, does not have a good reputation for honesty, trustworthiness, and integrity; has been convicted of any of the crimes described on upcoming screens; or has been sanctioned by any legally constituted regulatory agency for violating a law regulating the sale of real estate.

The procedures to which all Georgia brokers must adhere in their supervision of affiliates are as follows:

-Review all advertisements. -Review all offers within 30 days of their being written. -Ensure that all affiliates' licenses remain active. -Ensure that a person with management authority is always available to help affiliates and the public, should the need arise. -Ensure that all trust fund payments are made according to the regulations. -Keep affiliates updated to law changes on a regular basis. -Review all trust account records and journals. -Provide safekeeping for all necessary records. -Ensure that each affiliate has a written and signed employment agreement. -Ensure that there is a written policies and procedures manual for all affiliates.

Remember that real estate licenses may be issued to the following entities in Georgia:

-Sole proprietorships -Partnerships -Corporations -Limited liability companies (LLC) --In order to be issued such a license, there must be one person who actually holds a broker's license in Georgia, and this individual must be designated as the company's qualifying broker. This person must have signatory power over the company's trust accounts and be able to both bind the company to any agreement and be able to settle any contested claim regarding the company before the Real Estate Commission.

Remember, to be licensed in Georgia, a nonresident who is licensed in another state must meet any requirements established by the Commission, which may include:

-Submission of satisfactory proof of current licensure in the applicant's state of residence -Payment of any required fees -A signed statement stating that the applicant has read the Georgia real estate license laws, and its rules and regulations, and has agreed to abide by the rules in all brokerage activity in Georgia -Affiliation with a resident or nonresident broker if the applicant is an individual community association manager, salesperson, or associate broker -Remember, if a nonresident licensee terminates the affiliation with a broker licensed by the Commission, the license of such nonresident will AUTOMATICALLY be terminated unless the nonresident places the license on inactive status OR affiliates with another broker licensed by the commission within 30 DAYS -No license will be issued to any member, officer, independent contractor, employee, or partner of a nonresident firm until that firm qualifies for a broker's license. A nonresident corporation or limited liability company must obtain from the proper agency and maintain a certificate of authority to do business in Georgia. -In addition to the aforementioned requirements, the nonresident applicant must designate the Commissioner as his agent to receive any legal or judicial notices that are filed. The applicant must also agree that in the event of any investigations brought by the Commission, the applicant will fully cooperate with the Commission.

The requirements for a broker license applicant are as follows:

-The applicant must apply for the broker license within ONE YEAR of the exam date. -If the broker applicant does not apply for the license within that time frame, the exam is considered null and the applicant must retake the exam if he wishes to be licensed in the future. ---Any salesperson or broker applicant who has a previous conviction of a "serious crime," or who has been sanctioned by a license board is required to furnish the Georgia Real Estate Commission with a certified copy of this judgment or final order when applying for licensure in Georgia. It is possible for a person with a prior "blemish" on his record to receive an early review of this record by the Commission.

These are the requirements for the salesperson or community association manager license application:

-The applicant must apply for the license within 3 months of the date of the exam and pay a fee; OR after 3 months of the exam date but before 12 months, with a double fee. -An application must include the signature of the applicant's employing broker; OR, if there isn't an employing broker, the applicant may apply for an inactive license. (Remember, a licensee MUST have an employing broker to have an ACTIVE license!)

If a nonresident licensee who is affiliated with a broker's office violates Georgia license law, rules, or regulations, the Georgia broker is considered responsible. Remember, though, that there is a chance the broker's liability might be diminished or even eliminated, provided that the broker can prove that:

-The brokerage firm had a training program. -That brokerage firm followed proper procedures in its supervision of nonresident licensees and other affiliates; AND -The Georgia broker himself did not participate in any way in the violation.

The current fees for original licensing are as follows.

