Real estate broker: An agent or organization that negotiates deals between properties or real estate.
Real estate salesperson: Works under a broker to negotiate and arrange sales.
Contractors
Contractors build buildings, with general contractors coordinating construction aspects.
General contractor responsibilities:
Coordinates all aspects of construction.
Hires and schedules subcontractors (plumbers, electricians, roofers, framers, etc.).
Oversees the job, providing a single point of contact for the property owner.
Professional contractor knowledge:
Architecture.
Building codes.
Restrictions and limitations.
Subcontractor qualifications.
Scheduling for optimal outcomes.
Plan implementation.
Factors Affecting Real Estate Market
Three primary factors:
Demand
Supply
Scarcity
Demographics influence value based on income and building costs.
Location matters due to the finite amount of land.
Supply: Cost of construction and fixed availability of real estate.
Demand: Population, demographics, wage levels, and employment rates.
Market Dynamics
Excess supply: Decreases demand and prices.
Limited supply: Increases demand and prices.
Real Estate Market Cycle:
Recovery Phase:
Low demand.
No new construction.
Declining vacancies.
Most existing homes occupied.
Quiet activity.
Expansion Phase:
Vacancies decrease.
New construction begins.
Contractors initiate new projects.
Booming activity with rising home sales.
Hypersupply Phase:
New construction continues.
Vacancies increase, indicating oversupply.
Sales slow down.
Development lag leads to oversupply.
Recession Phase:
Excess supply beyond demand.
Increasing inventory.
Properties are made but not sold
The real estate market could be in different phases in different areas. Factors for this include real estate of different types.
Georgia Real Estate Rules & Regulations (Chapter 520.1)
Agency: Broker's relationship with client via written agreement.
Applicant: Meets requirements, submits application, pays fee.
Brokerage agreement: Written agreement between broker and client (buyer, seller, tenant, landlord), outlining duties.
Brokerage relationship: Agency or non-agency relationship per brokerage agreement.
Candidate for licensure: Meets requirements, pays fee, but hasn't submitted the application.
Client: Enters broker agreement.
Customer: Doesn't enter agreement; broker performs ministerial acts.
Georgia Licensure and Brokerage Laws (Organization of the Commission (Rule 520-1-.01)
Commission includes a chair and a vice chair, elected annually.
Commission based in Atlanta, Georgia.
To appear before the commission, submit a written request. The first three are scheduled for 15 minutes each; unscheduled speakers get five minutes at the end.
Anyone can petition to change a rule via signed, written, notarized form. The commission has 30 days to respond, per the state's Administrative Procedure Act.
The commission can make rulings on statutory provisions or rule changes. Requests must be signed, written, notarized, and responded to within 60 days, or the request is referred to the Attorney General.
Commission Operations (520-1-.03)
The commission provides license records; history for five years preceding the request.
Investigatory files terms:
Forty years for disciplinary actions or recovery fund payment.
Fifteen years for other files.
If a broker's license is revoked they must give in their wall cert and pocket card while giving in all real estate agent working under them certificates.
Rules 520-1-.04
New applicants pay initial and annual fees for the first four years, due during their birthday month and $45 when applying. If your firm pays the fees these are due on the anniversary of your license activation. The application fees for a new firm, school, or instructor is $75
The said $45 and $75 fees include 20 toward the Real Estate Education, Research and Recovery Fund.
Renewal fees covering a four-year period are 125.00 for each broker and approved school. Individual licensees and instructors pay 125.00. However, if paid through the Commission's online renewal system, the fees are reduced to 100.
Reinstating a license suspended is 100 if paid within four months of the lapse/ However, for license, if address is changed, there is an incomplete application, or have register with a new broker than this is 25. For returned checks or disputed credit card charges for fees owed to the Commission, this is 100. These fees go increases by 25 for each month or portion after that moment.
If license remains lapsed for more than 5 years, must retake the state exam.
Instructors and school applicants applying are required to pay for four years in advance.
Rule 520-1-.04 (2): Broker license requirements:
Active real estate license for three of last five years.
Proof can be from out of state.
If no records are present, the experience must occur within five years of applying. The candidate can submit Transaction files showing brokerage activity within the past five years and from Affidavit from a licensed who the applicant was associated with (Brokers currently licensed, Dates of broker association, Number and type of transactions). Candidates who were brokers in another state can submit an affidavit stating (Proof they were licensed, Dates, Number and Types of Transactions).
The previous jurisdiction must verify the applicant had a license during prior five years
Rule 520-1-.04 (3): Must pass the state exam for licensure.
Rule 520-1-.04 (4): Applications need your email, form name, and firm name, or else change requests must be made by letter/email.
