1. - home - donald free school of real...
TRANSCRIPT
Objectives
1.
1. Evaluate Responsibilities under License Law
2. Evaluate Responsibilities under Rules
3. Evaluate Responsibilities under Unfair Trade Practices
4. Assess recent changes
2.
§ If a license of licensee, school, or instructor
§ Was obtained under false representation
§ Has been found guilty of a violation of Law
§ Has been found guilty of a violation of Rules
§ Has been found guilty of a Unfair Trade Practice
§ The commission has the power to:
3.
1. Refuse License
2. Reprimand
3. Suspend
4. Revoke
5. Revoke Broker issue Salesperson
4.
6. Fine the Cost of Action
7. Fine $1000S/$5000M
8. Complete Course of Study
9. Require Accountant reports of Trust Account
10. Limit or Restrict License
5.
a. licenses shall be granted ONLY to persons with a good reputation
• Commission may deny license to Corporation, LLC, Partnership if owner of 20% does not have good reputation
6.
b. conviction of
• Forgery, embezzlement, obtaining money under false pretenses, theft, extortion, conspiracy to defraud, other like offenses, or a felony, a sexual offense, a probation violation, or a crime involving moral turpitude
• Grounds to refuse
7.
c. guilty of a violation of federal fair housing law
d. false statement on/or false application
e. grounds to suspend or revoke is grounds to refuse to grant license
f. conduct grounds for denial is grounds for sanction
8.
g. commission starts investigation, then licensee:
1. Surrenders license
2. Allows license to lapse for education
3. Allows license to lapse for fees
• Commission may revoke license
9.
h. When occupational licensing body of this state or another state has disciplined, lapsed, surrendered, revoked, Commission may issue Associate or Brokers
1. At least 10 years have past
2. No criminal charges pending
3. Proof of good reputation
10.
i. Licensee convicted of offense shall notify commission of conviction
• License automatically revoked in 60 days
• Unless licensee makes written request for hearing during the 60 days
11.
j. Commission revokes or suspends CAM, sales, associate broker, Broker
• Any School or Instructor licensee shall also be revoked or suspended
12.
k. Licensee not in compliance with an order for child support is grounds for refusal or suspension of license
l. Licensee is Borrower in default is grounds for refusal or suspension of license
m. Previous sanction may be grounds for refusing license
13.
a. Broker moves – written change of Address within 30 days
14.
b. Licensee leaves broker
• Broker sends license to either Commission or new Broker
• If Broker send license to new Broker must inform Commission in writing
• Licensee cannot work until either sends application to transfer or receives license
15.
c. Licensee transferring can work for former Broker if
1. Both brokers agree in writing
2. Former Brokers transactions in writing
3. Former Broker assumes responsibility
4. The agree has terms of compensation
16.
d. Salesperson or community association manager SHALL NOT work for any broker other than the broker holding their license except as provided in (c)
17.
• Broker Shall not:
• Conduct business in any name other than the one in which the broker’s license is issued
18.
Broker is responsible for:
a. Any licensee who violates License Law, Rules
b. Instructing licensee’s on Law, Rules
c. Reporting any violation of Law, Rules
19.
a. Broker leaves – company has 60 days to replace or cease all brokerage
b. During 60 days firm designates partner, member, or officer to act for firm and be responsible for trust funds
20.
a. Broker can be Broker for one or more other firms
b. Associate Broker can be Broker for one or more other firms, must notify Broker first
21.
a. Written agreement with licensee
• How compensated for work during time affiliated
• How compensated for work begun but not completed prior to termination
• Agreement CANNOT be grounds to not sign release, or complain to Commission
22.
b. If licensee request release the Broker shall immediately sign release
• And send license to Commission
• Or notify Commission that license sent to new Broker
23.
c. Transferring license shall not take:
• Written brokerage engagement, names of prospective customers and clients, keys, plats, for sale signs, records
• Written agreement must cover this and CANNOT be grounds for refusal to release but CAN be grounds for complaint
24.
d. Broker returns license must have either
• Release signed by both Broker & Licensee
• Or statement that release has been signed
• Licensee has one month to transfer or go inactive
• If Broker cannot get licensee’s signature send letter to licensee, copy Commission
25.
e. Licensee terminates affiliation
• Licensee may not contact clients of Broker under Brokerage engagement until it expires without written approval of Broker
26.