-The fee for original licensure as an individual broker, associate broker, salesperson or community association manager is $170.00. This includes $20.00 for the Real Estate Education, Research, and Recovery Fund. (We will discuss the Real Estate Education, Research and Recovery Fund in detail in a later chapter.) -Note: Any person who applies for a salesperson or community association manager license more than three months but less than one year from the date of taking the exam must pay an original license fee of $340. -The fee for original licensure as a firm or an approved school or instructor is $225.00. This includes $20.00 for the Real Estate Education, Research, and Recovery Fund.

The following rules are also true of the 6-member Georgia Real Estate Commission:

5 of these 6 members must be real estate licensees, who have been actively licensed for a MINIMUM of 5 years AND must have been residents of Georgia for at least 5 years. The sixth member must have an interest in consumer affairs but must NOT have ANY interest in the real estate industry. All members' terms are 5 years each. The members' terms are staggered, and only one LICENSEE member's term can expire each year.

If a licensee is convicted of any offense named in the license laws, the licensee must immediately notify the Commission of that conviction. The licensee's license will automatically be revoked ____ days after the licensee's conviction unless the licensee makes a written request to the Commission for a hearing during that __-day period. Once the hearing is over, it is up to the Commission's discretion whether or not to impose upon that licensee any sanction permitted by the law.

60

If qualifying broker of a partnership, limited liability company or corporation dies, resigns or is discharged unexpectedly, this partnership, limited liability company or corporation must secure a new qualifying broker within ___ days.

60

Remember, according to Georgia law, an individual is NOT required to have a real estate license if he/she is any of the following:

An owner of real estate, the spouse of an owner, a general partner of a limited partnership, a landlord, or a prospective purchaser OR their regular employees OR spouses, who perform(s) any act with reference to property owned, leased, or to be acquired by such owner, limited partnership, lessor, or prospective purchaser when said person is buying, leasing, or selling for his own purposes An attorney in fact under a duly executed power of attorney to convey real estate from the owner or lessor. This person - whether an actual attorney, or simply an individual authorized to act on another's behalf as an agent - may act as an agent for the principal without having a real estate license, with a legally executed power of attorney An attorney at law - also known as a licensed practicing attorney - acting solely as an incident to the practice of law Any person acting as receiver, trustee in bankruptcy, administrator, executor, or guardian or while acting under a court order or under the authority of a will or of a trust instrument Any officer or employee of a government agency in the conduct of official duties Any person employed full-time by a public or private utility - including utility companies, and lending institutions - who performs any act with reference to property owned, leased, or to be acquired by the utility employing that person, where such acts are performed in the regular course of, or as incident to, the management of such property and the investment therein

Community association

An owner organization of a residential or mixed use common interest realty association in which membership is mandatory as an incident of ownership within the development, such as condominiums, cooperatives, homeowner associations, timeshares, lot division with restrictions in management, and other forms of common interest or planned developments wherein there is a common management.

Firm

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

Reactivating an inactive license

Any individual licensee who wants to activate a license which has been on inactive status for a period of two years or longer must attend a Commission-approved course of study prior to activating an inactive license. An inactive licensee IS required to take the 25-hour post-license course for new licensees, AND to pay the same renewal fees as an active licensee.

Licensee

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

Broker

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

Doing real estate duties without a license

As you know, it is against the law to practice real estate without a license. If the Commission discovers that a person is practicing without a license, they have the authority to issue a cease and desist order. In addition, the Commission can impose a fine of up to $1,000 per day for this violation. While the Commission does not have the authority to impose a jail sentence, the courts do have this authority, as a violation of this law is a misdemeanor. The imposed jail sentence can be for a period of one year or less. It is also important to note that while certain people are exempt from the license law, even when performing real estate-related tasks that would normally be performed by a licensed salesperson or broker, the following exemptions only apply to unlicensed persons. This means that a licensee whose license is on inactive status is not covered under these exemptions - and cannot claim to have operated under one of these exemptions.

