Georgia Exam Prep: State Laws and Rules

STUDY SHEET

Top Takeaways

You can expect to see approximately 16 questions related to state laws and rules that govern the activities of Georgia licensees on
your licensing exam.

Unfair Practices

Unfair trade practices are those using deceptive, fraudulent, or unethical means to obtain business.
Unfair trade practice law serves to protect consumers from licensees' unlawful actions.
Georgia's Fair Business Practices Act bars unfair and deceptive acts or practices (primarily related to advertising) in
transactions involving the sale, lease, or rental of goods, services, or property. The act:
Applies to consumers' domestic transactions instead of business to business.
Prohibits misleading or fraudulent advertising, which includes all media platforms.
Stipulates that the deceptive advertising had to have an impact on the entire public.
Requires a transaction to have taken place in order to prosecute.
The Georgia Uniform Deceptive Trade Practices Act (UDTPA) addresses price fixing and other deceptive practices that
restrict free trade competition.
No consumer transaction has to have taken place for there to be a violation of UDTPA.
Consumers, brokers, or the state can sue a licensee for UDTPA violations.
Penalties include triple damages, fines, injunctions, or a combination of the three.
Georgia Code §43-40-25 addresses unfair trade practices in the real estate industry.

Unfair Practices Related to Fair Housing

Based on the seven federally protected classes of race, color, religion, sex, disability, familial status, and national origin, licensees
may not:

Refuse to sell, rent, negotiate for, or otherwise deny housing to anyone when a bona fide offer has been made.
Discriminate in terms, conditions, or privileges of a sale or rental.
Discriminate in providing services or facilities related to a sale or rental.
Create or use advertising or marketing materials that show or indicate an intention to show preference, restriction, or
discrimination.
Indicate to anyone that a property isn't accessible for sale, rental, or inspections when it is.
Engage in blockbusting (indicating or suggesting that an area's demographics may occur or is occurring) to either
encourage or discourage a real estate listing, purchase, sale, or rental.
Unfair Practices Related to Trust Funds (Money Belonging to Others)
Handling trust funds improperly or negligently
Failing to turn over trust funds promptly to the broker who holds the licensee's license
Commingling trust funds with personal funds
Failing to maintain a separate, federally insured account at a financial institution for trust funds, or to use an escrow agent
or other custodian for trust funds unless all interested parties agree in writing to an alternative method
Failing to obtain all parties' written agreement specifying the disposition of earned interest before depositing money into
an interest-bearing escrow account

Unfair Practices Related to Disclosures to a Principal

Licensees may not fail to disclose in writing to a principal to a transaction when they:

Receive anything of value (like a fee or rebate) on expenses made on the principal's behalf that the principal will
reimburse.
Receive anything of value for referring any product or service to the principal as part of the real estate transaction.
Pay another broker for referring the principal for either brokerage or relocation services.

Unfair Practices Related to Advertising

Using deceptive, misleading, or inaccurate information intentionally in advertising materials

Not disclosing license status in advertising
Placing a sign on a property without the owner's written consent or leaving a sign up for more than 10 days following the
listing expiration
Running discriminatory advertisements

Unfair Practices Related to Recordkeeping

 Failing to retain transactional records and accounting records for trust accounts for at least three years
Failing to produce transaction and accounting records upon GREC's reasonable request for inspection
Falsifying any real estate transaction document
Failing to provide to a property owner or a community association within 30 days of a management contract termination
(or the time period specified in the agreement):
Accurate records of all funds and transactions handled during the contract term
All records received from or on behalf of the property owner or community association
Any funds belonging to the property owner or community association

Unfair Practices Related to Compensation

Receiving undisclosed compensation in the course of providing real estate services

Accepting a commission or other valuable consideration from anyone other than the licensee's broker without the broker's
consent
Paying unlicensed individuals for referrals
Paying unlicensed individuals for any activity requiring a license, or paying a non-resident who's licensed in another state
or country but isn't cooperating with a Georgia licensee, with the following exceptions:
Payments of a deceased licensee's earned compensation to heirs or the deceased's estate
Payments to a citizen of another country who acts as a referral agent, but only when the other country doesn't
license real estate professionals and the Georgia licensee who'll be paying compensation obtains written evidence
that the payee is:
A citizen of the other country
Not a U.S. resident
Engaged in providing professional real estate brokerage services in the other country
Payments from a licensee's affiliated brokerage firm to an unlicensed firm in which the licensee owns more than
20% interest as long as:
The brokerage firm has written evidence that the affiliated licensee owns more than 20% interest in the unlicensed firm.
The licensee earned the commission on the brokerage firm's behalf.
The unlicensed firm isn't involved in the real estate activities.
The licensee and affiliated brokerage firm have a written agreement in place that authorizes payment to the unlicensed
firm.
Changing another licensee's compensation without that licensee's prior written consent
Referring a consumer to another licensee without disclosing to the consumer that a referral fee will be involved

Unfair Practices Related to Contracts and Representation

Failing to include an expiration date on a written listing agreement

Failing to give a copy of a listing agreement to the seller
Failing to promptly provide all parties with copies of a completed offer
Failing to make sure the seller receives a copy of the closing statement
Failing to give the buyer a statement of all money the buyer submitted and how it was disbursed
Failing to include financing terms in a sales contract
Entering knowingly into a brokerage agreement when the owner, buyer, or tenant already has an exclusive brokerage
agreement with another broker
Offering a property for sale or lease without the owner's knowledge and consent, or on terms other than those the owner
authorized
Initiating or engaging in contractual interference (e.g., when a licensee actively attempts to encourage another licensee's
client to break that agreement to sign a new one)
Engaging in unauthorized dual agency (requires written consent)
Failing to disclose agency relationships to all parties to a transaction within a reasonable timeframe
Failing to disclose that the licensee is a principal or has a personal interest or conflict of interest in a transaction when the
licensee is also acting as an agent
Failing to obtain written permission from a community association to sell, lease, or exchange a member's property when
the licensee is performing management services for the association

