© 2008 by South-Western, Cengage Learning Chapter 25 Chapter 25 Charles J. Jacobus Thomas E. Gillett

© 2008 by South-Western, Cengage Learning Georgia Real Estate An Introduction to the Profession Seventh Edition Chapter 25 Georgia Rules and Regulations

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 1 st annual meeting Chair and vice-chair Written request to appear Rule amended or repealed Clarification of a rule

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Agency: Express contract between a Broker & Client in real property transaction Bank: Federally regulated financial institution

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Ministerial acts: Do not require confidentiality or judgment Timely: Reasonable time

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Licensees records 5 Years Disciplinary actions regardless of date of occurrence Investigations Disciplinary action – 40 years All others 15 Years

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Surrender, Suspension or Revoked License Wall license & pocket card to commission If Broker – all licenses

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Activation Fees Renewal Last day of birth month every 4 years Broker’s License Active 3 of last 5 years Licensed in another state Provide certification from licensing authority

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations State Exam Military service: 1 Year with 90 days during wartime 5 point credit Disability – 10 point credit

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Activate within one year Salesperson & community association manager 3 months or double the fee Criminal History Report 60 days old

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Firm must operate in name of license Preliminary Decision If denied a hearing may be requested 60 days

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 25 Hour post license Within 1 year of licensure Licensed under one Georgia Broker Activating an inactive license 6 hours of education per year of inactive status

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Surrendered license Qualify as an original applicant License will lapse Licensee: the last day of birth month every 4 years Firm: last day of anniversary month every 4 years

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Lapsed License Non-renewal Failure to complete education Renewal of lapsed license 2 Years or less Back fees, late fees, reinstatement fees Required continuing education

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations More than 2 years Back fees, late fees, reinstatement fees Pre-license course Option: Required education & state exam Administrative, civil, or criminal action Final disposition within 10 days

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations GA licensee moves to another state Inactive status Apply for non-resident license Acts of real estate in another state Comply with that state’s laws

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations If retired after 20 Years If retired after 20 Years May request copy of wall license & pocket card OR the family of deceased licensee

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Definite date of expiration True copy to all who sign Net Listings prohibited

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Identify property Terms & condition Terms & condition

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Periodic Statements Periodic Statements Expenses paid by broker Expenses paid by broker

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Broker compensation Who holds prepaid rent or security deposits Who holds prepaid rent or security deposits

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Effective and termination dates Terms and conditions of termination Terms and conditions of termination

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Signatures

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Company authorized in GA Maximum coverage Association named as insured

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Covers anyone with access Not terminated without 30-day notice 10 days for non-payment Separate bond for each community

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Business conducted in license name Training on license law & rules Notify commission of violations Written Agreement w/licensee How compensated Work begun but not completed

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Licensee transfers to another broker Qualifying Broker may not refuse Wall license sent to: New broker with notice to Commission or Commission Within 30 days Transfer to new broker or Inactive status

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Items provided by broker must be returned No contact with the firm’s clients Support personnel 3 Way agreement Ministerial Acts

© 2008 by South-Western, Cengage Learning Support Personnel Duties Support Personnel Duties Permitted Answering phone Assembling documents Keys & locks Ads Typing contracts Computing commissions Signs Courier Scheduling Providing security Physical maintenance Not permitted Cold calls Open house Showing property Explaining contracts Negotiating fees Discussing attributes of property Collecting deposits or rent Advice, recommendations or suggestions

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Multiple Accounts permitted Notify 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Interest bearing account Written agreement Who retains interest Broker’s money in Trust Account: Minimum deposit Service charges Commission

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Must include: Name of parties Amount & date of deposit Property identified Amount, payee, & date of check Zero balance at termination Monthly reconciliation

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Report due at license renewal When claiming monies held in trust: Transaction closed Lease: possession delivered Lease/Purchase Closing date or extension Written agreement by all parties

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Bankruptcy Immediate 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

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Separate accounts not required for earnest money & security deposits Disbursal of trust account funds (1) Rejected offer (2) Withdrawal (3) Closing

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Disbursal of trust account funds (4) Separate written agreement (5) Interpleader (6) Court order (7) Reasonable contract interpretation

© 2008 by South-Western, Cengage Learning All Media All Media Misleading advertising prohibited Misleading advertising prohibited Puffing Puffing Fair Housing Violations Fair Housing Violations Describe the property Describe the property

© 2008 by South-Western, Cengage Learning Owner or owner’s agent written permission IDX Internet ads removed within 10 days of expiration

Specific property Specific property Firm’s name & # must have equal Firm’s name & # must have equal size, prominence, & frequency size, prominence, & frequency Firm name as registered Firm name as registered Unique identifier

© 2008 by South-Western, Cengage Learning Licensee’s advertising must be: Licensee’s advertising must be: Under broker’s supervision Under broker’s supervision Name of broker Name of broker No “blind ads” No “blind ads”

© 2008 by South-Western, Cengage Learning Property not listed or advertised with Property not listed or advertised with broker: broker: Written notification to broker Written notification to broker Disclosure of license Disclosure of license Written permission from broker Written permission from broker

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations All offers presented promptly License # of firms & licensees Copies to all who sign Transaction documents maintained for 3 years

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations False representation or intent to deceive False sales price or lease payments False downpayment, earnest money or form of either Any false statement

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Written notification to broker Written permission from broker for any ads

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Offer to buy or lease as inducement to enter a brokerage engagement Must first enter agreement defining all terms

© 2008 by South-Western, Cengage Learning

Rules and Regulations Rules and Regulations Violations: Protected class lowers values in a neighborhood Denying housing Facilities or services in connection with property

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Violations: Refusing offers Refusing to negotiate Housing not available or refusing to permit inspection

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Citation: Prior to formal hearing May result in lesser penalty Education Periodic reports Fines $1,000 per violation $5,000 per citation

© 2008 by South-Western, Cengage Learning Rules and Regulations Rules and Regulations Final in 30 days Prior citations may not be considered if terms are satisfied

© 2008 by South-Western, Cengage Learning Key Terms Key Terms Agency Brokerage Engagement Citation Client Customer Firm Hearing Post-license education Preliminary decision Wall certificate