© 2008 by south-western, cengage learning chapter 25 chapter 25 charles j. jacobus thomas e....

© 2008 by South-Western, Cengage Learning

Chapter 25Chapter 25

Charles J.Jacobus

Thomas E.Gillett


Georgia Real Estate Georgia Real Estate An Introduction to the ProfessionAn Introduction to the Profession

Seventh EditionSeventh Edition

Chapter 25Chapter 25

Georgia Rules and Georgia Rules and RegulationsRegulations


Rules and RegulationsRules and Regulations

1st annual meeting

Chair and vice-chair

Written request to appear

Rule amended or repealed

Clarification of a rule



Agency: Express contract between a Broker & Client in real property transaction

Bank: Federally regulated financial institution



Brokerage Engagement: Written contract between a client and a broker

Client: Has entered into a brokerage engagement

Customer: Has not entered into a brokerage engagement



Dual Agent: Broker who has brokerage engagements with both parties to a transaction

Firm: Licensed as broker

Franchise Name: Requires permission of one who has a right in the trade name



Ministerial acts: Do not require confidentiality or judgment

Timely: Reasonable time



Licensees records5 Years

Disciplinary actions regardless of date of occurrence

Investigations Disciplinary action – 40 years All others 15 Years



Surrender, Suspension or Revoked License

Wall license & pocket

card to commission

If Broker – all licenses



Activation FeesRenewal

Last day of birth month every 4 years

Broker’s LicenseActive 3 of last 5 yearsLicensed in another state

Provide certification from licensing authority



State ExamMilitary service: 1 Year with 90 days during wartime

5 point credit

Disability – 10 point credit



Licensed in another state moving to GA may be exempt if:

Passed similar exam

Met education requirements

License in good standing

No disciplinary actions

Sharing exam info is prohibited



Activate within one yearSalesperson & community association manager

3 months or double the fee

Criminal History Report 60 days old



Firm must operate in name of license

Preliminary DecisionIf denied a hearing may be requested

60 days



25 Hour post licenseWithin 1 year of licensure

Licensed under one Georgia Broker

Activating an inactive license6 hours of education per year of inactive status



Surrendered licenseQualify as an original applicant

License will lapseLicensee: the last day of birth month every 4 years

Firm: last day of anniversary month every 4 years



Lapsed LicenseNon-renewal

Failure to complete education

Renewal of lapsed license2 Years or less

Back fees, late fees, reinstatement fees

Required continuing education



More than 2 yearsBack fees, late fees, reinstatement feesPre-license course

Option:Required education & state exam

Administrative, civil, or criminal actionFinal disposition within 10 days



GA licensee moves to another stateInactive status

Apply for non-resident license

Acts of real estate in another state Comply with that state’s laws



If retired after 20 YearsIf retired after 20 Years

May request copy of wall license & pocket card

OR the family of OR the family of deceased licenseedeceased licensee



Definite date of expiration

True copy to all who sign

Net Listings prohibited



Identify propertyIdentify property Terms & conditionTerms & condition



Periodic StatementsPeriodic Statements Expenses paid by brokerExpenses paid by broker



Broker compensationBroker compensation Who holds prepaid rent or security depositsWho holds prepaid rent or security deposits



Effective and termination datesEffective and termination dates Terms and conditions of terminationTerms and conditions of termination



SignaturesSignatures



Company authorized in GA

Maximum coverage

Association named as insured



Covers anyone with access

Not terminated without 30-day notice

10 days for non-payment

Separate bond for each community



Required Disclosures: Licensee acting as a principal

Who firm represents

Who is providing compensation

Written consent to pay a fee to another licensee representing another party



Business conducted in license name

Training on license law & rulesNotify commission of violations

Written Agreement w/licenseeHow compensated

Work begun but not completed



Replace qualifying broker within 60 days

Qualifying broker for multiple firms

Associate broker for only 1 firm Qualifying broker for one or

more firms Written notification to

qualifying broker



Licensee transfers to another brokerQualifying Broker may not refuse

Wall license sent to:New broker with notice to Commission orCommission

Within 30 daysTransfer to new broker orInactive status



Items provided by broker must be returned

No contact with the firm’s clients

Support personnel 3 Way agreement

Ministerial Acts


Support Personnel DutiesSupport Personnel Duties

PermittedAnswering phoneAssembling documentsKeys & locksAdsTyping contractsComputing commissionsSignsCourierSchedulingProviding securityPhysical maintenance

Not permittedCold callsOpen houseShowing propertyExplaining contractsNegotiating feesDiscussing attributes of propertyCollecting deposits or rentAdvice, recommendations or suggestions



Multiple Accounts permittedNotify commission within 30 days

Name of Bank

Account number

Licensee turn over to broker ASAP

Licensee as principal Broker’s trust account Licensee’s trust account



Interest bearing accountWritten agreement

Who retains interest

Broker’s money in Trust Account: Minimum deposit

Service charges

Commission



Must include:Name of parties

Amount & date of deposit

Property identified

Amount, payee, & date of check

Zero balance at termination

Monthly reconciliation



Report due at license renewal

When claiming monies held in trust:Transaction closed

Lease: possession delivered

Lease/PurchaseClosing date or extension

Written agreement by all parties



BankruptcyImmediate notification to commission

Related trust document copies made available to commission

Property Managers or CAM Money in account prior to writing checks Balance equal to total of all security

deposits



Separate accounts not required for earnest money & security deposits

Disbursal of trust account funds(1) Rejected offer

(2) Withdrawal

(3) Closing



Disbursal of trust account funds(4) Separate written agreement

(5) Interpleader

(6) Court order

(7) Reasonable contract interpretation


All MediaAll Media

Misleading advertising prohibitedMisleading advertising prohibited PuffingPuffing

Fair Housing ViolationsFair Housing Violations Describe the propertyDescribe the property


Owner or owner’s agent writtenOwner or owner’s agent written permissionpermission

IDX

Internet ads removed within 10 days of expiration


Specific propertySpecific property Firm’s name & # must have equalFirm’s name & # must have equal

size, prominence, & frequencysize, prominence, & frequency

Firm name as registered Firm name as registered Unique identifierUnique identifier


Licensee’s advertising must be:Licensee’s advertising must be: Under broker’s supervisionUnder broker’s supervision

Name of brokerName of broker

NoNo “blind ads” “blind ads”


Property not listed or advertised withProperty not listed or advertised with broker:broker:

Written notification to brokerWritten notification to broker

Disclosure of license Disclosure of license

Written permission from brokerWritten permission from broker



All offers presented promptlyLicense # of firms & licensees

Copies to all who sign

Transaction documents maintained for 3 years



False representation or intent to deceiveFalse sales price or lease payments

False downpayment, earnest

money or form of either

Any false statement



Written notification to broker

Written permission from broker for any ads



Offer to buy or lease as inducement to enter a brokerage engagement

Must first enter agreement defining all terms



Violations:Protected class lowers values in a neighborhood

Denying housing

Facilities or services in connection with property



Violations:Refusing offers

Refusing to negotiate

Housing not available or refusing to permit inspection



Citation: Prior to formal hearingMay result in lesser penalty

Education

Periodic reports

Fines

$1,000 per violation

$5,000 per citation



Final in 30 days

Prior citations may not be considered if terms are satisfied


Key TermsKey Terms

Agency

Brokerage Engagement

Citation

Client

Customer

Firm

Hearing

Post-license education

Preliminary decision

Wall certificate

© 2008 by south-western, cengage learning chapter 25 chapter 25 charles j. jacobus thomas e....

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