Real Estate Brokerage and License Law
Real Estate Brokerage and License Law
This domain tests how Georgia licenses and supervises brokerage. The controlling sources are O.C.G.A. Title 43, Chapter 40 and the Georgia Real Estate Commission (GREC) Rules, Chapter 520-1. Expect questions on qualification, broker supervision, trust funds, advertising, and discipline.
The Georgia licensing framework
- A salesperson applicant must be at least 18, complete a 75-hour prelicense course, pass the exam, and work under a sponsoring broker.
- A broker applicant must be at least 21, have three years of active licensed experience, complete a 150-hour broker prelicense course, and pass the broker exam.
- Licenses renew on a four-year cycle with continuing education, including license-law hours.
Trust funds and supervision
The broker is the party responsible for trust funds, not the salesperson. Earnest money, security deposits, rents, and closing funds held by the brokerage go into a designated trust account; operating money must not be commingled. The broker must keep records and supervise licensees and unlicensed assistants.
Advertising and unlicensed activity
Ads must identify the brokerage firm's licensed name. Unlicensed assistants may do clerical work, but may not negotiate, quote terms, or be paid a commission.
Discipline
GREC may investigate, suspend or revoke a license, fine, require education, or issue a cease-and-desist order. Hearing and appeal rights follow the Administrative Procedure Act.
Worked example
An unlicensed assistant answers the office phone, tells a caller the seller will take $310,000, and schedules a showing. The assistant is paid an hourly wage plus $200 when the caller buys. The price discussion and commission bonus are problems: discussing price and terms is licensed activity, and compensating an unlicensed person based on a transaction violates license law. Scheduling a showing alone is clerical. The broker faces discipline for failing to supervise.
Traps
Assuming a salesperson may hold trust funds independently; treating trust funds as available for office expenses; omitting the firm name from ads; believing an unlicensed assistant may just explain contract terms; ignoring the broker's supervisory duty.