f. Applications must be signed by Broker
• Or Associate Broker authorized in writing
g. Duplicate license issued upon satisfactory proof of loss original
27.
a. If brokerage firm or licensee hires support personnel both firm and licensee are responsible if support personnel violate Law or Rules
• Support personnel ONLY perform ministerial duties not brokerage
28.
b. Employee can do property management allowed by Law
c. Licensee can work for one firm and be support personnel for another firm with written consent of BOTH brokers
29.
d. Firm has support personnel must have
1. Written agreement on duties
2. Written agreement with licensee
3. Assure licensee and support personnel have written agreement
30.
e. Support personnel list of approved tasks
f. Support personnel list of prohibited tasks
g. Support personnel prohibited from holding out to be licensee
31.
• Georgia Broker can share commission with a broker from another state
• Broker from another state can not act as broker in Georgia unless nonresident licensee or written agreement with Georgia Broker
32.
a. Each exclusive Brokerage agreement must set forth terms and have definite expiration date
• Listing
• Buyer Brokerage
• Property Management
• Tenant Representation
33.
b. At time of securing Brokerage engagement each person signing must receive a true copy
c. Net Brokerage engagements are prohibited, Client must be notified of gross price
34.
a. Property Management agreements shall
1. Identify property
2. Contain all terms
3. Terms must include when income/report are given to owner – must be at least annual
4. What expenses broker pays
5. Amount of fee or commission
35.
6. Who hold security deposits and prepaid rent
7. Effective date and termination date
8. Terms for termination
9. Signatures
b. Owner must get legible copy when signing, broker must keep copy
36.
• Broker who manages association and holds more than $60,000 must have separate Fidelity Bond for each association
• Must provide copy to association
37.
a. Licensee shall not Buy, Sell, Rent, Lease unless disclosing licensure in writing in contract
b. Licensee shall disclose in writing to buyer, seller, landlord, tenant who licensee is acting as agent and who is paying fee
c. Must have written consent to share commission
38.
• Shall promptly tender any signed offer
• Shall provide copy of offer to licensee working with offeree
• May negotiate with offeree if other licensee’s written agreement does not provide negotiation services
39.
• License number of firm and licensee must be in all:
• Brokerage Agreements
• Offers to buy, sell, lease, exchange
40.
• Licensee shall provide copy to each individual signing document
• Contract is accepted and signed by all parties. Copies must be properly distributed to each signer and each brokerage firm
41.
• Copies of all documents kept 3 years
• Any media
• Provide copies to Commission
42.
• Licensee shall NOT falsify or misrepresent any Document, Form Of, or Amount Of:
• True Sales Price
• Downpayment
• Earnest Money
• Security Deposit
• Other Trust Funds
43.
a. Licensee is required to disclose, in writing, to a principal a commission, fee, rebate, or thing of value
• The disclosure may be made in advance in the Brokerage Engagement
44.
b. Broker paying a referral shall disclose, in writing, the referral fee, commission, or other thing of value to the principal
• No Later than closing
45.
c. The disclosures shall be in addition to any requirements of Federal Law pertaining to the payment of anything of value for referral
46.
d. For purpose of disclosure the licensee’s principal shall mean both Client and Customer
47.
e. Licensee may rebate any part of the commission to a principal
• Rebate must be disclosed on the closing statement
• Rebate can not mislead anyone as to buyers source of funds
48.
• No disclosure is required for gifts, products, services given to principal if they are NOT contingent on the sale of real estate
49.
• Licensee shall NOT buy property in
• Own name
• Firm name, officer, employee, beneficiary, member
• Without first notifying, in writing, the Broker
50.
• Licensee offers to buy property as a condition of obtaining or extending a Brokerage Engagement
• Must enter contract with all terms prior to principal entering into or extending Brokerage Engagement
51.
• Licensee offers to buy property as a condition of principal signing contract to buy, sell, lease, or exchange
• Must enter contract with all terms prior to principal entering into contract to buy, sell, lease, or exchange
52.
• Licensees advertising to buy, sell, or exchange for their own account MUST comply with advertising requirements
53.
a. ANY matter, method, or activity
• ANY media
• Makes known to the general public
• Real estate for sale, rent, lease, exchange
54.
b. MEDIA includes
• Print, photographs, broadcast, Internet
• Examples: newspapers, magazines, flyers, posters, business cards, billboards, radio, video, television, signs, newsletters, voicemail, email, facsimile, websites, blogs, database services, bulletin boards, social media, text, multimedia, pop-ups & similar
55.
