GA Real Estate cheat sheet

Freehold estates include fee simple absolute, fee simple defeasible, and life estates; leasehold interests are personal property estates.

An easement appurtenant benefits and runs with a dominant parcel; an easement in gross benefits a person or entity rather than a parcel.

Georgia uses a security deed to convey legal title to a lender as security until the debt is satisfied; the borrower retains equitable title.

Zoning tools: nonconforming use may continue; variance requires undue hardship; special or conditional use permit allows a specified use.

Police power supports zoning, building codes, and health and safety rules; eminent domain requires condemnation and just compensation.

CERCLA, the Superfund law, imposes liability on current owners and operators and certain past owners for hazardous substance releases.

Federal lead-based paint disclosure is required for sales and leases of housing built before 1978.

Restrictive covenants run with land when intent, notice, touch and concern, and privity exist.

Fiduciary duties commonly summarized as care, obedience, loyalty, disclosure, accounting, and confidentiality.

Agency may be created by express agreement, implication, ratification, or estoppel.

Material facts affecting value or a party's decision must be disclosed; confidential principal information remains protected after termination.

Dual agency represents both parties; Georgia requires informed written consent and impartial treatment.

Designated agency lets different licensees in one firm represent opposing parties without making the firm a dual agent.

A broker supervises affiliated licensees and is responsible for trust funds and advertising compliance.

No secret profits, self-dealing, or commingling of client funds with personal or brokerage funds.

Market value assumes an informed, willing buyer and seller, reasonable exposure, and no undue pressure.

Sales comparison: adjust comparables to the subject; comp superior = subtract; comp inferior = add.

Cost approach value = land value + replacement or reproduction cost - accrued depreciation.

Income approach: value = NOI / cap rate; cap rate = NOI / value.

Gross rent multiplier = price / gross monthly rent; value = GRM x subject gross monthly rent.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Reconciliation weights the approaches by relevance and data quality; price, cost, and value are not identical.

LTV = loan amount / lesser of appraised value or purchase price; down payment = 1 - LTV.

One discount point = 1% of the loan amount; points are prepaid interest used to buy down the rate.

PITI = principal, interest, property taxes, and insurance; escrow collects taxes and insurance.

FHA insures loans; VA guarantees loans; USDA offers rural development loans; conventional loans are not government insured.

RESPA and TRID require a Closing Disclosure at least 3 business days before closing and prohibit referral kickbacks.

TILA gives a 3-business-day rescission right for certain refinances and HELOCs secured by a principal residence.

Georgia Residential Mortgage Act licensing is administered by the Department of Banking and Finance, not GREC.

Amortization may be fully amortizing, interest-only, balloon, or negative amortization.

Statute of Frauds requires a writing signed by the party to be charged for land sales and leases over one year.

Valid contract elements: offer, acceptance, consideration, capacity, legality, and mutual assent.

A counteroffer rejects the original offer and creates a new offer.

Contingencies make a duty conditional, such as financing, inspection, appraisal, or sale of the buyer's home.

Earnest money is trust funds; liquidated damages must be reasonable, not a penalty.

Remedies include damages, specific performance, rescission, and reformation.

Assignment transfers rights; novation substitutes a new party and releases the original.

Time-is-of-the-essence clauses make deadlines enforceable; merger may extinguish pre-closing promises.

Deed requirements generally include grantor, grantee, words of conveyance, legal description, consideration, grantor's signature, and delivery and acceptance.

General warranty deed includes seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances.

Special or limited warranty deed covers only the grantor's period of ownership; quitclaim transfers whatever interest exists with no warranty.

Recording in the public registry gives constructive notice and establishes priority among competing interests.

Owner's title insurance protects the owner; lender's title insurance protects the lender's interest.

Georgia deed transfer tax is $1.00 per $1,000 of consideration, usually paid by the seller.

Georgia closings are typically conducted by attorneys who supervise settlement and title work.

Prorations allocate taxes, rent, and other items as of closing; the settlement statement itemizes debits and credits.

Georgia generally applies caveat emptor to resale property, but sellers may be liable for fraud or concealed latent defects.

Federal lead-based paint disclosure applies to pre-1978 housing sales and leases; buyers get a 10-day inspection opportunity unless waived.

RESPA Section 8 prohibits referral kickbacks; affiliated business arrangements require written disclosure.

Fair housing advertising may not state a preference, limitation, or discrimination based on a protected class.

Wire fraud prevention: verify wiring instructions by known phone number; never rely solely on email.

Unlicensed assistants may do administrative work but may not negotiate, solicit, or perform licensed activities.

Georgia Fair Business Practices Act prohibits deceptive trade practices in consumer transactions.

Commission = sale price x commission rate; split commission = total commission x split percentage.

Loan amount = price x LTV; down payment = price - loan amount.

Points cost = loan amount x points percentage; 2 points on $200,000 = $4,000.

NOI = effective gross income - operating expenses; debt service and income taxes are excluded.

Cap rate = NOI / value; value = NOI / cap rate.

GRM = price / gross rent; value = GRM x gross rent.

One acre = 43,560 sq ft; one section = 640 acres; one township = 36 sections.

Transfer tax = consideration / $1,000 x $1.00, rounding up fractional thousands.

The Georgia Real Estate Commission regulates licensees under O.C.G.A. Title 43, Chapter 40 and Commission Rules Chapter 520.

Salespersons must work under a qualifying broker; brokers may operate independently and supervise licensees.

Georgia licenses renew every four years; CE totals 36 hours per cycle, including a license-law component.

Brokers must maintain trust or escrow accounts for client funds, keep records, and avoid commingling.

Advertising must identify the brokerage firm and the licensee's licensed name; misleading advertising is prohibited.

GREC may investigate complaints and impose sanctions including reprimand, fine, suspension, or revocation.

Unlicensed persons may not perform activities requiring a license, such as negotiating or soliciting listings.

Licensees must disclose their license status in transactions and comply with commission rules on records and handling offers.

BRRETA, O.C.G.A. Chapter 10-6A, governs Georgia brokerage relationships and agency disclosure.

Georgia licensees provide the Agency Fact Sheet at first substantial contact with a consumer.

Designated agency is permitted; dual agency requires informed written consent.

A brokerage engagement should be in writing and state the scope, term, compensation, and agency relationship.

Georgia sale contracts must be in writing and signed; attorneys often prepare or review contract forms.

Georgia does not mandate a statewide seller property disclosure form; caveat emptor and fraud rules still apply.

Advertising and social media must include the firm name and licensed name and must not be misleading.

Team or assumed names may not obscure the responsible brokerage; the licensed brokerage remains accountable.

Federal fair housing protected classes: race, color, religion, sex, national origin, familial status, and disability.

Georgia fair housing law mirrors federal protections; local ordinances may add classes.

Prohibited practices include refusal to rent or sell, discriminatory terms, steering, blockbusting, and redlining.

Disability rules require reasonable accommodations in rules and reasonable modifications at the tenant's expense in many cases.

Assistance and service animals are not pets and must be accommodated absent undue burden.

Georgia has no statutory cap on residential security deposits; landlord must return the deposit within 30 days after termination with an itemized list.

Eviction uses a dispossessory proceeding in magistrate court; tenant generally has 7 days after service to answer.

Self-help evictions are prohibited; landlord must use legal process.