Active Licensees
-An active Georgia associate broker, salesperson, or CAM must be licensed under an active Georgia broker (A firm), and can be licensed under only one Georgia broker at a time-An active Georgia licensee, who lives in Georgia, but also holds a license in another state, may be affiliated with an out-of-state broker if he has the written permission of his Georgia broker-An initial licensee, and a licensee activating an inactive license, and a licensee reinstating a lapsed license, may not practice real estate until his affiliated broker has received the wall license -An active licensee changing affiliation may not practice real estate until he affiliates with a new broker and the Change Application form has been mailed to the commission, or the new broker has received the wall license
Inactive Licensees
-Inactive licensees may NOT perform any acts of real estate brokerage on behalf of any other person. If an inactive licensee wants to work for an owner and perform acts of real estate as the owner's full time employee, the inactive licensee must surrender his license-Inactive licensees can however buy, sell, lease and option real estate that is solely owned by them-To activate an inactive license, licensees must complete 9 hours of approved continuing education for each year the license was inactive-A licensee may remain on inactive status indefinitely
Legal Action
Any administrative, civil or criminal action against a licensee must be reported in writing to the commission WITHIN 10 days of conclusion of the action
Address Change
A licensee (including brokerage firm), approved school, or approved instructor must notify the commission in writing of any change in mailing address or home address within 30 days of the change
License Lapse and Reinstatement
-When a license lapses, the licensee may NOT practice real estate, and the wall license and pocket card must be returned immediately to the commission-A license that lapses because the licensee failed to pay a fee or failed to complete proper education, may be reinstated within 2 years of lapsing by paying all required fees (which can be substantial) and completing all required continuing education-Alternatively, if a licensee does not want to pay the penalties and fees to reinstate his license, he may re-qualify within 2 to 5 years of lapsing by completing required pre-license education and passing the state licensing exam-After 5 years a lapsed license may not be reinstated, and the person must apply as an original applicant
Qualifying Broker
Sole proprietorship - The sole proprietor is sole owner and qualifying brokerPartnership - the qualifying broker must be a general partnerCorporation - The qualifying broker must be an officer of the corporation
Change of Qualifying Broker
When a firm loses its qualifying broker, the firm has 60 days to secure a new qualifying broker. If the firm fails to acquire a broker within 60 days, it must halt all brokerage activity until a broker is secured
License Transfer or Change of Status
The licensee has 1 month from the time the commission receives the release form to -transfer his license to another broker, or-place his license on inactive status
Unlicensed Support Person (Assistant)
Both the firm and the affiliated licensee can be held responsible for the employee's (assistant's) actionsThe firm must-Have a written agreement with the affiliated licensee as to the compensation and duties of the support person-Have a written agreement with the support person specifying the duties-Make sure the licensee and the support person also have a written agreement specifying the compensation and duties of the support personAn individual whose license is on inactive status MAY work as support personnel for a firm or any affiliated licensee
Dual Agency
Agency that represents two clients in the same transactionEvery broker must have an office policy among affiliated licensees that specifically states whether or not the firm practices this type of agencyA licensee may act as this type of agent only with the written consent of all clients to the transaction
Designated Agency
The firm has two clients in the same transaction but each associate has only one clientThere is no dual agencyThis agent owes complete loyalty to his assigned client
Single Agency Representation
A firm that represents buyers only, or sellers only (but not both)
Transaction Broker
Provides assistance to buyers, sellers, tenants, and landlords by performing ministerial actsRepresents no one
Brokerage Engagements
All brokerage engagements MUST be in writing, whether exclusive or non-exclusiveEvery person who signs the agreement must be given a true copyTrue copy means the original document, and there can be only one original document (everyone receives a copy of the same document)
Exclusive brokerage agreement
Must have an expiration dateCan terminate by 3 ways:(1) PERFORMANCE of the conditions of the contract(2) MUTUAL AGREEMENT of the parties(3) WRITTEN EXPIRATION DATE
A non-exclusive or "Open" engagement agreement
NOT required to have an expiration date, but it will automatically expire within one yearCan terminate by:(1) Performance(2) Mutual agreement of the parties(3) One year
The Trust or Escrow Account
A broker who holds valuables for others may have more than one trust accountThe broker must notify the commission of the name of the bank, and the account number of each trust account, WITHIN 1 MONTH OF OPENING the accountThe bank must be federally insuredThe account must be DESIGNATED AS A TRUST ACCOUNTA non resident broker may keep the trust account at a bank in the state of residence at the discretion of the GRECFunds received in trust, must be promptly deposited into the account, unless all parties to the transaction agree otherwiseIf the account is interest-bearing all parties must be informed about how and to whom the interest will be paid
Broker Commission Withdrawals
