Chapter 1: Georgia Law Flashcards
(180 cards)
1
Q
The purpose of the Georgia real estate law, first passed by the state legislature in ____ is to?
A
1925; protect the public against incompetent and dishonest real estate agents.
2
Q
The laws are also designed to…?
A
Protect real estate agents from unfair competition and lay out the standards by which licenses are expected to abide.
3
Q
Real Estate Commission is comprised of ___ members? These members are appointed by the _____ and then confirmed by the _____.
A
6
Governor
State Senate
4
Q
The following are true of the Georgia Real Estate Commission
A
- Five of the six members must be real estate licensees, who have been actively licensed for a minimum of 5 years and must have been residents of Georgia for at least 5 years.
- The sixth member must have an interest in consumer affairs, but must not have any interest in the real estate industry.
- All members terms are 5 years each.
- The members terms are staggered, only one Licensee member’s term can expire each year.
5
Q
The purpose of the real estate license law and the members of the commission who enforce it is…?
A
- Protect the public fro any harmful acts of people acting as real estate licensees by assuring that licensees meet a basic level of competency.
- To create a regulatory environment for the real estate industry that is reasonable ad allows licensee to attain economic success.
6
Q
The Georgia real estate commission has five focal points of responsibility.
A
- Developing a spirit of cooperation and unity among commission members.
- Evaluating staff operations
- Establishing a fair qualifying process.
- Establishing a fair and un-biased hearing process
- Communicating with the industry and the public.
7
Q
The authority of the Georgia Real Estate Commission is based upon
A
Statutory law. The license law gives the Real Estate Commission the authority to adopt rules and regulations, which have been designed to clarify sections of the law.
8
Q
The Georgia real estate commission’s authority involves four separate categories:
A
- Issuing licenses
- Taking disciplinary Action
- Passing rules and Regulations
- Establishing Fees
9
Q
Rules and regulations may only be adopted if they…?
A
Fall under the umbrella of license law in Georgia.
10
Q
A non-resident who is licensed in another state must meet these requirements:
A
- Submission of satisfactory proof of current licensure in the applicants state of residence.
- Payment of any required fees.
- A signed statement stating that the applicant has read the Georgia real estate license laws and it’s rules and regulations and has agreed to abide.
- Affiliation with a resident or non-resident broker if the applicant is an individual community association manager, salesperson or associate broker.
11
Q
Anyone caught practicing real estate without a license may…
A
- Impose a fine of up to 1,000 per day.
2. This could be considered a misdemeanor meaning a jail sentence of one year or less.
12
Q
According to Georgia Law, an individual is not required to have a real estate license if they are…?
A
- 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 or an attorney at law.
- Any person acting as a receiver trustee in bankruptcy, administrator, executor or guardian.
- Any officer or employee of a government agency
- Any person employed full-time by a public or private utility.
- A manager of residential properties.
- Full time employees of the property owner.
- Any person acting as a referral agent who is not involved in the actual negotiations.
Additionally,
- Any individual employed by a broker to assist in property management services on residential property.
13
Q
Innkeeper’s exemption
A
Any person who provides property management services on properties available for 90 days or less is exempt from license law.
14
Q
Salesperson License Requirements:
A
- Be 18 years or older
- Be a resident of the state of Georgia
- Be a high school graduate or hold a certificate of equivalency.
- Furnish 75 hours of in-class hours in a salesperson course or approved course or complete 10 quarter hours or 6 semester hours in real estate at an accredited college or university.
- Take and and pass a real estate examination administered by or approved by the commission.
15
Q
Broker or Broker Associate License Requirements:
A
- 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 commission.
- Take and pass a real estate examination administered by or approved by the commission.
16
Q
Once a salesperson has ben issued his original license, he must complete..?
A
25 hour course of study. Post- license educational requirement. This must be completed with ONE YEAR of licensure.
17
Q
In the event a sales person does not complete this…?
A
His license will be considered lapse and given immediately to the commission.
18
Q
The license period in Georgia is…? And renews when?
A
4 Years, the licensee renews on the last day of the applicants birth month.
19
Q
___ hours of continuing education must be completed within each __ year license period.
A
36 hours; 4 years
20
Q
Inactive status..?
A
Not permitted to practice.
