GA LAW: Unit 2 FULL

Question 1

If the Commission discovers that a person is practicing without a license

Answer 1

they have the authority to issue a cease and desist order. In addition, the Commission can impose a fine of up to $1,000 per day for this violation

Question 2

can the commission impose jail?

Answer 2

No, but courts can and this is a misdemeanor, one year or less

Question 3

do licensees that are active or inactive covered under exemptions?

Answer 3

no

Question 4

According to Georgia law, an individual is NOT required to have a real estate license if he or she is any of the following

Answer 4

An owner of real estate, the spouse of an owner, a general partner of a limited partnership, a landlord, or a prospective purchaser OR their regular employees OR spouses who perform any act with reference to property owned, leased, or to be acquired by such owner, limited partnership, lessor, or prospective purchaser when said person is buying, leasing, or selling for his own purposes.
An attorney in fact under a duly executed power of attorney to convey real estate from the owner or lessor. This person - whether an actual attorney, or simply an individual authorized to act on another’s behalf as an agent - may act as an agent for the principal without having a real estate license, with a legally executed power of attorney.
An attorney at law - also known as a licensed practicing attorney - acting solely as an incident to the practice of law.
Any person acting as receiver, trustee in bankruptcy, administrator, executor, or guardian or while acting under a court order or under the authority of a will or of a trust instrument.
Any officer or employee of a government agency in the conduct of official duties.
Any person employed full-time by a public or private utility - including utility companies, and lending institutions - who performs any act with reference to property owned, leased, or to be acquired by the utility employing that person, where such acts are performed in the regular course of, or as incident to, the management of such property and the investment therein.

Question 5

The following persons are also exempt from the requirements of license law in Georgia

Answer 5

A manager of residential properties if the contract has been approved by a federal agency. This means any person who, as owner or through another person engaged by such owner on a full-time basis or as owner of a management company whose principals hold a controlling ownership of such property, provides property management services or community association management services, buys, sells, leases, manages, auctions, or has other dealings with property owned by such person.
Full-time employees of the property owner, who have been employed to provide property management services or community association management services, and sell, buy, lease, manage, auction, or otherwise deal with such property. This includes any person employed on a full-time basis by a community association for the purpose of providing community association management services.
Any person acting as a referral agent, who is not involved in the actual negotiations, execution of documents, collection of rent, management of property, or other related activity, which involves more than the mere referral of one person to another. This person must also meet the following requirements:
He doesn’t receive a fee for such referral from the party being referred.
He doesn’t charge an advance fee.
He doesn’t act as a referral agent in more than three transactions per year.

Question 6

The licensing regulations required by Georgia real estate license laws do not apply to any individual employed by a broker to assist in property management services on residential property.”

This exemption applies if the broker has a written management agreement that the broker procured from and negotiated with the owner. Such individual’s activities must be explicitly authorized by the broker in a written agreement between the broker and the employee AND the activities performed must be limited to one or more of the following

Answer 6

Delivering a lease application or a lease
Receiving a lease application, lease, security deposit, rental payment, or any related payment (for delivery to and made payable to the broker or the owner)
Showing a rental unit to any person, or executing leases, provided that the employee is acting under the direct instructions of the broker
Providing information authorized by the broker about a rental unit, a lease application, or a lease
(E) Providing information to a tenant about the status of such tenant’s security deposit or rent payments, or to an owner about the owner’s financial accounts and payments from the owner’s tenants
Performing any ministerial acts that are explicitly authorized by the broker in a written agreement between the broker and the employee.

Question 7

Known as the “innkeeper’s exemption,” this states that any person who provides property management services on properties available for less than 90 days’ occupancy by guests or occupants and meets all of the following conditions is exempt from license law. In other words, this applies to those who make accommodations to others on a daily/weekly basis, in operation of a hotel, motel or vacation rental. ALL of the following conditions must be met.

Answer 7

The property manager must have a written agreement with the owner, which states all terms and conditions for managing the property, reporting income and expenses, and remitting income to the owner.
This agreement must specify that the property manager cannot rent or lease the property AND that the guest or occupant is not a tenant.
Zoning laws do not prohibit short-term occupancy uses of the property.
The person’s occupancy is for less than 90 days.

