GA Exam Prep_ State Laws and Rules Study Sheet

Unfair Trade Practices

Actions that involve deceptive, fraudulent, or unethical means to obtain business, which are prohibited by laws and regulations to protect consumers.

Fair Business Practices Act

Georgia law that prohibits unfair and deceptive acts or practices, particularly in advertising, in transactions involving the sale, lease, or rental of goods, services, or property.

Georgia Uniform Deceptive Trade Practices Act (UDTPA)

Legislation addressing deceptive practices like price fixing that restrict free trade competition, allowing for legal action and penalties for violations.

Fair Housing

Laws prohibiting discrimination in housing based on federally protected classes like race, color, religion, sex, disability, familial status, and national origin.

Trust Funds

Money belonging to others that must be handled properly, including not commingling with personal funds and maintaining separate accounts.

Disclosures to a Principal

Requirement for licensees to disclose in writing to a principal any benefits received or payments made in relation to a real estate transaction.

Advertising Practices

Regulations regarding advertising, including avoiding deceptive or discriminatory content, disclosing license status, and obtaining consent for property signage.

Recordkeeping

Obligations to retain transactional and accounting records for trust accounts, produce records upon request, and provide accurate records to property owners or associations.

Compensation Practices

Rules related to receiving compensation, accepting commissions, and paying referrals, ensuring compliance with brokerage agreements and licensing laws.

Contracts and Representation

Guidelines for agreements, disclosures, and representations in real estate transactions, including dual agency, contract terms, and agency relationships.

Licensure and Broker Affiliation

Requirements for working under an affiliated broker, obtaining permission for negotiations, and adhering to licensing laws in different states.

Other Unfair Practice Violations

Prohibited actions such as guaranteeing future profits, misusing terms like "appraisal," and misrepresenting services like comparative market analysis.

Misrepresentations

Making significant false statements or claims in documents or actions.

Licensee

An individual who holds a real estate license.

GREC

Georgia Real Estate Commission, the regulatory body overseeing real estate activities in Georgia.

Brokerage engagement agreement

A written agreement establishing the relationship between a licensee and a client for brokerage services.

OCGA

Official Code of Georgia Annotated, the official law code of the state of Georgia.

Net listing

A listing agreement where the broker's fee is any amount above a specified sales price.

Fidelity bond

Insurance that protects against losses due to fraudulent or dishonest acts by individuals.

Real property

Land and anything permanently affixed to it, including buildings.

Business brokerage

A specialized service where brokers assist in the sale of business interests, sometimes involving real estate.

Accredited Business Intermediary (ABI)

A credential from the American Business Broker Association for business brokers.

Real Estate License

A credential obtained after completing required coursework, passing an exam, and meeting other criteria set by the licensing authority to practice real estate legally.

Pre-License Coursework

Mandatory educational courses that individuals must complete before taking the real estate licensing exam.

Post-Licensing Course

Additional educational course required to be completed within a specific timeframe after obtaining a real estate license.

License Renewal

The process of extending a real estate license for a specified period by meeting continuing education requirements and paying renewal fees.

Broker's License

An advanced real estate license that allows individuals to operate independently or manage other real estate agents.

Continuing Education

Ongoing educational courses that licensed real estate professionals must complete to stay updated on industry practices and regulations.

Community Association Manager's License

A license required for individuals managing community associations, obtained by meeting specific education and exam requirements.

Criminal History Report

A document detailing an individual's criminal record, often required as part of the real estate licensing application process.

Disciplinary Action

Penalties or restrictions imposed on a licensee due to violations of regulations or unethical conduct.

Non-Resident Licensee

An individual holding a real estate license in a state other than Georgia seeking to obtain a license to practice real estate in Georgia.

Active Duty

Serving in the U.S. armed forces or reserves, including the National Guard, for one year or longer.

Honorable Discharge

Receiving a positive discharge from military service.

Disabled Veteran

A veteran who served during wartime, got injured or ill in the line of duty, and has a disability rating of 10% or more.

Licensing Exam

Test required for individuals seeking licenses in various professions.

License Form

The physical document issued upon obtaining a license, with a wall license for the broker and a pocket card for the licensee.