• Any advertising that is misleading, inaccurate or misrepresents is prohibited
• If client under Brokerage Engagement is advertising to sell, buy, rent, lease, or exchange real estate that violates rule, licensee must stop ad
56.
• ALL advertising by licensees MUST be:
• Direct supervision of Broker
• In the name of the Firm
57.
• Licensee shall not advertise real estate:
• Without written permission of owner
• If real estate is listed with another firm must disclose listing Firm name, unless waived by Firm
58.
• Licensee shall not discriminate in advertising real estate
• Contents of advertising must be confined to information relative to the property
59.
• Any advertising on the Internet must
• On EVERY viewable page disclose:
• Firm name
• Firm phone number
60.
a. Advertising in electronic messages
• Must contain a direct link to a display in compliance with rule
61.
b. Advertising on website NOT controlled by licensee or Firm
• Must contain a direct link to a display in compliance with rule
62.
c. Information on licensee’s website that is outdated shall be
• Updated
• Removed
• Within 30 days
63.
d. Website maintained by third party (other than Firm or Franchise)
• Licensee provides timely notice of updates to outdated information not in violation
64.
e. Rule applies to websites within licensee’s ownership and control
• Licensee NOT responsible for information taken from licensee’s website and place on website not in licensee’s control
65.
• Trade names includes trade mark and service mark
• Advertising includes advertising done by others on behalf of licensee
66.
a. If Firm uses trade name or franchise name in advertising
• Must include firm name as registered with Commission in manner to attract public attention
67.
a. Firm name must appear adjacent to real estate advertised so that public unmistakably knows which firm listed property
68.
a. In advertising of real estate
• Firm Name must be in Equal or Greater
• Size
• Prominence
• Frequency
• Than licensee’s name
69.
b. Any firm using trade name shall
• Clearly include name registered with Commission on all
• Contracts
• Other transaction documents
70.
c. Any firm using trade name shall
• Clearly include name registered with Commission on
• Office signs
71.
• In Advertising specific real estate for sale, rent, or exchange in any media:
a. Ad must include name of Firm registered with Commission
• Ad must include phone number of Firm
• Except if local law prohibits
72.
b. Name of Firm shall appear in equal or greater
• Size
• Frequency
• Prominence
• Than licensee name
73.
c. Phone number of Firm shall appear in equal or greater
• Size
• Frequency
• Prominence
• Than licensee phone number
• Must be number for Broker
74.
d. If in LOGO or standing alone Firm name must be in equal or greater
• Size
• Frequency
• Prominence
• Licensee name
75.
e. In block advertising of various listings with listing agents name
• Shall be in compliance if Firm name appears at TOP of ad in equal or greater
• Size
• Prominence
76.
f. Firms name may appear in other positions in block as if clearly larger and more prominently than any licensee’s name
77.
• Licensee shall NOT advertise to sell, exchange, rent or lease in a manner
• Indicating that offer is from a private party not licensee
78.
• All advertising by salesperson, associate broker, community association manager to buy or offer for sell, rent, lease must be in Firm name and under supervision of broker
79.
• If licensee advertises property OWNED by licensee and is NOT under brokerage engagement, licensee may do so provided
1. Broker notified in writing of property
2. Broker gives written consent to advertise and approves contents of ad
80.
3. Ad MUST include either
a. Legend “seller, buyer, landlord, tenant (select correct name) holds a real estate license”
OR
b. Legend “GA R.E. Lic. XXXXXX”
81.
• Licensee shall not advertise that licensee
• Offers, sponsors, or conduct Courses
• Or conduct courses in conjunction with approved school
• Unless approved to offer courses
82.
• Licensee shall make every reasonable attempt in advertising to assure
• The public knows that
• They are being contacted by a licensee
83.
• Separate, federally insured, checking account in Georgia
• No trust funds – no account
• Receive trust funds 1 business day to open
• Not subject to attachment or garnishment
84.
• Broker shall have separate trust account for
• Down payments
• Earnest money
• Security deposits
• Rents
• Association fees
• Or other trust funds
85.
• Broker shall notify Commission of
• Name of Bank
• Account Number
86.
• Broker shall authorize Commission to examine at any time but at least each renewal period
• CPA report in lieu of examine
• May require written reports
87.
• Broker may have more than one if Commission is notified
• Most have 3
• Earnest Money
• Security Deposits
• Rent/CMA Fees
88.
