GREC REnews, Vol. 6, Issue 2 (Feb. 2010)

February 2010 Volume 6 Issue 2

GREC RENews Monthly Newsletter
of the Georgia Real Estate Commission

Calendar
GREC Brokerage Course & Trust Accounts Class Dates
March 24 & 25, 2010 www.cgbor.com
April 26 & 27, 2010 @ www.bartowrealtors.com
May 19 & 20, 2010 www.empireboard.com
Common Violations Class Dates:
February 26, 2010 @ Central Georgia Board
March 3, 2010 @ Carpet Capital Board
March 4, 2010 @ Barney Fletcher School
March 11, 2010 @ Hall County Board
March 23, 2010 @ MLS Institute
Georgia Instructor Training Workshop Dates: April 29-30, 2010
GIT Atlanta http://www.grec-git.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: Year in Review PP.1-2 Focus on Terminology P.2

2009 - Year in Review

There were several changes to the Rules and Regulations of the License Law in the year 2009. This article summarizes those changes. For more detailed information, click the links to read the entire rule.
As of April 1, 2009, the rule was
amended to specify the conditions in which a non-broker licensee who owns property may place trust funds in a separate trust account from that of his/her broker. However it is significant to note that the rule clearly states that if the licensee owns less than 100% of the title to the property, then the funds must be placed in a trust account of a broker licensed by GREC. 520-1-.08 Managing Trust Accounts and Trust Funds.
Two amendments were made in
2009 regarding the disclosure of commissions, gifts and referrals and specifically those involving property management activities. The last change became effective August 1, 2009. The rule lists where commissions, fees, rebates or other valuable consideration must be disclosed and it also describes situations where a management agreement

may set up pre-established terms for such fees. Review the September 2009 issue of the GREC RENews or read the newly adopted rule at 520-1-.10 Handling Real Estate Transactions. Effective November 25, 2009, the maximum amount of disciplinary fine issued through citation was increased by $400 per violation, with the exception of violations by schools. For example the fine for failure of a licensee to provide a copy of any document used in a real estate transaction to any individual signing such document is now $500.00. The Schedule of Violations and Penalties is listed in 520-1-.14 Citations. The fines for violations by schools was unchanged except for the section (gg) regarding the failure of a school to have students complete the required number of hours in any course or to complete all exercises and/or exams. The fine is now $400 (was $500) or $100 per student, whichever is greater, and is now subject to limits. 520-1-.14 Citations.
Often it is possible to amend existing rules and regulations to clarify
continued on page 2...
Page1

To sign up to receive the GREC RENewsletter Click Here
Enroll Now For Free GREC
Online CE Course
"Staying Out of Trouble" Click Here
Comments or Suggestions Click Here

GREC RENews February 2010, Volume 6 Issue 2

2009 - Year in Review...

...continued from page 1
and simplify issues rather than enact new legislation. Such is the case with the above amendments to the license law. The Commission posts a Notice of Intent on the web site for each proposed new law, rule or change to a rule. If the change is adopted it is posted in its final form. Licensees may make comments to the Commissioner regarding proposed changes. Check the GREC web site for 1) Proposed, 2) Pending, and 3) Adopted changes.
Proposed rule changes may be initiated because the Commission sees

Other actions by the Commission in the year 2009 created the availability of more real estate education to Georgia licensees. In an ongoing effort to assist licensees in avoiding violations of the license law, GREC continues to provide programs to inform and educate the licensee of common violations and how to avoid them. Actual cases seen by the GREC prove that often a mistake is made because of lack of knowledge, not by purposely intending to break a rule or intentionally not following a license law. Familiarity with the

an increasing number of Check the GREC website for: license law comes

cases that focus on one area, or seem to



Proposed Rule Changes

from studying and reviewing the law. In

become a trend, or a Pending Rule Changes change in other state laws may require Adopted Rule Changes

addition, the licensee needs to understand the practical nature of

changes in the license

implementing the laws

law. One example is the requirement

and rules. These courses are

that discussion of mortgage fraud be

focused on actual situations to help

included in every pre-license course.

the licensee learn how to apply the

Because of the large number of

rules and regulations.

mortgage fraud cases in Georgia, it

Direct links to the schedule of

was determined that licensees need

GREC in-class and online courses is

more education in this regard to protect

accessible on the Home Page of the

the public interest.

GREC web site.

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

Focus on Terminology: "TARP"
What is TARP? You repeatedly hear it mentioned in the news. You talk to a banker about a distress sale; you call a mortgage broker and they both mention TARP; the foreclosure facilitator mentions TARP. TARP stands for the "Troubled Asset Relief Program."
TARP is a $700 billion program enacted by the current White House Administration to provide financial relief programs to assist those struggling to pay their debts, specifically including residential mortgages. Depending on the situation, there may be opportunities for Loan Modification programs or foreclosures options. There is further information at www.makinghomeaffordable.gov. However, if a client or customer wants an explanation of TARP or wants to take advantage of TARP, it is best for the licensee to refer them to an attorney, mortgage or finance company, or other professional specializing in such matters.
Page 2