Must take 25 hour post license course for new licensees and to pay the same renewal fees as active license. It is invalid indefinitely and 9 hours of continuing education per year.
21
Q
Real estate licenses may be issued to the following entities in Georgia:
A
- Sole proprietorships
- Partnerships
- Corporations
- Limited Liability Companies (LLC)
22
Q
In order to be issued a license for entities…?
A
One person who actually holds a Georgia brokers license and this individual must be designated as the company’s qualifying broker.
23
Q
Non-resident brokers must meet three conditions:
A
- Non-resident 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, 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.
24
Q
All applicants must..?
A
- Apply to take the license exam and pay the non-refundable fee.
- Achieve a 75% or higher.
25
Requirements for salesperson or community association manager license applicants are:
1. The applicant must apply for the license within 3 months of the date of the exam and pay the fee. After 3 months of the exam date but before 13 month with a double fee.
2. 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.
26
The requirements for a broker license applicant are as follows:
1. The applicant must apply for the broker license within one year of the exam date.
2. If the broker applicant does not apply for license within that time frame, the exam is considered null and the applicant must retake the exam.
27
What extra qualifications are required for a broker's application of a community association manager?
The individual must complete an additional 75 in-class hours of approved courses.
28
Signing a Consent to Jurisdiction form relates to
qualifying for non-resident licensure in another state.
29
If a nonresident licensee terminates the affiliation with a Georgia broker, what occurs with the license?
The license will automatically be terminated.
30
If a licensee’s license has lapsed for 18 months, what must the licensee do to have it reinstated?
Pay the required fees.
31
A licensee who wants to activate a lapsed license which has been on inactive status for a less than two years may do so by
paying the required fees.
32
If a licensee fails to meet the terms of the written transfer agreement, the broker
must sign the release but may file a complaint with the Commission.
33
A licensee on inactive status who changes his or her address must notify the Commission of the new address
within 30 days.
34
Under which of the following circumstances is it allowed under Georgia law that a licensee can keep his own wall license?
When he is retiring after at least 20 years of active licensure
35
A salesperson can begin working as a real estate licensee
once the employing broker receives her wall license.
36
Which of the following is correct concerning record-keeping requirements of the Commission?
They must retain original licensure records for 15 years
| Must retain recovery fund records for 40 years
37
Under which condition might the Commission choose to extend a renewal without the licensee having to pay the required fees?
A licensee living in a designated disaster area suffers uninsured damage to his home.
38
Which of the following is true concerning the qualifying broker's death?
The entity must secure a new qualifying broker within 60 days.
39
Applications for licensure, renewal of license, transfer of license, changes in the status of a license, or change in the name of a firm must be on?
Commission-approved forms.
40
Which is correct concerning an original license activation?
Individual and firm applicants must pay an activation fee and renewal fee.
41
Within 60 days of making application, each applicant for a license or for an instructor approval must obtain - at his or her own expense
a certified criminal history report.
42
ny license or approval which lapses solely because the licensee failed to pay the renewal fee may be reinstated if it is within two years of the date of the lapsing..?
(Considering education requirements are met) The licensee must pay the total amount of all renewal fees and late charges which would have been due during the period that the license was lapsed, plus a reinstatement fee.
43
If the license has lapsed for a period longer than two years and less than ten years due solely to a failure to pay a renewal fee, the licensee may reinstate that license by doing all of the following:
Paying the total amount of all renewal fees and late charges that would have been due during the period when the license was lapsed.
Paying a reinstatement fee.
Completing successfully any educational course or courses that the Commission requires.
44
If the license has lapsed for longer than ten years for failure to pay a renewal fee?
licensee must meet the education and examination requirements of a new licensee.
45
A nonresident licensee whose license lapses for failure to pay a renewal fee may reactivate that license by paying the fee required of an original applicant if:
That nonresident licensee has maintained an active license in his or her state of residence during the period that his or her license lapsed; AND
Has met the continuing education requirements of his or her state of residence.
46
In the case of either a real estate broker who doesn't wish to be actively engaged in the brokerage business, or a licensee who is temporarily not engaged on behalf of a broker, that licensee may continue a license by making a
written request within 30 days of ceasing work that the license be placed on inactive status.
47
A licensee who wants to activate a lapsed license which has been on inactive status for less than two years may reinstate the license to active status by
paying the required fees.
