GA RE Broker key terms

The state agency that licenses brokers and salespersons, investigates complaints, holds disciplinary hearings, and enforces the license law and rules governing real estate practice in Georgia.

The licensed broker who holds a firm's brokerage license, is responsible for supervising all affiliated licensees, and must sign the firm's license application and renewals.

A license issued to a business entity such as a corporation, LLC, or partnership, allowing it to conduct brokerage only through a designated qualifying broker and licensed affiliates.

A licensed broker who works under another broker's firm rather than owning or operating the brokerage, and who may supervise licensees if assigned by the qualifying broker.

The entry-level license permitting a person to perform brokerage activities on behalf of a sponsoring broker, who must supervise the salesperson's licensed activity.

The broker who holds a salesperson's license and is legally responsible for that licensee's real estate activities, including advertising, trust funds, and required disclosures.

Money held on behalf of others, such as earnest money and security deposits; Georgia rules require prompt deposit into a designated trust account and accurate recordkeeping.

A separate bank account, labeled as a trust or escrow account, used to hold client funds; commingling with the broker's own operating money is prohibited.

Mixing client trust money with the broker's personal or business funds in one account, a license law violation even when the client's money is never actually spent.

The unauthorized use or taking of client trust funds for the broker's own purposes, treated as a serious violation that can lead to license revocation and criminal liability.

Any act or omission that breaches Georgia license law or commission rules, such as unlicensed activity, false advertising, failure to disclose, or dishonest dealing, and that subjects the licensee to discipline.

A commission order directing a person to stop unlicensed or prohibited brokerage activity; violating the order exposes the person to additional penalties.

Performing acts that require a real estate license, such as negotiating a sale for compensation, without holding a valid license or working under a sponsoring broker.

The Georgia statute defining brokerage relationships, agency duties, and required disclosures for licensees representing buyers, sellers, landlords, and tenants in real estate transactions.

A written agreement in which a client engages a broker to provide brokerage services; BRRETA requires it to be in writing and to state the type of relationship created.

A licensee appointed by the broker to represent one party in a transaction, allowing another licensee in the same firm to represent the other party with limited confidentiality barriers.

A situation in which one broker represents both buyer and seller in the same transaction; in Georgia it requires written consent and disclosure of the limits on loyalty and confidentiality.

The legal obligation of an agent to act in the client's best interest, including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting for money and property.

The duty to tell a client or customer about facts that could influence a decision, such as known defects, financial ability, or reasons for selling, when the licensee knows them.

The traditional principle that a buyer takes property as is; Georgia law still limits seller disclosure duties, though brokers must disclose known material facts and cannot misrepresent property conditions.

A written statement in which a seller reports known conditions and defects of the property; it is not a warranty and does not replace the buyer's own inspections.

A listing agreement in which the broker earns a commission regardless of who procures the buyer, including when the seller finds the buyer personally.

A good-faith deposit by the buyer showing intent to complete the purchase, typically held in trust and applied to the purchase price or refunded under contract terms.

A contract period during which the buyer may inspect the property, review records, and terminate for any reason, usually with return of earnest money.

The borrower's written promise to repay a loan on stated terms, including principal, interest rate, payment schedule, and maturity date.

A security instrument that pledges real property as collateral for a loan, giving the lender a right to foreclose if the borrower defaults.

A security instrument using a third-party trustee who holds title to the property as collateral, common in some states and enforceable by nonjudicial foreclosure.

The gradual repayment of a loan through scheduled payments that cover interest first and reduce principal over time, ending with a zero balance at maturity.

The loan amount divided by the property's appraised value or purchase price, expressed as a percentage and used to judge risk and mortgage insurance requirements.

Insurance protecting a lender against borrower default, often required when the down payment is small and the loan-to-value ratio is high.

A closing document itemizing debits and credits to buyer and seller, including price, loan charges, prorated taxes, and commissions, so each party knows the net funds.

The division of an expense such as property tax or rent between buyer and seller based on the number of days each owns the property during the billing period.

Compensation paid to a broker for brokerage services, usually a percentage of the sale price, negotiated between broker and client and paid at closing.

The legal process by which a lender sells mortgaged property to satisfy a defaulted loan, extinguishing the borrower's interest subject to redemption rights.

A right to use another person's land for a specific purpose, such as a utility line or driveway, without owning the land itself.

Any claim, lien, easement, or restriction that burdens a property and may reduce its value or limit its use, and that should appear in a title search.

A policy protecting an owner or lender against losses from title defects, liens, or competing claims that existed before the policy date but were not discovered.

A written instrument that transfers an interest in real property from a grantor to a grantee, containing a legal description and words of conveyance.

A precise method of identifying a parcel, such as a metes and bounds survey, lot and block in a subdivision plat, or section of the public land survey system.

The reasonably probable, legally permissible, physically possible, financially feasible use of a property that produces the greatest value.

A valuation method that estimates value by comparing the subject property with recently sold similar properties and adjusting for differences in features and conditions.

A valuation method that converts a property's expected income into value, often using a capitalization rate, and is most useful for income-producing real estate.

The ratio of a property's net operating income to its value or price, used to compare investment returns and to convert income into an estimated value.