Remember, to qualify for a community association manager's license, an applicant must meet the following conditions.

Be 18 years of age or older. Be a resident of the state of Georgia (this is not necessary IF the person has fully complied with the provisions regarding out of state licensees). Be a high school graduate or the holder of a certificate of equivalency. Furnish evidence of completion of at least 25 in-class hours in a community association manager's course OR courses of study approved by the Commission. Take and pass a real estate examination administered by or approved by the Commission, which covers, in general, topics important to those brokers who provide community association management services and community association managers, after the above coursework has been completed.

Under Georgia license law, an applicant for a salesperson's license must meet the following conditions:

Be 18 years of age or older. Be a resident of the state of Georgia (this is not necessary IF the person has fully complied with the provisions regarding out of state licensees). Be a high school graduate or the holder of a certificate of equivalency. Furnish evidence of completion of at least 75 hours in a salesperson's course or courses of study approved by the Commission. Take and pass a real estate examination administered by or approved by the Commission covering the general matters of importance to real estate brokers and salespersons, after completing taking the salesperson's prelicense course.

Real estate

Condominiums and leaseholds, as well as any other interest or estate in land, whether corporeal, incorporeal, freehold or non-freehold and whether the real estate is situated in this state or elsewhere; and includes a mobile home when such mobile home is affixed to land. ("Mobile home," as used in this paragraph, means any factory-built structure or structures equipped with the necessary service connections and made so as to be readily movable as a unit or units and designed to be used as a dwelling unit or units.)

The responsibilities of Commission members are as follows:

Developing a spirit of cooperation and unity among Commission members: Evaluating staff operations; Establishing a fair qualifying process; Establishing a fair and unbiased hearing process; and Communicating with the industry and the public.

The Georgia Real Estate Commission's authority involves 4 separate categories:

Issuing Licenses Taking Disciplinary Actions Passing Rules and Regulations Establishing Fees

Agency

Every relationship in which a real estate broker acts for or represents another as a client by the latter's written authority in a real property transaction.

What if they don't find a broker?

If it does not do so, then it must cease all real estate brokerage activity until a new qualifying broker is secured.

Inactive license

In the case of either a real estate broker who doesn't wish to be actively engaged in the brokerage business, or a licensee who is temporarily not engaged on behalf of a broker, that licensee may continue a license by making a written request within 30 days of ceasing work that the license be placed on inactive status. If a license is on inactive status, that individual may not continue any brokerage duties except for his own personal transactions.

Extension of renewal without fees

In the event that a licensee who resides in a county designated as a disaster area by state or federal authorities suffers uninsured major damage or loss to his residence or place of business, the Georgia Real Estate Commission may extend that licensee's renewal period for up to two years without further payment of any fee by the licensee upon satisfactory proof of the licensee's uninsured major damage or loss. The Commission is also permitted to make appropriate adjustments in deadline dates for applications filed by applicants and licensees located in counties designated as disaster areas by state or federal authorities.

In the event of a vacancy in the Commission, the governor will fill the vacancy. Each member serves his/her term and can continue to serve until the Governor names a successor. The governor also has the authority to remove a Commission member from office for any of the following reasons:

Incompetence Dishonesty Neglect of duties Inability to perform the necessary duties

IF I CHANGE MY ADDRESS, NEED TO RENEW MY LICENSE, OR CHECK A LICENSE----

Note: Activities such as renewing licenses, changing addresses, checking license status and registering trust accounts are now available for completion online at the Georgia Real Estate Commission website at www.grec.state.ga.us Don't forget that the effective date of the filing of the application or fee is the United States Postal Service postmarked date if mailed, or if otherwise filed, the date the Commission dates receipt of the application or fee.

POST LICENSE COURSE

Once a salesperson has been issued his original license, he must satisfactorily complete a 25-hour course of study. This is the post-license educational requirement and is mandatory in Georgia. This coursework and submission of related evidence must be made to the Georgia Real Estate Commission within ONE YEAR of licensure.