48
A licensee who wants to activate a lapsed license which has been on inactive status for two years or longer may reinstate the license to active status by
Paying the required fees & taking 9 hours of continuing education.
49
A license can be surrendered to the Georgia Real Estate Commission either voluntarily OR involuntarily
When surrendering a license, the licensee must forward his or her wall license and pocket card to the Commission immediately.
50
In the event that the qualifying broker of a partnership, limited liability company, or corporation dies, resigns or is discharged unexpectedly, this partnership
must secure a new qualifying broker within 60 days. If it does not do so, then it must cease all real estate brokerage activity until a new qualifying broker is secured.
51
An inactive license is valid for how long?
Indefinitely, provided educational requirements are met
52
Under BRRETA, which of the following is true concerning confidential information disclosed to the broker by a designated agent?
The broker may not share this information with other agents.
53
BRRETA sets forth which of the following broker duties to the landlord?
Complying with fair housing and civil rights statutes
54
According to BRRETA, a broker engaged by the seller is required to make timely disclosures to the buyer regarding all material facts pertaining to existing adverse physical conditions in the immediate neighborhood within how many miles of the property?
One mile
55
Which of the following are BRRETA facts that apply to the liability of brokers engaged by landlords?
A broker does not have a duty to discover any potential adverse facts affecting either the neighborhood or subject property.
56
Which of the following is true concerning a broker's responsibility related to purchase offers from a buyer?
The broker is not required to find other listed properties for a buyer under contract unless so stipulated in the brokerage agreement.
57
Examples of readily available public records for review by prospective renter would include
plat maps, zoning ordinances, and flood maps.
58
Which statement is correct concerning responsibility for discovering and divulging adverse material facts?
Obtaining information about the physical condition of the property rests with the broker, landlord, and tenant.
59
A broker providing MLS listings to a tenant
is a legal ministerial act.
60
Aspects of brokerage engagement requirements include
broker disclosure of any potential conflicts of interest.
61
Any person, firm, or corporation that is a source, compiler, or supplier of information regarding real estate for sale or lease and other data, and includes but is not limited to multiple listing services, is known as
a common source information company.
62
It is the prospective tenant’s obligation to
disclose to the prospective landlord his/her financial qualifications.
63
Georgia law defines a transaction broker by which of the following?
A broker who performs ministerial acts for one or more of the parties to a transaction
64
Which of the following are duties owed by the broker after completion of the engagement?
An accounting of all monies and property relating to the engagement
65
Agency confidentiality may terminate when
specific information present within the current relationship becomes public record.
66
Which of the following is true concerning brokerage engagement requirements?
A broker may receive compensation only from the engaged client.
A broker may share compensation with other brokers.
67
The trust account must be maintained in
separate, federally-insured bank checking account in Georgia.
68
Under Georgia law, a broker who does not accept trust funds in real estate brokerage transactions is..?
not required to maintain a designated trust or escrow account.
69
However if such a broker later receives trust funds in a real estate transaction, that broker must?
open the designated trust or escrow account within one business day of the receipt of those trust funds.
70
Georgia Code allows brokers to maintain ?
more than one designated trust or escrow account. The brokers must notify the Commission of the name of the bank in which each account is maintained and each account's name or number within one month of opening each account.
71
A licensee must place all cash, checks or other items of value he or she receives in a ?
brokerage capacity into the custody of the employing broker as soon as possible after receipt.
72
A licensee must place all cash, checks or other items of value he or she receives when acting as a principal in the sale of property he or she owns and all security deposits received on rental property he or she owns in?
into the custody of the employing broker or in a trust account approved by that broker as soon as possible after receipt.
73
Unless otherwise agreed to in writing by all parties, the broker holding such cash or checks must?
deposit them promptly into a federally-insured designated trust account and make appropriate arrangement for the safekeeping of any items of value received other than cash or checks.
74
If the broker elects to deposit any funds into an interest-bearing trust account, then?
prior to making the deposit the broker must obtain the written agreement of the parties indicating to whom the broker will pay any interest earned on those funds.
75
indicating to whom the broker will pay any interest earned on those funds.