Question 8

The following conditions must also be met in order for a person to qualify for the innkeeper’s exemption

Answer 8

The deposit given must not exceed the cost of the rental required for the minimum rental period.
The guest or occupant must pay any required state or local sales taxes or excise taxes on rooms, lodgings, and accommodations; while the property manager pays any required state or local business licenses or permits.
The property manager can specify which rooms or units that the guest or occupant will occupy.
No extra charge is made for basic utilities.
Notice is not required for a guest or occupant to terminate occupancy of the room or unit, except under certain conditions.
The room or unit is not the permanent residence of the guest or occupant.

Question 9

Here are some additional exemptions from the requirements of Georgia real estate license law.

Answer 9

Any person who is a member of a community association and who provides community association management services only to one community association of which such person is a member.
Any person who performs only physical maintenance on a property.
A licensed certified public accountant or registered public accountant acting solely as an incident to the practice of public accounting.

Question 10

A person who brokers the sale of a business must hold an appropriate real estate license if

Answer 10

the sale of the business involves the transfer of any interest in real property.

Question 11

A business broker and any associates who do not hold licenses issued by the Commission may not negotiate or attempt to negotiate or assist in procuring prospects for the sale of a business where:

Answer 11

The sale involves the transfer of any interest in real property.
The payment of all or part of a commission or fee to the business broker or any associates in the sale of the business is contingent upon the transfer of an interest in real estate.

Question 12

An individual who wishes to become a real estate licensee must file an application for a license with the Commission. All original as well as subsequent applications filed with the Commission must contain ALL of the following information.

Answer 12

The name and address of the applicant or the name under which he or she intends to conduct business. Under this rule, if the applicant is a partnership or limited liability company, the name and residence address of each member and the name under which the partnership or limited liability company business will be conducted must be included. If the applicant is a corporation, the name and address of each of its principal officers must be included.
The place or places, including the city and street address, where the business is to be conducted.
Any other information the Commission requires.

Question 13

These rules also apply (become a real estate licensee)

Answer 13

Any corporation applying for licensure as a broker must submit a copy of its corporate charter as registered with the Corporation Division of the Secretary of State’s office. If the corporation wants to conduct business under a trade name, it must also submit a copy of the trade name verified by the clerk of the county in which the certificate is on file.
Any partnership applying for licensure as a broker must submit a copy of its partnership agreement and a copy of its trade nameverified by the clerk of the county in which the certificate is on file.
Any limited liability company applying for licensure as a broker must submit a copy of its certificate of authority to transact business in Georgia as issued by the Secretary of State’s office. If the company wants to conduct business under a trade name, it must also submit a copy of the trade name verified by the clerk of the county in which the certificate is on file.

Question 14

Unless any other provisions of the law state differently

Answer 14

ALL applications must be confidential. This includes supporting documents and other personal information submitted by applicants and licensees as part of an application filed with the Commission.

Question 15

However, the Commission considers some information to be public record. As such, this information is to be made reasonably available for inspection by the general public. This includes:

Answer 15

The licensee’s name, license number and status, business name, business address, business telephone number, type of license held, and term of license
The fact that a licensee has or has not received a disciplinary sanction
Any other information pertaining to the license of a licensee or approval of a school, course, or instructor as the Commission may determine by rule.
On the following

Question 16

The Georgia Real Estate Commission Rule 43-40-8 states that in order to qualify for a community association manager’s license, an applicant must meet the following conditions:

Answer 16

Be 18 years of age or older.
Be a resident of the state of Georgia. (This is not necessary IF the person has fully complied with the provisions of Code 43-40-9, regarding out of state licensees.)
Be a high school graduate or the holder of a certificate of equivalency.
Furnish evidence of completion of at least 25 instructional hours in a community association manager’s course of study approved by the commission.
Take and pass with a score of 75% or higher a real estate examination administered by or approved by the Commission, which covers topics important to community association managers and to those brokers who provide community association management services.