How many broker licenses are needed for partnerships, corporations, and limited liability companies?

Partnerships, corporations, and limited liability companies must EACH have at least TWO broker licenses. This is to allow ONE broker license for the qualifying broker. The other license varies, depending on the type of business. For a partnership, the second license is for the partnership. For the corporation, the second license is for the corporation. (Please note that the application for a corporation license must include a copy of the corporate charter.) For the limited liability company (LLC), the second license is for the company (this name will be as it is registered with the secretary of state).

-If a school's approvals lapse, the school or instructor may reinstate the approval by doing all of the following:

Paying the total amount of all renewal fees and late charges that would have been due during the period the approval was lapsed Paying a reactivation fee Completing successfully any educational course or courses that the commission may require.

To become a real estate agent:

Remember that a person who wishes to become a real estate licensee must file an application for a license with the Commission. All original as well as subsequent applications filed with the Commission must contain the following: -The name and address of the applicant or the name under which he or she intends to conduct business. Under this rule, if the applicant is a partnership or limited liability company, the name and residence address of each member and the name under which the partnership or limited liability company business is to be conducted and, if the applicant is a corporation, the name and address of each of its principal officers The place or places, including the city with the street and street number, if any, where the business is to be conducted Any other information the Commission requires Remember, unless any other provisions of the law state differently, ALL applications must be confidential. This includes supporting documents and other personal information submitted by applicants and licensees as part of an application filed with the Commission.

Licenses

Remember that each license will have the seal of the Commission placed on it. The license of each affiliated licensee will be delivered or mailed to the real estate broker for whom the licensee is acting. From that point on, it will be kept in the custody and control of such broker. A salesperson can begin working as a real estate licensee once the employing broker receives her wall license. -The Commission will also prepare and deliver a pocket card certifying that the person whose name appears on it is a licensee.

Real estate commissioner

Remember that the Real Estate Commissioner is NOT a member of the Real Estate Commission in Georgia. To review, the following is true of the Georgia Real Estate Commissioner: -He/She is NOT a member of the Real Estate Commission. -He hires and oversees the staff for day-to-day activities. -He/She CANNOT hold an active real estate license (Nor can ANY other employee of the Real Estate Commission in the state of Georgia).

One broker at a time

Remember, a licensee can only be licensed under one broker at any given time. However, a licensee can always leave her employing broker to go join another broker. All that is needed to do this is for her current broker to sign a release form. -The licensee also has the option, at any time, of leaving her broker and going to inactive status. To do this, the license is surrendered to the Commission. Again, the employing broker needs to send the release (also known as "change") form and the wall license to the Commission.

Remember, a nonresident licensee whose license lapses for failure to pay a renewal fee may reactivate that license by paying the fee required of an original applicant if:

That nonresident licensee has maintained an active license in his or her state of residence during the period that his or her license lapsed; AND Has met the continuing education requirements of his or her state of residence.

Disciplinary actions

The Commission has the authority, under statutory law, to take disciplinary actions for any violation of the license law, or of its rules or regulations. Such disciplinary might include any of the following, OR a combination of any of the following, depending on the offense. -Permanent revocation of the license; -Suspension of the license for a set, temporary period of time; -Required attendance at a specific educational program; -In the case of a trust account violation, periodic reports from an independent accountant; -Imposition of fines - at a maximum of $1,000 for a single violation, or $5,000 for multiple violations. -Censure (reprimand), in the case of a minor violation. -If there is a relatively minor infraction, the Commission may choose to issue citations, and skip the formal hearing process. (While the Commission has adopted a list of maximum fines for certain violations, the licensee may choose to request a hearing and contest the citation.)

What is due process?

