GREC REnews, Vol. 3, Issue 10 (Oct. 2007)

Georgia Real Estate Commission

GREC RENEWS

Volume 3, Issue 10 October 2007

2007 Dates to Note
October 18-19, 2007 Georgia Instructor Training Workshop (GIT) Macon, GA
October 25, 2007
Trust Account Seminar Carpet Capital Association (706) 278-0297
October 31, 2007
Trust Account Seminar Georgia Association of Realtors 770-451-1831 November 27, 2007 Trust Account Seminar NE Atlanta Metro Association (770) 495-7300 November 29-30, 2007 GREC Annual Schools Meeting Athens, GA
GREC Disciplinary Sanctions
INSIDE THIS ISSUE: Unlicensed Assistants 1
Builder Bonuses 2
Focus on Terminology:
"Operating Expenses (OE)"
Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605

What Can My Unlicensed Assistant Do To Help Me In My Real Estate Brokerage Activities?
Just as there should be an agreement between the Broker and the licensee, there should also be an agreement between licensees and their unlicensed assistants. The following is a list of those tasks that the unlicensed assistant may and my not perform.
List of task an Unlicensed Assistant IS permitted to perform: 1. Answer calls and take messages; 2. Make appointments for the Licensee; 3. Coordinate appointments for inspections, etc.; 4. Prepare advertising pieces prepared and approved by the licensee; 5. Calculate commissions; 6. Type up contracts and other forms for approval by the licensee and broker; 7. Deliver documents, keys, etc.; 8. Make bank deposits; or 9. Install and remove signs.
An Unlicensed assistant may NOT do the following: 1. Prospect for clients; 2. Answers inquiries related to real estate issues, such as title or financing; 3. Provide information on a listing; except pricing and specific items as
instructed by the licensee; 4. Develop advertising materials; 5. Show property; 6. Hold an open house; 7. Discuss or explain contract issues; 8. Collect monies to be held in a trust account; 9. Cannot be compensated based on the level of real estate activity; 10. Negotiate with clients or customers or licensees; 11. Give advice to clients or customers; or 12. Act in a manner that leads others to believe he/she is licensed.
Before hiring an assistant review the duties expected and be sure everyone has a clear understanding of the job description.
This list has been adapted from the Georgia Association of Realtors'TM form C07, titled "Agreement Between Broker and Unlicensed Assistant," Copyright 1/1/2007.
The registration form for the Annual School Meeting of the Georgia Real Estate Commission is now available on the commission's website.
http://www.grec.state.ga.us/PDFS/About/newsarticles/school_meeting_07.pdf November 29 & 30, 2007
at the Georgia Center for Continuing Education in Athens, Georgia.
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Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605
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"Why can't I accept a selling bonus from the builder?"

Volume 3, Issue 10 October 2007

Some sellers like to offer sales bonuses. An owner whose property has been on the market for a long period of time or builders with unusually large inventories may choose to offer a bonus in hopes of increasing sales activity. Offering such bonuses does not violate the license law.
However, a licensee who accepts a bonus of any kind directly from a seller may violate the license law. The license law provides that a licensee may accept compensation for real estate brokerage services only from his broker unless he has the consent of his broker. [ See O.C.G.A. Section 43-40-25 (a)(8) .] Thus, a licensee who accepts a selling bonus without his broker's consent violates the license law.
Does the form of the bonus (for example, check, cash, trip, or merchandise) make any difference in how the law applies to bonuses? No, sellers and licensees must comply with any legal requirements regardless of the form of the bonus.
Since brokers are responsible for the actions of their affiliated licensees, the law allows brokers to control compensation arrangements. While a broker may pay all of a selling bonus to the affiliated licensee who earns it, the broker and the affiliate must agree on that arrangement in advance.
This article and many other informative articles can be found in the "How To Articles," section of the GREC website.

Focus on Terminology: "Operating Expenses"
Actual expenses incurred to manage a property and maintain it in a habitable, rentable or usable condition can be quite extensive. Operating expenses vary by type of property, but include such items as utilities, repairs, taxes, insurance, lighting, parking lot maintenance, security, management, etc.
Operating Expenses do not typically include mortgage payments, interest and principal payments on mortgages or depreciation.
The definition of Operating Expenses is often an issue needing clarification in full service office leases, as it can be such a large budget item. Operating expenses are sometimes referred to as OE. When a lease rate is quoted, it is important to clearly define how operating expenses are treated in the lease so the tenant understands all of his/her expense obligations.

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