Georgia Real Estate Commission GREC RENEWS Volume 1, Issue 12 December 2005 2005 Dates to Note December 8, 2005 Trust Account Class Central Georgia Board of REALTORS (478) 922-0099 GREC Disciplinary Sanctions INSIDE THIS ISSUE: Licensees & Rental Prop 1 Proposed Rule Changes 2 Focus on Terminology "Hybrid Center" Happy Holidays! from the Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street Atlanta, GA 30303-1605 Checklist for Licensees Owning Rental Property Any active licensee managing rental property that he or she owns must: disclose his/her licensure in rental agreements. include in any advertising of his/her own property the statement "landlord holds a real estate license" OR include in the advertisement his/her license number. notify his/her broker in writing before renting properties to others. place money that belongs to others or that has the potential to be refunded (for example, security deposits, pet deposits, or last month's rent) in a designated trust account that is: 1. the broker's designated trust account as registered with the Commission, or 2. if not using the broker's account, in a designated trust account set up by the licensee, approved by the broker, and registered with the Commission. (The Broker must notify the Commission of the name of bank of the account and the account number and the licensee owning it.) if the licensee has his or her own account, the licensee: 1. must maintain records in compliance with the license law (see particularly Rule 520-1-.08 520-1-.08 and Section 43-40-20 of the license law); 2. must provide written account reconciliation statements to the broker at least quarterly; and 3. place all security deposits into the trust account. advertise in the broker's name if the property is under a management contract with the broker. notify his/her broker in writing before advertising the property. have the broker's written consent to any advertising and otherwise comply with advertising rules 520-1-.09 & 520-1-.11. Refer to the November issue of the GREC RENews for more information and license law references related to Licensees acting as principals in real estate transactions. Snapshot Review: Definitions in BRRETA "'Client' means a person who is being represented by a real estate broker in an agency capacity pursuant to a brokerage engagement. 'Customer' means a person who is not being represented by a real estate broker in an agency capacity pursuant to a brokerage engagement but for whom a broker may perform ministerial acts in a real estate transaction pursuant to either a verbal or written agreement." 1 Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605 You can sign up to receive the GREC RENEWS electronic newsletter each month by visiting the GREC website or CLICK HERE TO SIGN UP RENews Newsletter Comments or Suggestions Click Here Proposed Changes to the Real Estate Rules & Regulations Volume 1, Issue 12 December 2005 The proposed rule amendments are summarized below. To read the complete and exact wording of these rule changes, click on the noted links for each rule. 1. The proposed change concerning Real Estate Courses in Chapter 520-2. -04 (6) expressly requires approved schools to include in their pre-license course curricula instruction on Georgia's Residential Mortgage Fraud law and methods for identifying and reporting possible fraud in transactions. If adopted, it will become effective July 1, 2006, comments due January 3, 2006 2. The proposed changes to Chapter 520-1-.04 fall into three areas: the term "applicant" is changed to "candidate for licensure" allows passing scores on qualifying examinations to be based on the type of examinations to be used. The 520- Commission plans no change in the type and scoring of the examinations that salesperson and community 520- association manager candidates take (multiple choice questions - passing requires correct answers to 75 % of all questions asked). However, in March, 2006, the Commission will initiate a new type of examination for broker candidates (simulation questions passing requires successful performance in two different performance areas. Scoring will be based on a new standard published before the examination is given.). If adopted, these will become effective January 4, 2006, comments due December 12, 2005. The new examination will require a different treatment for veteran's preference points as well. If adopted, these will become effective January 4, 2006, comments due December 12, 2005. The proposed change to Chapter 520-1-.05 permits non-resident licensees to meet Georgia's Salespersons Postlicense Course requirement by taking or having taken a similar course in their state of residence. If adopted, it will become effective January 4, 2006, comments due December 12, 2005. The proposed change to Chapter 520-1-.11 clarifies the provision that licensees acting as principals reporting such activity to their brokers applies not only to situations in which the licensee is acting as an individual principal but also when the licensee is acting through a business. If adopted, it will become effective January 4, 2006, comments due December 12, 2005. Any party wishing to express opinions or views on the proposed Rules listed above may do so by writing Charles Clark, Georgia Real Estate Commission, Suite 1000 - International Tower, 229 Peachtree Street, N. E., Atlanta, Georgia 30303- 1605. Chapter 520-1-.04 Obtaining a License Chapter 520-1-.05 Maintaining a License Chapter 520-1-.11 Licensees Acting as Principals Chapter 520-2.-04 Real Estate Courses GREC Focus on Terminology: "Hybrid Center " One of latest trends in retail is the development of "Hybrid Centers." The Hybrid Center hosts a variety of retail components in one center. It could include an outlet center, a neighborhood center with a grocery store and a lifestyle center with restaurants and upscale national stores all in one development. Retail Developments no longer fit a traditional mold. Demand for mixed-use developments in urban locations of high density is increasing and the Hybrid Center provides the shopping consumer a unique mixture of a variety of retail tenants in one area. 2