The Commission member must be sure that, in his duties of supervising and administering the disciplinary powers of the license law, he must always seek to assure that licensees and the public receive their due process rights. The Commission establishes precise guidelines for the staff to initiate and conduct necessary investigations. We will discuss disciplinary actions later in the course. Commission members are only authorized to act to discipline a licensee within the procedures set forth in the Administrative Procedure Act that governs all state agencies with regulatory authority. Assuring due process rights also requires that Commission members strive to fulfill all requirements of Georgia law, but never to exceed the limits of this law. Another note of interest is that, within the hearing process members may discover that a licensee or a member of the public has committed what appears to be an improper act. However, unless the law expressly prohibits that act, the Commission may not use its authority to correct the error or to impose punishment.

Commission

The Georgia Real Estate Commission

Establishing fees

The Georgia Real Estate Commission has the authority to set or adjust any fees - within a reasonable amount - for original licensure, renewals, change of license, and other penalty fees. (Remember, the Real Estate Commission in Georgia is actually a separate budgetary unit of the Georgia state government, and as such, has its own budget.

The purpose of the Real estate license law and the real estate commission is...

The true purpose of the real estate license law, and consequently, the true purpose for the members of the Real Estate Commission, is twofold. First, the Commission seeks to protect the public from any harmful acts of people acting as real estate licensees by assuring that licensees meet basic levels of competency. This includes either intentional or unintentional acts. Second, the Commission attempts to create a regulatory environment for the real estate industry that is reasonable and allows the licensee to attain economic success.

Innkeeper excemption

The innkeeper's exemption states that any person who provides property management services on properties available for less than 90 days' occupancy by guests or occupants and meets each of the following conditions is exempt from license law. In other words, this regards those who make accommodations to others on a daily/weekly basis, in operation of a hotel/motel/vacation rental. The conditions - which, remember, must ALL be met - are as follows: The property manager must have a written agreement with the owner, which states all terms and conditions for managing the property, reporting income and expenses, and remitting income to the owner This agreement must specify that the property manager cannot rent or lease the property AND that the guest or occupant is not a tenant Zoning laws do not prohibit short-term occupancy uses of the property The person's occupancy is for less than 90 days The deposit given must not exceed the cost of the rental required for the minimum rental period The guest or occupant must pay any required state or local sales taxes or excise taxes on rooms, lodgings, and accommodations; while the property manager pays any required state or local business licenses or permits The property manager can specify which rooms or units that the guest or occupant will occupy No extra charge is made for basic utilities Notice is not required for a guest or occupant to terminate occupancy of the room or unit, except under certain conditions The room or unit is not the permanent residence of the guest or occupant

Property management services

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

Community association management services

The provision, for a valuable consideration, to others of management or administrative services on, in, or to the operation of the affairs of a community association, including, but not limited to, collecting, controlling, or disbursing the funds; obtaining insurance, arranging for and coordinating the maintenance to the association property; and otherwise overseeing the day-to-day operations of the association.

Purpose of real estate law

The purpose of the Georgia real estate law, in effect since 1925, is to protect the public against dishonest or incompetent real estate agents. The laws are also designed to protect real estate agents from unfair competition and lay out the standards by which licensees are expected to abide.

Commissioner

The real estate commissioner. (Remember, this is NOT the same as a "Commission member.")

borrower in default

When an applicant or licensee is found to be a borrower in default, who is not in satisfactory repayment status, this, too, is considered sufficient grounds for refusal of a license or suspension of a license. In such cases, the hearing and appeal procedures are the only such procedures required.

being previously sanctioned

When the Commission has previously sanctioned any applicant for a license, then that sanction in itself may be a sufficient ground for refusing the license.

Under the circumstance that the Commission revokes or suspends the license of a community association manager, a salesperson, an associate broker, or a broker, then any school or instructor approval that the licensee holds will ALSO be revoked or suspended. If a licensee surrenders a real estate license as noted above, then...

any school or instructor approval, which such licensee holds will also be subject to revocation or suspension.

