Georgia Real Estate Commission GREC RENEWS Volume 2, Issue 8 August 2006 2006 Dates to Note August 29, 2006 Trust Account Seminar West Georgia Board of Realtors (770) 949-9966 September 12, 2006 Trust Account Seminar Empire Board of Realtors (404) 755-5575 September 14-15, 2006 Georgia Instructor Training (GIT) Macon State College (404) 252-6768 December 14, 2006 Advanced Instructor Training Athens, GA December 15, 2006 Annual School Meeting Georgia Center for Continuing Education Athens, GA GREC Disciplinary Sanctions INSIDE THIS ISSUE: Niche Specialization 1 Real Estate: A Service industry 2 GREAB Amended Rules 2 Focus on Terminology: "Land Contract" Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605 Niche Specialization Although a real estate license allows the licensee to perform real estate brokerage services for any type of real estate, it is common for licensees to choose to specialize in a certain area of the industry. The following is a partial list of examples of how specialization may be determined: Type of transaction - Sales - Leasing - Property Management Geographical area Representation - Buyer/Tenant Rep - Seller/Landlord Rep Type of Property - Land for Development - Income Properties - Buildings for Lease - Multifamily Development Type of Use - Office - Restaurant or Fast Food - Warehouse - Mixed Use... The larger the brokerage firm, the more specialized the practice may become. There are advantages and disadvantages to focus in one area of the industry. When the market changes, as the economy is dynamic, there may be less demand for services in one type of specialization. However, real estate is a relationship business and often business is won by reputation alone. If a licensee specializes in a very specific field, for instance, as a buyer representative for bank locations in suburban Atlanta, the demand for services will vary with that industry, market trends, corporate expansion plans, and economic fluctuations. Consider the macro view of the economy and the real estate industry to find the most opportunistic avenue to take. For instance, in an office market experiencing high vacancies, it may be advantageous to represent tenants. As demographics shift, lifestyles change, and the population ages remember to look at the big picture to open a new window of opportunity. Quick Answers! GREC FAQ How many times have you needed a quick answer to a simple question regarding the License Law Rules and Regulations and did not want to search the regulations? Although the Georgia Real Estate Commission has implemented a new and efficient Communication Plan so that calls to the office are much easier, there is another source of answers to Frequently Asked Questions. Use the GREC website. The following examples are only 4 of the 82 questions that are answered on the web site. Click the following questions to link to the answers: May I take my listings when I transfer? How long can my license remain on an inactive status? May I pay a referral fee to an unlicensed person? Do I need a special form to make the agency disclosure or can I make the required disclosure in a written offer? Access the FAQ directly from the GREC homepage. 1 Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605 U.S. Population Clock 299,359,276 Up 314,026 from last month You can sign up to receive the GREC RENEWS electronic newsletter each month by visiting the GREC website or CLICK HERE TO SIGN UP Real Estate: A Service Industry Volume 2, Issue 8 August 2006 Although the real estate professional must take advantage of a multitude of technological tools to be competitive in the industry, the core of real estate brokerage is the service provided. Whether it is handheld communication devices or organizational and management software or electronic brochures, real estate has become a fast-paced industry where information and communication is critical. However, the management of the information is crucial to completing the transaction and at the base of this management of information, real estate is still a business of relationships as it was before any of the current technology even existed. Each year the commission receives complaints regarding the interaction of licensees with the public. Although complaints concerning "people skills" may not merit formal investigation, it is a reminder that licensees are first and foremost service providers. Undoubtedly, one of the client's or customer's most memorable aspects of the real estate experience may be the interaction with the licensee. A positive experience often leads to future business dealings with the same licensee. Even though a licensee may have all the latest in high-tech tools, the licensee must use these tools and the wealth of information that go with them to deal with the client and the customer in a professional and ethical manner. A list of common complaints the Commission receives was included in the January 2006 Issue of the GREC RENews RENews Newsletter Comments or Suggestions Click Here Focus on Terminology: "Land Contract" The Land Contract is a sales arrangement whereby the Seller finances the sale of the property but no deed or title is given to the buyer until the entire loan balance is paid. The buyers can use and enjoy the property as if he/she owns it but does not actually have any ownership. The seller has the security of still having title to the property in the event of default. There are some risks for the seller regarding the condition of the property during the time period of the contract and for the buyer concerning the condition of title at transfer. The Land Contract has often been used in the western part of the United States for the purchase of ranch land and large acreage, but it can be used for other types of real estate as well. It is also referred to as a Contract for Deed that more accurately describes the situation or an Installment Contract. GREC The Georgia Real Estate Appraisers Board has amended Chapters 539-1 and 539-3 of its rules (effective August 1, 2006). The new rules establish state standards for appraisals that are much more detailed than those in the past. Click Here to link to the new GREAB Amendment. 2