GREC REnews, Vol. 2, Issue 5 (May 2006)

Georgia Real Estate Commission

GREC RENEWS

Volume 2, Issue 5 May 2006

2006 Dates to Note
May 23, 2006 Trust Account Class 400 North Board of Realtors 706-216-5229
June 21, 2006 Trust Account Class Dekalb Board of Realtors 770-493-6100
GREC Disciplinary Sanctions
INSIDE THIS ISSUE:
Communication Plan 1 Relationship Policy 2

Real Estate Commission New Communication Plan
The Commission has recently engaged the services of Draper & Associates, an Atlanta-based consulting firm, to conduct a review of the Commission's communications. This review resulted in a number of specific recommendations that, when implemented, will improve the Commission's communications process for our customers.
While we do not expect most major changes to be completed until the end of the year, our customers should experience some near-term improvements in both the Commission's telephone system and our web site. As we complete various independent elements of the recommendations, we will implement them. We have already begun that implementation. For example, we are reengineering our call flow process to:
adjust the current call processing to help reduce "wait" times, enhance the availability of Information Specialists to ensure consistent peak
time access, update/improve the messages we play while a customer is on hold, and realign staff responsibilities to respond more quickly to voicemail requests for
forms and documents.
The Commission recognizes that our telephone and web site communications need improvement, and we are committed to making the necessary changes to improve access to them and their utility.
Our call flow process reengineering is the first of a number of improvements the Commission intends to undertake as we continue to look for ways to be more responsive to our customers.

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

Written Buyer Brokerage Engagements
Brokerage engagements should always be in writing and must have a definite date of expiration. Disclosing an agency relationship such as buyer agency only in the purchase and sale agreement is not sufficient. According to BRRETA , there must be a written buyer agency agreement in addition to the agency disclosure in the contract.
The License Law's Substantive Regulation 520-1-.06 Brokerage Relationships requires written disclosure of any "exclusive" brokerage agreement. Therefore, although a licensee may have an open/non-exclusive brokerage engagement with a buyer, disclosing that relationship only in the purchase and sale agreement if a written brokerage engagement does not already exist would be a falsification of the contract.
The required written disclosures "must be made in a timely manner, but in any event not later than the time that any party first makes an offer to purchase, to sell, to lease, or to exchange real property."
1

Volume 2, Issue 5 May 2006

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

Focus on Terminology: "Brokerage Engagement"
Listings, Buyer Agency Agreements and Tenant Representation agreements are all considered brokerage engagements as defined in BRRETA: 10-6A-2. (4) 'Brokerage engagement' means a written contract wherein the seller, buyer, landlord, or tenant becomes the client of the broker and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another in consideration of the broker producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property or performing other brokerage services. All brokerage engagements must: (1) Advise the prospective client of the types of agency relationships available through the broker; (2) Advise such prospective client of any brokerage relationships held by such broker with other parties which would conflict with any interests of the prospective client actually known to the broker but excluding the fact that the broker may be representing other sellers and landlords in selling or leasing property or that the broker may be representing other buyers and tenants in buying or leasing other property; (3) Advise such prospective client as to the broker s compensation and whether the broker will share such compensation with other brokers who may represent other parties to the transaction in an agency capacity; and (4) Advise the prospective client of the broker s obligations to keep information confidential under this chapter."
Every brokerage engagement should have an expiration date. Just as a Listing must have an expiration, so must a buyer agency agreement. The agency agreement continues until completion, or the earlier of:
(a) a stated expiration date, (b) any authorized termination, or (c) one year after initiation of the engagement if no expiration is provided. The inference of a one-year expiration could cause some difficulties in a complex situation. Thus licensees should negotiate a date of expiration at the initiation of the brokerage relationship.
Office Brokerage Policy
Every broker must have a written Office Brokerage Relationship Policy that describes the type of agency relationships the firm practices. This policy must specifically state whether the practice of disclosed dual agency is or is not permitted. The broker must develop systems to enforce the Office Brokerage Relationship Policy among affiliated licensees.

GREC

The Georgia Real Estate Appraisers Board proposes to amend the following Rules:
539-1-.16 Appraiser Classification and their Education Examination, and Experience Requirements.
539-3-.01 Federally Related Transactions 539-3-.02 Standards for Developing and Reporting An Appraisal 539-3-.04 Departure in Non-federally Related Transactions If adopted these amendments become effective August 1, 2006.
Click HERE to view the Notice of Intent
2