GA LAW: Unit 2 Summary

Question 1

It is against the law to practice real estate without

Answer 1

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

While the Commission does not have the authority to impose a jail sentence, the courts do have this authority, as a violation of this law is a misdemeanor. The imposed jail sentence can be for a period o

Answer 2

one year or less.

Question 3

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

Answer 3

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.
An attorney in fact under a duly executed power of attorney to convey real estate from the owner/lessor.
An attorney at law 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 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 the management of such property and the investment therein.
A manager of residential properties if the contract has been approved by a federal agency.
Full-time employees of the property owner, who have been employed to provide property management services.
Any person acting as a referral agent, who is not involved in the actual negotiations, execution of documents, etc.

Question 4

The licensing regulations required by Georgia real estate license laws also do not apply to any

Answer 4

individual employed by a broker to assist in property management services on residential property, provided that such individual’s activities are explicitly authorized by the broker in a written agreement between the broker and the employee AND provided that such activities are limited.

Question 5

The innkeeper’s exemption states that any person who provides property management services on properties available for less than 90 days’ occupancy by guests or occupants and meets certain conditions is

Answer 5

exempt from license law.

Question 6

A person who wishes to become a real estate licensee must file an application for a license with the Commission. ALL applications must be

Answer 6

confidential.

Question 7

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

Answer 7

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 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 or courses of study approved by the Commission.
Take and pass a real estate examination administered by or approved by the Commission covering the general matters of importance to real estate brokers and salespersons.

Question 8

Under Georgia license law, an applicant who wishes to qualify for a broker or associate broker’s license must meet the same conditions as a salesperson, PLUS:

Answer 8

Be 21 years of age or older.
Have served actively for three years as a licensee.
Furnish evidence of completion of 60 in-class hours in a broker’s course approved by the Commission.
Take and pass a real estate examination administered by or approved by the Commission covering the general matters of importance to real estate brokers.

Question 9

Once a salesperson has been issued his original license, he must satisfactorily complete a

Answer 9

25-hour course of study. This is the mandatory post-license educational requirement.

Question 10

The post-license edycational requirement of 25 hour course study must be completed and submitted to the GA Real estate comission within

Answer 10

one year

Question 11

In the event that a salesperson does NOT complete the course in a satisfactory and timely manner, his license will

Answer 11

lapse, and his wall certificate of licensure and pocket card must immediately be given to the Commission.

Question 12

Any salesperson whose license lapses for failure to complete the post-license course may reinstate the license by completing the course within

Answer 12

six months of the lapsing of the license, if certain conditions are met.

Question 13

The license period in Georgia is

Answer 13

4 years.

Question 14

The licensee renews the license every 4 years on the last day of the applicant’s birth month by showing proof of

Answer 14

completion of all continuing education requirements and payment of the renewal fee.

Question 15

How many hours of continuing education must be completed within a 4 year license period?

Answer 15

36 hours

Question 16

What is offered for those licensees who wish to temporarily discontinue active involvement in real estate?

Answer 16

Inactive status

Question 17

An inactive new licensee is not permitted to practice real estate, but is required to

Answer 17

take the 25-hour post-license course for new licensees and to pay the same renewal fees as an active licensee. It is valid for an indefinite period of time as long as the licensee is up-to-date on continuing education requirements of nine hours per year.

Question 18

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

Answer 18

Sole proprietorships
Partnerships
Corporations
Limited liability companies (LLC)

Question 19

In order to be issued such a license, there must be one person in the entity who actually holds

Answer 19

a broker’s license in Georgia, and this individual must be designated as the company’s qualifying broker.

Question 20

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

Answer 20

reciprocity.

Question 21

The 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 only do so under one of these three conditions:

Answer 21

The nonresident must have a written agreement with a Georgia broker to conduct the real estate brokerage business in Georgia.
Georgia must have a written reciprocity agreement with the state in which the broker has his or her license.
If the 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.

Question 22

All license applicants must apply to take the License Exam and must pay a

Answer 22

nonrefundable fee.

Question 23

What score is required to pass the licensing exam

Answer 23

75% or higher

Question 24

The requirements for the salesperson or community association manager license applicant are:

Answer 24

The applicant must apply for the license within 3 months of the date of the exam and pay a fee; OR after 3 months of the exam date but before 12 months, with a double fee.
An application must include the signature of the applicant’s employing broker; OR, if there isn’t an employing broker, the applicant may apply for an inactive license.

Question 25

The requirements for a broker license applicant are as follows:

Answer 25

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, the exam is considered null and the applicant must retake the exam if he wishes to be licensed in the future.

Question 26

It is within the Commission’s authority to

Answer 26

deny a license to any corporation, limited liability company, or partnership if a stockholder, member, or partner of that firm does not have a good reputation for honesty, trustworthiness, and integrity; has been served a conviction or felony, or has been sanctioned by any legally constituted regulatory agency for violating a law regulating the sale of real estate.