GREC

Georgia Real Estate Commission, responsible for licensing and regulating real estate professionals in Georgia.

Fair Housing Laws

Laws that prohibit discrimination in housing based on various protected classes.

Civil Rights Act of 1866

Legislation granting citizenship rights and protections regardless of race or color.

Fair Housing Act of 1968

Part of the Civil Rights Act prohibiting housing discrimination based on race, color, national origin, and religion.

Americans with Disabilities Act (ADA)

Legislation prohibiting discrimination against individuals with disabilities in public services and accommodations.

Housing for Older Persons Act (HOPA)

Legislation exempting certain housing for older persons from familial status discrimination laws.

Georgia Commission on Equal Opportunity (GCEO)

Entity enforcing fair housing laws in Georgia and handling discrimination complaints.

Real Estate Education, Research, and Recovery Fund

Fund established to compensate consumers who prevail in complaints against licensees.

Recovery Fund

A fund supported by license fees that must maintain a $1 million balance to compensate victims of violations such as fraud, misrepresentation, deceit, and theft of trust funds.

GREC

Georgia Real Estate Commission, responsible for regulating real estate license law and investigating violations in Georgia.

Licensee

An individual or entity holding a real estate license issued by GREC, subject to regulations and disciplinary actions by the commission.

Injunctive Action

Legal action brought by the Georgia attorney general's office to prevent violations of license law or commission rules that threaten the public good.

Investigation Process

Conducted by GREC to gather evidence through subpoenas, statements, and document reviews to determine violations of license law or trust fund mishandling.

Administrative Law Judge (ALJ)

Presides over formal hearings related to complaints against licensees, proposing sanctions or dismissals based on evidence presented.

Settlement Meeting

Informal gathering with relevant parties to reach agreements on findings, legal conclusions, and proposed sanctions before formal hearings.

Appeals Process

Allows licensees to request a commission review within 30 days of an ALJ's decision, with the opportunity to present objections and seek judicial review if unsatisfied.

Sanctions

Penalties imposed by GREC for violations, including license suspension, fines, additional coursework, record subpoenas, and license demotion.

Citations

Notices issued by the commission to licensees regarding alleged violations or unfair practices, providing the opportunity for a contested case hearing and imposing penalties if necessary.

Licensee

An individual or entity holding a license issued by the commission to engage in real estate activities for compensation.

GREC

The Georgia Real Estate Commission, established by the Georgia General Assembly to regulate license law in the state.

Quorum

The minimum number of members required to be present for the commission to conduct official business, which in this case is four members.

Commissioner

A full-time, salaried individual appointed by GREC to oversee all real estate regulation, with the authority to hire staff to support the commission's operations.

License Law

The set of regulations and requirements governing real estate activities in Georgia, enforced and interpreted by GREC.

Exemptions

Situations or individuals exempt from the requirement of obtaining a real estate license to engage in specific real estate activities, as outlined by GREC.

Post-Licensing Course

A 25-hour course new licensees must complete within one year of receiving their license, as mandated by GREC.

Continuing Education (CE) Requirements

The obligation for license renewal every four years, which includes completing continuing education courses to stay updated on industry practices and regulations.

Continuing Education

Education that must be completed by real estate license holders before renewing their license, typically consisting of a set number of hours of coursework.

Post-Licensing Course

A 25-hour course that counts as nine course hours of Continuing Education for the first renewal period for real estate license holders.

Inactive Status

A status where a real estate license is not active, preventing license holders from engaging in real estate activities that require a license, except for selling their own property.

License Lapse

When a real estate license expires due to the licensee neglecting to pay the renewal fee by the due date.

Broker

Holds a broker's license and represents consumers in real property transactions, leases, and property management. Supervises licensees and ensures compliance with license renewal requirements.

Associate Broker

Holds a broker's license but works under another broker, acting in a salesperson capacity and must be sponsored by a broker.

Salesperson

Holds a salesperson's license, works as a broker's agent, and owes a duty to both the broker and the public to act honestly and competently.

Community Association Manager

Holds a community association management license and manages tasks related to homeowners associations under a broker's supervision.

Non-Resident Licensee

A licensee from another state who can practice real estate in Georgia by entering into an agreement with a Georgia broker without obtaining a Georgia real estate license.