GREC REnews, Vol. 1, Issue 10 (Oct. 2005)

Georgia Real Estate Commission

GREC RENEWS

Volume 1, Issue 10 October 2005

2005 Dates to Note
October 7 Trust Account Class Calhoun/Gordon County Board of REALTORS (706) 625-9702
November 18, 2005 Trust Account Class North East Atlanta Metro Assoc. of Realtors (800) 633-3583
November 17-18 Georgia Instructor Training Workshop (GIT) Metro South Assoc. of Realtors (770-477-7579)
(800) 633-3583
December 1-2 GREC Annual Schools Meeting
GREC Disciplinary Sanctions
INSIDE THIS ISSUE:
Community Assoc. Mgt 1
Ministerial Acts 1,2
Focus on Terminology:
"CAM and CAM"
Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605

A Day in the Life of a CAM

A broker who acts as a community association manager (CAM) is concerned with managing the properties that are mandatory-fee associations, such as condominium, PUD, single-family homeowner's, and mixed-use development associations. Such a broker is the protector and manager of the funds paid into such associations and has the dubious job of trying to please many property owners simultaneously.
The broker is responsible for obtaining bids to secure various professional services and ensuring that the association complies with the terms of the Association By Laws and Covenants. Responsibilities include such duties as the following:

General Administrative Duties requiring constant review of expenses, budgets and outstanding contracts;
Handling violations of home owners in conjunction with the recorded Covenants and Restrictions;
Maintaining and managing appropriate liability insurance;
Maintenance of common areas; Accounting of funds; Reacting to emergency situations;
and Reporting and record maintenance.

A community association manager

might manage several different

subdivisions/properties

totaling

thousands of homeowners. This level

of management involves large

numbers of telephone calls and emails

daily, not to mention managing daily

operations or supervision of the on-site

property staff. Clearly, the community

association manager is an essential

component of the real estate industry.

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Brokers who engage in community association management often utilize licensees known as Community Association Managers (CAM). The basic requirements for licensure as a CAM are similar to those of a real estate salesperson. Although there is only a minimum 25hour pre-license curriculum, it focuses on managing real estate.
Requirements for CAM Licensure A CAM must work under the
supervision of a Real Estate Broker or be licensed as a Real Estate Broker. A CAM is licensed to perform community association management services and is not authorized to engage in other types of real estate brokerage activity. A licensed broker or salesperson can perform the services of a community association manager. However, the licensee should be sure he or she is competent to provide community association management services.
Specific CAM courses are available that include curriculum specifically focused on managing properties where there is a common ownership. Some Commission approved schools offer CAM courses in Georgia. The private trade organization known as Community Association Institute (CAI) offers a national certification program. The Community Association Institute (www.caionline.org) specializes in community association management issues and provides its members useful educational tools and resources relative to community association management.

Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605
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GREC

Volume 1, Issue 10
Ministerial Acts or Creating Agency ? October 2005
Real estate brokerage is a service industry strongly based on personal relationships. Most licensees, by nature, want to help those individuals with whom they are dealing. The reason may be altruistic, or it may simply be to move the transaction along. Whether the individual is the customer or the client will dictate what kind of services the licensee may legally and ethically provide. Licensees can only perform "Ministerial Acts" for a customer (a party with whom they have no agency relationship). Occasionally reviewing the definition of "Ministerial Acts" or perusing a list of those types of services can remind the licensee how easily he or she can cross into an agency relationship.
"Examples of ministerial acts which can be performed by the transaction broker on behalf of any of the parties in a real estate transaction include without limitation the following: 10-6A-14. (a) (1) Identifying property for sale, lease, or exchange; (2) Providing real estate statistics and information on property; (3) Providing pre-printed real estate form contracts, leases, and related exhibits and addenda; (4) Acting as a scribe in the preparation of real estate form contracts, leases, and related exhibits and addenda; (5) Locating architects, engineers, surveyors, inspectors, lenders, insurance agents, attorneys, and other professionals; and (6) Identifying schools, shopping facilities, places of worship, and other similar facilities on behalf of any of the parties in a real estate transaction."
Clearly, this list is limited to basic tasks. If the customer requests a service that requires the licensee to use his/her judgment or decision-making ability, it is probably not a Ministerial Act and should not be performed for a customer.
Click here to Print or Review BRRETA

Focus on Terminology: "CAM and CAM"

Community Association Manager As noted above, a Community
Association Manager, often referred to as a "CAM," means a person who acts on behalf of a real estate broker in providing only community association management services.
Common Area Maintenance
However, in commercial real estate language the acronym "CAM" means "Common Area Mantenance."

When used in connection with a commercial leasing transaction, common area maintenance (CAM) refers to those expenses shared by all tenants in the center that are based upon the tenant's pro-rata usage of the center. These shared expenses cover the use and maintenance of the areas of the center or building or collection of buildings and typically include outside lighting, landscaping, maintenance of parking areas, and utilities of common areas, management fees, and more.
A CAM fee is often charged in addition to the base rental the tenant is expected to pay in retail leases or other forms of net leases.

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