GREC REnews, Vol. 3, Issue 11 (Nov. 2007)

Georgia Real Estate Commission
GREC RENEWS

Volume 3, Issue 11 November 2007

2007 Dates to Note
November 27, 2007 Trust Account Seminar NE Atlanta Metro Association (770) 495-7300
November 29-30, 2007 GREC Annual Schools Meeting Athens, GA
December 13-14, 2007 Georgia Instructor Training (GIT) Dekalb Board of Realtors
February 22, 2008 Trust Account Workshop Cobb Board (770)-422-3900
GREC Disciplinary Sanctions
INSIDE THIS ISSUE: Upon Leaving the Firm 1
Disclosing Commission 2
Focus on Terminology:
"CERCLA"
Georgia Real Estate Commission Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605

Upon Leaving The Firm....
A licensee may decide to leave the brokerage firm for a variety of reasons such as a desire to pursue a different specialty in real estate or to branch out and form an independent brokerage firm. Whether the cause is a disagreement with the broker or merely relocation, it is important to remember upon leaving the firm, that the licensee worked under the brokerin-charge and all listings still belong to the Broker.
Upon deciding to affiliate with another brokerage firm, the licensee should closely read the original Independent Contractor Agreement between the licensee and the Broker. There is no "standard" or "approved" independent contractor agreement so the specific terms of the disaffiliation may vary. However, the license law provides guidelines for some basic rules to remember.
The departing licensee may not do the following: Take any files on pending transactions Copy or take any sales materials Encourage any client of the Broker to move their listing from the Broker Disclose confidential information concerning pending transactions Disclose other information identified by the broker or clients as being
confidential
The licensee should do the following: Review the Independent Contractor Agreement that exists with the Broker
o Review and determine the notice requirements for termination of the agreement
Prepare a list of all pending transactions and a statement of expected payments
Pay the Broker any unpaid fees or expenses Return all keys, files, passwords or other sensitive information Consider the possible loss of listings or clients who have been associated
with the Broker's firm Try to maintain a professional relationship with the Broker and other
members of the firm
Continued on page 2...

What Do YOU think?
Does the Listing Broker have any obligation to disclose to the selling agent the commission amount in the listing agreement?

A. Yes B. No C. Depends D. See the Next Page...
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continued on page 2...

Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605
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Happy Holidays from the Georgia Real
Estate Commission!

Upon Leaving the Firm....

Volume 3, Issue 11 November 2007

... continued from page 1
Although there are more than 100,000 active real estate licensees in Georgia, it is still a small community when it comes to doing business with other licensees. Remember that real estate brokerage is a relationship business, both with the clients and with other licensees. Communication, professionalism, advance planning and a clear Independent Contractor agreement can all make the transition between firms and careers a smooth process.

Does the Listing Broker have any obligation to disclose to the selling agent the commission amount in the listing agreement?
There are certain disclosures regarding compensation that must be made by a real estate licensee:
Who you represent Who is paying you
Often the amount of the commission in not stated in the purchase and sale agreement or the lease agreement itself. So there must be a separate commission agreement as referenced in the transaction document.
The listing agent does not usually show the listing agreement to the selling or buyer agent, nor does the buyer agent show his/her agency agreement to the listing agent. The license law does not require either licensee to present the actual agency agreement. It is an agreement between the broker and his/her client.
The amount of commission to be distributed to each agent is usually a function of the agreement between the two brokers/licensees and should be clearly defined in their co-op agreement. Most transactions involve at least 2 agents so it is commonplace to have a written understanding of the commission split, bonuses, procurement fees, etc. that is signed by the licensees and sometimes the landlord or seller. Most companies have forms on file for this purpose.

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GREC

Focus on Terminology: "CERCLA"
CERCLA is referenced in many purchase and sale agreements and lease documents for real estate transactions. Usually the parties involved are warranting that they have complied or will comply with CERCLA as it relates to contamination issues. CERCLA stands for the Comprehensive Environmental Response, Compensation, and Liability Act.
CERCLA can be defined as: "Federal law, known as Superfund, passed in 1980 and reauthorized by the Superfund Amendments and Reauthorization Act (SARA) in 1986. The law imposes strict joint and several liability for cleaning up environmentally contaminated land. Potentially responsible parties include any current or previous owner, generator, transporter, disposer, or party who treated hazardous waste at the site. Strict liability means that each and every party is liable for the full cost of remediation, even parties who were not contaminators." (Source:
Dictionary of Business Terms. Copyright 2000 by Barron's Educational Series, Inc. All rights reserved.
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