• Broker non entitles to ANY part of trust funds as commission or fees until transaction has been
• Consummated
OR
• Terminated
89.
• Licensee as Principal in sale of real estate
• Shall deposit in a Trust Account Payments
• Needed to pay mortgages, contract for Deed, reserves for taxes and insurance, other encumbrance
90.
• Nonresident Broker may be allowed to have trust account in a bank in the Brokers State
• Provided Commission is authorized to examine
91.
• CMA, Salesperson, Associate Brokers
• Receive Security Deposits or Trust Funds on property they own or payments on property they sold (see f)
• Must deposit funds in Brokers Trust Account
92.
• UNLESS:
• Broker approves licensee holding funds in account owned by licensee
• Broker shall assure account is Trust Account, shall notify Commission of bank, account number, licensee name
93.
• Licensee who owns account shall:
• Maintain records as required by Law and Rules
• Provide to Broker on at least a quarterly basis written reconciliation statement
94.
a. Broker may have more than 1 account
• Notify Commission for each account
• Name of Bank
• Account Name or Number
• Within one month of opening
95.
b. Licensee shall give Broker Trust Funds
• As soon after receipt as is
• Practicably possible
96.
c. Licensee shall give Broker Trust Funds
• As soon after receipt as is practicable possible
• If licensee selling property licensee owns
• If licensee renting property licensee owns
• Unless Broker approves licensee trust account
97.
d. Broker holding Trust Funds MUST deposit promptly in Trust Account
• Unless all parties at interest agree otherwise in writing
• Make appropriate safekeeping arrangements for items of value other than cash or checks
98.
d. If Broker deposits funds in interest bearing account
• Broker must have written agreement on who gets interest before depositing
99.
e. Broker owns funds in account clearly identified and only for
1. Bank minimum balance
2. Service charges, checks, bad check fees
3. Commissions provided
4. Only checks to broker to remove
i. accounted for
ii. removed monthly
100.
a. Broker Accounting System must have:
1. Names buyer/seller, landlord/tenant
2. Amount and date deposit
3. Identification of property
4. Amount, payee, date of each check
101.
b. Accounting system whether manual or electronic must:
1. Include all legal & business components
2. Be readily accessible
3. Be in understandable format
4. Be available to Commission representative
102.
a. Broker who disburses trust funds contrary to terms of contract:
• Considered by Commission to have demonstrated incompetence to act as a real estate broker in such manner as to safeguard the interest of the public
103.
b. Broker has properly fulfilled duty who disburses trust funds as follows:
1. Rejection of offer
2. Withdrawal of offer not accepted
3. At closing
104.
4. Written agreement signed by all parties
5. Filing interpleader action in court
6. Upon the order of a court
7. Upon a reasonable interpretation
105.
c. Broker shall not disburse trust funds until Broker is sure bank has credited
• If Broker makes disbursal all have not agreed to must notify all parties in writing
106.
d. Broker who claims part of Earnest Money or other money paid to broker as commission shall be in compliance of:
1. Sale has closed/closing date has passed
2. In rental tenant has possession
3. Lease/purchase has closed/pass date
4. Separate written agreement (not contract)
107.
e. All refunds of Earnest Money must:
• Be paid by check
OR
• Credited at closing
108.
f. If commission transfer is made, the total of that transfer and all checks written against the deposit should reflect a zero balance
109.
g. Licensee has trust account files bankruptcy must notify Commission:
• If Broker or Firm files bankruptcy, Broker must notify Commission
• Notify in writing immediately
110.
• Brokers who manage real property or community associations may have rental or assessment trust accounts separate from their other trust accounts
111.
a. In paying bills for owners or associations there must be enough money credited and deposited to cover bill
b. Security deposits kept in rental trust account must be clearly identified and there must always be a balance equal to total of security deposits
112.
c. If a licensee manages rental property they own must have security deposits in a trust account and may not post bind in lieu
113.
• Broker shall authorize Commission to examine trust account each renewal period or whenever they want upon reasonable cause
114.
a. If broker is Commission member, examination of trust account may be either
1. Commission member pays CPA
2. RE Commissioner hires independent accountant to examine
115.
b. Upon being contacted by Commission about exam of trust account, Broker may hire CPA to do report on account
• Commission may elect not to accept report and conduct own examination
116.
c. Copies of accounting system entries, bank records, receipts, other documents will be made available to agents of the Commission upon reasonable request and at reasonable cost
117.
