Georgia Real Estate Commission GREC RENEWS Volume 1, Issue 1 January 2005 2005 Dates to Note March 31 Georgia Instructor Training Workshop-GIT April 1 Georgia Instructor Training Workshop-GIT December 1 - 2 GREC Annual Schools Meeting INSIDE THIS ISSUE: Read the News 1 Trends 1 Recap of Laws 2 Focus on Terminology: "Shadow Space" READ ALL ABOUT IT ! The GREC RENEWS is your source for updates on changes in laws and practices affecting the real estate brokerage industry. Technology grants a wealth of information and it is important to use the information wisely and efficiently. To provide useful services to the licensees of the State of Georgia, the Real Estate Commission is producing this monthly web publication. You may also access it from the Real Estate Commission's website: http://www.grec.state.ga.us/ by selecting News in the drop down menu. This Newsletter will also be attached to an email sent to those licensees that have registered to receive this publication. Each monthly Newsletter will include certain features: 1. A summary of specific law or rules changes or proposed amendments 2. Focus on a real estate related term and its definition 3. Useful, real estate-related websites 4. Important dates to note The Georgia Real Estate Commission website is designed to be user-friendly with the intent to become the Georgia Real Estate Licensee's key source for real estate regulatory news and reference tools and just as important...for the management of your real estate license. Licensees can renew their licenses online, update contact data and more. The following is a list of some of the services and information that can be found on the GREC website: Georgia License Laws and Rules and Regulations Approved Schools List Renewals, Online Services Resource Section of useful links Dates for Trust Account Seminars, Commission meetings, etc. Information on obtaining licenses Forms and Applications Frequently Asked Questions and "How-To" Articles A Broker or Manager can direct Salespersons to the website for important information and even engage in case studies with the online Simulation Training Exercises. Visit the GREC website to learn how it can help you practice real estate brokerage more efficiently. Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605 TRENDS IN ORDINANCES Although Atlanta has been known for Urban Sprawl, Atlanta is also at the forefront of creative, positive approaches to encourage 24/7, multi-use developments. City and County governments are struggling to modify Zoning Ordinances to match the pace of the creativity of developers and dynamic lifestyles. Atlantic Station in Atlanta is a great example of this type of project. Whether it is a Lifestyle Center, a Big Box, or a 24Hour Retail development, new parameters are needed to address new designs. 1 Georgia Real Estate Commission TRENDS IN ORDINANCES... Suite 1000, International Tower 229 Peachtree Street N.E. Recent initiatives required in some community and governing bodies. A visit to the Atlanta, GA 30303-1605 approval processes are listed here: Planning and Zoning Department is a good Click Here to Send Comments or Suggestions concerning the RENEWS Increase in Greenspace Requirements Pedestrian-Friendly Layouts Extensive Site Plan Requirements Noise Studies, Airport Noise Contours Environmental Site Analyses Default Expiration Dates of Issued Permits Conservation Ordinances Environmentally-Friendly Designs In transactions involvng a new development, it is important to understand the attitude of the local way to obtain information for the client: Issuance of New Zoning Ordinances Existing or Proposed Moratoriums Likelihood of a Rezoning Approval City or County's Master Plan The real estate licensee is not an expert in development issues and should not try to be. However, an agent that informs his SellerClient that the offer he just received requires a 6-month rezoning process and a sewer moratorium is in effect, is providing a valuable, value-added service to his client. Many zoning codes are accessible online. The GREC website will soon include links to these sites. http://www.grec.state.ga.us GREC Focus on Terminology: "Shadow Space" The amount of vacant office space in a local market is a good indicator of the economy. High vacancy rates are clearly a concern. Commercial space, particularly office space, that is not occupied but is not availale for lease is not usually included when vacancy rates are quoted. The tenant continues to pay rent on this Shadow Space but does not put it on the market for sublease for tax and accounting reasons. The amount of Shadow Space is unknown and therefore makes it difficult to determine the true amount of total vacant space in the market. This unknown amount of vacant space creates concern that vacancy rates are much higher than published. RECAP OF CHANGES TO THE LICENSE LAWE The License Law was revised to include a formal definition for a "Brokerage Agreement." O.C.G.A. 43-40-1 (2.1) "Brokerage agreement" means 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 in consideration of the broker's producing a seller, buyer, tenant, or landlord ready, able, and wiling to sell, buy, or rent the property or in consideration for the broker's performing property management services or performing community association management services." All real estate closings must be conducted by a Georgia attorney. OC.G.A. 43-40-25(a) was modified to make it clear that no real estate broker or any other real estate licensee is authorized to conduct any real estate closing. Effective January 1, 2005 the Real Estate Advertising Rule is Amended. For details on the rule change, look under Adopted Rule Changes under the Legal & Disciplinary Sanctions drop down box on the Commission web site. http://www.grec.state.ga.u s/grec/legal/adopted/grec _adopted.html 2