GREC REnews, Vol. 1, Issue 5 (May 2005)

Georgia Real Estate Commission
GREC RENEWS

Volume 1, Issue 5 May 2005

2005 Dates to Note
May 20 Trust Account Class
June 2 & 3 Georgia Instructor Training Workshop (GIT) (Registration already closed)
June 7 Trust Account Class
December 1 - 2 GREC Annual Schools Meeting

INSIDE THIS ISSUE:

Records Maintenance 1

Business Licenses 2

School Records

2

Maintaining Real Estate Records
The Broker is required to maintain well-documented records concerning real estate transactions. Provided that these records are easily accessible to the Real Estate Commission upon request, they can be maintained in paper form or in a digital or electronic format. When a licensee transfers his/her license to another Broker, the licensee relies on the
Brokers to maintain those records. In the event the licensee is investigated or audited, the Real Estate Commission will request the necessary records from the Broker holding the licensee at the time of the transaction in question.
The License Law requires that the Broker maintain specific documentation from Real Estate Transactions for a period of three years. Remember that this time period runs from the conclusion of the transaction. The critical date three years out may run from the closing date or perhaps from the last date of a lease lasting 20 years. The records required to be maintained are identified in the License Law. Rule 520-1-.10 (3) (3) Retention of Copies of Records and Documents. "Copies of sales contracts, brokerage engagements, closing statements, leases, and Real Estate Transactions other documents related to a real estate
transaction required by law to be maintained in a broker's file for three years shall be made available to authorized agents of the Commission upon reasonable request and at a reasonable cost to the Commission...." The license law continues to describe what documents must be maintained by the broker. As a broker responsible for several agents, it is important to have a reliable and accurate system of records maintenance.

Focus on Terminology:
"Rentable Vs.
Useable"
Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605

Curious About a Newly Formed Corporation?
If you are working with a newly formed corporation, or one that you think is not yet formed, perhaps a visit to the Secretary of State website can be time well spent. The specific site regarding Corporations Registered in Georgia is http://www.georgiacorporations.org/
You may be providing a valuable, professional service to your SellerClient by suggesting that he/she visit this site to learn something about the Potential-Buyer/Corporation. Perhaps the corporation is not even registered and the credibility of the buyer is questionable. This web site includes information such as corporate status, name of the registered agent, the officers of the corporation and more, in addition to details regarding registering a corporation in Georgia. Georgia Secretary of State Website
1

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

Business Licenses for Brokerage Offices
A business license is required to conduct business in certain counties or cities. This licensure applies to a Brokerage office as it does any other business, whether a sole proprietorship or a corporate structure. The license is obtained from the city or county where the business is located. The local Chambers of Commerce can provide contact information for your area. The Blue Pages of the telephone directory also list contact information. The Secretary of State Office provides a very useful document to assist in the start-up of a new business. The document can be downloaded in pdf. http://www.sos.state.ga.us/firststop/points_contact.pdf

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Focus on Terminology: "Rentable vs. Useable"
When leasing Commercial real estate, sometimes rental rates and space are quoted as "rentable" or "useable". "Useable" area is that space available for personnel, furniture and equipment. Generally, useable space is that space that can be physically occupied by the tenant. "Rentable" space is the area that includes "useable" area and the space shared with other tenants. Rentable areas include the hallways, atriums and other common usage areas in addition to the space actually occupied by the tenant. The difference between rentable and useable is sometimes quoted as a percentage and is called the "loss factor."
The distinction between rentable and useable is most important is office space, typically high-rise buildings and/or buildings with multiple tenants. When a rate is quoted for office space, it is usually a "Rentable Rate" and "Rentable Square Footage." To competently represent the client, it is important to understand the rates and structures of the lease

School Records Maintenance

Any Real Estate School

authorized by the

Georgia Real Estate

Commission to offer Real

Estate courses must

maintain specific records for a period of five years.

School Records

Rule 520-2-.10

520-2-.10 Maintenance (2) "Each school shall

of Records. Amended.

maintain for at least

(1) " All approved

five years, in a form

schools shall maintain,

the Commission

and upon reasonable

authorizes, records

request make available to

which reflect the

any authorized

attendance (or for

representative of the

Computer-based

Commission, copies of all

courses the

examinations with

completion of each

answer keys and copies

module of

of all texts or other

instruction) and

instructional materials.

scores earned by

Schools shall maintain

each student on all

these for a period of at

graded, written

least five years after use.

exercises and

2

examinations used to determine whether the student passed a course. Schools may maintain records in printed, computer-based, or electronic formats..." The License Law continues to describe other requirements for records maintenance by schools. NOTE: Under the new version of the education rules, effective May 22, 2005, the citation for Maintenance of Records for schools is 520-2-.02(8).