Chapter 23Georgia 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.

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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

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23 Georgia Real Estate License Law

Definitions in OCGA 43-40-1• Associate broker• Broker• Brokerage agreement• Firm• Licensee• Person• Property management services• Purchaser• Real estate• salesperson

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23 Georgia Real Estate License Law

Definitions in Rule 520-1-.02• 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

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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

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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

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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

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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

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23 Georgia Real Estate License Law

• License fees– Original license fee– Expiration and renewal– Returned check and other penalty fees

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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

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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

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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

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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