As we said previously, commingling is strictly NOT allowed under Georgia law. However, it is permissible for a broker to maintain his or her own funds in a designated trust or escrow account only when?
they are clearly identified as the broker's deposit and only for the following purposes:
If the bank in which the account is maintained designates a specific minimum balance that must be maintained in order to keep the account open
If the bank in which the account is maintained requires a service charge on the account, the broker may maintain a reasonable amount to cover that service charge
76
Other situations in which it is permissible for the broker to maintain the broker's own funds in a designated trust or escrow account, when
hey are clearly identified as the broker's deposit include the following situations.
A broker may allow commissions due the broker that are being paid from funds of others held in the broker's designated trust or escrow account to remain in the account provided that both these conditions are true.
The broker’s accounting system for trust or escrow accounts designates those commissions as the broker’s funds and properly accounts for them.
The broker removes from the account every month any of the broker’s funds that exceed the minimum necessary to comply with the bank regulations previously discussed.
Only checks made payable to the broker may be used to withdraw those monies designated as the broker's funds from the designated trust or escrow account.
77
Each broker who is required to maintain a trust or escrow account must also maintain an accounting system in which each trust or escrow deposit is detailed in the following manner:
The names of buyer and seller or tenant and landlord or member and community association or broker
The amount and date of deposit
The identification of property involved
The amount, payee and date of each check drawn on the escrow account in connection with that deposit
78
Under Georgia law, licensees are permitted to utilize either manual or electronic accounting systems to meet the accounting requirements of the Commission’s rules.
Include all the components required by law and sound business practices
Be readily accessible
Be in a readily understandable format
Be reasonably available to any authorized representative of the Commission.
79
Any copies of documents and other records may be maintained in any records storage system that utilizes paper, film, electronic, or other media provided that:
The licensee can produce true and correct copies of such documents and records.
Copies of such documents and records can be made available to an authorized representative of the Commission upon reasonable request and at reasonable cost to the Commission.
80
Under Georgia law, those brokers who manage real property or community associations may maintain designated rental or assessment trust or escrow accounts
separate from their other trust or escrow accounts.
81
Security deposits, if they are kept in a designated rental trust or escrow account, must be..?
clearly identified as such and credited to the tenant.
| In addition, there must always be a balance in the account equal to the total of those security deposits.
82
Keep in mind that these rules also apply to trust or escrow accounts maintained by brokers in the state of Georgia:
All earnest money refunds must be paid by check or credited at closing.
The total of all checks written against each deposit should reflect a zero balance in the designated escrow or trust account relating to the closing of each individual transaction except when a portion of the deposit is transferred to the broker's name for the purpose of satisfying a commission. Upon such a transfer being made, the total of that transfer and all checks written against that deposit should reflect a zero balance.
If a licensee who owns a designated trust account files a bankruptcy petition, he or she must immediately notify the Commission in writing of the filing of that petition. If a qualifying broker or the firm that a licensee serves as qualifying broker files a bankruptcy petition, the qualifying broker must immediately notify the Commission in writing of the bankruptcy filing.
83
What about licensees who receive security deposits or other trust funds on property they own?
These licensees are required by law to deposit those funds into a designated trust account maintained by the broker with whom their licenses are affiliated or in a designated trust account approved by that broker.
Note: A licensee who owns rental property may not post a bond in lieu of maintaining the security deposits in a designated trust account.
84
If a broker approves an affiliated licensee's holding trust funds in a designated trust account owned by the licensee, then the broker must..?
notify the bank in which the account is maintained to designate the account as a trust account. In addition, the broker must notify the Commission of the name of the bank in which the account is maintained, the number of the account, and the name of the licensee who owns the account.
85
It is the responsibility of the licensee who owns this type of account to provide his own broker with a..?
written reconciliation statement comparing the licensee's total trust liability with the reconciled bank balance of the licensee's trust account.
This must be provided to the licensee’s broker at least on a quarterly basis.
86
Under Georgia law, a broker who is required to maintain a trust or escrow account must produce..?
at least once a month, a written reconciliation statement comparing the broker's total trust liability with the reconciled bank balance of the broker's trust account.
87
The broker's trust liability is the
um total of all deposits received, required by contract to deposit and being held by the broker at any point in time.
88
The broker must review the monthly reconciliation statement and maintain copies in his files for a period of..?