Unfair Practices Related to Licensure and Broker Affiliation

Working for or otherwise representing a non-affiliated broker without the affiliated broker's permission
Negotiating directly with the client of another broker (licensees must go through the broker, and not the client); exceptions
are made for limited service listings where consent for direct negotiation exists
Attempting to act as a licensed real estate salesperson, associate broker, or broker when licensed as a community
association manager
Performing licensed activities for a property located in another state without having a license in that state or without
adhering to that state's real estate brokerage laws

Other Unfair Practice Violations

Guaranteeing future profits from a resale

Using the word "appraisal" when the licensee is not an appraiser, or representing that a comparative market analysis is an
appraisal
 Making significant misrepresentations
Filing a document (e.g., a listing agreement or another document professing to create a lien) in order to create a cloud on
the title
Displaying incompetency, untrustworthiness, or reckless actions that put consumers at risk
Referring anyone to another licensed broker for brokerage or relocation services without obtaining that person's
agreement to do so in writing
Conducting business under a business name that's not registered with GREC

Penalties

GREC has discretion in the penalties it can impose on licensees, and it may impose a harsher penalty on a licensee who has a
history of deceptive actions. Penalties for violations include:

License denial
Formal reprimand
License suspension
License revocation
License downgrade (i.e., from broker to salesperson)
Fees for conducting proceedings
Fines of up to $1,000 per violation; limited to $5,000 for multiple violations per hearing
Compulsory additional education
Periodic auditing of a broker's trust account
License restrictions as deemed appropriate to protect consumers

Substantive Regulations

Brokerage Relationships in Georgia

Brokerage relationships in Georgia are established and defined by the written brokerage engagement agreement between the
licensee and the client. Rules for brokerage relationships are found in OCGA § 520-1-.06 and include:

An exclusive brokerage engagement agreement must have a definite expiration date. Open-ended exclusive agreements
and automatic renewal clauses are both prohibited.
A true copy of the agreement (fax, scan, or photocopy) must be provided to the party signing the agreement as soon as
practical.
Brokers may not enter into or sign a net listing engagement, in which the broker will receive, as a brokerage fee, any
amount more than a specified sales price.
Property management agreements must include certain provisions, including:
Property identification
All terms and conditions between the property manager and owner
Terms, processes, and schedules for which the property manager will pay income to the owner and then submit
annual (or more frequent) income and expense reports
Property expenses that the property manager will pay
The property manager's compensation
Which party will hold security deposits and prepaid rent
A beginning and ending date for the agreement
Terms and conditions of termination
The parties' signatures
Brokers who perform community association management services and are responsible for more than $60,000 must obtain
a fidelity bond or fidelity insurance from a company that's authorized to write such policies in Georgia.
The policy is required to:
Name the association as an additional insured.
Cover everyone who has access to the funds.
Cover the greater of three months' assessments of all members plus reserve amounts, or the maximum
amount for which the broker is responsible
The insurance can't be terminated without at least 30 days' notice, unless it's for nonpayment, in which case 10
days' notice is required.
Brokers who choose to use fidelity bonds are required to:
Maintain a separate bond for each association.
Keep a copy of each policy.
Provide a copy of the coverage to each association.
Brokers must disclose details of brokerage relationships to all parties to a transaction as soon as possible, and certainly
before writing any offers, including:
For whom they work, whether they represent others or themselves
Compensation sources, including referral fees or cooperative agreements between brokerages

Handling Real Estate Transactions in Georgia

Written offers must be presented as soon as feasibly possible.

 All written offers must be presented to the seller until closing so the seller can negotiate any back-up offers should the
current transaction fall through.
Copies of all of the transactional documents must be received by all parties to the transaction, including the broker, who
must maintain copies of all transactional documents for at least three years.
All licensees must avoid the following illegal practices:
Falsifying any amount of money
Assisting a purchaser in any misrepresentations to a lender
Giving false or intentionally misleading information
Making intentional misrepresentations
Presenting documentation that shows a false sales price that's greater than the actual sales price to a lender, which
is known as kiting

Business Brokerages in Georgia

Business brokerage is a specialized service in which the broker assists others in selling business interests.
When business brokerage includes the sale of real property or the transfer of leases, business brokers must have real estate
licenses to facilitate the sale.
Business brokers usually represent business sellers, but some specialize in buyer representation.
Business brokerage activities include:
Estimating a business's value
Advertising it for sale, often concealing the business's identity to protect the owner's privacy
Interviewing prospective buyers
Negotiating the sale, often requiring the prospective buyer to sign a confidentiality agreement
Assisting the buyer with due diligence
Business brokers may seek an Accredited Business Intermediary (ABI) credential from the American Business Broker
Association, the Certified Business Intermediary (CBI) designation from the International Business Brokers Association,
or state association credentials.
In some instances, accreditation, not a real estate license, may be all that is needed in the exchange of business interests, e.
g., when no real property sale is involved.

County or Municipality Occupational Tax in Georgia

Occupational tax is a tax on those conducting business.

