Unit 26 Real Estate Commission and License Law Vocabulary

affiliation agreement

a legally binding contract between two or more parties in a real estate transaction where one party benefits economically from referring business to another

applicant

someone applying to rent a property or someone applying to obtain a real estate license

associate broker

a licensed real estate professional who has obtained a broker's license but chooses to work under the supervision of another, more senior broker, rather than operating their own independent brokerage

bank

any financial institution regulated by a member of the federal financial institutions examination council, and authorized to provide federally insured checking accounts

blind ad

Real estate advertisement placed by an affiliated licensee that fails to disclose the name of the employing broker as it is registered with the Commission

brokerage agreement

An express written contract wherein the client promises to pay the real estate broker a valuable consideration, or agrees that the real estate broker may receive a valuable consideration from another as a result of the broker producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property, or as a result of the broker performing property management or community association management services.

candidate for licensure

Any person who has not yet successfully completed, but is in the process of completing, the requirement for licensure or approval as set forth in O.C.G.A. 43-40 and in Commission Rules and Regulations (520-1)

cease and desist order

a legally enforceable directive issued by a court or government agency, requiring a party to immediately stop a specific activity until further review or a hearing, often used to address issues like construction disputes, antitrust behavior, or illegal discrimination in real estate transactions

citations

primarily refers to a formal notice issued by regulatory bodies like the California Department of Real Estate (DRE) or the Georgia Real Estate Commission (GREC) to licensed or unlicensed individuals for minor violations of real estate laws or regulations, outlining alleged violations and potential penalties, and sometimes requiring corrective action.

commission

Payment to a real estate professional for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

Commissioner

the Georgia Real Estate Commissioner, who is the chief executive officer of the Georgia Real Estate Commission (GREC); the CEO of that government entity

community association management license (CAM)

real estate license that limits the holder, who works on behalf of a broker, to offering services particularly related to managing homeowner's associations, such as residential subdivisions or condominium complexes.

declaratory ruling

more commonly referred to as a declaratory judgment, is a court order that defines the legal rights and status of parties involved in a dispute without necessarily requiring immediate action or monetary relief. This type of judgment is sought when parties are uncertain about their legal obligations or rights related to real estate and aim to resolve ambiguities before potential future litigation.

disposition of unclaimed property act

legislation designed to protect the rights of owners of abandoned property while relieving those holding it from ongoing responsibility. This Act outlines the procedures for handling property that has been deemed abandoned by its rightful owner, typically after a specified dormancy period, and requires holders to remit such property to the state, which then acts as custodian for potential future claims by the owner.

fidelity bond insurance

protects entities like property owners, managers, and real estate brokers against financial losses caused by dishonest acts, such as theft, fraud, or embezzlement, committed by their employees or trusted individuals

firm

Any real estate business entity, including but not limited to a corporation, partnership, limited liability company, and sole proprietorship

franchise name

Any name, the use of which requires permission from another who has an existing and continuing right in the trade name by virtues of any state or federal law

franchisee

A firm licensee authorized to use a franchisor's trade name as part of or in conjunction with the licensee firm's name

franchisor

A business entity owning a trade name whose use by others is controlled and authorized by the owner of the trade name

Georgia Administrative Procedures Act

governs the procedures that state administrative agencies must follow when creating regulations and making decisions.

Georgia Criminal History Report (GCIC)

an official criminal record maintained by the Georgia Crime Information Center (GCIC), the state agency responsible for Georgia's criminal history database

instructional hour

A time period of instruction or other learning activity of at least 50 minutes in duration

lawful presence notarized affidavit

a sworn written statement, required by law in some jurisdictions like Georgia, that attests to an individual's lawful presence in the United States, and must be signed in the presence of a Notary Public to be considered valid for certain public benefits or licenses.

licensee

an individual or entity that has obtained legal permission, in the form of a license, to conduct real estate activities

policy and procedures manual

a comprehensive guidebook for a real estate brokerage or property management company, outlining consistent guidelines and step-by-step instructions for operations, compliance, and agent conduct, serving as a reference for agents, managers, and staff

property management services

the oversight and daily operations of rental properties (residential, commercial, or industrial) on behalf of the owner, encompassing tasks like rent collection, tenant screening, maintenance, lease management, and ensuring legal compliance, all aimed at maintaining property value and profitability.

qualifying broker

the licensed individual responsible for overseeing and supervising all real estate activities of a firm, including its agents and associates, and ensuring compliance with all state regulations

real estate education, research, and recovery fund

primarily serves to compensate individuals who have suffered financial losses due to the illegal actions of a licensed real estate professional, while also supporting real estate education and research through accumulated income. This fund, maintained by a minimum balance of $1 million and funded by initial payments from new licensees and potential assessments, aims to protect the public and ensure ethical practices within the real estate industry.

reciprocity agreement

allow licensed real estate agents to practice in another state without completing all the initial licensing requirements of that state, often recognizing their existing credentials and streamlining the process for cross-state transactions and professional mobility.

rules and regulations

Real estate licensing authority orders that govern real estate professionals' activities, having the same force and effect as statutory law.

salesperson

Any person, other than an associate broker, who acts on behalf of a real estate broker in performing any act authorized to be performed by the broker in this unit.

sanctions

a penalty or punishment imposed for failing to comply with laws, rules, or orders, such as those related to professional conduct or regulatory requirements

sole proprietorship

A broker may use his/her name as the firm's name, but whether or not this is the case, the brokerage firm may only conduct business in whatever name the license was issued; the simplest business structure, owned and operated by a single individual without a legal distinction between the owner and the business

sponsoring broker form

a document completed by a licensed real estate brokerage firm to affiliate with a salesperson, community association manager, or associate broker, particularly when they are applying for an active license, changing brokers, or reactivating an inactive license.

statutory overnight delivery

Delivery of a document through the U. S. Postal Service or through a commercial firm which is regularly engaged in the business of document and/or package delivery in which the sender

directs that the delivery be not later that the next business day following the day on which the document is received for delivery by the U.S. Postal Service or commercial firm, and

receives a receipt acknowledging receipt of the document signed by addressee or an agent of the addressee.

Timely: A reasonable time under the particular circumstances

surrendering a license

formally relinquishing it to the relevant licensing authority, either voluntarily or as a result of a suspension or revocation. This action removes the licensee from the public register, prohibits them from engaging in real estate activities, and generally means that license fees paid for the current year are non-refundable.

unfair trade practices

constitute a list of what brokers and their affiliates must not do in the practice of real estate in Georgia