GA REAL ESTATE LAW pt. 1

What governs real estate licensees in Georgia?

Title 43, Chapter 40 of Georgia law and rules created by the Georgia Real Estate Commission.

What is the purpose of the Georgia Real Estate Commission?

To protect the public from dishonest or incompetent licensees.

What happens if Georgia law conflicts with commission rules?

State law always takes precedence.

Licensee

Any person holding an active or inactive real estate license.

Broker

A person who performs real estate brokerage for compensation for another.

Salesperson

A licensee who performs real estate acts under a broker.

Community Association Manager (CAM)

licensee who manages community associations under a broker.

How many members are on the Georgia Real Estate Commission?

6 members (5 licensed professionals + 1 consumer member).

What is required of the consumer member?

No ties to the real estate industry.

What powers does the commission have?

Issue licenses, investigate violations, discipline licensees, create rules, and collect fees.

What is the penalty for operating without a license in Georgia?

Misdemeanor, fines up to $1,000/day, and possible jail time up to 1 year.

What activities require a real estate license?

Negotiating sales, leasing, property management, collecting rent, referrals, and advertising brokerage services.

Name one exemption from needing a real estate license.

Property owners managing their own property.

Firm

any business entity such as a sole proprietorship, partnership, limited liability company, or corporation licensed by the commission as a broker

Commissioner

A full-time employee hired by the commission members to run the day-to-day operation, hire staff and enforce policy. The commissioner is not a member of the commission. No employee of the commission (including the commissioner) can hold an active real estate license.

Minimum age for a salesperson license?

18 years old

Minimum age for a broker license?

21 years old

How many pre-license hours are required for salespersons?

75 hours

How many hours are required for CAM license?

25 hours

How much experience is needed for a broker license?

3 of the last 5 years as an active licensee.

When must a new salesperson complete post-license education?

Within 1 year of license issuance.

What happens if post-license education is not completed in time?

License lapses and cannot practice real estate.

What is required when applying for a license?

A Georgia criminal background report (GCIC).

What is a preliminary decision?

A non binding review of criminal history before applying for a license.

When can a convicted felon reapply for a license?

10 years after release from prison.

Who holds a brokerage firm license?

The firm itself, not individuals.

What must non-residents do to get a Georgia license?

Meet requirements, show good standing, and affiliate with a broker.

Can a licensee work with more than one broker?

No, only one Georgia broker at a time.

Can inactive licensees perform brokerage activity?

No

How many CE hours are required every 4 years?

36 hours

How often do licenses renew?

Every 4 years

What happens when a license lapses?

The licensee cannot practice real estate

How long can a lapsed license be reinstated?

Within 2 years with fees and education.

What happens after 5 years of lapse?

Must reapply as a new applicant.

What is a qualifying broker responsible for?

Supervision, trust accounts, and firm compliance.

How long does a licensee have to transfer after leaving a firm?

1 month

What can unlicensed assistants NOT do?

Negotiate, show property, or give real estate advice.

What does BRRETA govern?

Agency relationships in Georgia real estate.

What is a client?

Someone represented under a written brokerage agreement.

What is a customer?

Someone not represented but receiving ministerial acts.

What is required to create an agency relationship?

A written brokerage engagement agreement.

What is dual agency?

Representing both buyer and seller in the same transaction.

What is required for dual agency?

Written consent from all parties.

What is designated agency?

Each agent represents only one client in the same firm.

What does a transaction broker do?

Provides only ministerial acts and represents no one.

What are ministerial acts?

Tasks that do not require judgment or discretion.

Name one duty owed to clients.

Honesty, loyalty, confidentiality, or full disclosure.

What must be disclosed to customers?

Known material facts about property and neighborhood.

When can confidentiality be broken?

If information is false or misleading.

Can a verbal agreement create agency?

No, it must be written.

What must a broker disclose before engagement?

Whether the firm represents buyers, sellers, or both, and whether it practices dual agency.

When must a broker disclose a conflict of interest?

When representing someone with a personal or business relationship (e.g., family, partner) competing for same property.

What must brokers disclose about compensation?

How they are paid and whether they will share compensation with other brokers

What must clients be told about confidentiality?

The terms of how client information will be kept confidential

Does receiving compensation automatically create an agency relationship?

No

What is a core duty to clients?

Always treat clients honestly and avoid misrepresentation.

How quickly must offers be presented?

In a timely manner

What must be disclosed to clients?

All known material facts about property, neighborhood, and transaction.

What level of care must brokers use?

Reasonable skill and care.

What must be kept confidential?

Information that could harm the client’s position (if true and legal).

What is the main duty to customers?

Treat honestly and avoid misrepresentation.

What must be disclosed about property?

Known adverse material facts not easily discovered.

What must be disclosed about neighborhoods?

Known adverse facts within 1 mile not easily discoverable.

What must a broker do with offers involving another firm?

Present them promptly to the other broker.

When can a broker negotiate directly with another firm’s client?

Only if authorized in writing.

Must brokers keep actively seeking buyers after contract?

No, but must present all written offers.

Can brokers keep confidentiality if info is false?

No—honesty overrides confidentiality.

Can Georgia brokers pay out-of-state brokers?

yes, if the out-of-state broker only refers clients and does no brokerage work.

What is dual agency?

One broker representing both buyer and seller in same transaction.

What is required for dual agency?

Written consent from all clients.

What must dual agency consent include?

Conflict disclosure, confidentiality limits, and voluntary consent.

What happens if client refuses dual agency?

Broker may withdraw and refer client elsewhere.

What is designated agency?

Each client is assigned a separate agent within same firm

Is there dual agency in designated agency?

No.

Who can designated agents share client info with?

Only the broker.

What is single agency?

Firm represents only buyers OR only sellers.

What is the benefit of seller-only representation?

No buyer-client conflicts.

What is the benefit of buyer-only representation?

No in-house listing conflicts.

What is opposing side representation?

Buyer agent vs listing agent in same transaction.

What is same-side representation?

Buyer customer working with listing broker as sub-agent.

What does a selling broker sometimes act as?

A transaction broker.

What is a transaction broker?

A broker who represents no one and performs only ministerial acts.

What are ministerial acts?

Tasks that require no judgment or discretion.

Name one ministerial act.

Filling out forms or providing property info.

What must transaction brokers still do?

Present offers, account for money, disclose known defects.

What is the buyer’s responsibility?

Inspect property and neighborhood.

Must brokerage engagements be written?

Yes, all must be in writing.

What is a true copy?

Each party receives the same original agreement copy.

How does an exclusive contract end?

Performance, mutual agreement, or expiration date.

How long do open listings last?

1 year maximum.

Are net listings allowed?

No

What must be in property management agreements?

Property details, fees, expenses, termination terms, and income reporting.

Who must be identified for holding deposits?

Broker or designated trust account holder.

When is a fidelity bond required?

When CAM collections exceed $60,000.

What does a fidelity bond protect against?

Theft or misuse of client funds.

What must a licensee disclose when selling own property?

That they are a licensed real estate professional.

Must a licensee disclose license status in advertising?

Yes.

What can a licensee do with trust funds when selling own property?

Use broker account, another broker, or personal trust account (with permission).