GREC REnews, Vol. 4, Issue 8 (Aug. 2008)

GREC
Volume 4, Issue 8
2008 Dates to Note August 21, 2008
Georgia Broker Course Valdosta Board August 22, 2008 Trust Account Class Valdosta Board September 23, 2008 GREC Brokerage Course Empire Board of Realists September 24, 2008 GREC Trust Account Empire Board of Realists October 23, 2008 GREC Brokerage Course Northeast Georgia Board October 24, 2008 GREC Trust Account Class Northeast Georgia Board
GREC Disciplinary Sanctions
INSIDE THIS ISSUE:
Out of State Brokerage 1 Turning Down a Listing 2
Focus on Terminology:
"Net Listing"
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916

Georgia Real Estate Commission

GREC RENEWS

August 2008

How Can I Do Real Estate Brokerage in Another State?

It seems there are more transactions that involve more than a simple

purchase and sale of a local property. Licensees commonly do business with

buyers located in different states or even countries. But a licensee may have

the opportunity to participate in a transaction on a property located in a state

other than Georgia.

In order to participate in a transaction on a property outside Georgia, the

Georgia licensee either 1) must be licensed in that state (and their broker must

also be licensed there, if the licensee is a salesperson) 2) co-op with a licensee

of that state. If the Georgia licensee is not licensed in that other state, then the

first step should be to contact that state's licensing authority. A list of state real

estate licensing authorities can be accessed from the GREC commission

website. Some states, such as

Alabama, require a written Co-Broker

Agreement to be filed with their Real

Estate Commission. Other states do

not require any notification. The

agent of the other state should be

knowledgeable about interstate co-

ops. But the Georgia licensee is

responsible for meeting the laws of

the other state, so it is imperative

For further details regarding

that the Georgia licensee research doing business with licensees of

the requirements him/herself to be other states, see License Law 43-

sure he/she is in compliance.

40-9 and Rule 520-1-.07 (7)

Brokerage Practice in the Field.......Reminders
The licensee must receive written permission from the property owner to place any signage or advertisement or any form of media concerning the property.
A direct line or cell phone number of the licensee is not sufficient. The phone number of the Brokerage firm as licensed by GREC must
also be displayed on any form of advertisement. The name and phone number of the licensee cannot be in a size larger than
the size of the print of the Brokerage firm name and firm main phone number. Signs or advertising for a listing must be removed 10 days after expiration of the listing. You can review the license law from the GREC website.
1

Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916
Visit the GREC website to sign up to receive the GREC RENews Click Here

Turning Down a Listing

Volume 4, Issue 8 August 2008

Although most brokerage companies make the majority of their income from the sale of listings, sometimes there are ethical and professional reasons, legal or otherwise why a licensee may decide to decline a listing.
However, if the licensee refuses, he/she must have a legitimate and legal reason. The following lists specific situations where the licensee may refuse to take a listing.
If a seller is grossly unrealistic about value of a property believing it is worth substantially more than the true market price.
The property is outside the scope of the firm's geographic area The property requires expertise that the licensee or its firm can not
provide The type of property or transaction is beyond the scope of those types
of properties or transactions handled by the firm The owner puts restrictions on to whom the property may be shown to
or bought by. The Fair Housing Law does not allow restrictions based on race, color, religion, sex, handicap, familial status, or national origin. The GREC Website has an in-depth article addressing fair housing concerns at http://www.greab.state.ga.us/articles/fairhousing.html .

When evaluating a listing opportunity, consider not only the legal issues, but try to determine if the seller is truly motivated and sincere in his/her interest to sell. Time aimed at developing a relationship with the seller is usually time well spent.

Comments or Suggestions
Click Here
GREC

Focus on Terminology: "Net Listing"

"I know net listings are illegal in Georgia and in most states, but how can I make the seller understand that so I can get a listing signed?"

The best thing to do when confronted with a net listing situation is to first

be sure that the seller is well informed as to the true value of his/her property. If

he/she is willing to give the licensee "everything over the top of his sales price,"

then more than likely the property will never sell for the minimum price in the first

place.

In order to get a signed listing and comply with the license laws, the listing

must have a definite selling price (or method of determining it such as per square

foot, per acre, etc.) and there must a definite commission amount or a definite

method of calculating the commission amount in the listing agreement. If a seller

says I want to "net" a certain price, counsel him/her on the other expenses

involved in closing a property, such as prorated taxes, legal fees, etc., and then

convert the price to a set number using the negotiated commission rate. Use the

following formula:

_____Price seller wants to "Net"

= Listing Price

1 minus the Negotiated commission percentage

Example: Seller want to net $400,000, commission negotiated is 8%. The listing price should be $434,783 if all other costs have been considered in the net amount to the seller. ($400,000/.92 = $434,783)

2