GREC REnews, 2019 July

GGRREECC RREENNeewwss July 2019
Volume 15 Issue 7

Monthly Newsletter of the Georgia Real
Estate Commission

This Issue

2019 Calendar
Brokerage and Trust Account Class Workshops (GIT) August 21 & 22 2019
Great Augusta Assoc. of Realtors Augusta GA 706-736-0429 www.augustarealtors.com September 25 & 26 2019 Middle GA Assoc. of Realtors Macon GA 478-471-7336 www.mgar.org
Georgia Instructor Training Workshops (GIT) October 16 & 17 2019
GA Association of Realtors Atlanta GA
Link to the Georgia Real Estate License Laws Rules and Regulations

Salesperson Exam Updated Disciplinary Stats AMK Section Focus on Terminology The Appraisers Page

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Salesperson Pre-license
Exam Updated
On June 1 2019 AMP/PSI began administering new exams for the Georgia salesperson license. Each exam will consist of 152 scored questions 100 national questions and 52
Georgia specific questions. There will also be 5 pre-test questions that will not be scored. Therefore a candidate will answer 157 questions but only 152 questions will be scored. A candidate can take up to 4 hours to complete the state exam. In order to pass the exam a candidate for licensure must answer 109 of the 152 questions correctly for a score of 72% (109/152 72%). Georgia schools that offer the salesperson pre-license course can set their school course exam at 72%. Click the links below for additional information about changes to the salesperson exam.
Salesperson Exam Update 2018-2019 National Real Estate Salesperson Detailed Content Outline
At this time there are no changes to either the broker examination or the community association manager examination.

Link to GREC Disciplinary Actions View Current
Suspensions and Revocations
Link to Proposed Rule
Changes

Click Here

Click here to review a legend of the disciplinary actions the Commission may impose.
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"Avoiding Trust
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"Practicing Real Estate & Staying Out of Trouble"
"Being a Broker and Staying Out of Trouble"
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta GA 30303-1605 Phone 404-656-3916

GREC RENews July 2019 Volume 15 Issue 7
bsolutely ust now Section
If a licensee is a principal in a real estate transaction and even though he/she may not be receiving any fee or commission he/she must still comply with the License Law Rules and Regulations or be subject to disciplinary sanctions. When acting as a principal in a real estate transaction remember to provide yourself the same conscientious review and service as you would your client and remember to disclose your real estate license status in the document.
43-40-25(d) Whenever a licensee acts in a real estate transaction as a principal or as an officer employee or member of a firm or any other entity acting as a principal the commission may impose any sanction permitted by this chapter if the licensee commits any unfair trade practice enumerated in this Code section or violates any other provision of this chapter or any rules and regulations adopted pursuant to this chapter in such a transaction.
Focus on Terminology "Lease Vs. License"
Lease A lease provides a bundle of rights for the tenant (lessee) the landlord temporarily transfers some of the landlord s rights to the tenant to use possess enjoy the property The tenant in a lease pays rent in return for exclusive temporary possession of the property. The tenant or lessee is considered to have a leasehold interest or leasehold estate. The landlord or lessor has a reversionary interest. Like any contract there must be consideration to validate the agreement. In a lease it is the promise to pay rent in exchange for the landlord s promise to provide temporary exclusive use of the property.
License A license gives permission for a specific use or action. A license does not create any interest in real property. It does not provide a transfer of the landlord s bundle of rights to the user of the property like a lease does. A license is usually personal and cannot be assigned to another party. A license merely grants a license (permission) to the user for the purposes identified in the agreement. A license is usually revocable by the owner (licensor). The license agreement may provide the option to use additional services for additional fees. A license can be terminated without the same ramifications as a lease agreement. Eviction and notice provisions are less protective of the licensee. However any contract can have very specific consequences in the event of default.
Whether it is a lease or a license agreement there are typically Rules and Regulations that must be accepted and followed by the tenant or the licensee. If signing an agreement to lease space or to use it under the terms of a license be sure to read the agreement carefully including the Rules and Regulations that go with it.
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The Appraisers Page

Georgia Real Esta1te Appraisers Board

July 2019

Useful Links
GREAB Web Site

Appraisal Act

GREAB Disciplinary Sanctions


It s like dj vu all over again
By D. Scott Murphy SRA
Is history bound to repeat itself or are we moving in a different direction No doc loans and other creative financing alternatives are back again. This may allow some buyers who otherwise might not qualify for traditional financing to be able to purchase a home. But let s hope we have learned from our past mistakes and have implemented safety precautions to avoid another collapse.
If lenders are having to get more creative with their financing options then something must be going on in the market. So what is happening in today s real estate market Why is the volume of home sales and therefore loans slowing
Every market is different and where you are may be doing just fine but here in the metro Atlanta market I have seen a softening. In the overall scope of the market this is not necessarily a bad thing. There are no specific negative indicators values are not declining we don t have the major concerns we did 10 years ago it s just taking longer to sell homes. I see this as a correction which is a good thing. I believe the issue is that values have risen at a rate which has out-paced the economy. In other words homes are slightly overpriced or overvalued. Affordable housing options are slim to

none in many markets. Why does this matter Some will say rising home values are just the nature of the real estate market if you can t afford a home here move to an area where you can afford one. This of course is not the correct answer. Affordable housing is not just for the poor or those with less wealth it is also for our youngest generation of buyers.

We know that millennials are very particular about the home they would buy and very few will consider a home which is not in pristine condition. They lived through the most recent recession and are generally more conservative. They remember the excess wealth and extravagant home buying their parents generation had and now see those parents downsizing and far more conservative with their home needs as well. They witnessed the foreclosures displacement of families and loss in wealth associated with housing. Couple this mental perception with burdensome student loans and rising home costs most are opting for an alternative to buying real estate.

If there are no affordable options for this generation they will flock towards apartment living. Reports have already shown a 10% rise in apartment living just this year. It is what they are used to it also affords them flexibility and is more in line with the "leased" lifestyle we see today ie Uber and no car or leased cars leased cellphones leased "Birds" or scooters (grab one jump on and then leave it when you are done) Air BnB etc. There has been

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The Appraisers Page

Georgia Real Estate Appraisers Board

July 2019

Useful Links
GREAB Web Site


It s like dj vu all over again
By D. Scott Murphy SRA

Appraisal Act

GREAB Disciplinary Sanctions


a significant shift from ownership towards leasing across our economy. The percentage of leased properties in this country continues to rise and now more than one in three properties are rental properties.
I think this correction is more than just a pause in the market it is an indicator of fundamental change in our views of real estate. These are complex issues builders are not just going to build less expensive homes. We need comprehensive planning community and corporate funding to create environments which will cater to our youth and encourage them to embrace home ownership. There is a need to develop different ways for buyers to buy and sellers to sell. This is evidenced by the recent surge in iBuyer companies (Open Door Knock Zillow etc.). Many sellers today appreciate the convenience and expedience of this type of transaction. They realize it s a more expensive way to sell but based on the volume of purchases these companies have made here in Atlanta there is a sizable portion of our market that is willing to pay.

A changing market always presents opportunities as well. Now is a good time to "sharpen the saw" through additional education or even professional designations. It may also be a good time to consider specializing to set yourself apart from your competition. It may also be a good time to pursue the diversification ideas you ve been pondering but have been too busy to explore. The market has been so strong for so long that some people new to the profession haven t seen it any other way. But it is important to remember that changes in the market usually mean opportunity you just have to be looking for it.

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