- Collection:
- Georgia Government Publications
- Serial:
- GREC RENews.
- Title:
- GREC REnews, Vol. 7, Issue 3 (Mar. 2011)
- Creator:
- Georgia. Real Estate Commission
- Contributor to Resource:
- Georgia. Real Estate Commission, issuing body.
- Publisher:
- Atlanta, Ga. : Georgia Real Estate Commission, 2011-03
- Date of Original:
- 2011-03
- Subject:
- Real property--Georgia
Real estate boards--Georgia - Location:
- United States, Georgia, 32.75042, -83.50018
- Medium:
- state government records
- Type:
- Text
- Format:
- application/pdf
- Description:
- Began with: Volume 1, issue 1 (January 2005).
Some issues combined.
Some numbering irregularities in 2016. Volume 12, issue 8 (August 2016) called issue 9 in error; correct numbering issue resumed with volume 12, issue 10 (October 2016).
Description based on: Volume 1, issue 1 (January 2005); title from PDF caption (GALILEO, viewed August 10, 2010).
Latest issue consulted: Volume 16, issue 6 (June 2020) (publisher's Web site, viewed July 15, 2020). - External Identifiers:
- Call Number GA S720.R4 P1 R4 7/3
- Metadata URL:
- https://dlg.galileo.usg.edu/id:dlg_ggpd_i-ga-bs720-pr4-bp1-br4-b7-s3-belec-p-btext
- Digital Object URL:
- https://dlg.galileo.usg.edu/do:dlg_ggpd_i-ga-bs720-pr4-bp1-br4-b7-s3-belec-p-btext
- Language:
- eng
- Holding Institution:
- University of Georgia. Map and Government Information Library
- Rights:
-
March 2011 Volume 7 Issue 3
GREC RENews MMoonntthllyyNNeewwslseltetetrteorf
of thethGe eGoerogrgiaiaRReeaal EstEastetatCeoCmommmisisssioion
Calendar
HUGREC Brokerage Course & Trust Accounts Class DatesUH: April 27 & 2, 2011
Camden County Board (912) 882-5806 http://www.cccbor.com May 18 & 19, 2011 Greater Rome Board (706) 295-1727 http://grbor.com/
HU
June 15 & 16, 2011 Athens Area Association (706) 353-1126 www.realtorsathens.com
Common Violations Class Dates:
April 20, 2011 Hall County Board
April 26, 2011 Valdosta Board
April 27, 2011 Tift Area Board
April 28, 2011 SE GA Board
Georgia Instructor Training Workshop Dates: May 5 & 6, 2011
GIT - Atlanta HUhttp://www.grec-git.com/U
HUClick here to see GREC Disciplinary SanctionsU
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916
Clipart from MicrosoftTMOffice
This Issue: Trust Accounts: Trials & Tribulations Focus on Terminology
P. 1-2 P. 2
Trust Accounts: Trials and Tribulations
The Basics: 1. A licensee must place all cash, checks, or other items of value (trust
monies) received by the licensee in a brokerage capacity into the custody of the Broker holding the licensee's license as soon after receipt as is practicably possible. 2. Unless otherwise agreed to in writing by the party or parties at interest, the Broker holding such trust deposits must deposit those funds in a FDIC checking account designated by the bank as a Trust Account and registered
with the Commission.
3. A Broker who disburses trust funds contrary to the terms of any contract creating the escrow, will be considered by the Commission to have
demonstrated incompetence to act as a real estate Broker in such manner as to safeguard the interest of the public. Rule 520-1-.08(3) (a)
The Georgia License Law, Rules, and Regulations are very clear. Trust funds must go in a properly designated Trust Account that is registered with the Commission. Sounds direct enough, yet the most common type of violations usually involve the handling of trust funds. What is it that seems to cause the confusion? Here are a f ew observations based upon the review of actual cases acted upon by the Commission: 1. Lack of supervision by Brokers 2. Inadequate Policies and Procedures
(P&P): poorly written policies and unclear procedures, or licensees are never given written P&P 3. Failing to understand that only the Broker is or can be responsible for the trust funds
4. Poor accounting practices on the part of the Broker
5. Not reconciling the Trust Account monthly
6. Poor documentation in tracking trust funds
7. Comingling personal funds in the Trust Account
8. Failing to notify the Commission of ANY changes in the Trust Account, such as a change in the bank name, or location.
It could be that agents don't know what to do with the money or they don't understand that there is no option to do anything other than give it to his/her Broker ASAP (or to the person designated by the Broker).
...continued on page 2
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