• Broker must do a written reconciliation at least monthly
• It must compare the Broker trust liability with the reconciled bank balance
• The trust liability is the sum of all deposits
118.
a. Minimum information in reconciliation:
• Date done
• Name of bank, account number
• Account balances
• Deposits in transit, checks outstanding
• Itemization of liability, amount & source
• Broker must review & keep 3 years
119.
b. If trust liability and bank balances do not agree
• Reconciliation must explain differences and corrective action taken
• If bank account show fee for NSF or account has negative balance, reconciliation must explain cause and corrective action
120.
• When renewing a brokers license shall summit
a. Summary of trust account data on Commission form
OR
b. CPA report on trust account
121.
• Trust funds are abandoned the licensee may not disburse funds unless
a. The written authorization requires disbursal
b. Comply with Disposition of Unclaimed Property Act
c. Comply with court order
122.
• Non-Broker licensee can have personal trust account for trust funds received on property owned by licensee of approved by Broker
123.
• Commission deems property “owned by licensee” if deed reflects
a. Only name of licensee
b. Only name of business entity if licensee is the sole owner, member, or stockholder
124.
• Whenever a licensee
a. owns any interest in property that is less than 100 percent and
b. receives trust funds on that property:
• Licensee must deposit said funds in trust account of a Licensed Firm
125.
126.
A. Refusing to: sell, rent, negotiate, making unavailable, denying
B. Discriminating
C. Advertisement
D. Not Available
E. Change in Neighborhood
127.
• Property
• Terms
• Values
• Policies
• Services
128.
129.
• Money
• Property
130.
• Federally insured checking account
• Unless all parties having an interest have agreed otherwise in writing
131.
A. Rebate
B. Referral Commission
C. Referral fee
132.
• Without knowledge and consent of broker holding license
133.
• Without consent of Broker
134.
• Agent
• Principal
135.
• From the resale of real property
136.
• For Sale or Rent
• Written consent
• Owner or owner’s authorized agent
• Failing to remove in 10 days after expiration
137.
• Owners knowledge and consent
• Different terms than authorized
138.
• Sale
• Lease
• Brokerage Agreement
139.
• Owner, Lessor, Purchaser, Tenant
• Sale, exchange or lease
• Knowing party has a written exclusive Brokerage Engagement unless does not provide negotiation services
140.
• Seller, Purchaser, Landlord, Tenant
• Unless Licensed Appraiser
141.
• Unless licensed in that State
142.
• Except:
• Nonresident licensee
• Heirs deceased licensee
• Referral to agent in another Country
• Unlicensed Firm which licensee that earned commission owns more than 20% interest
143.
• Leave Copy
144.
• Buyer
• Seller
145.
• Buyer
• Seller
• Retain true copies in files
146.
• Fraud
147.
• Written consent
148.
• Practicably possible
• Your Broker
149.
• Or any document or instrument
• Purporting to create Lien
• Or cloud on title
150.
• Or any conduct that constitutes dishonest dealing
151.
• Brokerage agreement, sales, contract, lease
FROM:
• Owner, Purchaser, Tenant
• Knowing another Broker has exclusive brokerage agreement without that Brokers written consent
152.
• Contracts (sales, lease)
• Closing Statements
• Offers, documents creating Trust Funds
• Accounting records
• Failure to produce upon request from GREC
153.
• Any falsification
• Any portion
• Any contract or document
• Any real estate transaction
154.
• In writing
• Prior to depositing
155.
• Timely (prior to first substantive contact)
156.
• Listing, selling, leasing
157.
• Sell, list, exchange property owned by member of Association
158.
• Complete and accurate record of all transactions and funds handled
• Records and Documents
• Funds
• Unless management contract has different time period
159.
• Complete and accurate record of all transactions and funds handled
• Records and Documents
• Funds
• Unless management contract has different time period
160.
• Without that agents prior written consent
161.
• Brokerage or Relocation Services
• Failing to disclose if commission for referral
162.
• Commission may consider prior sanctions in determining severity of new sanctions
• The failure to comply with a final order may be cause to suspend or revoke license
163.
• If licensee acts as:
• Principal • Officer • Emplyee • Member
• Commission may sanction if violation
164.
• CAM
• Salesperson
• Associate Broker
• Acts as a Broker with our without permission
• Commission may sanction licensee