Question 17

Under Georgia license law, an applicant for a salesperson’s license must meet the following conditions:

Answer 17

Be 18 years of age or older.
Be a resident of the state of Georgia. (This is not necessary IF the person has fully complied with the provisions of Code 43-40-9 regarding out of state licensees.)
Be a high school graduate or the holder of a certificate of equivalency.
Furnish evidence of completion of at least 75 in-class hours in a salesperson’s course approved by the Commission OR complete 10 quarter hours or 6 semester hours in real estate at an accredited college or university.
Take and pass with a score of 75% or higher a real estate examination administered by or approved by the Commission covering the general matters of importance to real estate brokers and salespersons.
Note: Failure to meet any of these requirements shall be grounds for de

Question 18

Under Georgia license law, an applicant who wishes to qualify for a broker or associate broker’s license must meet the following conditions.

Answer 18

Be 21 years of age or older.
Be a resident of the state of Georgia. (This is not necessary IF the person has fully complied with the provisions of Code 43-40-9 regarding out of state licensees.)
Be a high school graduate or the holder of a certificate of equivalency.
Have served actively for three years as a licensee.
Furnish evidence of completion of 60 instructional hours in a broker’s course of study approved by the Commission. **
Take and pass with a score of 75% or higher a real estate examination administered by or approved by the Commission covering the general matters of importance to real estate brokers.

Question 19

When an applicant wants to use his or her experience in another licensing jurisdiction to satisfy the experience requirement for a broker’s or associate broker’s license, that jurisdiction must be able to certify

Answer 19

the licensee’s three years of experience

Question 20

If the jurisdiction cannot certify the three years because records are not available, the applicant must meet the following two conditions.

Answer 20

The applicant obtained the experience within ten (10) years prior to making the application in Georgia.
The applicant’s former jurisdiction can certify that he or she was licensed at some time during those prior five (5) years.
In addition to the above two criteria, the Commission may consider other credible evidence, such as transactions records or affidavits from former brokers for whom the applicant worked showing dates of affiliation and describing types of transactions in which the applicant participated.

Question 21

very active Georgia associate broker, salesperson and community association manager must be licensed under an active Georgia broker. A licensee cannot be licensed under more than one Georgia broker during the same time period.

However, an active Georgia licensee may affiliate with a broker in another state if:

Answer 21

The other state’s laws allow affiliations in both states.
The licensee has the written permission of his or her Georgia broker clearly stating the activities the licensee may perform for each broker and stating that the licensee may not sell Georgia real estate except on behalf of the Georgia broker.

Question 22

n the event that a salesperson does NOT complete the post-license course in a satisfactory and timely manner

Answer 22

his or her license will LAPSE. He or she must surrender the wall certificate of licensure and pocket card to the Commission immediately.

Question 23

Any salesperson whose license lapses for failure to complete the post-license course may reinstate the license by completing the course within six months of the lapsing of the license, if all of the following conditions are true.

Answer 23

The licensee enrolled in the post-license course within one year of the issuance of an original license.
He or she paid all required fees for the course.
Please note that any salesperson who fails to reinstate a lapsed license as noted above must qualify as an original applicant by passing a new examination AND completing 25 in-class hours of instruction approved by the Commission before making application to reinstate the license.

Question 24

After the original license is issued, it is valid for four years, expiring on the last day of the applicant’s birth month. The licensee renews the license

Answer 24

every 4 years on the last day of the applicant’s birth month by showing proof of completion of all continuing education requirements and paying the renewal fee.

Question 25

In order to renew an active license, a licensee shall

Answer 25

furnish to the Commission evidence of satisfactorily completing thirty-six (36) instructional hours of continuing education courses during the renewal period. The effective date of this requirement shall be July 1, 2015. Any licensee who renews an active license on or after this date must have completed thirty-six (36) hours of continuing education courses to renew.

Question 26

A licensee shall satisfactorily complete at least

Answer 26

three (3) hours of continuing education on the topic of license law during each renewal period. The effective date of this requirement shall be July 1, 2016. Any licensee who renews an active license on or after this date must have completed at least three (3) hours of continuing education on the topic of license law in order to renew.