If the Commission determines that another state does not offer nonresident licensure to Georgia licensees with requirements substantially comparable to those afforded to licensees of that state by Georgia law, then the Commission will require that licensees of that state who apply for nonresident licensure meet...

educational, experiential, and examination requirements. This set of requirements will be determined by those requirements placed on Georgia licensees who seek nonresident licensure in the state in question.

The license period in GA is ___ years.

four; The licensee renews the license every 4 years on the last day of the applicant's birth month by showing proof of completion of all continuing education requirements and payment of the renewal fee. -EACH applicant for renewal of an active license - including brokers and salespeople - must complete 9 hours of continuing education FOR EACH YEAR OF LICENSURE, since the last renewal. Since, in Georgia, licenses are renewed every 4 years, this means 36 hours of continuing education must be completed within each 4-year license period. -Please note that this continuing education requirement must ONLY be met by those brokers and salespeople licensed AFTER 1980. -The 25-hour post-license course taken within the first year of licensure counts for nine hours of continuing education for that period.

Changes in other information that is required to be filed with the Commission, including changes in trust accounts, address changes, and individuals' name changes may be done by _____.

letter

It is important to note that salesperson licensees in Georgia are permitted to participate in the company's ownership IF there is at least ____ broker. In addition, salespeople and associate brokers are allowed to incorporate themselves, provided that the company license is still assigned to the licensed broker under whom they practice real estate.

one

Any school approved by the Commission to offer required education courses, as well as the instructors approved to teach those courses, must...

pay the same original application fee and renewal fees established by the Commission for broker applicants and licensees.

The Commission has the authority to enter into written agreements with similar licensing authorities of other states. This is known as _______. This might be necessary, if those states' laws require it to allow that Georgia licensees have comparable nonresident licensure opportunities comparable to those given to nonresidents in Georgia.

reciprocity

Remember, if an applicant or licensee has been found guilty of a violation of either the Federal or Georgia State Fair Housing law AND any appeal of the conviction has been concluded, the conviction itself may be sufficient grounds for...

refusing the license or imposing any sanction permitted by this chapter.

If an applicant or licensee has made a false statement of material fact on his or her application, OR if he or she has submitted (or been a party to submitting or preparing for submission) any falsified application to the Commission, such action may be sufficient grounds for...

refusing, suspending, or revoking the license.

Commission members appoint their own Chairperson every year. In order to be eligible to serve as a Chairperson, the member must have...

served on the Commission for a minimum of one year.

The Real estate commission has how many members?

six

The authority of the Georgia Real Estate Commission is based upon _____ ____.

statutory law; The license law gives the Real Estate Commission the authority to adopt rules and regulations, which have been designed to clarify sections of the law. A violation of a rule is considered the same as violating the license law itself, and is subject to the same disciplinary actions. The Georgia Real Estate Commission administers the license law that regulates brokers, salespersons, and community association managers. In addition, the Real Estate Commission supplies staff support to the Georgia Real Estate Appraisers Board. However, please note that the Real Estate Commission has no authority over the administration of the Georgia Appraisal Act. As a regulatory body, the role of the Commission is NOT to protect the industry or the profession that it regulates, NOR is its role to protect consumers. It is not the role of Commission members to be advocates for either a profession or consumers. Instead, the role of the Commission members is to protect the public interest.

Who administers the real estate laws?

the Georgia Real Estate Commission.

The members of the Real Estate commission are appointed by who?

the governor of Georgia

According to the Georgia Real Estate Commission, each member of the Commission devotes an average of...

two to three days per month to their duties on the Commission. These tasks include attending meetings, reading large volumes of preparatory material for these meetings, hearing presentations on a variety of regulatory and procedural issues, and evaluating and subsequently voting on those issues. Meetings of the Georgia Real Estate Commission are held at least once per month. A quorum is comprised of four Commission members.