Real Estate Practice in Georgia - Flashcards

These flashcards cover key terms and concepts from Real Estate Practice in Georgia, focusing on broker responsibilities, real estate license types, advertising regulations, and commission structures.

What is a broker in real estate?

A real estate license holder who represents one of the parties in a transaction for a commission.

What is an associate broker?

A real estate license holder working under another broker, cannot perform acts independently.

Define a salesperson in real estate.

A real estate license holder associated with a broker for performing brokerage acts on the broker’s behalf.

What is a Community Association Manager (CAM)?

A license holder providing administrative services to a community association in exchange for consideration.

Who must be the qualifying broker in a real estate company in Georgia?

One and only one qualifying broker responsible for the business and all licensees.

Can a broker serve as a qualifying broker for multiple firms?

Yes, a broker can serve as a qualifying broker for multiple firms.

What is the timeframe for a firm to notify GREC about hiring a new qualifying broker?

60 days.

What must be reviewed within 30 days of a contract in Georgia real estate?

Listing contracts, leases, sales contracts, and management agreements.

What is the responsibility of a qualifying broker concerning trust accounts?

Must have signatory power and ensure proper disbursements from trust accounts.

What is vicarious liability in real estate?

A broker's liability for a licensee's violation unless proper supervision procedures were in place.

What is a Change Application in real estate?

A release form signed when a license holder transfers from one broker to another.

What is required for brokers regarding record keeping?

Brokers must keep copies of documents related to real estate transactions for three years.

What must licensees disclose when buying or leasing their own property?

Intentions to broker and entering into a purchase agreement beforehand.

What are nonresident brokers allowed to do in Georgia?

Serve as qualifying brokers for corporations licensed by GREC.

What is a trust account regulation concerning deposited funds?

Funds must be deposited within three business days.

What is the CAN-SPAM Act?

A federal law governing commercial email, requiring opt-out options and truthful header content.

What type of advertisements are illegal in Georgia?

Blind ads, which do not disclose that the presenter is a licensed broker.

What does a commission represent in real estate?

A fee paid to a broker for services rendered in a transaction, usually a percentage of sales price.

Define puffing in real estate advertising.

Exaggerated claims made to generate interest in a property, legal as it represents opinions, not facts.

What must be included in all advertising according to Georgia law?

The firm's name, telephone number, and written permission from the broker.

What is required for internet advertising from a license holder?

Include the firm's name and telephone number, regardless of content limitations.

What happens if advertising information is outdated?

Must be updated or removed within 30 days.

What is the difference between an employee and an independent contractor in real estate?

Independent contractors have more control and responsibility over their work than employees.

What is a net listing?

An illegal type of compensation agreement where the broker earns anything above a predetermined sale amount.

What is the purpose of the Federal Trade Commission Act in real estate?

To ensure advertising is truthful, non-deceptive, and backed by evidence.

What record-keeping duration is required for trust accounts?

A minimum of three years.

What is a fidelity bond for community association managers?

A requirement for CAMs managing funds over $60,000 to ensure safeguarding of funds.

What happens when a salesperson transfers to a new broker?

They must provide a release form and cannot take any records without written permission.

What is the one-month rule regarding trust accounts?

Brokers must notify GREC of any new trust account within one month of opening it.

What are the repercussions for not complying with GREC advertising rules?

Potential legal actions or penalties against the broker or licensee.

How should block advertisements be structured per Georgia law?

The firm's name must appear prominently, equal or greater than any individual licensee’s name.

What constitutes misleading advertising?

Advertising that contains false information or fails to accurately depict the property and services.

What is the role of the supervising broker in advertisements?

All ads must be written under their supervision and must get their approval.

What constitutes a valid telephone number in real estate ads?

The number must connect the public to a broker or manager directly, not going through other licensees.

What is the goal of the Telephone Consumer Protection Act (TCPA)?

To protect consumers from unsolicited commercial telemarketing calls.