-When the transaction has closed in a sales transaction-When POSSESSION has been delivered to the tenant in a lease transaction-When all parties with an interest in the transaction have signed a written agreement stating the broker has earned his commission
Monthly Reconciliation
The broker must maintain monthly reconciliation statements comparing the reconciled bank balances of all trust accounts against the broker's total trust liability Monthly reconciliation statements must be kept for 3 years
Commission Review Of Trust Accounts
-When the broker's license is renewed-When the commission believe there is reasonable cause to examine the records
Proper Identification for Ads
-Must include firm name and firm telephone number-The firm name must be equal or larger in size than the licensee's name-The firm phone number must equal or larger than the licensee's phone number-A broker using a trade name or franchise name must also include the firm name as licensed with the commission so that the public is not confused
10 Day Rule
When a listing expires the broker must remove all signs from the property within 10 daysWhen permission to advertise a property on the internet expires the broker must remove the ad from the internet within 30 days
BRRETA
-Brokerage Relationships in Real Estate Transactions Act-Require disclosures of types of agency relationships available through the firm, conflict of interest possibilities, broker compensation and shared commission possibilities, and terms and conditions related to the handling of the client's confidential information
Exclusive Right To Sell Listing
-Type of listing-Must be in writing and must have a definite termination date to be enforceable-Gives the broker exclusive rights on the promotion and sale of property over the term of the listing contract-Broker earns a commission if the property sells regardless of who is the cause of the sale-Written/Bilateral/Executory
Exclusive Agency Listing -Exclusive Listing
-Type of listing-Must be in writing to be enforceable-If owner is procuring cause, he does NOT owe the broker a commission
Open Listing
-Type of listing-Must be in writing to be enforceable-An owner can sell the property without paying anyone a commission, and a broker must prove he's the procuring cause to collect a commission-oral or written/Unilateral/executory
Contingency Clause
Requires that a certain act be completed before the contract is binding
Types of Security
Security Deed - Title held by lenderMortgage and Note - title held by homeownerTrust Deed - title held by third party trustee
Security Deed
When a mortgage loan is obtained in Georgia, this is signed at the time of the loan's closingThis deed names the parties involved in the transaction, including the borrower's and lender's namesIt also states the loan amount and its maturity dateIt further explains the terms of the loan, when payments will be due and what the conditions of a missed payment are
Trust Deed
Legal title is held by a third-party trusteeBorrower retains equitable title Bypasses judicial foreclosure
Real Estate Purchase Agreement
Signed when a seller and buyer have finished their negotiations and have reached an agreement on the price and terms of the sale
RESPA
Real Estate Settlement Procedures Act -1974 Federal Law-Applies to real estate settlements involving one-to-four family residential dwellings where a federally related lender is involved -Requires that the buyer and seller receive information of all settlement costs
Georgia Landlord Tenant Law
Law that govern and define the rights and responsibilities of the parties to a lease or rental agreementLeases should be in writing, but can be verbal if the lease is for one year or less
Assignment
When the original tenant assigns the lease he remains liable for rentIf the new tenant defaults on rent to the landlord, the landlord can sue BOTH tenants
Time-Shares
An ownership arrangement where multiple owners own an undivided interest in the property with a right-of-use of the property for a fixed or variable time period
Sherman Anti-Trust Act
Passed in 1890 to insure competition in the marketplace Made price-fixing, monopolist activities and restraint of trade illegalA federal law involving interstate commerce and is enforced by the Federal Trade CommissionCommon examples: Price fixing, restraint of trade, tie ins
Georgia Uniform Deceptive Trade Practices Act (UDTPA)
Georgia law that deals with PRICE-FIXING and other anti-trust activity Allows more people to file complains on a wider range of violationsComplaint can be filed by the STATE OF GEORGIA, A BROKER, or an unlicensed individual
Georgia Fair Business Practices Act (FBPA)
Primarily directed at DECEPTIVE ADVERTISING practicesApplies to all misleading advertising regardless of mediaOnly applies to situations where the alleged violation impacts the public as a whole, not just one individual
Real Estate Education, Research, and Recovery Fund
A state regulated fund, created to help reimburse losses when a court has found a real estate licensee guilty of misrepresentation or fraudulent acts, but the licensee is unable to pay the aggrieved person all or part of the judgementThe fund will pay up to $25,000 per transaction against the judgement obtained by the aggrieved personThe maximum claim against any one licensee is $75,000, regardless of the number of transactions involvedAggrieved person must file for a judgement against the licensee WITHIN 2 YEARS of the incident that caused the problemIf the aggrieved person receives a judgement, and all appeals have been terminated, the aggrieved person has 30 days to make written notice to the commission for payment from the FundThe fund gets its money from fees paid by licensee applicants. The fund is required to have a balance of at least $1,000,000If the fund's balance falls below that level, all licensees may be assessed additional fees up to $30 per licenseeIf the fund balance drops below $1,000,000, the education and research expenditures are halted