A city or county may only require a broker or any of the broker's affiliated licensees to pay a fixed tax when the broker
maintains an office in that city or county.
As part of the tax code for the state of Georgia, a broker can be assessed a gross receipts tax on any commission earned in
a city or county even if the broker's office is in another city or county.
Licensees Acting as a Principal to a Transaction
Georgia license law requires real estate licensees to disclose their license status to all parties when licensees act as a
principal to a transaction.
Licensees who want to list, sell, buy, rent, lease, etc., any real property in their own name or in the name of an entity in
which they hold an interest must notify the broker in writing.
Licensees who want to buy a property their brokerage has listed must notify their broker in writing of their intentions, and
also disclose their intentions and licensed status to the seller.
Licensees who wish to guarantee to sell a property by a certain date or buy it themselves if it fails to sell must first enter
into a purchase agreement with the seller as a safeguard to the seller if the property doesn't sell.
Licensees who offer to buy a trade-in property so that a buyer may purchase another property must first enter into a
purchase agreement involving the trade-in property before assisting the buyer in purchasing the new property.
Licensees advertising their own property must also:
Identify themselves as a licensee in any ad in one of two ways:
"Seller (or buyer, landlord, tenant, etc.) holds a real estate license"
"Georgia Real Estate License #" with the six-digit number; may be abbreviated as "GA. R.E. Lic."
Run ads in the brokers name unless they want to run the ads in their own name. In that case, they should:
Notify their broker.
Identify themselves as a principal and licensee or include the license number.
Get their broker's written permission and approval for the ads.

Qualifications and Fees

In addition to meeting the licensure requirements noted here, applicants must have a good reputation for honesty, trustworthiness,
integrity, and possess the capability to serve consumers' best interests.

Qualifications for Salesperson's License Candidates

Be a Georgia resident (unless qualifying as a non-resident licensee).

Be 18 years or older.
Be a high school graduate or hold a GED® (General Educational Development) diploma.
Meet one of the following three education requirements:
Complete 75 hours of pre-licensing course work.
Take and submit an official transcript for 10 quarter hours (six semester hours) minimum of either:
 Coursework for a major degree in real estate from a college or university accredited in either the U.S. or
Canada
Coursework in real property, agency, or contracts from a law school that's accredited in either the U.S. or
Canada
Submit proof of completing 75 hours' minimum of approved pre-license coursework in another state or Canadian
province.
Contact GREC's exam provider of choice to schedule the licensing exam.
Pay the current fee for the state salesperson licensing exam.
Pass the exam with a current score of 75% or better.
Affiliate with a broker.
File a license application with the commission via mail, delivery service, or personal delivery, including:
The licensing fee, which is currently $170 if applying within three months of passing the exam, or $240 if
applying between three and 12 months of passing the exam
A certified criminal history report from the Georgia Crime Information Center that was run no more than 60 days
prior to applying
An affidavit from the sponsoring broker

Salesperson Post-Licensing Requirements

Complete a 25-hour post-licensing course within the first year of licensure.

The post-licensing course will count as nine course hours of continuing education for the first renewal period.
Only an additional 27 hours of continuing education is required before the end of the first four-year renewal
period, including the three-hour mandated Georgia license law course.
Pass the commission-approved exam.
Neglecting to complete the post-license course will result in a license lapse.
A license lapse that's longer than six months will result in penalty fees in order to reinstate the license.

Qualifications for Broker's/Associate Broker's License Candidates

Be a Georgia resident (unless qualifying as a non-resident licensee).

Be at least 21 years of age.
Be a high school graduate or hold a GED® (General Educational Development) diploma.
Have experience as a full-time salesperson for at least three of the previous five years.
Meet one of three education options:
Take 60 hours of broker pre-license coursework.
Take and submit an official transcript for 15 quarter hours (nine semester hours) minimum of either:
Coursework for a major degree in real estate from a college or university accredited in either the U.S. or
Canada
Coursework in real property, agency, or contracts from a law school that's accredited in either the U.S. or
Canada
Submit proof of completing 60 hours' minimum of approved broker pre-license coursework in another state or
Canadian province.
Pay the current state broker's exam fee of $121 and pass the exam with a current score of 75% or better.
File a license application with the commission via mail, delivery service, or personal delivery, including:
The licensing fee, which is currently $170 if applying within 12 months of passing the exam
A certified criminal history report from the Georgia Crime Information Center that was run no more than 60 days
prior to applying

License Renewal and Continuing Education Requirements

License renewals are based on when the initial license was issued.
The renewal deadline falls on the last day of a licensee's birth month, every fourth year after obtaining a license or the
previous renewal.
Licensees must complete 36 hours of continuing educations (CE) per each four-year renewal period, three hours of which
must be a GREC-approved and mandated Georgia license law course.
To renew a license, licensees submit a renewal application and pay the applicable fees. Signing the application attests to
completing CE requirements.
Licensees who don't renew before the deadline will have their license lapse and can't practice real estate.
Licensees may reinstate licenses that have been lapsed for two or fewer years by paying all applicable back fees,
including a reinstatement fee, and by showing they've completed all required CE.
For lapses longer than two years, former licensees may reinstate by paying all applicable fees and completing any
necessary education requirements.
After five years, former licensees must start over from scratch with all pre-licensing courses, including passing the
exam and submitting it for application approval.

Qualifications for Community Association Manager's License Candidates

Be a Georgia resident (unless applying for reciprocity).

