GREC REnews, Vol. 8, Issue 8 (Aug. 2012)

August 2012 Volume 8 Issue 8

GGRREECCRREENNeewwss Monthly Newsletter
of the Georgia Real Estate Commission

This Issue:

2012 Calendar

Timing of Receipt of Earnest Money P.1

GREC Brokerage Course &
HU
Trust Accounts Class Dates:
UH

12/3/2011 3:05 PM

GREC Online Courses

P.2

Focus on Terminology

P.2

August 29 & 30, 2012 GAMLS www.gamls.com
September 26 & 27, 2012 Fayette Board www.fayetterealtors.com
October 17 & 18, 2012 Northeast Georgia Board www.negboard.com
Common Violations Class
HU
Dates: U
September 20, 2012 GA Institute of RE 770-252-6768 www.learningrealestate.com
December 14, 2012 GA Institute of RE 770-252-6768 www.learningrealestate.com
Georgia Instructor
HU
Training Workshop (GIT) September 13-14, 2012
Macon, 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

The Timing of Receipt of Earnest Money Deposits is Critical.

When an offer is presented or a contract is signed, earnest money is usually

involved. Sometimes the earnest money deposit may not be attached to the contract

on the same day the contract is signed and is provided to the licensee a day or two

later. The sales contract must specifically state when the earnest money is collected. If

the contract is signed and the earnest money is not collected at the same time, the

date of the contract will be different than the date of receipt of the funds.

The Commission reviews more than one case each year where the date of

receipt of earnest money and the date the contract was signed are different, but the

contract does not reflect this difference. In one case, a contract was dated November

28 and the Salesperson signed his name to this sales contract stipulating that the

Broker had collected $1,000 earnest money on November 28th. However, the earnest

money was not actually given to the Salesperson or the Broker until December 3. This

is clearly a misstatement of facts. Not only did the salesperson sign his name on a

document with false information, but the Qualifying Broker reviewed and approved it.

After an investigation, the Qualifying Broker and the Salesperson each received a

Citation requiring them to pay a fine and fees in addition to the completion of a 3-hour

course approved by the Commission on legal issues and the avoidance of license law

violations. 43-40-25(b)(28)

The lesson is simple. When completing or reviewing a

contract, if the stated facts are obviously not accurate, don't sign it until it is correct. If funds are not received at the time of signing the

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contract, state the conditions that will result when the funds are, or are not, deposited as required. For example, if the earnest money is not going to be collected until 3 days after acceptance of the

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agreement by all parties, the contract must stipulate the details of that arrangement and also stipulate what will happen if the earnest

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money is not provided as required. Being clear on the date funds

are received (or are required to be received at a later date)

is critical so that all parties understand their obligations under the terms of the

contract, in addition to being required by the License Laws, Rules, and Regulations.

The licensee preparing the offer must be sure the terms of the contract are

clear. In addition, the Broker is responsible for reviewing all contracts and ensuring

compliance with the License Laws, Rules, and Regulations. 520-1-.07

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GREC RENews August 2012, Volume 8 Issue 8

H
Enroll Now

GREC Online Courses

Online CE

Since August 2009, the Georgia Real Estate Commission has provided three Online courses free of charge to all Georgia real estate licensees. Each course provides 3 hours

Courses from

of CE credit upon successful completion. The following 3 courses continue to be available

GREC

at www.jmre.com/grec and are also accessible from the GREC website www.grec.state.ga.us .

"Being a Broker & Staying Out of
Trouble" All

1. Practicing Real Estate & Staying Out of Trouble 2. Being A Broker and Staying Out of Trouble 3. Avoiding Trust Account Trouble
These online courses are funded through the Real Estate Education Research and

"Practicing Real Estate & Staying Out of Trouble"

Recovery Fund of the Georgia Real Estate Commission through a contract with JMRE Inc., an established provider of online real estate courses.
Since 2006 the number of new real estate licensees has declined significantly (77%), and this has resulted in a decline in funds available from the Real Estate Education

Research and Recovery Fund.

"Avoiding Trust

With less money in the fund, it will be necessary to charge a nominal fee of $10 for

Account

each course beginning September 1, 2012. Course purchases must be made with a credit

Trouble"

card beginning next month. The web address, enrollment process and all other services

will remain the same.

Click Here

We are excited to announce that these courses are now compatible with several other browsers and mobile devices.

iPadTM SafariTM GoogleTM FirefoxTM InternetTM Chrome Mozilla Explorer
Most iPhoneTM and AndroidTM-powered Smart Phones are compatible as well.
*Logos, graphics, and references to products are trademarks of Apple, Google, Firefox, and Microsoft respectively.

Focus on Terminology: "Real Estate, Education, Research and Recovery Fund"

Comments or Suggestions Click Here.
To sign up to
HU
receive the GREC RENewsletter Click Here
U
Georgia Real Estate Commission Suite 1000 International Tower 229 Peachtree Street NE Atlanta, GA 30303-1605 Phone 404-656-3916

The Real Estate Education, Research, and Recovery Fund refers to money that is specifically identified and deposited and maintained by the State Treasury. When applying for a new real estate license in Georgia, $20 of the licensing application fee is deposited in the Real Estate Education Research and Recovery Fund. The Commission must ensure that there is always a minimum balance of $1 million in the fund at all times.
The purpose of the fund is as follows: Provide compensation (in accordance with a court order) to someone other than a
licensee who is aggrieved by an act, representation, transaction, or conduct of a licensee which is in violation of the rules and regulations of the commission Allow the commission to use any and all funds from new licensee payments to the fund or from accrued interest earned on the fund to help underwrite the cost of developing courses, conducting seminars, conducting research projects on matters affecting real estate brokerage, for the benefit of licensees and the public
Courses such as the Common Violations Class, the Online Courses, the Trust Account Workshop, and the 1-Day Broker Workshop are made possible by the insightful and proper use of the Real Estate Education, Research, and Recovery Fund.
Review O.C.G.A. 43-40-22 for more specific details on the fund

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