REAL ESTATE EDUCATION, RESEARCH RECOVERY

GA Real Estate Commission Flashcards STIGMATIZED PROPERTYAdverse psychological facts. A property that was the site of a death; owner and or licensee must disclose the fact if ask a direct question about the fact.REAL ESTATE EDUCATION, RESEARCH & RECOVERY

FUND:

$1,000,000 balance - should it fall below, may assess all licensees up to $30/yr., payable at license renewal AND must halt expenditures to education and research projects.Money is held in state treasury. Compensation to consumers only (non-licensees only) (no immediate family members of licensees may recover). Pay through a court

order only. Must file for a judgment within 2 yrs. LIMITS:

$25,000/transaction/lifetime. $75,000/licensee. Automatic loss of RE license if money is paid out from the fund.

DISCIPLINARY ACTIONS:Reprimand, Censure, and Require Education. Reports

from accountant (trust account violations). Fines up to $1,000 for single infraction or $5,000 for multiple infractions. Downgrade from Broker license to salesperson license. Suspension or Revocation of a license. May request hearing and entitled to a judicial review. Reapply after 10 yrs. from revocation, conviction, sentencing, or release from prison whichever is the later. GREC must investigate a written sworn complaint and publish (on the GREC website) suspensions/revocations (a matter of public record).CommissionerNot one of the 6 members. Hired by the commission to run the day to day operations. Chief executive of the commission. Full time employee. No voting powers.Commissioner or employees (staff) cannot hold an "active" license.COMMERCIAL REAL ESTATE BROKER LIEN ACT:: (GA); Allows only the Broker to attach a lien against commercial property only to protect a commission right Unfair Practice ContinuedAccepting (or giving) an undisclosed commission, bonus, or referral. Conducting business in any name other than what is registered with the GREC (what is on the license).Discrimination (Fair Housing- federal, state, local, or RE

laws). Inducements: Cannot guarantee a profit to induce

one to sign contract OR induce one to break an existing agency agreement. Acting as an undisclosed agent. Giving advice to a customer or a verbal dual agency is an undisclosed dual agency. Failing to disclose latent defects (even AS - IS), adverse physical conditions, or material relationships known to the licensee. Misrepresentation on

an application. Not notifying the GREC, in writing, of any civil, administrative, or criminal (nolo contendere) action within 10 days of the conclusion of the action. Not notifying the GREC of a home address or mailing address change within 30 days.UNFAIR PRACTICESMishandling Trust Funds - period! Earnest money, Trust Accts., etc. Failure to deliver copies of any documents that the client signs in connection with the RE transaction (listing, sales contract, (Closing Disclosure, settlement statement)). Must give copy when signed. Failing to keep for 3yrs., copies of all contracts to the transaction (listing, sales contract, disclosures.), and trust accounts records.Practicing RE with a lapsed license. Will need to complete course and/or CE and pay late and reinstatement fees.Conducting a Real Estate Auction without a real estate

license. Practicing in another State without a license.Practicing without a license. GREC- fine $1000/day and issue cease and desist order.GA REAL ESTATE COMMISSION (GREC):6 members appointed by the governor and approved by the senate. 5 members actively licensed and residence of GA for 5 years. 1 member no license - consumer protection.Chair and Vice-chair come from 6 members. Quorum requires 4 members present to vote.

DO-NOT-CALL-REGISTRY: Prohibits telemarketing calls to numbers on the registry.

$16,000 fine. Exemptions include: Previous clients up to

18 months after expiration of client relationship. Consumer who made an inquiry for 3 months

CAN-SPAM ACT 2003:Applies to e-mail and faxes. $16,000 fine. Non-deceptive

subject lines. A valid physical postal address. A clear and conspicuous "opt-out" provision where the recipient is not required to pay a fee. The "opt-out" request must be honored within 10 days.

ENVIRONMENTAL ISSUES:See Environmental Protection Agency (EPA). Issues

include: asbestos, radon gas, hazardous waste, and

underground storage tanks. Percolation (Perk) Test:

required for the feasibility of installing a septic tank. Tests the absorption rate of the soil. Environmental phase one inspections on commercial properties. Test for any chemicals (hazards) in the soil. Agents are required to disclose known environment hazards.Unfair Practices ContinuedKiting: Writing a false or dual contract. Contracts should never have preprinted commission rates, listing duration, or protective periods. Informs potential client that these issues are negotiable. Certain statements should be avoided by agents like, "the standard commission in Atlanta is..." "Contract terms are standard, typical, customary, usual, normal, or non-negotiable." Stating that "this is my company's policy" is OK. Misrepresenting the property or the entity including advertising. Must have a written agreement to coop with out of state broker allowing the out of state broker to practice in GA. The agreement must identify the GA broker on all contracts & advertising.AUTHORITY OF THE GREC.Issue licenses, pass rules and regulations, establish fees, and impose disciplinary actions. Does not arbitrate disputes among licensees.LICENSE EXEMPTIONSOwner or Full-time employee of owner; CPA or Attorney in the scope of business; Attorney-in-fact; Court appointed entity; Gov. or utility employee in official duties; Broker employee to manage - ministerial acts only; Member of HOA to manage HOA; Referral agent from whom they did not refer (3 per year).LEAD-BASED PAINT ACT 1978Ensure that the purchase/lease contract includes certain specified disclosures and acknowledgements about the presence or testing of lead-based paint in homes built prior to 1978 Provide buyer/tenant 10 days to test (contract).Provide pamphlet- "Protect Your Family from Lead in Your Home." BLUE SKY ACTOwners (sellers) cannot misrepresent the real property or any documents in connection with the property (business records).