Be at least 18 years old.
Be a high school graduate or equivalent.
 Meet one of the following three education requirements:
Complete a 25-hour community association manager course.
Take and submit an official transcript for four quarter hours (two semester hours) minimum of either:
Coursework for a major degree in real estate from a college or university accredited in either the U.S. or
Canada
Coursework in real property, agency, or contracts from a law school that's accredited in either the U.S. or
Canada
Submit proof of completing 25 hours' minimum of approved pre-license coursework in another state or Canadian
province.
Pay the current state community association manager exam fee of $121 and pass the exam with a current score of 75% or
better.
ile a license application with the commission via mail, delivery service, or personal delivery, including:
The licensing fee, which is currently $170 if applying within three months of passing the exam or $240 if applying
between three and 12 months of passing the exam
A certified criminal history report from the Georgia Crime Information Center that was run no more than 60 days
prior to applying

Requirements for Applicants with Convictions or Disciplinary Actions

Individuals who have been convicted of a felony should run a criminal history report and submit it to GREC before taking
the 75-hour course to find out if they will be allowed to have a real estate license in Georgia.
Individuals who are delinquent on child support payments or student loans should run a criminal history report prior to 60
days of applying to take the exam in order to have time for an appeal if they learn that GREC may deny them a real estate
license.
Applicants with a criminal conviction or who've been subject to disciplinary action, whether licensure candidates or
licensees from other jurisdictions, must submit to the commission:
The citation, accusation, information, or indictment that led to the conviction, or allegations that led to the
disciplinary action
The certified copy of the sentence or the final order of the licensing agency
GREC may opt to deny a license based on the conviction or disciplinary action. Violations include those in which the
applicant:
Made false statements or failed to disclose key information on the application.
Had a license sanctioned by another occupational authority (e.g., nursing, law, medical), even if the authority isn't
based in Georgia.
Isn't in compliance with child support orders, even if the orders are from a state other than Georgia.
Is in default of a student loan guaranteed by the Georgia Higher Education Loan Program.
GREC may also deny a firm a license if a stockholder, member, or partner who holds 20% or more interest in the
company doesn't demonstrate honesty, trustworthiness, or integrity, or has been convicted of a crime that demonstrates a
lack of these qualities, such as:
Fraud
Embezzlement
Theft
Forgery
Extortion
If an applicant for licensure as an associate broker or broker is guilty of moral turpitude or any of these types of crimes,
the license will be denied until the applicant meets the following conditions:
At least 10 years have passed since the conviction or release, whichever is later.
There are no criminal charges pending against the applicant.
The applicant demonstrates a reputation for doing business with honesty, integrity, trustworthiness, and
competence.
Those who meet the age, education, and exam requirements but are denied a license may make a written request for a
formal hearing within 60 days of GREC's mailing a notice of denial.
Those seeking licensure may ask the commission to make a non-binding preliminary decision on the conviction or
disciplinary action as an advisory measure before they take any pre-license education or the exam.
Requirements for Non-Resident Licensees to Obtain a Georgia License
Complete an application.
Provide proof of licensure from their resident jurisdiction.
Affiliate with a Georgia broker.
Pay all applicable licensing fees.
Provide written documentation that the licensee has read Georgia license law, rules, and regulations and agrees to abide
by them.
Provide written documentation that no disciplinary actions have been taken against the licensee in his or her licensed state.
Name the commission as the agent able to receive all legal notices.
Provide written documentation agreeing to cooperate with any investigation.
Provide a criminal background check from the state of licensure.
Florida licensees must meet the above requirements and also take and pass the state portion of the Georgia licensing exam.
All non-resident salespersons must complete a 25-hour post-licensing course within the first year of licensure. This
requirement may be waived if the applicant has already taken a 25-hour or longer post-licensing course within one year
prior to obtaining a Georgia license.
Military Servicemembers

Veterans will receive a five-point credit on the licensing exam when:

They served on active duty in the U.S. armed forces or reserves, including the National Guard, for one year or
longer
At least 90 days were served during wartime or conflict.
They received an honorable discharge.
Disabled veteran candidates will receive a 10-point credit on the licensing exam when:
They served on active duty in the U.S. armed forces or reserves, including the National Guard, during wartime or
conflict.
Their injury or illness occurred in line of duty.
The incapacitation is rated at 10% or greater at the time of the exam.
They received an honorable discharge.
Salesperson or community association manager candidates will have points added to total score. All exam questions must
be answered.
Broker candidates will have points added to the Information Gathering section score and the Decision Making section
score. All exam questions must be answered.

Form of License

When a license is obtained, it's mailed or otherwise delivered to the licensee's broker, and it remains in the broker on file's
possession until it's relinquished. This is the wall license, which is posted in the sales office.
Licensees themselves receive a pocket card, which shows their name and license status.

More on Fees

Tax dollars don't support GREC, so its operating budget is based on fees.
The state treasury holds collected fees.
GREC's expenses are paid from received funds.
GREC determines fee amounts and schedules for initial and renewal licenses, as well as for exams.
Fees may be paid in person, via mail, or electronically.
GREC may impose fees when licensees or license applicants pay fees with a check that bounces or when they fail to:
Respond to the commission within 30 days when asked for additional information on an application.
Notify the commission within 30 days of an address change, change in employment, or a trust account opening or
closing.
Associate with a new broker or apply for inactive status when the former broker asks them to do so.

Georgia Fair Housing Laws

Federal Fair Housing Laws

Georgia fair housing laws mirror federal fair housing laws.

Civil Rights Act of 1866

Recognized all persons born in the U.S. as citizens, regardless of race or color.
Protected the rights of every U.S. citizen to buy, sell, convey, inherit, and possess property, as well as to enter into
contracts.
Made it illegal to discriminate on the basis of race or color, without exception.

Fair Housing Act of 1968

Part of the Civil Rights Act (Title VIII) that President Lyndon B Johnson signed on April 11, 1968.
Prohibits discrimination in the sale, rental, and financing of housing and housing-related transactions based on race, color,
national origin, and religion (Title VIII, the Fair Housing Act.
Created the Office of Fair Housing and Equal Opportunity (FHEO) under the Department of Housing and Urban
Development (HUD).
Enforces fair housing laws and holds all parties accountable for compliance with these laws and regulations.
Investigates fair housing complaints.

