GREC REnews, Vol. 5, Issue 12 (Dec. 2009)

GREC
Volume 5, Issue 12
2010 Dates to Note
January 13, 2010 GREC Brokerage Course West Metro Board
January 14, 2010 GREC Trust Account Class West Metro Board
February 3, 2010 GREC Brokerage Course Albany Board
February 4, 2010 GREC Trust Account Class Albany Board
Click here to see the latest GREC
Disciplinary Sanctions
Focus on Terminology:
"Mill"
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

Year End 2009

Times to Remember

There are numerous deadlines and timeframes to monitor when dealing with real estate transactions and managing a real estate license is no exception. Numerous critical time periods must be adhered to in order to comply with the Georgia Real Estate License Law, Rules and Regulations. Many of these are only necessary on occasion as circumstances change and some of them may not be required at all if the circumstances never occur.
The following is a list of important time periods that is required by the License Law, Rules and Regulations. A link to the specific wording in the license law or rules and regulations follows each statement for further reference and clarification:

Within 10 days after expiration of the listing, the licensee must remove any advertising for sale rent, lease or exchange of real estate. This includes signage or internet postings or any media. 520-1-.09 (5) and 43-40-25(a)(11)
10 Days to notify the Commission of the conviction for any administration, civil or criminal action (10 days from the date of conviction.) 520-1-05 (5)
Within 1 month of opening each account Brokers must notify the Commission of the name of the bank, accounts name and number, where each Trust or Escrow account is maintained 520-1-.08 (1)(a)
30 Days for the licensee to notify the Commission in writing of a change of address. This also applies to inactive licensees. 43-40-12(m)(1) and 520-1-05
30 Days for the licensee to notify the Commission in writing of the opening or closing of a designated trust account 43-40-12 (m)(1)
30 Days for the licensee to notify the Commission in writing of transferring to a new company\of leaving a firm to go on inactive status 43-40-12(m)(1)
30 Days for the Broker to notify the Commission in writing of a change the address of the broker's place of business 43-40-19(a)
30 Days for a licensee to respond to a written inquiry from the Commission requesting further information 43-40-12(m)(3)

30 days to deliver all necessary transactions and funds documents to a property owner that is terminating a management contract (unless a different time is stated in the contract) 43-40-25 (33.2)

60 days to replace a new qualifying broker if he/she dies, resigns, or is discharged or cease brokerage activity 520-1-.07 (3)

3 years required for the maintenance of accurate copies of sales contracts, brokerage engagements, closing statements, offers, accounting records, leases, or other documents related to real estate transactions 520-1-.10 (4) and 43-40-25 (27)

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Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916
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GREC

Volume 5, Issue 12
Other Critical Time Periods Year End 2009
In addition to the special circumstances listed on page 1, a real estate licensee must regularly maintain his/her license according to specific time requirements.
4 years to obtain all required Continuing Education credit for license renewal. Individual licenses expire on the last date of the birth month of the licensee of the 4-year renewal period. 520-1-.05 o Inactive licensees must also pay renewal fees or the license shall lapse. 520-1-.05
4 years to renew Firm Licenses. Firm licenses expire 520-1-.05 on the last date of the birth month of the original licensure of the firm.
3 years licensure to become a Broker. 43-40-8 (c) o 3 of the 5 years immediately preceding the filing of an application to become a broker must have been maintained on active status as a licensee 43-40-8 (c) o A licensee can sit for the broker exam after 2 years of licensure.
A newly licensed Salesperson has 1 year to complete a 25 Hour Post License course. 43-40-8 and 520-1-.05
Review the actual Rules and Regulations on the Commission web site to determine further conditions and possible extensions to these time periods.
o Index to Rules and Regulations
o License Law
o Title 10 Chapter 6A Brokerage Relationships in Real Estate Transactions Act

Focus on Terminology:

"Mill"

A mill is one-tenth of one cent.(or 1 thousandth of a dollar). A mill is the

measurement used to help establish property tax rates. If the tax rate is 1 mill on

the dollar, it is equal to 1/10 of 1% of the assessed value of the property. Most tax

bills actually have the actual rate stated along with the calculation.

Most property is taxed/assessed at some percentage of the Fair Market

Value (FMV). In Georgia it is 40%. As an example, if a property has an appraised

FMV value with the county of $200,000, the Assessed value is 40% x $200,000 or

$80,000. The millage rate is applied to the $80,000.

As property values have declined and properties are appraised,

governmental entities receive less income from taxes to pay for on-going

government services. In addition, some property owners appeal the assessed

value of their properties due to the declining values in the market. This further

impacts budgetary problems. As a result of strained finances, several county and

municipal governments have increased their millage rates for various services to

make up for the decreased values.

Example:

Fair Market Value (FMV)

$435,490.00

40% Assessed Value

$174,196.00

Taxes @ tax rate of .00025 for State

$ 43.55

Taxes @ tax rate of .00682 for County General $ 1,188.02

Taxes @ tax rate of .01890 for School

$ 3,292.30

Taxes @ tax rate of .00256 for Fire

$ 445.94

Total Taxes Due

$ 4,969.81

Each county has procedures and specific deadlines to file for an appeal to property

values. 2