January 2010 Volume 6 Issue 1 GREC RENews Monthly Newsletter of the Georgia Real Estate Commission Calendar January 27, 2010 GREC Brokerage Course Dekalb Association January 28, 2010 GREC Trust Account Class Dekalb Association February 24, 2010 GREC Brokerage Course Rabun County Board 706-782-7751 February 25, 2010 GREC Trust Account Class Rabun County Board 706-782-7751 April 29-30, 2010 Georgia Instructor Training Workshop GIT Atlanta http://www.grecgit.com/ Click here to see the latest GREC Disciplinary Sanctions Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916 This Issue: Managing Your CE P.1 Repeat Buyers Tax Credit P.2 Focus on Terminology P.2 Managing Your Continuing Education Continuing Education is an For example, if a licensee completes a integral part of holding a real estate Broker Prelicense course, those hours license. It serves several purposes: meet the 24 hour requirement for that Meets license law requirements renewal period. In addition, if a Provides needed education on licensee takes a course in another updates in the law state to meet that state's CE Provides opportunities to train in new requirements, that course could count specialties, such as commercial real for Georgia credit in most cases. estate Although hours earned Provides opportunities to learn how to handle Licensees on over the 24 hour minimum cannot be carried over to market driven services, inactive status the next renewal period, a such as foreclosures and short sales should take CE as large number of licensees obtain well over the Provides a review of if they were minimum requirement of license law, rules and regulations actively licensed. 24 hours because they have classes they want to Provides opportunities for networking and career enrichment attend. If a licensee is on inactive status, Currently every licensee must he/she should continue to take CE obtain 6 hours of Continuing Education courses as if he/she were actively credit for each year of licensure and licensed. Otherwise, the licensee the basic license renewal period is must obtain all the CE hours that every 4 years. Therefore 24 hours of accumulated during the inactive time CE is required to maintain and renew a period before the licensee can license. activate the license. For example, a The license law does not currently licensee that stays inactive for 5 require that the licensee take any years would have to have 30 hours of specific courses or subjects as long as CE credit before being able to the course and school are both activate his/her license and practice authorized by the Georgia Real Estate real estate. A real estate license is an Commission to issue credit. earned privilege that must be There are several ways to obtain managed and maintained. continuing education credits. Page1 To sign up to receive the GREC RENewsletter Click Here Comments or Suggestions Click Here Enroll Now For Free GREC Online CE Course "Staying Out of Trouble" Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916 GREC RENews January 2010, Volume 6 Issue 1 The Home Buyer Tax Credit Can Apply to Repeat or Move-Up Home Buyers as Well as First-time Home Buyers There is still time to take advantage of the tax credit opportunities in residential real estate. In fact, there is also a credit that extends to existing home owners. Most of the focus has been on new/first-time homebuyers, but a repeat homebuyer can take advantage of a related tax credit as well. Because values are still favorable for buyers, it may be an opportunity for existing homeowners. "The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010)." The definition of a move-up or repeat home buyer is someone who has owned and resided in a home for at least 5 consecutive years of the 8 years prior. Other definitions, frequently asked questions and further information can be found at the following link: http://www.federalhousingtaxcredit.com/faq2.php . "The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify." The licensee should always advise the client or the customer to consult a tax advisor or legal professional concerning tax and legal issues. Every individual's tax situation is unique. However, by suggesting these opportunities and offering possible alternatives, the licensee is educating the buyer and providing valued-added service. These tax credit programs can provide a needed incentive to an existing homeowner as well as first time buyers. Source this article was quoted from http://www.federalhousingtaxcredit.com/faq1.php. Focus on Terminology: "Lapsed License" A license has "lapsed" when the licensee has not met the requirements for renewal: Requirements for renewing a license include: Paying the required renewal fee Paying any applicable reinstatement fees Successfully completing the required number of education credits If a license lapses, the licensee cannot practice real estate brokerage until he/she has met all the requirements and renews the license on active status. In order to renew, all continuing education hours must be obtained, even for those years that the license was on inactive status. Rule 520-1.05 (4) details the requirements to reinstate a lapsed license. A licensee can check his/her licensure status from the online services feature of the GREC web site. Page 2