Housing and Community Development Act of 1974

Amended the Fair Housing Act of 1968.

Added sex to the list of protected classes.

Equal Credit Opportunity Act of 1974

Bolstered the Housing and Community Development Act by requiring lenders to give businesses and consumers equal
access to credit.
 Prohibits discrimination "on the basis of race, color, religion, national origin, sex, marital status, or age (provided the
applicant has the capacity to contract)."
Requires lenders to provide reasons when rejecting applications and to respond to all applications within 30 days.

Fair Housing Amendments Act of 1988

Provided consumers with remedies if they believed they were victims of discrimination in the sale, rental, or financing of
housing.
Added familial status and disability (both physical and mental) to existing protected classes.
Requires property owners to make reasonable accommodations to rules, policies, and practices in order to provide a
disabled person access to dwellings.

Americans with Disabilities Act of 1990 (ADA)

Strengthened the 1988 amendments regarding disabilities.

Prohibits discrimination based on disability in programs, services, and activities provided or made available by public
entities.
Includes provisions for public housing, housing assistance, and housing referrals in Title II of the act (enforced by HUD).

Housing for Older Persons Act of 1995 (HOPA)

States that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt
from following the rules against familial status discrimination.
Requires the housing provider to demonstrate that the housing is intended for persons 55 and older.
Requires such housing to have one person who's 55 or older residing in at least 80% of its occupied units.

Georgia Fair Housing Law

The Georgia Commission on Equal Opportunity (GCEO) enforces fair housing law and handles discrimination complaints.
Exemptions to fair housing laws include:
Unlicensed consumers selling their own property without using a real estate professional
Private clubs or properties owned by religious organizations (as long as participation in that religion doesn't
discriminate based on race, color, or national origin)
A landlord is exempt from fair housing laws if all of the following conditions are met:
The landlord doesn't utilize a real estate broker, agent, or salesperson in renting the property.
The landlord doesn't use discriminatory advertising.
The landlord doesn't own or have interest in more than three single-family properties.
The landlord lives in one of the units of a building (of no more than four units).
Senior communities only permit residents of a certain age as long as:
The occupants are all over the age of 62, or, in the case of a "55+" community, at least one person aged 55
or over lives in at least 80% of the occupied units.
The property meets other specific HUD guidelines, such as being specifically designed for occupation by
the elderly.
Multi-family homes with an elevator and at least four units that were constructed and ready for move-in after March 13,
1991 must be fully accessible to persons with disabilities.
Common areas of the building-hallways, doorways, sidewalks, etc.- must be wheelchair accessible.
Each unit must be accessible both into and throughout the unit.
Light switches, outlets, thermostats, and such must be accessible everywhere, including the kitchen and bathroom.
The bathroom must also have reinforced walls in case grab bars are installed.
If an existing building is altered-meaning a change is being made that affects its usability-those alterations must
follow the new construction accessibility guidelines listed above, provided that the cost of adding accessibility
isn't disproportionate to the overall cost of the change (more than 20% of the total cost).
Persons with disabilities who rent a property are permitted to make, at their own expense, "reasonable
modifications" to the property in order to make the property "fully enjoyable" for the tenant.
Landlords may require tenants who make reasonable modifications to restore the property to its original condition
before vacating the property, again at those tenants' expense.
Licensees may not do any of the following based on a person's race, sex, color, familial status, national origin, disability,
or religion:
Refuse to sell or rent out a house.
Falsely claim that a home's status has changed (i.e., is under contract when it's not).
Offer special terms, condition, or privileges to certain people and not others.
Engage in discriminatory advertising.
Limit financing or broker services.
Steer clients to or from certain neighborhoods through actions such as:
Implying that the presence of a protected class has influenced property values, crime rate, school quality,
or other aspect of the area
Implying that the composition of an area has changed, or will change, based on the presence of persons in
a protected class
Georgia's Fair Housing Division has an intake and investigation process for all fair housing complaints.
Real Estate Education, Research, and Recovery Fund

In 1973, Georgia's Real Estate Education, Research, and Recovery Fund was established for the purpose of compensating
consumers who prevail in a complaint against a licensee but aren't able to recover damages from the licensee.
The fund is supported by license fees and must keep a $1 million balance. If the balance dips below $1 million, GREC
may increase license renewal fees to bring the balance back up.
The recovery fund compensates victims of violations such as:
Fraud or intent to defraud
Misrepresentation
Deceit
Theft (conversion) of trust funds
The deadline for filing claims against the fund is two years after the cause of action.
GREC must be notified at the time of filing, and reserves the right to intervene to defend any action.
The maximum disbursement to any consumer is $25,000 per transaction.
The lifetime maximum disbursement per individual recipient is $25,000.
Payments may not exceed $75,000 per licensee.
Licensees must pay back disbursements made on their behalf, plus interest, and their license will be suspended until they
do so.
Fund money may be invested in the state treasury, and, from there, anywhere it's legal for a domestic insurance company
to invest. Interest is deposited back into the fund.

