March 2012 Volume 8 Issue 3 GGRREECCRREENNeewwss Monthly Newsletter of the Georgia Real Estate Commission 2012 Calendar HUGREC Brokerage Course & Trust Accounts Class DatesUH: March 28 & 29, 2012 GIRE learningrealestate.com April 25 & 26, 2012 Troup Board www.tcbor.com May 23 &24, 2012 Valdosta Board www.valdostaboardofrealt ors.com June 26 & 27, 2012 Dekalb Association www.dekalbrealtors.com HUCommon Violations Class DatesU: March 26, 2012 GAMLS Tucker 770-493-9000 March 28, 2012 Camden Board 912-882-5806 March 29, 2012 912-354-1513 Savannah Board April 3, 2012 Valdosta Board 229-242-2085 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: Working as an Employee P.1 Developments of Regional Impact (DRI) P.2 Focus on Terminology P.2 Working as a Full-time Employee in Real Estate If a licensee decides to work fulltime in real estate as an employee, the licensee must surrender his or her real estate license. This may be a hard concept to accept considering the amount of time and energy required to obtain and maintain a real estate license in Georgia. However, the law does not allow a licensee to go inactive and be employed by an unlicensed firm or principal for the purpose of performing real estate services for that firm or principal. There is an exception in the law that allows an unlicensed person who is a full-time employee of an unlicensed person to perform real estate brokerage activity on property owned by that unlicensed person's employer. Rule 520.1.05 (2)(h). Exceptions in the License Laws, Rules, and Regulations only apply to unlicensed individuals. O.C.G.A. 43-40-29 (c). You cannot be an inactive licensee and qualify for an unlicensed exception. An actual case involving a salesperson illustrates this situation clearly. The salesperson was actively affiliated with a brokerage firm but was not closing any transactions due to the economy, lack of effort or various circumstances. In order to pay the bills, he decided to search for full-time employment. Since real estate is what he knew, he focused his job search efforts in that industry. He was hired by an unlicensed real estate firm that develops subdivisions and became their on-site sales agent. At this point, he should have surrendered his real estate license. Instead, he informed his Broker he was placing his license on Inactive status. In only a short period of time, his employer was pleased with his sales production. However, a buyer was unhappy in a certain transaction and sent a formal complaint to the Georgia Real Estate Commission who conducted an investigation. The Commission concluded that the inactive licensee was performing brokerage activities in violation of the License Law. Inactive licensees may not perform brokerage activities except on real estate solely owned by the licensee. Rule 520.1.05 (2)(g)(h)(i). Consequently, the salesperson was issued a Citation that required him to pay a fine of $1,000.00 and complete an education course on the License Law. In addition, the salesperson had to make a decision to either, surrender his license and continue to work for his employer, or return to practicing real estate with his license on active status. If a license is surrendered, an individual must qualify as an original applicant to become licensed again. Page 1 H FREE Online CE Courses from GREC Enroll Now "Being a Broker & Staying Out of Trouble" "Practicing Real Estate & Staying Out of Trouble" "Avoiding Trust Account Trouble" Click Here GREC RENews March 2012, Volume 8 Issue 3 Renewal Reminder BEFORE you can renew your license (individual or firm), you must first submit some documents that were not required in the past. Click Here to obtain the affidavit form and instructions. Developments of Regional Impact In 2011 and 2012, there have been 46 submissions for significant new developments around the state of Georgia. It can pay for real estate professionals to be aware of the market and proposed new developments. Although there are many smaller developments being permitted in Georgia, there are developments of significant size currently being proposed. The Georgia Planning Act of 1989 (effective July 1, 2009) requires developments of a certain size to apply as a DRI. "Developments of Regional Impact (DRIs) are largescale developments that are likely to have regional effects beyond the local government jurisdiction in which they are located. The Georgia Planning Act of 1989 authorized the Department of Community Affairs (DCA) to establish procedures for review of these large-scale projects. These procedures are designed to improve communication between affected governments and to provide a means of revealing and assessing potential impacts of large-scale developments before conflicts relating to them arise. At the same time, local government autonomy is preserved since the host government maintains the authority to make the final decision on whether a proposed development will or will not go forward." *Click here to view the Rules of the DRI program. You can view the submissions for individual projects from the DRI website at http://www.dca.ga.gov/DRI/Submissions.aspx. Only projects of a certain minimum size must submit an application to the DRI program. The following table shows an incomplete list of some of the Development Thresholds (Section 110-12-3-.07.) For example, if a housing development of over 400 units in a metropolitan area or 125 units in a non-metro area is planned, a DRI is required. Check for projects in your county to see if there are opportunities to assist you in your real estate career. Comments or Suggestions Click Here. To HU sign up to receive the GREC RENewsletter Click HereU Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916 Focus on Terminology: "Cease & Desist Order" Every real estate license knows the effort and commitment required to qualify, obtain, and maintain a real estate license. Anyone who wants to practice real estate brokerage must make this effort in order to comply with state laws and regulations. It is illegal for any person, directly or indirectly, to engage in (or hold him/herself out to do so) or conduct the business of, or advertise, or act in the capacity of, a licensee w i t h o u t first obtaining a real estate license, ( u nless such person is exempted from obtaining a license under Code Section 43-40-29). The Commission may issue a Cease and Desist Order prohibiting any person from engaging in the practice of a real estate broker without a license. 43- 40-30(b)(c)(d) The Cease and Desist Order is final 10 days after it is issued. The Commission can impose a fine not to exceed $1,000.00 for each transaction constituting a violation and $1,000 per day a person practices real estate in violation. Page 2