Chapter 24
Thomas E.
Gillett
Charles J.
Jacobus
© 2008 by South-Western, Cengage Learning
Georgia Real Estate
An Introduction to the Profession
Seventh Edition
Chapter 24
Georgia License Law
© 2008 by South-Western, Cengage Learning
License Law
Passed by Legislature
Signed by the Governor
GREC
www.grec.state.ga.us
© 2008 by South-Western, Cengage Learning
Georgia License Law
Broker
Performs acts of real estate
for another for compensation
Associate Broker
Meets the requirements to be
a broker but chooses to act
on behalf of another broker
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Georgia License Law
Salesperson
Licensee who acts on behalf
of a Broker in real estate
transactions
Brokerage Agreement
Written contract to represent
another in a real estate
transaction for compensation
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Georgia License Law
Commission
GREC
Commissioner
Administrative head of GREC
Licensee
Any person with a real estate
license
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Georgia License Law
Person
Individual or firm
Firm
Any business entity
Real Estate
Any interest in real property
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Georgia License Law
Six Members
Appointed by the governor
Confirmed by the senate
5 are licensed for 5 years
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Georgia License Law
Georgia residents for 5 years
6th Member is a consumer
Chairperson is elected
Meet once per month
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Georgia License Law
Quorum is 4
Pass rules and regulations
Yearly report to the Governor
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Georgia License Law
Establishes & collects fees
No tax dollars
Full time employee
Runs the department
Hires and is responsible
for staff
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Georgia License Law
No active license
Official seal & signature
May certify licensee history for 5 years
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Georgia License Law
May request any info deemed necessary
Kept confidential
Not confidential: Licensee’s name, license
number, status, & disciplinary action
http://www.grec.state.ga.us
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Georgia License Law
Community Association Manager
18 years old
State resident
High school graduate or equivalency
25 in class hours
State exam
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Georgia License Law
Salesperson
18 years old
State resident
High school graduate or
equivalency
75 in class hours
State exam
Post-license requirement
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Georgia License Law
Broker
21 years old
State resident
High school graduate
or equivalency
Actively licensed for 3
of previous 5 years
60 in class hours
State exam
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Georgia License Law
Continuing Education
6 hours per year
Renewal period: 4
years
Exemptions
Active military duty
General assembly
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Georgia License Law
Not licensed in home state
Same requirements for age, education and
exam
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Georgia License Law
GA license if licensed in home state
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Georgia License Law
GA license if licensed in home state
Proof of licensure
Pay fees
Has read & understands the law & rules and
will abide
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Georgia License Law
GA license if licensed in home state
Affiliation with a GA broker
Documentation of disciplinary action
Commissioner appointed as agent
Will cooperate with investigations
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Georgia License Law
Out of state licensee without a GA license
Written Agreement with GA Broker:
How commission will be shared
Any agreements to be in
name of GA Broker
Negotiate only with express
permission of GA Broker
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Georgia License Law
Out of state licensee without a GA license
Written Agreement with GA Broker
Advertising identifies GA Broker
Trust Funds in GA Brokers Trust
Account
Violations of law
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Georgia License Law
Qualifying Broker
Bind the firm in matters
before the commission
Firm & licensees comply
with the law
Properly licensed
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Georgia License Law
Qualifying Broker
Subject to sanctions for
violations
Payment may be made to
non-licensed corporations
Written instrument
20% of stock owned by the
licensee
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Georgia License Law
Wall license & pocket card
Broker has custody
1. Examination Fee
2. Activation Fee
3. Renewal Fee
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Georgia License Law
License lapses due to failure to pay fees
Within 2 Years
Renewal fees, late charges & reinstatement fee
Greater than 2 but less than 5 Years
Renewal fees, late charges & reinstatement fee
Education course as required
Pre-license course for license reinstated
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Georgia License Law
License lapses due to failure to pay fees
More than 5 Years
Must qualify as an original applicant
Continuing Education Exemption
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Georgia License Law
Inactive Status
Written request
Within 30 days
No brokerage activity
Renewal fees
To reactivate:
Continuing education
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Georgia License Law
Penalty fees imposed:
1. Failure to notify the commission within
30 days
Change of address
Opening or closing a trust account
Transferring to a new company
Departing a firm
Inactive
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Georgia License Law
Penalty fees imposed:
2. Failure to join a new company within 30
days.
