The professional life of the Georgia real estate licensee is governed by passed by the , and the rules and regulations formulated by the .
Real estate license law (Title 43 Chapter 40), Georgia State legislature, Georgia real estate commission
The rules and regulations that govern the business life of real estate licensees were formulated by
the Georgia real estate commission.
The commission was created by
Georgia real estate law
If there is a conflict between the law and the rules and regulations, the always takes precedence over the .
Law, administrative rules and regulations
Associate broker
Person who meets all the qualifications of a broker, but who chooses to work for a real estate broker and perform acts of real estate on the broker's behalf.
Broker
Person who performs acts of real estate brokerage for another, for compensation
Community Association Manager
Person who acts on behalf of a real estate broker to offer only community association management services
Brokerage firm
Any business entity such as a sole proprietorship, partnership, limited liability company, or corporation license by the commission as a broker
Licensee
Any person holding a real estate license, whether active or inactive
Person
Could be an Individual person and/or also a business entity such as a corporation, partnership or limited liability company
Salesperson
Person who is licensed to perform acts of real estate for a real estate broker
How many members does a real estate commission have?
6 members
Commission members are appointed by _____________ and confirmed by the ______________, for _________ year terms.
Commission members are appointed by the governor and confirmed by the state senate, for5 year terms.
The terms are staggered so that only one member expires each year.
How many members of the real estate commission must be licensed in real estate?
5 members
What are the qualifications for real estate commission members?
5 members must be licensed in real estate for at least 5 years, and a Georgia resident for at least 5 years
1 member must be a consumer member with no connection to the real estate industry
Who can remove a real estate commission member and why?
The governor can remove a member for incompetence, dishonesty or failure to perform duties
Each year the members select a and a from among their membership.
Chair and vice chair
Commissioner
Fulltime employee hired by the commission members to run the day to day operation, hire staff and enforce policy.
Can a commissioner be a member of the commission?
No
No employee of the commission (including the commissioner) can hold an active real estate license.
a. True
b. False
a. True
Primary purpose of the commission
To protect the public from dishonest and incompetent real estate licensees.
What is the commission empowered by Georgia law to do?
Develop rules and regulations that govern the business life of real estate licensees
Develop rules and regulations for issuing real estate licenses.
Investigate alleged violations by licensees.
Discipline licensees who are found to have violated the law or regulations
Establish nonrefundable fees, which licensees are required to pay.
What could be an adequate cause for the commission to refuse to issue a license?
Misrepresenting any fact on an application form would be an adequate cause for the commission to refuse to issue a license.
What happens to the nonrefundable fees paid by licensees?
The fees are deposited in the state treasury and are used to fund the operation of the commission.
The commission receives no public money for its operation.
What are some of the fees paid by real estate licensees?
Fees include, but are not limited to exam fees, activation fees, annual fees and penalties
Discipline by the commission can include??
Refusal to grant or renew a license
A reprimand or censure for minor violations (this bypasses a formal hearing)
Require additional education course study
When trust account infractions are involved the commission can require regular trust account reports from an independent accountant
A fine not to exceed $1000 for each violation, with fines for multiple violations limited to $5000 in any one disciplinary violation
Suspend a license for a specific period of time, or an indefinite period
Revoke a license (person may apply for a new license after 10 years)
Revoke the license of a broker and simultaneously issue a salesperson's license
Limit or restrict any license or approval as the commission feels necessary for the protection of the public
What could be the fine for a violation?
Not to exceed $1000 for each violation
What could be the fines for multiple violations?
Limited to $5000 in any 1 disciplinary violation
The commission can suspend a license for only a specific period of time.
a. True
b. False
b. False
The commission could suspend a license for a specific period of time or an indefinite period
How long before a person can apply for a new license, if his license gets revoked by the commission?
After 10 years
Can the commission revoke the license of a broker?
Yes and simultaneously issue a salesperson's license
Can the real estate commission limit or restrict any license or approval?
Yes, as the commission feels necessary for the protection of the public
If there is a commission split dispute between a broker and a salesperson, what does the commission do?
The commission does not arbitrate disputes among licensees, such as a commission split dispute between a broker and his salesperson.
What information about a licensee is public information?
Licensee's name
License number
License status
Disciplinary information
are a matter of public record and can be accessed by the public on the commission's website
Real Estate Commission is also known as Association Of REALTORS.
a. True
b. False
b. False
Do not confuse the real estate commission with the association of realtors, or any local association of realtors.
Associations are trade organizations and membership is voluntary.
Are the code of ethics developed by the National Association of Realtors same as Real Estate Law?
No. NAR's code of ethics are only adopted by individual state associations along with the law.
The NAR requires their members to abide by the realtors code of ethics and they can deny membership to the violators, but their code has no legal force.
Who is required to have a license?
Any person who performs any of the following acts of brokerage for another, for compensation, is required to hold an active real estate license:
1. Negotiating
2. Acting as a referral agent
3. Collecting rents, assessments, or other trust funds
4. Auctioning real estate
5. Performing property management/community association management services
6. Advertising
What happens when somebody operates without a license?
The commission can issue a cease and desist order, and can impose a fine up to $1000 a day for operating without a license
A court can impose a fine and/or impose a jail sentence of up to one year
Can an owner or the fulltime employees of the owner buy, sell or lease on their own account without a license?
Yes, an individual, spouse of an individual, corporation, partnership or general partner of a limited partnership or the fulltime employees of the owner, can buy, sell or lease on their own account without a license
Who is required to have a license?
B. person performing property management or community association management services for compensation
Who is required to have a license?
A. person collecting rents, assessments, or other trust funds for a fee
Which of the following people require a license?
A. any person acting as a referral agent for the procuring of prospects for, the listing, sale, purchase, exchange, renting, lease or option of real estate
The primary purpose of the real estate commission is to
D. Protect the public
All employees of the commission must be unlicensed or inactive, but all commission members must be active real estate licensees.
a. True
b. False
b. False
Sarah lives in Atlanta and has a sister who lives in South Carolina. The sister wants to swap her house in South Carolina for a house close to Sarah. Sarah knows her next door neighbor wants to get out of Atlanta, and puts the neighbor in touch with her sister. The two agree to swap houses if Sarah will handle the paperwork. The two agree to pay Sarah for time.
D. This is illegal if Sarah is unlicensed.
Bill knows that his neighbor Carol wants to sell her house. Bill's friend Sam tells Bill that he would like to buy a house in Bill's neighborhood. Bill introduces Sam and Carol. Sam ends up buying Carol's house. Bill is not licensed. Can Bill receive a referral fee for this?
C. Yes, Bill can receive a referral fee from Carol.
John decides to help his brother sell his house. He advises his brother about a market price for his house and helps in advertising the property.
D. This is legal if john receives no compensation for his help.
Sam owns a 50 unit apartment building. Sam is not licensed. He has employed Ben to manage the property for him. Ben has an inactive salesperson's license. This is legal because Ben's license is inactive.
a. True
b. False
b. False
Atty. Smith is settling the estate of a deceased client. The estate includes a tract of land that the Atty. sells for $100,000. The Atty. charges the estate $10,000 for the sale of the land. The attorney does not have a real estate license. This is legal.
a. True
b. False
a. True
Two brothers have a dispute about a commission split. Which of the following could become involved in settling their dispute?
B. A court of competent jurisdiction
ABC cooperation owns 10 apartment buildings.
B. Employees of the corporation do not need to be licensed.