Question 27

Once the continuing education is completed, the licensee is required to

Answer 27

furnish evidence of this to the Commission. All courses must be approved by the Commission. It is not necessary for a licensee to pass an examination of the coursework in order to fulfill this requirement. Continuing education courses will be provided by all educational or duly authorized instructional organizations teaching real estate licensing courses.

Question 28

If a licensee doesn’t submit a renewal application with the required fee in a timely manner, or fails to satisfactorily complete any of the education requirements, his or her license will

Answer 28

lapse and the party shall be prohibited from engaging in real estate brokerage activities until such time as the license is reinstated. If this happens, the licensee has 2 years in which he or she may reinstate the license.

Question 29

reinstate license by:

Answer 29

Paying a reinstatement fee
Paying all renewal fees and other charges
Submitting evidence that all continuing education requirements have been met
If a license has been lapsed MORE THAN TWO YEARS, but LESS THAN FIVE YEARS the individual may reinstate it by paying the fees AND taking the Salespersons Prelicense Course.

Any licensee whose license has lapsed a period of time longer than FIVE years due to a failure to pay required fees and who desires to re-qualify for a license must do so as an original applicant.

Question 30

Inactive status is offered for those licensees who wish to temporarily discontinue active involvement in real estate. The licensee must make this request

Answer 30

within 30 days of ceasing work.

Question 31

When a license is on inactive status, an individual may not

Answer 31

continue any brokerage duties except for his or her own personal transactions. However, an inactive licensee must take the 25-hour post-license course for new licensees AND pay the same renewal fees as active licensees.

Question 32

Inactive status is valid for an indefinite amount of time. The license can be reactivated by applying to the Commission. However, the licensee must be up-to-date on his continuing education requirements of nine hours per year, if his license has been on inactive status for

Answer 32

two years or more

Question 33

A nonresident who is licensed in another state must meet any requirements established by the Commission. These requirements include:

Answer 33

Submission of satisfactory proof of current licensure in the applicant’s state of residence
Payment of any required fees
A signed statement stating that the applicant has read the Georgia real estate license laws, and its rules and regulations, and has agreed to abide by the rules in all brokerage activity in Georgia
Affiliation with a resident or nonresident broker if the applicant is an individual community association manager, salesperson or associate broker

Question 34

Please note the following additional requirements.

Answer 34

If a nonresident licensee terminates the affiliation with a broker licensed by the Commission, the license of such nonresident will AUTOMATICALLY be terminated unless the nonresident places the license on inactive status OR affiliates with another broker licensed by the commission within 30 DAYS.
No license will be issued to any member, officer, independent contractor, employee or partner of a nonresident firm until that firm qualifies for a broker’s license. A nonresident corporation or limited liability company must obtain from the proper agency and maintain a certificate of authority to do business in Georgia.
In addition to the aforementioned requirements, the nonresident applicant must designate the Commissioner as his agent to receive any legal or judicial notices that are filed. The applicant must also agree that in the event of any investigations brought by the Commission, the applicant will fully cooperate with the Commission.

Question 35

Licensees who move to another state may qualify for a nonresident license if they do all of the following:

Answer 35

Make application to change their status from resident to nonresident
Sign a Consent to Jurisdiction form
Sign an agreement to cooperate with any investigation initiated by the Commission

Question 36

Licensees who move to another state may elect to place their licenses on inactive status to avoid license termination rather than apply for a nonresident license. Such licensees may not conduct any real estate business in Georgia until they have done either of the following:

Answer 36

Moved back to Georgia and reactivated the license

Qualified for a nonresident license

Question 37

The Commission has the authority to enter into written agreements with similar licensing authorities of other states. This is known as

Answer 37

reciprocity.

Question 38

he rules regarding nonresident brokers state that, in order to work in real estate transactions and earn a fee for such activities in Georgia, the nonresident broker may do so only under one of THREE conditions.

Answer 38

The nonresident broker must have a written agreement with a Georgia broker to conduct the real estate brokerage business in Georgia. If a nonresident licensee wants to do business without first obtaining a Georgia license, this IS permissible if the nonresident broker enters into a written agreement with a Georgia broker. Please note that, under these circumstances, there must be a separate agreement for each transaction, clearly stating the procedures to be followed.