3 Years
89
The Commission can allow a nonresident broker who accepts any trust funds in a real estate brokerage transaction to maintain the trust account required by Georgia law in a bank of..?
that nonresident broker's state of residence.
90
When renewing a broker’s license, the broker must submit..?
the appropriate renewal fee, the renewal application and a summary of data on the broker’s trust accounts on a form prepared by or approved by the Commission.
91
Earnest money is required by law to be deposited into a trust account...?
immediately, UNLESS the contract provides for a different option. The listing broker is responsible for depositing this money, unless the contract names other provisions.
92
Earnest money IS permitted under Georgia law to be deposited in an interest-bearing account IF..?
the contract provides for this AND the contract names the person who is to receive the interest earned on this deposit.
93
It is typical that a buyer request that the earnest money check be held until the offer is accepted. This is permissible under the following circumstances:
1. It must be clearly stated in the contract.
2. The salesperson must still turn the check over to the broker.
3. Only the broker is allowed to hold the check.
94
If a situation arises in which the customer or client of a salesperson asks for a refund of the earnest money, the salesperson must..?
Immediately refer this customer or client to the employing BROKER.
95
Copies of the following documents must be kept in the broker’s file for a minimum of _____? and must be available to the commission.
3 years.
Engagements
Closing statements
Leases
Other documents related to a real estate transaction
96
The Code of Georgia states that all real estate licensees – whether active or inactive – must disclose on ALL contracts..?
that they are licensed in real estate.
97
If a Georgia licensee wishes to sell or lease his property, he must do one of the following:
List the property with the broker. In this case, any trust deposits made will go into the broker’s account.
List the property with a different broker – after first obtaining his own broker’s permission to do so. In this case, any trust deposits would go into that other broker’s account.
Handle the transaction himself. This will necessitate the licensee opening a personal trust account, which must be registered with the Georgia Real Estate Commission and set up under the supervision of the licensee’s broker.
98
Because an active licensee’s broker is considered accountable for all the licensee’s transactions – including personal ones – the broker must be...?
informed in writing and must approve the procedure and any advertising the licensee wishes to do.
99
Whenever a licensee offers to purchase a property as a condition to obtaining a new or extending an existing brokerage engagement, he or she must..?
write a contract expressing all the terms and conditions of the purchase prior to or at the time of entering into or extending the brokerage engagement.
100
Whenever a licensee offers to purchase a property in order to enable a party to purchase, sell, lease, or exchange another property, he or she must..?
write a contract expressing all the terms and conditions of the purchase prior to or at the time of the other party’s entering into a contract for the new property.
101
The broker's trust liability is the sum total of ..?
all deposits received, required by contract to deposit and being held by the broker at any point in time.
102
Brokers must notify the Commission of the name of the bank in which each trust account is maintained and each account's name or number within how long of opening each account?
One month
103
In terms of trust account maintenance, Georgia Code
allows a broker to maintain more than one designated trust account.
104
If the Commission determines that a broker has not complied with the trust account regulations, what must it do?
Immediately submit a complete report to the Attorney General.
105
If a Georgia licensee wishes to sell or lease his property using a third party broker other than his or her employing broker, what must he or she do?
Deposit trust money in the third party broker's trust account.
106
Which of the following comprises the minimum information to be included in each account's monthly reconciliation statement ?
Account balance, reconciliation date, and bank name
107
A broker may receive all or part of the transaction compensation from the earnest money account in which of the following?
In a lease or rental transaction, possession has been delivered to the tenant.
108
A firm using a trade name in advertising specific properties for sale in any media must clearly and unmistakably include..?
that firm's name as registered with the Commission in a manner reasonably calculated to attract the attention of the public.
109
In addition, the name of the licensed firm offering the property for sale, rent or exchange must appear..?
in equal or greater size, prominence and frequency than the names of any affiliated licensees or groups of licensees.
110
When advertising a specific property for sale, rent or exchange in any media, the following rules apply.
The firm must include in the advertisement both its registered name and telephone number
Both the firm’s name and telephone number must appear in equal or greater size, prominence and frequency than the names or telephone numbers of any affiliated licensee or groups of licensees.
