Chapter 23 Georgia Real Estate License Law The Georgia Real Estate Commission regulates real estate brokers and salespersons in the state of Georgia. Licensees must be aware of the state’s regulatory laws.

2 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Learning objectives –Identify the four categories of licensure in Georgia –Describe the requirements for managing trust accounts and trust funds –Explain the unfair trade practices under the Georgia Real Estate License Law –Distinguish nonresident licensure requirements

3 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Definitions in OCGA Associate broker Broker Brokerage agreement Firm Licensee Person Property management services Purchaser Real estate salesperson

4 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Definitions in Rule Agency Applicants Bank Brokerage engagement Brokerage relationship Buyer Candidate for licensure Client Customer Dual agent Franchise name Franchisee Franchisor Instructional hour Statutory overnight delivery Timely

5 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Georgia Real Estate Commission (GREC) –Regulate the real estate brokerage industry –Protect the public interest –Appointed by the Governor –Six members—five licensed and one consumer advocate –GREC appoints the Georgia Real Estate Commissioner as the CEO administrating the policies of the GREC

6 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Obtaining and holding a real estate license Who needs to be licensed? Exempt persons and entities Civil penalties for unlicensed practice

7 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law License categories and requirements –Salesperson’s (sales associate) license To obtain To keep –Broker’s and associate broker’s license –Community association manager license –Auctioneer’s license –Broker firm requirements –Corporations, LLCs, and partnerships

8 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law The real estate license –Examination –Application –Criminal history report –Preliminary hearing –Hearing after denial –Active or inactive license –Renewals –Reinstatement of lapsed license –Nonresidents and license by reciprocity –Georgia and Florida reciprocity –Reciprocity by written agreement

9 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law License fees –Original license fee –Expiration and renewal –Returned check and other penalty fees

10 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Prelicensing Education Post-licensing course –25 contact hours –Complete within 1 year of receiving the license Continuing education –6 hours in each year of the 4-year renewal period = 24 contact hours in 4 years –No examination required

11 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Real estate businesses and Georgia license law –Change of address, name, or business information –Managing trust accounts and trust funds –Affiliated license trust accounts –Broker’s funds and trust account –Disbursal of funds –Nonresident broker’s trust funds –Broker managing property or community association –Trust fund abandonment –Licensee acting as principal –Broker business licenses

12 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Disciplinary provisions and loss of license –Unfair trade practices subject to disciplinary action –False or fraudulent representation –Investigative process

13 ©2013 Kaplan, Inc. 23 Georgia Real Estate License Law Real Estate Education, Research, and Recovery Fund –Collection from the Recovery Fund –Effect on the licensee –Statute of limitations –Financing the Education, Research, and Recovery Fund