Rule 520-1-.04 (5): Must apply for an active/inactive license in three months after the exam and then retesting after a year.
Rule 520-1-.04 (6): Covers the name of a firm on an application
Rule 520-1-.04 (7): Covers criminal history reports
Rule 520-1-.04 (9): Disciplinary actions must be reported
Rule 520-1-.04 (10): Incomplete applications might not get processed until the requiremnets are met
Rule 520-1-.04 (11): Preliminary decisions for convictions/disciplinary actions
Rule 520-1-.04 (12): Addresses requests for a hearing after denial.
Rule 520-1-.04 (13): Covers military spouses/transitioning service member applications.
Rule 520-1-.05: An inactive license cannot practice real estate or earn commission as a part as a license.
Rule 520-1-.06: Management agreements, should specify property, terms/conditions, income transmission, annual reporting security/rent deposits, broker commission, and effective/end date. Each side must sign, and a copy must be provided to the owner. Managers need $60,000+ coverage fidelity bond/insurance (community covered, brokers partener/employees covered, and 30 day notice before cancelling)
Buying/leasing properties listed with licensee/firm isn't allowed. The one exception is if the licensee must reveal they are the buyer/tenant to the owner before the contract
Rule 520-1-.07: Brokers can't do business under a different name than the license issued and are responsible if their salespersons violate regulations. A qualifying broker has 60 days after leaving before the brokerage must stop real estate services. An broker needs to notify each firm if they serve more than one brokerage. If a licensee request a release form, the broker release it and has their licensure from the commission
Rule 520-1-.08: If a designated broker wishes to have more than one trust or escrow account, they have to inform the Commission. The licensee must give any cash or checks of consideration to their designated broker as possible. Accounting requires (Buyer/seller or tenant/landlord's Name, Amount and date of funds, Identification of property, Amount date, payee)
Rule 520-1-.09: Advertising (method, manner, act to inform the general publi), misleading advertising is prohibited, written permission from the owner (or their agent) is required for advertising their real estate, discrimination adveryising is prohibited, all internet advertising must contain name/number of brokerage, and can't advertise if they offer sale if they from a private individual
Rule 520-1-.10: A licensee must present a signed offer, and if an offer comes from someone they don't represent, the other licensee who represents them. Preparing or signing an offer requires you to include your license numbers. Provide all documents used, and keep copies for three years. The transaction documents include what amount real for sales or exchange and also disclosure to the principal must be made prior to any fees
Rule 520-1-.11: Sale agents and associate brokers must notify their broker when buying, selling, or exchange in a property if there are whole or partial ownership. All engagement's shall be written down.
Rule 520-1-.12: To sell business on behalf of a client, you need to licensed as a real estate agent.
Rule 520-1-.13: No discrimination from prospective buyers or seller in any way.
Georgia Code (Title 43, Chapter 40)
Supplements the Georgia Real Estate License Law.
Section 43-40-2. Creation of commission: Governor appoints six people (five real estate pros and one consumer advocate).
Governor fills vacancies.
Recusal required for related matters.
Members can be removed for dishonesty, incompetence, or sanctions.
Members receive stipends for expenses and expenses incurred in getting to and from meetings such as 25$ per meeting.
Section 43-40-3. Determination of fees: The Commission sets fees based on direct and indirect costs.
Section 43-40-3.1. New Rules: : Paperwork reduction, changes in records retention, acceptance of non-standard signatures, etc.
Section 43-40-4. Establishment of Real Estate Commissioner: Commission hires a full-time Real Estate Commissioner may not have ownership ties to the real estate industry.The Commission could set up criterial and hiring for staff for them.
Section 43-40-5: During service, commission/appointees have inactive licenses, but fees must be paid fees but their license would be inactive during their term on the commission. Once the terma has ended they license can be activated to active status
Section 43-40-6: Allow establish a seal for the State of Georgia which may be put on any document approved. They also will have authority to determine paper or electronical records
Obtaining a License (Georgia Code, Subsections 7-11)
Initial application: Basic information about yourself or your business is required (name,address,etc).
Confidential information: Submissions in process are confidential but granted information is publicly accessible.
Community association managers:
At least 18 years old.
A resident of Georgia.
High school diploma/GED.
Passing a criminal background check.
Completion of 25 hours in an approved managers study course
Passing an approved real estate exam
Broker/ associate broker's license:
At least 21 years old.
An active license and having maintained for a minimum of three of the last five years.
60 hours of commission approved coursework
Real estate salesperson:
Must be at least 18 years old.
High school diploma or equivalent
Complete required 7-hour Georgia real estate salespersons course
Pass the real estate salespersons State exam
25 hours of continued education yearly, to maintain professional status
State exam fees for the application are nonrefundable