August 2011 Volume 7 Issue 8 GREC RENews MMoonntthllyyNNeewwslseltetetrteorf of thethGe eGoerogrgiaiaRReeaal EstEastetatCeoCmommmisisssioion Calendar GREC Brokerage Course & Trust Accounts Class Dates: August 30 & 31, 2011 NE Atlanta Metro Assoc http://www.namar.org September 28 &29, 2011 400 North Board www.400northboard ofrealtors.org October 5 & 6, 2011 GAMLS http://www.gamls.com Common Violations Class Dates: September 12, 2011 Georgia Institute Atlanta, GA September 27, 2011 GAMLS Tucker, GA October 4, 2011 Lake Country Board Greensboro, GA Click here to see GREC Disciplinary Sanctions Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916 Clipart from MicrosoftTM Office This Issue: Brokerage Engagement Files P.1 Student Loan Defaults P. 2 Resource Reminder P. 2 Focus on Terminology P. 2 RReeaassoonnss ttoo CChheecckk tthhoossee OOlldd FFiilleess...... Brokerage Engagements and Expiration Dates Brokerage Engagements include the following: (to Sell or Lease) Exclusive Right To Sell Listing Agreement Open listing Exclusive Agency Agreement Buyer Agency Agreement Property Management Agreement Every Brokerage Engagement must have a definite date of expiration. What about those forms that state the agreement automatically renews for x months? There must still be a definite ending date; it cannot renew into infinity. This situation can be clarified by stating a maximum length of time that includes all renewals. In a slow market, it is not uncommon to see listings continue for more than a year. Since most listing forms give permission for the brokerage company to market the property, it is necessary for the Broker and his/her licensees to either update the expired listing agreement or sign a new listing agreement to continue to have written permission to advertise the property. This includes any property listed on the internet. The license law requires that any sign or advertising of any media be removed within 10 days after expiration of the listing. Most online listing services periodically send an email reminder to the Broker or listing licensee to update posted listings. This reminder can help the licensee create a good system to check the actual listing agreement to make sure the listing dates are active and all advertisements for the property are in compliance with advertising License Laws, Rules and Regulations. DDeeffaauulltt oonn aa SSttuuddeenntt LLooaann ccaann AAffffeecctt RReeaall EEssttaattee LLiicceennssee Currently, 35 real estate licensees have their license suspended due to a default in repaying a student loan. These licensees are unable to conduct any type of brokerage activity while the license is suspended. An agency titled the Georgia Higher Education Assistance Corporation (GHEAC) (Code Section 20-3-263) administers a program of guaranteed education loans to eligible students and parents. If a student loan is not being repaid and is in default, continued on page 2... Page1 Enroll Now Free GREC CE Courses Online 1. "Avoiding Trust Account Trouble" 2. "Being a Broker & Staying Out of Trouble" 3. "Practicing Real Estate & Staying Out of Trouble" Click Here To sign up to receive the GREC RENewsletter Click Here Comments or Suggestions Click Here Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916 GREC RENews August 2011, Volume 7 Issue 8 SSttuuddeenntt LLooaann DDeeffaauullttss...... ...continued from page 1 the agency sends a letter to the Georgia Real Estate Commission requesting the Commission to suspend the real estate license of the person named in the letter. The Commission is legally obligated to comply with this request. The Commission issues a Final Order suspending the license and this Final Order becomes a permanent Sanction on the individual's license record. Upon receipt of written notice by the GHEAC agency that the debt is no longer in default, the Georgia Real Estate Commission ends the suspension and places the license on inactive status. The licensee can then activate the license with a broker using the Change Application. In summation, GREC is required by law to suspend a real estate license for default of a student loan and in all of these cases, the licensee cannot practice real estate until the debt is properly settled. O.C.G.A. 20-3-295. The letter from GHEAC listing the names of individuals in default of a student loan is also provided to every other State licensing authority that issues and regulates licenses that allow a person to engage in a profession, business or occupation. Resource Reminder The Commission provides a Firm Status Report on the GREC web site. It is a quick resource for a wealth of information including the following: Firm Status Report Firm license (number, firm name as registered, active status, renewal date, number of licensees affiliated with the firm and licensees needing to renew) License information of the firm's Broker or Qualifying Broker Trust Account Information for the firm and its affiliates Licensees needing postlicense education and deadlines Names of all licensees of the firm who must renew within the current quarter Renewal dates and continuing education hours needed by each licensee affiliated with the firm To make the most of the Firms Status Report, review the article at: http://www.grec.state.ga.us/articles/statusreport.html Focus on Terminology: "Bill of Sale" Just as a deed is used to transfer ownership of real property, a Bill of Sale is used to transfer ownership of personal property. Personal property includes furniture, fixtures, appliances, merchandise, and other items such as motor vehicles. A real estate licensee may have to deal with personal property in the sale of a residence or a business or any other real estate transaction. For instance, the sale of an ongoing or closed business could involve the sale of restaurant equipment, retail inventory, or a refrigerator. Often the transfer of these items is addressed in the purchase and sale agreement and handled by the closing attorney(s). However the real estate licensee must often negotiate the sale of the personal property items in addition to the sale of the real estate. In a transaction involving personal property, there should be a clear understanding, detailed by a list, of the personal property to be included in the sale. An attorney should draft any bill of sale document. Page 2