GREC REnews, Vol. 3, Issue 9 (Sept. 2007)

Georgia Real Estate Commission

GREC RENEWS

Volume 3, Issue 9 September 2007

2007 Dates to Note
September 19, 2007 Trust Account Seminar Athens Area Association (706) 353-1126
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
GREC Disciplinary Sanctions

INSIDE THIS ISSUE:

Changes to License Law 1

Documentation

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

Changes to the Rules and Regulations
of the Georgia Real Estate Commission
Effective September 2007
In May of 2007 Governor Perdue signed into law Senate Bill 114. The changes brought by SB 114 became effective on July 1, 2007. In light of those changes to the License Law, the Commission modified several provisions of its Rules so that they are consistent with new provisions of the law. Those changes include:
1. Revising the requirements to be met by licensees whose licenses have lapsed for failure to meet education requirements. Licensees are no longer required to re-take the state examination in order to reinstate. Chapter 520-1-.04
2. Revising the requirements to be met by licensees whose licenses have lapsed for failure to pay renewal fees. Previously such licensees could reinstate by paying certain fees and without re-taking the state examination if they sought to reinstate within 10 years of the lapsing of the licensee. That 10 year period has been reduced to 5 years. Chapter 520-1-.05 (4)
3. Defining an "instructional hour" in approved courses. The proposed Rules define an "Instructional hour" as a period of time of at least fifty minutes of instruction or other learning activity. . Chapter 520-1-.02 (1.1)
4. Establishing new conditions under which a licensee may present an offer to the client of another licensee. Chapter 520-1-.10 (1) "In a transaction in which the offeror is not a client or customer of the licensee, the licensee receiving an offer must provide a copy of the offer to the licensee working with or representing the offeree. However, a licensee who obtains an offer may negotiate a sale, exchange, or lease directly with an owner, a lessor, a purchaser, or a tenant if the licensee who obtains the offer knows that such offeree has a written outstanding agreement in connection with such property that expressly provides the other licensee will not provide negotiation services to the offeree."
5. Requiring that candidates for a broker's or an associate broker's license earn three years of active licensure experience within the five years immediately preceding making application for the new license. Chapter 520-1-.04 (2) Note this experience requirement is still 3 years but must now have been from the preceding 5 years.
6. Revising the manner in which disabled veterans may qualify for veteran's preference on qualifying examinations. Chapter 520-1-.04 (3)
To review these changes in more depth, print the entire revisions from the link on the commissions website at www.grec.state.ga.us. Remember it is the responsibility of the licensee to be familiar with any changes in the license law.
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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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Short List of Documents That Should Be Maintained

Volume 3, Issue 9 September 2007

Although the following list is not all inclusive, these documents are the minimum that must be kept for each real estate transaction, in hard copy or some form of retrievable digital format for three years. (Rules 520-1-.10 (3)) 1. Escrow Accounts Records 2. Purchase Contract and all attachments 3. Listing Agreement 4. Signed Agency Disclosure Forms 5. Comparable Sales Reports Prepared 6. Marketing materials 7. Lead Based Paint Disclosure Form 8. Inspection Reports 9. Settlement Statement, Closing Documents 10. Correspondence and record of phone calls

This list was adapted from REALTOR Magazine Online's Risk Management Tool at www.REALTOR.org/realtormag

Also refer to the June 07 issue of GREC RENEWS and the GREC Article maintaining files on transactions

May I pay a fee or give a gift to a person who refers a prospect to me?
No, unless that person is a real estate licensee. Referral of prospects is the act of a real estate licensee, and a licensee may pay compensation to a person who performs the acts of a licensee only if such person is licensed. License Law 43-40-25 (a) 17 describes the violation:
"(17) Paying a commission or compensation to any person for performing the services of a real estate licensee who has not first secured the appropriate license under this chapter or is not cooperating as a nonresident who is licensed in such nonresident's state or foreign country of residence, provided that nothing contained in this subsection or any other provision of this Code section shall be construed so as to prohibit the payment of earned commissions"

GREC

Focus on Terminology: "ARELLO"
ARELLO stands for the Association of Real Estate License Law Officials and " was founded 75 years ago to facilitate the exchange of information and cooperation among regulators and policy makers in the area of real property." (Quoted form their website www.arello.org)
ARELLO offers assistance in the approval of distance education courses in many states, including the review of teaching methodology for computer based and online courses. In addition, ARELLO is a resource for regulators and state agencies to share concerns and trends in the real estate brokerage industry.
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