Georgia Chapter 1 Licensing Requirements.txt

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star.strukk
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Georgia Chapter 1 Licensing Requirements.txt
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2013-07-01 15:27:44
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Georgia Chapter Licensing Requirements
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Georgia Chapter 1 Licensing Requirements
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  1. The professional life of the Georgia real estate licensee is governed by                       passed by the                                 , and the rules and regulations formulated by the                             .
    Real estate license law (Title 43 Chapter 40), Georgia State legislatureGeorgia real estate commission
  2. The rules and regulations that govern the business life of real estate licensees were formulated by
    the Georgia real estate commission.
  3. The commission was created by
    Georgia real estate law
  4. If there is a conflict between the law and the rules and regulations, the                      always takes precedence over the                         .
    Law, administrative rules and regulations
  5. Associate broker
    Person who meets all the qualifications of a broker, but who chooses to work for a real estate broker and perform acts of real estate on the broker's behalf.
  6. Broker
    Person who performs acts of real estate brokerage for another, for compensation
  7. Community Association Manager
    Person who acts on behalf of a real estate broker to offer only community association management services
  8. Brokerage firm
    Any business entity such as a sole proprietorship, partnership, limited liability company, or corporation license by the commission as a broker
  9. Licensee
    Any person holding a real estate license, whether active or inactive
  10. Person
    Could be an Individual person and/or also a business entity such as a corporation, partnership or limited liability company
  11. Salesperson
    Person who is licensed to perform acts of real estate for a real estate broker
  12. How many members does a real estate commission have?
    6 members
  13. Commission members are appointed by _____________ and confirmed by the ______________, for _________ year terms.
    Commission members are appointed by the governor and confirmed by the state senate, for 5 year terms.

    The terms are staggered so that only one member expires each year.
  14. How many members of the real estate commission must be licensed in real estate?
    5 members
  15. What are the qualifications for real estate commission members?
    • 5 members must be licensed in real estate for at least 5 years, and a Georgia resident for at least 5 years
    • 1 member must be a consumer member with no connection to the real estate industry
  16. Who can remove a real estate commission member and why?
    The governor can remove a member for incompetence, dishonesty or failure to perform duties
  17. Each year the members select a                   and a                       from among their membership.
    Chair and vice chair
  18. Commissioner
    Fulltime employee hired by the commission members to run the day to day operation, hire staff and enforce policy.
  19. Can a commissioner be a member of the commission?
    No
  20. No employee of the commission (including the commissioner) can hold an active real estate license.

    a. True
    b. False
    a. True
  21. Primary purpose of the commission
    To protect the public from dishonest and incompetent real estate licensees.
  22. What is the commission empowered by Georgia law to do?
    • Develop rules and regulations that govern the business life of real estate licensees
    • Develop rules and regulations for issuing real estate licenses
    • Investigate alleged violations by licensees.
    • Discipline licensees who are found to have violated the law or regulations
    • Establish nonrefundable fees, which licensees are required to pay.
  23. What could be an adequate cause for the commission to refuse to issue a license?
    Misrepresenting any fact on an application form would be an adequate cause for the commission to refuse to issue a license.
  24. What happens to the nonrefundable fees paid by licensees?
    • The fees are deposited in the state treasury and are used to fund the operation of the commission.
    • The commission receives no public money for its operation.
  25. What are some of the fees paid by real estate licensees?
    Fees include, but are not limited to exam fees, activation fees, annual fees and penalties
  26. Discipline by the commission can include??
    • Refusal to grant or renew a license
    • A reprimand or censure for minor violations (this bypasses a formal hearing)
    • Require additional education course study
    • When trust account infractions are involved the commission can require regular trust account reports from an independent accountant
    • fine not to exceed $1000 for each violation, with fines for multiple violations limited to $5000 in any one disciplinary violation
    • Suspend a license for a specific period of time, or an indefinite period
    • Revoke a license (person may apply for a new license after 10 years)
    • Revoke the license of a broker and simultaneously issue a salesperson's license
    • Limit or restrict any license or approval as the commission feels necessary for the protection of the public
  27. What could be the fine for a violation?
    Not to exceed $1000 for each violation
  28. What could be the fines for multiple violations?
    Limited to $5000 in any 1 disciplinary violation
  29. The commission can suspend a license for only a specific period of time.

    a. True
    b. False
    b. False

    The commission could suspend a license for a specific period of time or an indefinite period
  30. How long before a person can apply for a new license, if his license gets revoked by the commission?
    After 10 years
  31. Can the commission revoke the license of a broker?
    Yes and simultaneously issue a salesperson's license
  32. Can the real estate commission limit or restrict any license or approval?
    Yes, as the commission feels necessary for the protection of the public
  33. If there is a commission split dispute between a broker and a salesperson, what does the commission do?
    The commission does not arbitrate disputes among licensees, such as a commission split dispute between a broker and his salesperson.
  34. What information about a licensee is public information?
    • Licensee's name
    • License number
    • License status
    • Disciplinary information
    • are a matter of public record and can be accessed by the public on the commission's website
  35. Real Estate Commission is also known as Association Of REALTORS.

    a. True
    b. False
    b. False

    Do not confuse the real estate commission with the association of realtors, or any local association of realtors.

    Associations are trade organizations and membership is voluntary.
  36. Are the code of ethics developed by the National Association of Realtors same as Real Estate Law?
    No. NAR's code of ethics are only adopted by individual state associations along with the law.

