GREC REnews, Vol. 7, Issue 6 (June 2011)

June 2011 Volume 7 Issue 6

GREC RENews MMoonntthllyyNNeewwslseltetetrteorf
of thethGe eGoerogrgiaiaRReeaal EstEastetatCeoCmommmisisssioion

Calendar

GREC Brokerage Course
HU

& Trust Accounts Class

Dates: UH

July 13 & 14, 2011 HU Cobb Association

www.cobbrealtor.com

HU

U

August 10 & 11, 2011

GAMLS

http://www.gamls.com

August 30 & 31, 2011

NE Atlanta Metro Assoc

http://www.namar.org

Common Violations
HU
Class Dates: U
July 27, 2011 @ Macon, GA
July 28, 2011 @ Columbus, GA
July 29, 2011 @ LaGrange, GA
August 8, 2011 @ Brunswick, GA

Georgia Instructor Training

Workshop Dates:

July 14 & 15, 2011

GIT Macon

www.grec-git.com/

HU

U

Click here to
HU
see GREC Disciplinary Sanctions
U

GREC Online

This Issue: Just Released Online CE Course P.1
Optimism, Realism, Pessimism P. 2 Focus on Terminology P. 2

Just Released The Third in the Staying Out of Trouble Series of Free
Online Courses from GREC

The third online course in the including sample forms for Trust

"staying out of trouble series." is titled Accounts.

"Avoiding Trust Account Trouble," It

The following is a list of the major

is written for all licensees: brokers, topic areas included in the course

salespersons, associate brokers, or "Avoiding Trust Account Trouble:"

CAM. The new course was just 1. Trust Account Requirements

released and is now available on the 2. Proper Handling of Deposits

Georgia Real Estate Commission 3. Disbursements of trust funds

School web site at www.jmre.com/grec. 4. Property Management basics

You must enroll to take the course, but 5. Licensees Acting as Principals and

there is no cost and no need for credit

handling trust funds

card information. Upon completion of 6. Accounting for Trust Accounts;

the course, you will receive 3 hours of

including sample accounting entries

Continuing Education Credit. Just click

and explanations

"Register Now" on the right side of the 7. Trust Account Management;

GREC School web site.

including key strategies for good

All 3 courses include examples

Trust Account management.

of actual cases reviewed by the Commission describing the actions of the licensee(s), the reasons a violation occurred and the disciplinary actions taken. In addition, there are multiple links and resources,

Click Here to Enroll

The other 2 courses are also

still

available

online:

"Practicing Real Estate &

Staying Out of Trouble and

"Being a Broker and Staying

Out of Trouble."

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

GREC Free Online CE Courses

Compatible for MAC users through the Firefox

TM TMTM

browser. Windows users can use either

Internet Explorer or Firefox as the browser.

Above graphics are Registered Trademarks of Mozilla Foundation, Apple Inc., and Microsoft

Corporation and are links to their web sites.

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H
Enroll Now
Free GREC CE
Courses Online
1.
"Practicing Real Estate & Staying Out of Trouble"
2.
"Being a Broker & Staying Out of
Trouble"
3.
"Avoiding Trust Account Trouble"
Click Here
To sign up to
HU
receive the GREC RENewsletter Click Here
U

GREC RENews June 2011, Volume 7 Issue 6

Optimism, Realism, Pessimism and the Market

Whether it is negative news stories, an upswing in the market or discouraging financing headlines, the real estate market is clearly a central part of the economy. Real estate licensees have to filter those reports to determine the condition of their particular market and specialty. One of the services a real estate licensee can provide a client, or a customer, is information. And sometimes that information can make the difference between a successful transaction and one that never comes close to closing. However, if the information is provided to a customer, the licensee must be careful not to add his/her opinion or advice to avoid creating a possible dual agency situation.
The unfair trade practices of the

License Laws, Rules and Regulations in Chapter 43-40-25 clearly states that it is a violation to make any substantial misrepresentations or to make claims that guarantee future profits which may result from the resale of real estate.
If a licensee substantially exaggerates the facts to a point that an individual makes a decision based upon those inflated statements, it could result in a violation.
Quite often the local situation is more positive than the national view. Providing information that is not politically oriented, but factual in nature and relative to the needs of the client or customer can be a service that distinguishes the professional real estate licensee from other licensees.

Quick Question: Can the Commission call my broker and get my
commission check corrected (or paid)? And can I file a complaint with the Commission against another company in order to collect my share of a commission? No. and No. The license law does not permit the Commission to intervene in disputes between licensees about fees. Payment of commissions between licensees is a matter of contract law, not license law. Such issues are generally controlled by company policies and employment or independent contractor agreements between the licensees. If disputes arise and cannot be resolved by direct negotiations, licensees must resort to arbitration or the courts for settlement. See Rule 520-1-.07 (5).

Comments or
HU
Suggestions Click Here
U
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916

Focus on Terminology: "Commission"
BRRETA describes a brokerage engagement as a written agreement between the parties that states how the broker may receive a valuable consideration for producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property or performing other brokerage services. Many professionals in other industries are paid "on commission," and this typically means the fee is a percentage of some sales number or value. However, the term commission takes on a broader meaning in real estate brokerage activities as it can be paid in many forms and methods and it must be negotiated in compliance with anti-trust laws. A real estate licensee must be actively licensed while conducting all brokerage activities to be entitled to receive a commission. Whether a Broker receives a percentage of the sales price, a set fee, a promissory note, or a car, in return for brokerage services, it must be paid by the Broker holding the licensee's license (unless the licensee's Broker agrees in writing otherwise). A commission cannot be paid to an unlicensed person. A referral payment between licensees is a commission. However, a licensee cannot pay a referral fee to an unlicensed person and to do so is a violation of the License Laws, Rules, and Regulations.
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