GREC REnews, Vol. 3, Issue 6 (June 2007)

Georgia Real Estate Commission

GREC RENEWS

Volume 3, Issue 6 June 2007

2007 Dates to Note
June 19, 2007 Trust Account Workshop Middle Georgia Association (478) 471-7336
July 12, 2007 Trust Account Workshop Atlanta Commercial Board (404) 250-0051
August 2-3, 2007 Georgia Instructor Training Workshop (GIT) Atlanta, GA
GREC Disciplinary Sanctions

INSIDE THIS ISSUE:

File Compliance

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Storing Data

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

Compliance Files for the Real
Estate Office
A crucial part of the many responsibilities of a Broker is to create and maintain documentation and files in compliance with Georgia Real Estate Commission License Laws. Checklists can be developed from resources on the GREC website. The following is a list of articles, checklists and resources accessible from www.grec.state.ga.us. Just click on each underlined item as a web link to the specific topic. 1. The GREC Article Maintaining Files on Transactions actually lists 25 items to
be addressed in assuring file compliance. 2. The GREC Article Trust Accounting 101 spells out how to keep Trust Account
files in compliance. 3. There is a GREC Article Trust Account Primer for Property Managers 4. The entire License Laws, Rules and Regulations are easily accessible. File
maintenance in particular is referenced in Substantive Regulation 520-1-.08 5. The broker is responsible for maintaining the files when a salesperson or
associate broker moves his/her license to another broker. Substantive Regulation 520-1-.08 6. Written agreements detailing terms of compensation with each salesperson or associate broker must be maintained by the broker. 520-1.07 Management Responsibilities of Real Estate Firms 7. BRRETA references issues regarding the Confidentiality of Information Excerpt from 10-6A-9(b) BRRETA follows: "(2)To keep confidential all information received during the course of the engagement which was made confidential by request or instructions from the client, unless:
(A) The client permits the disclosure by subsequent word or conduct; (B) Such disclosure is required by law; or (C) The information becomes public from a source other than the broker."
The broker of the firm can use these resources to create and customize checklists to assure file compliance.
Make It Legible!
Maintaining organized files is a necessity, but the documentation also must be legible. When negotiations for a purchase and sale consist of several counter-offers in reaching an agreement, the actual sales contract may literally be a mess; or if negotiations consist of faxing offers and counteroffers, the final result may be illegible.
The final agreement may need to be re-typed and signed by all the parties. This can be done after the original is signed and while the parties fulfill their contractual obligations. The re-typed document should be an exact duplication of the agreed upon language, but in a cleaned-up version without scratch-outs, redlines, repeated initials and confusing marks on the document. The original marked-up version should be attached to the cleaned up version and maintained in the broker's files. A clean document can prevent later misunderstandings and provide attorneys and lenders with a legible document.
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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

Types of Media to Store Data Files

Volume 3, Issue 6 June 2007

Contracts, Listings, closing statements, notifications...the list continues.
These types of documents can be maintained in a multitude of formats.
"Files" can include many types of media, some of which may not even be
technologically available yet. Documentation or files can be maintained in any
of the following formats:
Digital - Hard Drive - Flash Drive/Memory Stick - CD/DVD Rom - Tape - Disks or Online Storage
Paper

Once the paper record is converted to an electronic format and the information is verified, it is not necessary to maintain the original paper documentation. However it is important to establish and implement policies for the backing up and for the safekeeping of those records, especially in regards to identity protection of the parties named in those records.
The key to data storage is that the information must be easily accessible and retrievable so that it can be produced on demand, in particular for an audit by the Georgia Real Estate Commission. The importance of the accessibility of this data is not merely to satisfy commission requirements but to provide information that may be needed at a future time, particularly in the case of a dispute, tax purposes or other situations.
The license law requires that the documentation be maintained for a period of three years from the consummation of transaction date. Rule 520-1.10(3)

Focus on Terminology: "CFR"

RENews Newsletter Comments or Suggestions Click Here
GREC

The Code of Federal Regulations (CFR) is a federal publication of the

permanent rules published by federal agencies and the executive departments of

the Federal Government. These regulations are broken into 50 titles and further

broken down by subject. The CFR is updated each year and is issued quarterly.

The website for the CFR can be helpful if you needed to search for a specific

federal law. http://origin.www.gpoaccess.gov/cfr/index.html

There are literally new proposals and changes to rules each day. Every

weekday the National Archives and Records Administration (NARA) issues an

official

publication

called

the

Federal

Register

http://origin.www.gpoaccess.gov/fr/. The Federal Register includes recent as

well as archived documentation of the following:

Proposed Rules Published Rules

CFR

Notices by Federal Agencies and Organizations

Notices by organizations

Executive Orders

Presidential Documents

You can access the official Federal Register to search for certain proposed rules

and published rules: http://origin.www.gpoaccess.gov/fr/advanced.html

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