111
Every associate broker, salesperson, and community association manager is prohibited from advertising under ..?
the licensee's own name to buy any property or offering for sale, rent, or lease any property
112
However, when a licensee wishes to advertise property owned by the licensee and which is not under a brokerage engagement with a broker, the licensee may do so under the following conditions:
The licensee's employing broker has been notified in writing of the specific property to be advertised.
Any advertisement must include the legend "seller, buyer, landlord, tenant (select the appropriate name) holds a real estate license."
The licensee's employing broker gives written consent to advertising the specific property and the advertisement itself.
113
The Georgia Fair Housing Law is enforced by..?
the Fair Housing Division of the Georgia Commission on Equal Opportunity.
114
The court may impose the following fines for someone found to have committed a discriminatory housing practice:
Up to $10,000, if the respondent has not previously been found guilty of committing a discriminatory housing practice
Up to $25,000, if the respondent has been found guilty of committing one prior discriminatory housing practice within the preceding five years
Up to $50,000, if the respondent has been found guilty of committing two or more discriminatory housing practices within the preceding seven years
115
The firm must include in the advertisement both its registered:
name and telephone number.
116
In addition to these fines, the court may award to the aggrieved person...?
actual damages and punitive damages
117
The Georgia Fair Housing Law is based on
the Civil Rights Act of 1968.
118
The Georgia Fair Housing Law is enforced by the
Georgia Commission on Equal Opportunity.
119
An individual whose license is on inactive status and who works as support personnel for a licensee may perform only
activities that do not require licensure until and unless that individual activates his license.
120
Unlicensed support personnel under the direct supervision of a licensee affiliated with a broker can perform.
Answering the phone and forwarding calls to a licensee
Submitting data on listings to a multiple listing service
Checking on the status of loan commitments after a contract has been negotiated
Assembling documents for closings
Securing documents that are public
information from the courthouse and other sources available to the public
Having keys made for company listings and installing or removing lock boxes from company listings
Writing advertisements and promotional materials for the approval of the licensee and supervising broker
121
Property management is a form of an agency relationship,
Property owner is the principal and the manager is the agent to the owner.
122
Georgia license law requires that a management agreement contain the following items as a bare MINIMUM in the management agreement..
The names of the parties involved, including the exact names of the owners, as well as the firm taking responsibility for the management duties.
A clear statement outlining the duties and responsibilities of the manager and specifying the manager's authority. (This part should address duties such as rent collection, employee supervision and training, repairs to the property, etc.)
A specific description of the property.
The requirements for reports made by the manager to the owner. (This should describe what is to be included on the report, content-wise, and the frequency with which the reports are to be submitted to the owner.)
The terms of the management fee, which is usually either a percentage of the collected rents or a specific dollar amount. (However, this is negotiable, so it may be calculated on a different basis.)
123
The property management agreement should be in..?
Writing and enforceable.
124
A legible copy of every written property agreement must be given to the owner at the time the owner signs..?
the agreement.
125
a written employment agreement is required. This agreement must state, at very least, the following:
1. How the licensee is to be compensated while working for the broker
2. How the licensee will be compensated for work begun but not completed if the affiliation ends
3. What accounting will take place for listings, records, signs, prospects, plats and keys when the affiliation ends.
126
Regardless of how the commission is split, the commission must ALWAYS be paid to?
The broker
127
The only way in which a salesperson or associate broker may accept a commission from another broker or another party is IF..?
his own broker is fully aware of this arrangement AND in agreement with it.
128
Any time there is a conflict between the broker's duty not to give false information and the broker's duty of confidentiality to the owner..?
the duty not to give false information to a customer ALWAYS prevails.
129
The broker must review all contracts within?
30 Days
130
The relationship between a licensee and the broker can..?
either be that of an employer-employee or an independent contractor.
131
The National Association of REALTORS established __________ to improve the knowledge, skills, practices, and ethical standards of the property management industry.
The Institute of Real Estate Management
132
A citation issued by the Commission might include any of the following actions.
1. A reprimand or censure in the case of minor offenses
2. Periodic reports from an independent accountant on a designated trust account
3. Required attendance at an applicable educational program or programs
4. Fines of up to $1,000 for a single violation
5. Fines of up to $5,000 for multiple violations
133
If a person's license is revoked, "permanent," doesn't necessarily mean "forever." The individual can apply for a new license, after a minimum wait time of..?