3. Failure to respond to commission
inquiries within 30 days
4. Returned check
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Georgia License Law
Expenses paid from fees collected
Not supported by tax dollars
May enter into contracts with others
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Georgia License Law
Granting a License
Reputation for honesty, trustworthiness,
integrity, & competence
Denying a License to a company
An owner with more than 20%
interest
Bad reputation
Convicted of a crime
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Georgia License Law
Conviction:
Felony or crime of moral turpitude
May not apply until
Term of sentence completed
Single offense: 2 Years since
satisfaction of terms
Multiple: 5 Years since
satisfaction of terms
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Georgia License Law
Associate Broker:
1. 10 years since conviction or release
2. No charges pending
3. Proof of reputation for
honesty, trustworthiness,
integrity, and competence
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Georgia License Law
False statements on applications
Infractions or sanctions by an
occupational body
Notification of convictions
60 days to request hearing
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Georgia License Law
Noncompliance with Child support
Default on Student loans
Georgia Administrative Procedures Act
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Georgia License Law
Limitation of Liability
1. Procedure for supervision
2. Did not participate in the violation
3. Did not ratify the violation
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Georgia License Law
Sole Proprietorship
Broker is only owner
Partnership
Must be a partner
LLC
Must be a member
Corporation
Must be an
officer
Qualifying Broker must have authority
to sign on all trust accounts
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Georgia License Law
Procedures
Advertising
Training on law and rules
Review of all contracts
within 30 days
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Georgia License Law
Procedures
Trust Accounts
Properly licensed
Trust account
disbursements
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Georgia License Law
Procedures
Safekeeping of transaction
records
Policy and procedures
manual
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Georgia License Law
Procedures
Written agreement
How to be paid
How paid for work begun but not
completed
Management authority
reasonably available
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Georgia License Law
Change of Business address
Notify commission within 30 days
Licensee changes Brokers
License forwarded to commission
Forwarded to new broker with
notification to commission
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Georgia License Law
Exception: may work for more than one
Georgia Broker if:
Agree in writing
Transactions identified
Former Broker accepts responsibility
Agreement states compensation
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Georgia License Law
Protects funds from
garnishment or
attachment
May have more than one
Notify the commission of
name of bank & acct. #
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Georgia License Law
Allow audits
Minimum once per
renewal period
Licensee as a principal
Money received on
obligation must be
placed in Trust Account
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Georgia License Law
Security deposits
May use brokers Trust
Account
Licensee Trust Account
Approved by broker
Notification to commission
Quarterly reports
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Georgia License Law
Failure to maintain
account per 43-42-20
Failure to allow audit
Reported to Attorney
General
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Georgia License Law
New licensees pay $20 into the fund
$1,000,000 Minimum balance
$30 per renewal year if below the minimum
Limitations
$15,000 per transaction
$45,000 per licensee
$15,000 per person
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Georgia License Law
Prohibited from colleting:
Bonding Company
Licensee
Relative of licensee
Action begun within 2 years
Commission notified
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Georgia License Law
Upon failure to recover
Court order
Payment from fund = Revocation of license
Monies received are invested
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Georgia License Law
No tax unless Broker maintains an office in
jurisdiction
Gross receipts tax
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Georgia License Law
Properly licensed
Sanctions
Refusal to grant or renew
Formal reprimand
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Georgia License Law
Sanctions
Suspension
Revocation
Downgrading of license
Reimbursement of expenses
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Georgia License Law
Sanctions
Fines
$1,000 per violation
$5,000 per hearing
Education
Periodic reports
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Georgia License Law
Sanctions
Limits or restrictions on license
Violations
(1) Fair Housing
(2) Misleading or inaccurate