    The NAR requires their members to abide by the realtors code of ethics and they can deny membership to the violators, but their code has no legal force.
  37. Who is required to have a license?
    • Any person who performs any of the following acts of brokerage for another, for compensation, is required to hold an active real estate license:
    • 1. Negotiating
    • 2. Acting as a referral agent
    • 3. Collecting rents, assessments, or other trust funds
    • 4. Auctioning real estate
    • 5. Performing property management/community association management services
    • 6. Advertising
  38. What happens when somebody operates without a license?
    • The commission can issue a cease and desist order, and can impose a fine up to $1000 a day for operating without a license
    • A court can impose a fine and/or impose a jail sentence of up to one year
  39. Can an owner or the fulltime employees of the owner buy, sell or lease on their own account without a license?
    Yes, an individual, spouse of an individual, corporation, partnership or general partner of a limited partnership or the fulltime employees of the owner, can buy, sell or lease on their own account without a license
  40. Who is required to have a license?

    A. person who is a member of a community association, and who provides management services to only one association of which that person is a member
    B. person performing property management or community association management services for compensation
    C. person employed by a broker to manage property when the broker has a written management agreement with the owner of the property
    D. person managing property that is available for less than 90 days and no lease or rental agreement is involved.
    B. person performing property management or community association management services for compensation
    (this multiple choice question has been scrambled)
  41. Who is required to have a license?

    A. licensed CPA acting in the capacity of an accountant
    B. person acting as receiver, trustee in bankruptcy, administrator, executor, or guardian or acting under a court order or under the authority of a will or of a trust instrument
    C. attorney-in-fact acting under a properly executed power of attorney
    D. person collecting rents, assessments, or other trust funds for a fee
    D. person collecting rents, assessments, or other trust funds for a fee
    (this multiple choice question has been scrambled)
  42. Which of the following people require a license?

    A. person who acts a referral agent only, and who performs no other real estate services.
    B. any person employed by a public or private utility who is performing acts in his regular course of business
    C. any officer or employee of a government agency in the conduct of official duties
    D. any person acting as a referral agent for the procuring of prospects for, the listing, sale, purchase, exchange, renting, lease or option of real estate
    D. any person acting as a referral agent for the procuring of prospects for, the listing, sale, purchase, exchange, renting, lease or option of real estate
    (this multiple choice question has been scrambled)
  43. The primary purpose of the real estate commission is to

    A. Collect mandatory fees from licenses
    B. Protect the public
    C. Arbitrate disputes between licensees
    D. Guide state legislators in devising real estate law
    B. Protect  the public
    (this multiple choice question has been scrambled)
  44. All employees of the commission must be unlicensed or inactive, but all commission members must be active real estate licensees.

    a. True
    b. False
    b. False
  45. Sarah lives in Atlanta and has a sister who lives in South Carolina.  The sister wants to swap her house in South Carolina for a house close to Sarah.  Sarah knows her next door neighbor wants to get out of Atlanta, and puts the neighbor in touch with her sister. The two agree to swap houses if Sarah will handle the paperwork. The two agree to pay Sarah for time.

    A. This is illegal because Sarah's sister is out of state.
    B. This is legal because Sarah is doing a favor for an immediate family member.
    C. This is legal because it was a swap and no money was involved in the transaction.
    D. This is illegal if Sarah is unlicensed.
    D. This is illegal if Sarah is unlicensed.
    (this multiple choice question has been scrambled)
  46. Bill knows that his neighbor Carol wants to sell her house. Bill's friend Sam tells Bill that he would like to buy a house in Bill's neighborhood. Bill introduces Sam and Carol.  Sam ends up buying Carol's house. Bill is not licensed. Can Bill receive a referral fee for this?

    A. Yes, Bill can receive a referral fee from Carol's broker.
    B. Yes, Bill can receive a referral fee from Carol.
    C. No, only licensed individuals can receive referral fees.
    D. Yes, Bill can receive a referral fee from Sam.
    B. Yes, Bill can receive a referral fee from Carol.
    (this multiple choice question has been scrambled)
  47. John decides to help his brother sell his house.  He advises his brother about a market price for his house and helps in advertising the property.

    A. This is illegal even if john receives no compensation.
    B. This is legal because the person is john's brother.
    C. This is legal if john receives no compensation for his help.
    D. This is illegal because john is not licensed.
    C. This is legal if john receives no compensation for his help.
    (this multiple choice question has been scrambled)
  48. Sam owns a 50 unit apartment building.  Sam is not licensed. He has employed Ben to manage the property for him. Ben has an inactive salesperson's license. This is legal because Ben's license is inactive.  

    a. True 
    b. False
    b. False
  49. Atty. Smith is settling the estate of a deceased client. The estate includes a tract of land that the Atty. sells for $100,000. The Atty. charges the estate $10,000 for the sale of the land. The attorney does not have a real estate license. This is legal.

    a. True
    b. False
    a. True
  50. Two brothers have a dispute about a commission split. Which of the following could become involved in settling their dispute?

    A. The department of justice
    B. The commissioner
    C. A court of competent jurisdiction
    D. The real estate commission
    C. A court of competent jurisdiction
    (this multiple choice question has been scrambled)
  51. ABC cooperation owns 10 apartment buildings.

    A. The officers of the corporation must be licensed.
    B. ABC employees who manage the buildings must be licensed.
    C. Only employees who buy and sell buildings need to be licensed
    D. Employees of the corporation do not need to be licensed.
    D. Employees of the corporation do not need to be licensed.
    (this multiple choice question has been scrambled)

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