Georgia must have a written reciprocity agreement with the state in which the broker has his or her license.
When a licensed broker of another state is acting as a referral agent involving only the mere referral of one person to another, the licensed broker in Georgia is permitted to divide a real estate commission with, or pay a referral fee to, the out-of-state broker. (In this case, the referring broker is NOT involved in the actual negotiations, execution of documents, collections of rent, management of property, or any other real estate brokerage activity.)

Question 39

However, there is a chance the broker’s liability might be diminished or even eliminated, provided that the broker can prove all of the following:

Answer 39

The brokerage firm had a training program.
The brokerage firm followed proper procedures in its supervision of nonresident licensees and other affiliates.
The Georgia broker himself did not participate in any way in the violation.

Question 40

The procedures to which all Georgia brokers must adhere in their supervision of affiliates are as follows:

Answer 40

Review all advertisements.
Review all offers within 30 days of their being written.
Ensure that all affiliates’ licenses remain active.
Ensure that a person with management authority is always available to help affiliates and the public, should the need arise.
Ensure that all trust fund payments are made according to the regulations. (We will discuss trust funds in greater detail in a later unit.)
Keep affiliates updated to law changes on a regular basis.
Review all trust account records and journals.
Provide safekeeping for all necessary records.
Ensure that each affiliate has a written and signed employment agreement.
Ensure that there is a written policies and procedures manual for all affiliates.

Question 41

Real estate licenses may be issued to the following entities in Georgia:

Answer 41

Sole proprietorships
Partnerships
Corporations
Limited liability companies (LLC)
In order to be issued such a license, there must be one person who actually holds a Georgia broker's license and who is designated as the company's qualifying broker. This person must have signatory power over the company's trust accounts and be able both to bind the company to any agreement and settle any contested claim regarding the company before the Real Estate Commission.

It is important to note that salesperson licensees in Georgia are permitted to participate in the company’s owner

Question 42

As we said on the previous screen, business licenses can be issued to companies. The following conditions, in addition to the ones previously explained, apply:

Answer 42

Partnerships, corporations, and limited liability companies must EACH have at least TWO broker licenses. ONE broker license belongs to the qualifying broker. The other license varies, depending on the type of business. For a partnership, the second license is for the partnership. For the corporation, the second license is for the corporation. (Please note that the application for a corporation license must include a copy of the corporate charter.) For the limited liability company (LLC), the second license is for the company in the name as it is registered with the secretary of state.
Though it might seem that in the case of a sole proprietorship there would only be a single broker license needed, this is not true. In fact, a sole proprietorship also needs TWO broker licenses. One of these broker licenses is for the qualifying broker, while the other is - you guessed it! - for the sole proprietorship.

Question 43

A person licensed by the Commission as a broker or qualifying broker for a licensed firm

Answer 43

may serve as the broker or qualifying broker with one or more other licensed firms.

Question 44

he following rules and regulations must be followed regarding the real estate license examinations in Georgia.

Answer 44

All license applicants must apply to take the exam, and pay a nonrefundable fee.
A score of 75% or higher is considered to be a passing grade and is required for licensure.
Honorably discharged veterans who have one or more years of service (of which at least 90 days was served during wartime) automatically receive a 5-point credit.
Veterans discharged from the military due to injury or illness with less than a 10% disability will receive a 5-point credit. If the disability is 10% or more, they will receive a 10-point credit.
An applicant who has moved to Georgia from another state might be exempt from the education and exam requirements of Georgia, IF the real estate commission in the state in which he was licensed verifies that the applicant meets all the following criteria.
He has fulfilled both prelicense and continuing education requirements of that state.
He has passed a licensing exam similar in scope to the one required by Georgia.
He has not had any disciplinary actions imposed on him.
He is licensed in good standing at the time of certification.

Question 45

Unless the Commission gives written permission for another reason, a person may take the qualifying exam ONLY under the following conditions.