advertising
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Georgia License Law
Violations
(3) Failure to account for other’s money
(4) Commingling
(5) Failure to deposit funds
ASAP
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Georgia License Law
Violations
(6) Accepting, giving or charging
undisclosed fees
(7) Representing a broker
other than the broker
holding the license without
permission
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Georgia License Law
Violations
(8) Accepting a commission not from the
broker
(9) Failure to disclose
licensure as a principal
(10) Guaranteeing a profit
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Georgia License Law
Violations
(11) Sign placement without written consent
Removal within 10 days of expiration
(12) Unauthorized offerings
(13) Inducing a person to
break one contract to enter
into another
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Georgia License Law
Violations
(14) Negotiating directly with the client of
another broker
EXCEPTION
(15) Expressing an opinion
as an appraisal
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Georgia License Law
Violations
(16) Acting as a licensee in another state
without proper licensure
(17) Payment to an
unlicensed person for acts
of real estate
(18) Listings without a
definite termination date
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Georgia License Law
Violations
(19) Failure to give copies of contracts or
offers to all parties
(20) Failure to provide
copies of closing
statements
(21) Any substantial
misrepresentation
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Georgia License Law
Violations
(22) Dual Agency without written consent
(23) Failure to turn over
funds to the Broker ASAP
(24) Filing a lien without a
valid claim
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Georgia License Law
Violations
(25) Actions which may endanger the public
(26) Entering into an
agreement or contact when
an exclusive brokerage
engagement exits with
another broker
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Georgia License Law
Violations
(27) Failure to maintain copies of all
documents for 3 years
(28) Falsification of any
document
(29) RESERVED: only an
attorney may conduct a closing
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Georgia License Law
Violations
(30) Deposits in interest bearing accounts
without written agreement as to
who receives the interest
(31) Failure to timely
disclose agency
relationships
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Georgia License Law
Violations
(32) Performing acts of Brokers or
salespersons with a CAM license
(33) When performing CAM
duties, failure to obtain
permission to perform other
acts of real estate
Accounting of all records within
30 days of termination
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Georgia License Law
Violations
(34) Changing compensation of another
licensee without prior written
permission
(35) Failure to disclose to a
person that they are being
referred
Compensation will or will
not be paid
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Georgia License Law
Licensees may complete preprinted forms
Citation may be issued
without a hearing
Request by licensee for hearing
within 30 days
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Georgia License Law
Georgia Administrative Procedures Act
May have a hearing prior to censuring
Superior court judicial review
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Georgia License Law
Commission MAY investigate on its
own
MUST investigate sworn written
complaint
Name published on web site
Attorney General stops acts & practices
which may violate the law
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Georgia License Law
(1) Owner, spouse, general partner, or manager
of apartments for federal agency
(2) Attorney in Fact
(3) Attorney acting solely incidental to the
practice of law
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Georgia License Law
(4) Officer of the court
(5) Employee of the government
(6) Employee of utility company
(7) Owner or a full time employee
of a person engaged by
the owner
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Georgia License Law
(8) Full time employee of the owner
(9) Referral agent
Fee cannot be paid by the person being referred
No fee in advance
No more than 3 transactions per year
(10) Employee of the broker
Written management agreement
with the owner
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Georgia License Law
(11) Property management for property
available for less than 90 days
(12) A member of a community association
providing community association services
(13) Maintenance Services
(14) CPA
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Georgia License Law
Commission may issue cease and desist
order
Fine of $1,000 per day
Misdemeanor
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Key Terms
Associate broker
Broker
Brokerage
engagement
Commission
Commissioner
Licensee
Real estate
Real estate
education,
research, and
recovery fund
Salesperson
© 2008 by South-Western, Cengage Learning