Georgia Real Estate Commission 
 
GREC RENEWS 
 
Volume 2, Issue 4 April 2006 
 
2006 Dates to 
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Note 
 April 25, 2006 Trust Account Class Statesboro Board of Realtors 912-489-7355 
 May 4 & 5, 2006 Georgia Instructor Training Macon State College 404-252-6768 
 May 23, 2006 Trust Account Class 400 North Board of Realtors 706-216-5229 
GREC Disciplinary 
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Sanctions UTH 
 
INSIDE THIS ISSUE: 
 
Auctions 
 
1 
 
Tracking Licensees 2 
 
Focus on Terminology: 
"Media" 
Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605 
 
What You Need to Know About Auctions 
 
Auctions are not just for 
 
distressed properties. In the nineties, 
 
the Resolution Trust Corporation 
 
(RTC) used auctions to move 
 
commercial and residential real estate 
 
assets from failing banks to the buying 
 
public. As a result, many buyers and 
 
sellers realized the auction is a viable 
 
method to move real estate in a timely 
 
and efficient manner. 
 
Auctions have been used as a 
 
method of matching as many buyers 
 
as possible to the sale of a property for 
 
close to one hundred years. Auctions 
 
are another method of marketing. 
 
Traditionally, most auctions are held 
 
on-site, although the current trend is 
 
for bidders to submit offers remotely. 
 
In that case, some argue that the 
 
momentum of the auction is less 
 
effective. 
 
Auctioneers must be licensed 
 
by the Georgia Auctioneers HTU 
 
Commission and the Georgia Real UTH 
 
Estate Commission if they intend to 
 
auction any real estate. Auctions can 
 
be held for personal property as well 
 
as real estate. An estate sale by 
 
auction of personal property may be 
 
beneficial before listing or even 
 
auctioning a house. Commercial real 
 
estate is also actively sold at auction. 
 
As is the case in many 
 
specialties, terminology is specific to 
 
the industry. When attending an 
 
auction, you and your client must 
 
clearly understand the terms as well as 
 
how the property is being marketed 
 
and sold. Usually, the sale does not 
 
permit contingencies to the purchase 
 
other than good title; so the winner of 
 
the bid commits to buying the property. 
 
The following terms are critical in that 
 
understanding. 
 
Absolute: If a property is offered 
 
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"absolute," the property will be sold 
 
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without a set minimum price. In other 
 
words, the property cannot be taken off the 
 
market if the owner does not like the price. 
 
It will sell for the highest of the bids given 
 
at the auction. Often, by advertising 
 
absolute, more buyers attend and the sale 
 
price is higher than those properties not 
 
offered absolute. 
 
Buyer's Premium: Whenever a bid is 
 
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placed, a commission is added to the offer 
 
price to cover the fees to the auctioneer. 
 
The total price the buyer will pay is the bid 
 
price plus the buyer's premium. 
 
By the Tract: Each tract is sold separately 
 
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or it may be announced that the tract will 
 
only be sold as a whole. 
 
Crier of the Bid: The auctioneer begins 
 
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and controls the bidding process so that 
 
the bidding is done fairly and openly. 
 
Ringperson: The auctioneer has 
 
ringpersons who assist the attendees in 
 
making a bid or obtaining information. 
 
With Confirmation: The auctioneer must 
 
receive confirmation from the owner that 
 
the winning bid price and terms are 
 
acceptable. 
 
With Reserve: When advertised and sold 
 
"with reserve," the owner reserves the right 
 
to accept or reject a bid based upon a set 
 
minimum price he/she requires to sell the 
 
property. The minimum bid does not have 
 
to be stated. 
 
A real estate licensee can attend 
 
an auction with a buyer/client and register 
 
the client to obtain a small percentage if 
 
the client wins the bid and subsequently 
 
closes on the property. Some real estate 
 
firms have a separate auction company for 
 
commercial as well as residential sales. A 
 
real estate agent could possibly obtain a 
 
referral fee for sending a seller/client to an 
 
auction company if the property sells as 
 
a result of the auction. When a seller 
 
receives the proceeds from the auction 
 
sale, the real estate licensee can assist 
 
him/her in buying another real estate 
 
investment. ........continued on page 2 
 
 Georgia Real Estate Commission 
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605 
 
What You Need to Know About Auctions 
continued from page 1..... 
 
Volume 2, Issue 4 April 2006 
 
Sellers who are frustrated with purchase agreements filled with contingencies and extensions to closing may find that in some circumstances an auction is a preferable method to quickly turn assets into cash. 
 
Links to Auction Related References: 
 
Auction Related Definitions 
 
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Rules of the Georgia Auctioneers Commission 
 
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GREC 
 
Focus on Terminology: "Media" 
 
Remember that any form of marketing real estate is subject to the 
 
License Law and its Rules and Regulations regarding advertising. The term 
 
media is defined in Rule 520-1-.09 Advertising. Amended. 
 
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"(1) Media. ....The term "media" includes, but is not limited to, print, 
 
photographic, broadcast, and computer media including, but not limited to, 
 
such examples as newspapers, magazines, flyers, posters, business 
 
cards, billboards, radio, television, signs (including, but not limited to, 
 
office, directional, for sale, for lease, sold, or vehicle signs), newsletters, 
 
and the Internet." 
 
A licensee must have written permission to advertise real estate. 
 
Tracking Licensees 
The Georgia Real Estate Commission provides a very useful report to assist brokers in tracking and managing licensees affiliated with their firm. The Firm and Licensee Status Report is sent to every firm each year in October and contains the following information: 
 Information on the license - the firm's license number and its license type (sole proprietorship, corporation, partnership, or limited liability company), active or inactive, renewal date, number of licensees affiliated with the firm, and the total number of licensees needing to renew during the period covered by the report; 
 Information on the license of the broker or qualifying broker - the broker's name, license number, active status, renewal date, and the total number of any continuing education hours due at renewal; 
 Trust account information for the firm and its affiliates - for all accounts that have been reported to the Commission, the name of the bank; the account number; and in the case of affiliate's trust accounts, their license numbers; 
 Affiliated licensees who must complete post-license education during the period of the report and their license type, license numbers, names, renewal dates, and the dates that post license education is due; 
 The names of all the licensees of the firm who must renew within the quarter including the license number, license type, renewal date, number of continuing education hours due at renewal, and the amount of renewal fees due; 
 A list of all other licensees affiliated with the firm showing their names, license numbers and types, renewal dates, and any continuing education hours due. 
The Commission also sends firms a quarterly status report in any quarter of the calendar year in which the firm, its broker, or its affiliates must renew a license or fulfill education requirements such as the postlicense course. 
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