Answer 45

To qualify for or to reinstate a license
If a person holds a Georgia license by reciprocity rather than examination and is applying to another state for licensure by reciprocity where that other state requires that the applicant must have passed the Georgia exam
When a person is required to take the exam by the order of the Commission in a disciplinary action

Question 46

If an applicant who has taken the exam supplies or attempts to supply any information to anyone regarding the content of the exam, the Commission can choose to

Answer 46

deny the license or impose sanctions.

Question 47

Approved instructors and approved schools or their staff members are prohibited from engaging in any of the following activities.

Answer 47

Obtaining information from licensees concerning the content of the qualifying exams
Accepting any information about the exams, except from the Commission
Using any information received from the Commission in non-approved courses

Question 48

If a school or instructor violates the above provisions, the Commission may choose to

Answer 48

deny or withdraw approval or impose sanctions.

Question 49

The Georgia Real Estate Commission lays out the requirements for the salesperson and community association manager license applications. These rules are as follows:

Answer 49

The applicant must apply for the license within 3 months of the date of the exam and pay a fee. If the applicant applies after 3 months of the exam date but before 12 months, he or she must pay double the fee.
If the applicant does not apply for the license within 12 months of taking the exam, he or she must retake the exam.
In addition to passing the exam, the applicant must show proof that he or she has successfully completed the appropriate pre-license course (or its approved equivalent).

Question 50

The requirements for a broker license applicant are as follows:

Answer 50

The applicant must apply for the broker license within ONE YEAR of the exam date.
If the broker applicant does not apply for the license within that time frame, he or she must retake the exam.
The applicant must show proof that he or she has been licensed for at least three years.

Question 51

Whenever an applicant has been convicted of any offense that is required to be reported to the Commission, that applicant must supply the Commission with

Answer 51

A certified copy of the citation, accusation, information or indictment that led to the conviction
A certified copy of the sentence

Question 52

Whenever an applicant has been the subject of a disciplinary proceeding before any licensing agency that is required to be reported to the Commission, that applicant must supply the Commission with a certified copy of

Answer 52

Any allegations that preceded the final order

The final order of the licensing agency

Question 53

According to Georgia Code Section 43-40-15, a license be granted to only those individuals who possess good reputations for

Answer 53

honesty, trustworthiness, integrity, and competence to transact real estate business in a way that safeguards the public interest. The Commission will grant the license only after receiving satisfactory proof of such of the licensee’s qualifications.

Question 54

The Importance of a Good Reputation
According to Georgia Code Section 43-40-15, a license be granted to only those individuals who possess good reputations for

Answer 54

Does not have a good reputation for honesty, trustworthiness and integrity
Has been convicted of any of the crimes described on upcoming screens
Has been sanctioned by any legally-constituted regulatory agency for violating a law regulating the sale of real estate

Question 55

Conviction:

Answer 55

A finding or verdict of guilty or a plea of guilty, regardless of whether the conviction is under appeal
A sentencing to first offender treatment without an adjudication of guilt in a felony charge or any crime involving moral turpitude
A plea of nolo contendere to a felony charge or any crime involving moral turpitude

Question 56

Felony

Answer 56

Any offense which Georgia would deem a felony, regardless of its designation in any other state.

Question 57

An applicant who wishes to be licensed as an associate broker or a broker AND who has been convicted of any offense set forth here may be licensed by the Commission as an associate broker or a broker only if all of the conditions below are true.

Answer 57

It has been a minimum of 10 years since the conviction, sentence or release from any incarceration, whichever is latest.
There are no criminal charges pending against the applicant.
The applicant presents to the Commission satisfactory proof that the applicant now bears a good reputation for honesty, trustworthiness, integrity, and competence to transact real estate business in a way that safeguards the public interest.

Question 58

If an applicant or licensee has been found guilty of a violation of either the Federal or Georgia State Fair Housing law AND any appeal of the conviction has been concluded

Answer 58

the conviction itself may be sufficient grounds for refusing the license or imposing any sanction permitted by this chapter.

Question 59

If an applicant or licensee has made a false statement of material fact on his or her application, OR if he or she has submitted (or been a party to submitting or preparing for submission) any falsified application to the Commission

Answer 59

such action may be sufficient grounds for refusing, suspending, or revoking the license.