10 years
134
Placing a sign on any property offering it for sale or rent without the written consent of the owner or the owner's authorized agent and failing to remove such sign within...
ten days after the expiration of listing.
135
Indicating that an opinion given to a potential seller, purchaser, landlord, or tenant regarding a listing, lease, rental, or purchase price is an appraisal unless
such licensee holds an appraiser classification in accordance with appraisal licensing requirements.
136
If a licensee is convicted of any of these offenses, the Commission must be notified ..?
Immediately
137
In the event that a licensee has previously been sanctioned by the Commission or by any other state's real estate brokerage licensing authority, the Commission can consider
any prior sanctions in determining the severity of a new sanction
138
Which of the following activities regarding contracts in real estate transactions is not considered a violation of the Georgia license law?
Failure by the broker to turn all true copies of all statements over to the Commission
139
The fund may pay out - if the court orders such a payment - actual or compensatory damages. This does not include interests and costs sustained by the act, representation or conduct. Regardless of whether there was more than one person involved or how large the claims were, the fund cannot pay more than the..?
$25,000 per transaction.
140
The liability of the fund for the acts of a single licensee is limited to
$75,000 no matter how many people are involved.
141
The liability of the fund for the acts of a single licensee is limited to
$75,000 no matter how many people or transactions were involved.
142
No person who establishes a claim will ever get more than..?
$25,000 from the fund.
143
In order to receive a claim against the Fund, the aggrieved party must bring the suit about within..?
2 YEARS of when the damage occurred.
144
The aggrieved person must follow these steps to receive possible payment from the Fund.
He or she must obtain a judgment against the licensee from a court of competent jurisdiction.
Once the aggrieved person recovers the judgment, he or she may, upon termination of all proceedings including reviews and appeals, file a verified claim in the court in which the judgment was obtained.
145
Upon 10 days' WRITTEN NOTICE to the Commission, the aggrieved party can apply to the court for an order..?
directing the payment out of the Real Estate Education, Research, and Recovery fund.
146
It is mandated under Georgia law that any real OR personal nonexempt property belonging to the licensee can be..?
Seized to satisfy the judgment.
147
After the licensee's license is revoked, he will not be eligible to receive a new license until the Fund has been..?
Repaid in full, plus interest at the judgment rate.
148
In this situation, the Fund will pay past due monies in the order that such claims were originally filed, plus...?
accumulated interest at the rate of 4 percent a year.
149
The minimum balance of the Fund must be at least..?
1,000,000
150
the Commission has the authority to assess a fee of up to ____, in order to build up the funds balance if it drops.
$30
151
It is illegal for any person or his agent to file any notice, statement, or other document required that is false, untrue, or contains any material misstatement of fact. Such an offense will constitute a..?
Misdemanor
152
The Georgia Property Owners Association Act (POA) of 1994 offers the option to create a homeowners association OR submit it to a statutory development plan, which can provide collection and enforcement powers. Keep in mind that the POA offers this as an option, but it is NOT
Mandatory under law.
153
Also, because this HOA membership is mandatory, when the prospective property buyer applies for a loan, the lender will take the..?
Association fee into account in qualifying the buyer for the home loan, since that fee is a mandatory payment.
154
In Georgia, the state law regulates the formation of condominiums. The condo owner..?
Automatically becomes a mandatory member of a community association. This owner is under obligation, as a member, to follow the rules of the association.
155
In other words, under Georgia license law, all managers who handle community association funds MUST..?
be covered by a fidelity bond or fidelity insurance to protect the association against any loss because of mishandling of funds.
The ONLY brokers exempt from this law are those who NEVER handle more than $60,000 at one time.
156
The broker must have a separate..?
fidelity policy for EACH association managed, and each association must receive a copy of the applicable policy.
The broker must also keep a certificate that shows the coverage is current.
157
The fidelity insurance must comply with the following requirements.
It must be written by an insurance company authorized to write such bonds/policies in Georgia.
It must cover the maximum amount of funds that the broker providing community association management services handles in his duties as such. However, coverage must always be equal to or more than the amount of three (3) months assessments due from all members of the associations, plus the required reserve funds.
It must name the community association(s) as an additional named insured.
It must cover the broker and all partners, officers, licensed affiliates, and employees of the broker and may cover others handling the funds.