Investigation and Hearing Process

GREC's Authority

State law gives GREC the authority to investigate the actions of license applicants, licensees, real estate educational
course content, and course instructors.
GREC's authority is limited to real estate license law.
GREC doesn't consider disputes regarding earnest money, property repairs, commissions, or fees. These are contract law
concerns.
GREC doesn't have the authority to compel a licensee to pay damages to another person for financial losses.
By law, GREC may only reprimand licensees, suspend or revoke a license, and require fines, additional educational
courses, or independent accounting reports regarding a licensee's trust account.
GREC may exclude anyone from staff:
Disciplinary deliberations
Settlement meetings in a contested case
Investigation report review meetings

The Complaint Process

A consumer, other licensee, or an association files a sworn written request with GREC to open an investigation into the
actions of a licensee, instructor, or a license applicant.
The questionable action must have occurred within the past three years.
If it has, then GREC determines if the complaint is a possible violation of Georgia license law, fraud, or mishandling of
trust funds.
If so, GREC will proceed with an investigation.
GREC may also choose to investigate without such a complaint if a situation warrants it.
Injunctive Actions
The office of the Georgia attorney general, which serves as legal counsel for all state matters, has the right to bring
injunctive action against any violations or potential violations of Georgia license law and GREC's rules.
An injunctive action is filed to either abate or temporarily or permanently enjoin a licensee from committing an alleged
license law or commission rule violation when that violation threatens the public good.
GREC may petition the attorney general's office to bring an injunctive action in the district court of the county in which
either the violation has occurred or is about to occur, or where the alleged violator lives.

Investigations

A commission investigator gathers evidence by:

Issuing necessary subpoenas
Taking statements from the licensee (aka respondent), complainant, and witnesses
Reviewing pertinent records and documentation
Respondents are required to make every effort to make documents available to the investigator.
The investigator keeps all information confidential.
In the final report, the investigator reports the facts but not the names of the parties involved.
The investigation file remains closed and confidential unless a formal hearing is ordered.
After the commissioner reviews the report, the commissioner may take one of the following actions:
Recommend that the commission dismiss the case.
Ask for further investigation.
Refer the case to GREC to establish appropriate actions.
 Turn over the case to the attorney general's office, if the alleged violation is significant, and ask that proceedings
begin.
When the attorney general's office finds that the investigation's evidence has legal grounds, the office will take one of two
steps:
Propose a consent settlement for the commission to review and approve.
File a notice of hearing with the Office of State Administrative Hearings.

Settlements

A settlement is an informal meeting with all relevant parties in attendance that's set for the purpose of reaching an
agreement on findings of fact, on legal conclusions, and to propose sanctions that should be imposed (if any).
If the licensee can present sufficient evidence demonstrating that no violation has occurred, GREC will drop the
complaint.

Hearings

Once the attorney general's office files a notice of hearing with the Office of State Administrative Hearings, a date and
time is set for the hearing.
The licensee and the licensee's broker are notified via personal delivery or mail of the hearing's date and time.
The hearing will proceed as scheduled, with or without the licensee. Failure to appear won't delay it.
The licensee has the right to counsel and may present evidence, subpoena witnesses, and submit documents.
An administrative law judge (ALJ) from the Office of State Administrative Hearings presides over the formal hearing,
depending on the validity and seriousness of the complaint.
At the formal hearing, the charges are either dismissed or proven, and disciplinary actions are considered.
The ALJ submits a report to the commission that:
States the case's facts.
Cites any laws the licensee violated.
Proposes a sanction (in case of violation) or a dismissal (no violation).
The ALJ's decision is final if neither the licensee nor the commission requests a review. After hearing this presentation,
the commission makes a final decision.
Licensees found guilty of violating Georgia license law, rules, or regulations, as well as unlicensed people acting as real
estate licensees, are guilty of a misdemeanor.

Appeals and Judicial Reviews

When the licensee disagrees with the ALJ's proposed decision, the licensee may request a commission review within 30
days of the decision.
At the review, the licensee may present written briefs and an oral dissent to the commission.
Afterward, the commission makes a final decision.
Within 30 days of receiving the ALJ's report, the commission may opt to review the ALJ's findings or recommended
sanctions when it disagrees with that decision.
When the commission overturns an ALJ's dismissal, it must note in details the reasons for doing so and give the licensee
the chance to make objections.
Afterward, the commission will make a final decision.
When a licensee is unhappy with GREC's final decision, the licensee may make a legal appeal to the courts.
Anyone who disagrees with a final decision rendered through the administrative process may request a judicial review in
the superior court of the county where the commission is located.
Requests for review must be made within 30 days of a decision.

Notifications

Licensees must notify GREC in writing of any administrative, civil, or criminal action's final disposition within 10 days of
the proceeding's conclusion.
Notification of any criminal conviction must include a copy of the indictment, accusation, and conviction.

Sanctions

GREC may impose sanctions against licensee found in violation, such as:
License suspension or revocation
Denial of initial license or renewal
License demotion (broker to salesperson)
Censure or reprimand
Monetary reimbursements to cover GREC's expenses
Fines
Maximum of $1,000 per violation
Maximum of $5,000 for multiple violations in one disciplinary hearing
Additional real estate coursework
Limited or restricted license
Record and document subpoenas
 The commission may publish the name of a licensee, approved school, or approved instructor on its website or in an
official agency publication when:
The commission revokes or suspends a license, school approval, or instructor approval.
A licensee, approved school, or approved instructor surrenders a license or an approval to the commission.

Citations and Letters of Findings

Citations

As an alternative to sanctions, the commission may decide, at its discretion, to issue a citation to a licensee.
Issued either by mail or in person, a citation gives the licensee notice of an alleged violation or unfair practice, as well as
the chance to request a contested case hearing.
A citation often includes a penalty (or a combination of penalties), such as:
Required coursework
Independent accountant audits of trust accounts
Fines of as much as $1,000 per violation, and fines for multiple violations of as much as $5,000 per citation
GREC may also choose to impose a lesser penalty based on circumstances. Examples include:
$100 fine for failure to:
Turn over trust funds promptly.
Provide a copy of transactional paperwork to an individual.
Include financing terms in a sales contract.
o $500 fine for:
Failure to reconcile a trust account at least monthly
Failure to handle trust funds according to laws and rules
A school's failure to require the student to complete the required hours, exercises, or examinations for a
course
If the licensee doesn't request a hearing within 30 days of receiving the citation, then the citation's order is considered
final.
Citations are effective 30 days after they're served, and the licensee must meet any requirements of the citation within 30
days of that effective date (unless the order provides for a different deadline).
Licensees who fail to comply with a citation may be subject to sanctions.