It must provide that the insurance company issuing the bond or policy may not cancel, or change the bond or policy without giving 30 days' notice in writing to the broker and to the community association. (This does NOT apply in the case of non-payment of premiums, in which only 10 days' notice must be given.)
158
As we stated in Unit 2, an applicant for a community association manager's license must meet the following conditions.
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 Section 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 in-class hours in a community association manager's course OR 4 quarter hours or 2 semester hours in real estate at an accredited college or university.
Take and pass with a score of 75% of higher a real estate examination administered by or approved by the commission, which covers topics important to community association managers and those brokers who provide community association management services.
159
Salesperson and community association management licensees are similar because both are only permitted to work if they do so in the capacity of agents of brokers. Community association managers may not enter into contracts themselves. Only the...?
Broker has the authority to sign a contract to provide CAM services for to a community association for a fee.
160
The type of organization which originally began with the common law idea of deed restrictions, or the idea that restrictions on ownership are able to be established by a contract, is known as:
Home owner association.
161
The Sherman Antitrust Act prohibits:
Price Fixing - Collusion between brokers and sales people with competing companies to set commission rates is illegal. "Everyone charges the same so you might as well list with me," would be an illegal statement, and a violation of the Sherman Antitrust Act.
Group Boycotts - Licensees should never "get together" and boycott a company because of their business practices. "Let's not do business with AVC Real Estate Company. They discount their commissions," would also be a statement in violation of the Sherman Antitrust Act.
Division of markets by location or price - "Why don't you take the south side of town and our company will take the north side," is another statement that would violate the Sherman Antitrust Act.
162
The Georgia Fair Business Practices Act, or FBPA, is designed to protect the public by focusing on..?
Deceptive advertising
163
While legal descriptions can include different ways of describing properties, only ________ can be used in Georgia?
only the metes-and-bounds method or the short-form description
164
A sales contract or listing form is not enforceable unless it contains..?
a sufficient legal description.
165
However, only surveyors, attorneys, and other qualified individuals are permitted to compose a ________ description.
metes-and-bounds description.
166
Net listings are?
Illegal in Georgia.
167
In completing a lease or a written offer to buy, sell, lease, rent, or exchange real property, the licensee must include:
A description of the property involved
The method of payment
Any special stipulations or addenda the offer requires
Whatever dates are necessary to determine whether the parties have acted timely in meeting their responsibilities under the lease, offer or contract
168
A title search involves tracing the chain of ownership of the property. In Georgia, the search covers..?
50 years.
169
Mortgage payments are made in?
Arrears
170
because of the ________ you can never discriminate for any reason.
1866 Civil Rights Act you can never discriminate on race for any reason.
171
If there is a change in the names and/or addresses of either of these persons, the landlord must advise each tenant of the change within...?
30 days
172
If a lease contains no expiration or termination date, the law considers the tenancy to be a tenancy at will. Terminating a tenancy at will requires..?
sixty (60) days' notice from the landlord or thirty (30) days' notice from the tenant.
173
Security deposits must be held in trust for the tenants in a..?
separate escrow account
174
Prior to accepting a security deposit, the landlord must give the tenant a..?
comprehensive list of any existing damage to the premises, for the tenant to keep.
175
Within three ____ business days after the tenant terminates occupancy, the landlord will inspect the premises and make a list of any damages (and their estimated dollar value) which are the basis for any charge against the security deposit.
3
176
if the tenant gives proper notice and vacates without owing any rent or damages, the landlord must return the security deposit to the tenant within..?
30 days
177
If the landlord is retaining all or part of the security deposit, he or she must send the tenant a..?
a statement specifying the exact reasons why the security deposit is being retained. The statement must be sent within the thirty (30) day period, accompanied by the remainder of the security deposit (the difference between what was deposited and what the landlord is retaining for damages).
178
The disciplinary actions for violations of the Sherman Antitrust Act can include prison terms of up to ____ and fines up to ____ for individual. ______ for corporations
3 years and fines of $350,000 per violation. In the case of a corporation violation, the fine can go as high as $10,000,000.
179
Which one of the following will result in a $100 fee by the Commission?
Submitting a check that is returned unpaid
180
Under BRRETA , listings will terminate under which of the following conditions?
Assuming no expiration date, one year after the initial engagement date