Letters of Findings

When GREC finds that the violation didn't harm a third party, it will issue a letter of findings that states:
The violation will remain confidential and not appear on the licensee's license history.
The violation isn't a matter of public record and won't be open to inspection.
The findings won't be disclosed to anyone else but the commission.

Commission Organization and Procedures

The GREC was created by the Georgia General Assembly to regulate license law in the state.

Commission Membership

The commission comprises six Georgia residents whom the governor appoints and the state senate approves:
Five brokers with five or more consecutive years of real estate experience immediately preceding the appointment
One member of the public
Members serve five-year terms.
When a vacancy occurs, the governor will appoint a successor to serve for the unexpired portion of the term.
Four members represent a quorum.
Members select a chairperson from their membership.
GREC must meet at least one day per month.
Members may meet with other states' commission members to promote and strengthen the real estate industry.
Members receive a small per diem amount for days spent on official duties and travel time to and from meetings. Actual
and required expenses are also reimbursed.
Licensed commission members must place their licenses on inactive status during their term, and no fees for this status
will apply.
The governor may remove members (after giving notice and a hearing opportunity) for:
Inability to perform
Negligence
Incompetence
Dishonest conduct
Being the subject of disciplinary sanction by any licensing agency

GREC Staff

GREC must hire a full-time, salaried commissioner who oversees all real estate regulation.
 The commissioner may hire staff (e.g., a secretary, investigators, etc.) to support the day-to-day business of overseeing
license law in Georgia.
Employees aren't required to have a real estate license.
The commissioner and employees who are licensed must place their licenses on inactive status during their term, and no
fees for this status will apply.
Employees handle various administrative tasks for the commissioner.

Commission Business

GREC is a self-sustaining agency that's funded through licensee fees.

The commission may periodically adjust fees to meet its operating expenses.
GREC uses an official seal, either engraved or ink-stamped, with the words "State Real Estate Commission, State of
Georgia." Along with the commissioner's signature, this seal gives a document the legal weight and effect of an original
document.
GREC must keep five years' licensing records on hand.
The following will be made available to the public on the GREC website:
o Licensees' name, number, and license status
o Any disciplinary action taken against a licensee
GREC passes rules to enforce, interpret, and explain the provisions of license law. Other powers include:
Grant, deny, suspend, or revoke real estate licenses.
Censure licensees.
Enter into contracts with auditing professionals to examine brokers' trust accounts.

Required Licensure

A license is required when performing real estate activities for others and for compensation, such as:
Selling, buying, leasing, exchanging, or listing properties (or offering to do so)
Negotiating a sale, purchase, or exchange of real estate
Leasing, renting, collecting rent, or offering to rent real estate
Selling or purchasing real estate at an auction
Soliciting buyers, sellers, tenants, landlords, and listings
Negotiating or attempting to negotiate a commercial mortgage
Arranging and coordinating for a fee the relocation of commercial or residential tenants from buildings or
structures to be demolished, rehabilitated, remodeled, or altered
Negotiating the sale of a business when the value of the real estate transferred is a significant part of the transaction
Exemptions to the license requirement include:
Owners or owner's spouses (or their employees) selling or leasing their own property or investment property
People selling property under power of attorney
Licensed attorneys handling real property as solely a legal service for their clients
Licensed certified public accountants whose actions involving real property are secondary to practicing accounting
People serving in a legal capacity as receivers, trustees in bankruptcy, administrators, executors, or guardians
Utility employees performing acts related to the utility's property, whether owned, leased, or being acquired
Employees of government agencies that are performing official duties
Full-time property management or community association management employees of property owners. or
management company owners who have a controlling interest in the property
Full-time community association (HOA) employees
People who refer prospects as long as they:
Aren't involved in negotiations, document execution, rent collection, or property management
Don't charge an up-front fee
Don't receive compensation from the person being referred
Don't make more than three referrals annually
People who manage federally subsidized housing, as long as they've done so since before January 1, 1989
Brokerage firm employees who assist with property management clients in handling administrative tasks such as:
Receiving lease applications, leases, and/or lease amendments
Executing lease agreements
Accepting security deposits, lease payments, or other such payments and delivering them to the broker or
owner
Showing available rental units to prospective tenants per broker instructions
Providing broker-authorized information to potential tenants on rental units, leases, and lease applications
Providing financial information to owners
People managing properties that are available for rent terms of 90 days or fewer under certain conditions (aka
innkeepers exemption):
No lease or renal agreement applies, and the rooms aren't permanent residences.
Applicable zoning laws don't ban short-term rental terms.
The deposit amount isn't greater than the minimum rental cost.
Occupants pay required state or local sales or excise taxes.
Basic utilities don't cost extra.
Property managers have the authority to assign rooms for occupants.
Notice isn't required for occupants to terminate occupancy.
 People who provide community association management services only to the community association of which
they're members
People who only handle a property's physical maintenance

Post-License and Continuing Education (CE) Requirements

New licensees must complete a 25-hour post-licensing course within one year of issuance of their license.
Licenses must be renewed every four years.
Continuing education (36 hours) must be completed prior to license renewal.
The successful completion of the 25-hour post-licensing course will count as nine course hours of CE for the first renewal
period; therefore, an additional 27 hours of CE is required before the end of the first four-year renewal period, which must
include a three-hour, GREC-approved Georgia license law course.
If not renewed, a real estate license expires in the fourth year after the date issued, on the last day of the licensee's birth
month.
Licensees may choose to have their license placed on inactive status by returning the license to GREC.
Licensees on inactive status may not perform real estate activities for which a license is required, except in the
case of selling their own property.
An inactive license requires renewal every four years, just as with an active license.
Licenses may stay inactive indefinitely.
Inactive licensees have two options regarding continuing education:
They may keep up with required continuing education.
They may compete six hours of approved coursework for each inactive year when they wish to reactivate
their license (unless they've remained on active status in another state).
Licensees who fail to complete their continuing education requirements by their renewal deadline will have their license
placed on inactive status and may not practice real estate until their license is renewed.
To reactivate an inactive license, the licensee must meet all continuing education requirements and pay all fees.
A license will lapse (expire) when the licensee neglects to pay the renewal fee by the due date, and the following
conditions apply:
To reinstate a lapsed license, the licensee must pay all renewal fees, late charges, and a reinstatement fee.
For lapses longer than two years but fewer than five years, additional educational requirements may apply.
For lapses longer than five years, the licensee must start from scratch and meet all pre-license requirements.

License Categories

Broker

Holds a broker's license.

Represents consumers in real property purchase transactions, leases, and property management.
Can be a person, partnership, association, or corporation that, for another person or entity, negotiates any form of real
estate transaction and earns compensation for doing so.
Supervises and is responsible for activities of licensees who work for the broker.
Ensures all associated licensees' license renewal requirements, including CE, are met.
Serves the public with honesty and competency.
May work independently or as a qualifying broker of a company.

Associate Broker

Holds a broker's license.

Chooses to work under another broker instead of contracting with consumers.
Retains broker license status, but works in a salesperson capacity.
Must be sponsored by a broker.

Salesperson

Holds a salesperson's license.

Performs brokerage duties but works as a broker's agent.
Must associate with a broker who supervises all professional activities.
Owes a duty to both the broker and the public to act honestly and competently.

Community Association Manager

Holds a community association management license.

Performs tasks related to managing homeowners associations.
Must work as a broker's agent.

More on Non-Residents

Non-resident licensees have the option to enter into an agreement with a Georgia broker in order to practice real estate in
Georgia without going to the trouble of obtaining a Georgia real estate license. Stipulations include:
The Georgia broker is responsible for verifying the non-resident licensee's license.
 The Georgia broker maintains a copy of the agreement for three years denoting how the commission with the non-
resident licensee is split.
Any listings must be taken under the name of the Georgia broker.
Negotiations must have the consent of the Georgia broker.
Advertising must identify the Georgia broker.
Contracts must identify the Georgia broker.
All trust funds must be held in the Georgia broker's trust accounts.

License Law for Firms

Firms that want to be licensed-whether corporations, partnerships, or LLCs-are required to designate a licensed broker as
their qualifying broker.
The qualifying broker will make sure that the firm and any affiliated licensees comply with license law, rules, and
regulations.
When the firm is named as a respondent in a contested case held before the commission, the qualifying broker must have
authority to bind the firm to any settlement.
Anyone who performs activities for the firm that require a license must hold a real estate license.
When a licensed firm violates license law, rules, or regulations, the qualifying broker will be subject to sanctions.

Acting Without a License

It's illegal to engage in licensed activities or advertise oneself as real estate professional without holding a real estate
license.
The commission may issue a cease and desist order prohibiting any person from engaging in the practice of real estate
without a license. Such a cease and desist order will be final 10 days after it's issued unless the recipient requests a hearing
before the commission.
Violating a cease and desist order subjects the person in violation to further commission proceedings, such as a fine of as
much as $1,000 for each violation instance. Each day the person practices real estate in violation is considered a separate
violation.
Initial judicial review of the commission's decision will only take place in the superior court of the county where the
commission is located.
The commission may also impose remedies provided by statute before issuing a cease and desist order.

Maintaining a License

Salespersons may only affiliate with one broker at any given time.
A real estate license will expire on the last day of the birth month in the fourth year after it was issued and in the same
manner every fourth year.
If a licensee no longer wants to be affiliated with a broker, the broker must transfer the license, even when the licensee is
in violation of the law or owes the broker money.
Once a license is transferred, the broker must notify GREC. The licensee has 30 days to affiliate with a new broker or the
license will become inactive.
A firm's qualifying broker is ultimately responsible for the actions of all licensees affiliated with the firm.
The qualifying broker ensures proper training of all licensees to comply with license law, rules, and regulations.

License Law Violations

Failure to disclose personal interests

Failure to disclose whom the licensee represents
Practicing law without an attorney's license
Acting without a license
Demonstrating untrustworthiness, a lack of competency, or dishonesty
Falsifying paperwork
Advertisements that are misleading, discriminatory, harassing, used to entice clients or drum up new business, or done
blindly by omitting the required disclosures
Advertisements that aren't published under the broker's name and under that broker's direct supervision
Mishandling trust funds, such as security deposits
Depositing trust funds into a regular brokerage business account (commingling)
Failure to document trust accounts' required information, failure to notify GREC of established trust accounts, and not
having up-to-date records
Failure to produce all recordkeeping documentation during a commission audit

For More Information

Georgia Laws

Georgia Code §43-40, Real Estate Brokers and Salespersons

Rules and Regulations of the State of Georgia

Department 520. Georgia Real Estate Commission