3 Georgia Real Estate Practice
Intro to Real Estate (University of Georgia)
,Georgia Exam Prep: Real Estate Practice
STUDY SHEET
Top Takeaways
You can expect to see approximately 21 questions related to real estate practice in Georgia on your licensing exam.
Real Estate Practice
Brokerage Oversight of Licensing Requirements in Georgia
A firm's qualifying broker is ultimately responsible for the actions of all licensees affiliated with the firm, as well as
unlicensed assistants who work for members of the firm.
The qualifying broker is responsible for the following brokerage activities and procedures:
Ensure that brokerage business is conducted only under the name that appears on the broker license when it was
issued.
Supervise all licensees affiliated with the firm and ensure they're properly trained to comply with license laws,
rules, and regulations.
Ensure that all individuals who represent the firm and perform activities requiring a license are properly licensed.
Provide a written policies and procedures manual to all licensees.
Confirm that advertising complies with the license law, including that all advertising is done in the broker's name.
Within 30 days of execution, review all offers and contracts written by associated licensees for compliance with
real estate laws.
Provide an ongoing review of trust account procedures and monitor trust account disbursements.
Properly maintain transactional documents and all other required records.
Have a written agreement in place that specifies the compensation agreement between the broker and licensees,
including what happens when a licensee leaves in the firm in the middle of a transaction.
Notify the Georgia Real Estate Commission (GREC) immediately of any violations.
A qualifying broker may:
Serve as qualifying broker for more than one firm.
Be an associate broker for one firm and a qualifying broker for another firm, provided the associate broker informs
the qualifying broker in writing of that intention.
Licensees may leave brokerages at will.
Brokers must transfer the affiliated licensee's license upon request, even when the licensee is in violation of the
law or owes the broker money.
Brokers may file a complaint with GREC against a licensee who's in violation.
Brokers may sue to collect money owed.
Brokers must notify GREC of the transfer.
The licensee has 30 days to affiliate with a new broker, or the license will be inactive.
Brokerage Oversight of Unlicensed Assistant Activities
With their broker's approval, licensees may employ unlicensed assistants to handle activities not requiring a license,
thereby freeing themselves to work on activities that will bring in more business and money.
The broker, licensee, and unlicensed assistant must sign a proper employment contract agreement, which details the
specific duties the assistant may and may not perform, compensation, etc. The broker will keep this agreement on file, and
the licensee and assistant will each receive a copy.
Unlicensed assistants must thoroughly understand what activities they can and can't perform when working for a real
estate firm.
Unlicensed assistants may not:
Sell, rent, lease, auction, or exchange real estate, or offer to take any of these actions.
List-or attempt, offer, or agree to list-real estate for sale, lease, or exchange.
Negotiate-or attempt, offer, or agree to negotiate-the sale, listing, exchange, purchase, or lease of real estate.
Discuss or explain a contract, listing, lease, agreement, or other real estate document with anyone outside the
brokerage.
Answer any questions on listings, title, financing, closing, etc.
Explain listing information to a client.
Collect or hold deposit money or rent.
Host open houses.
Show properties.
Negotiate commissions or fees.
Solicit business directly.
Receive compensation based on commission.
Provide advice, recommendations, or suggestions to clients or customers concerning the sale or lease of a property.
Unlicensed assistants may:
Have keys made for company listings.
, Write and place ads subject to the review and approval of the licensee and supervising broker.
Type contract forms at the direction of and with the approval from the licensee and supervising broker.
Compute commission checks.
Place signs on property.
Arrange the date and time of inspections, mortgage application, pre-settlement walk-through, and settlement.
Prepare flyers and promotional information for approval by the licensee and supervising broker.
Answer phones.
Assemble closing documents.
Act as a courier.
Accompany a licensee to an open house for security purposes.
Perform maintenance on a property.
Affiliating with a Georgia Broker
Salespeople select a qualifying broker to maintain their license in the broker's office.
This broker agrees to supervise and train their affiliated licensees and is responsible for their actions while they're
salespeople or associate brokers.
All listings and buyer representation agreements that affiliated licensees sign, as well as all real estate services and
marketing activities they perform, are done in the name of the qualifying broker.
The Employment Contract in Georgia
Licensees, as well as unlicensed people, who work for a qualifying broker in Georgia should define the terms of their
working relationship.
For employees, this is accomplished by using an employment contract (aka employment agreement). For independent
contractors, the independent contractor agreement is used. No matter the agreement, the licensee/employee and the broker
should all sign.
Employment contracts should define:
The terms under which the person is working for the broker (including start date and terms for termination)
Hours of work
Fees, dues, and expenses
The compensation plan (for an employee, this is a wage or salary plus benefits package)
The worker's title and responsibilities
Independent contractor agreements must define:
Licensure requirements (that it's the licensee's responsibility to maintain the license)
Rules regarding purchasing, leasing, or selling personally owned property
Any broker-required board/association membership or insurance protection
Provisions regarding copyright protection of items such as photos, videos, or virtual tours for listings (These are
the property of the broker, even if secured by the licensee.)
The commission sharing agreement
Some brokerages will include or attach to the independent contractor agreement a:
Termination agreement, stating what happens when the agent separates from the firm: who owns the listing, how
keys are to be returned.
Confidentiality agreement, stating that all proprietary firm and client confidential information is to remain
confidential.
Brokers will often ask licensees to provide an information sheet, and will review this sheet with the agent at least
annually, when the independent contractor agreement is renewed. This information should capture:
Contact information (ensuring it is up to date)
URLs the licensee is using or owns that are associated with real estate
Marketing plans, tools and approaches the licensee is using
Brokers need to ensure that their licensees keep their licenses active, and may require that they provide proof they've
completed their continuing education.
Sales Contracts
The Georgia Association of REALTORS ®(GAR) offers many attorney-prepared real estate forms to GAR members.
However, GREC does not require a broker to be a REALTOR ®or a GAR member or to use GAR forms.
Brokers who aren't GAR members must provide their own attorney-prepared forms that meet the requirements of Georgia
real estate law.
Licensees may complete listing, sales, or lease contracts that an attorney has prepared for their broker's use without
engaging in the unauthorized practice of law. Licensees can't alter the contract without attorney review.
Licensees should use standard forms and standard addenda. They may fill in blanks on the sales contract, but should use
caution to not give legal advice or go beyond filling in the blanks when drafting an addendum by using non-standard
language, which could be considered unauthorized practice of law.
The sales contract is the buyer's documented offer to the seller to purchase the property identified in the agreement. Other
names for the sales contract are the offer to purchase, purchase contract, or purchase agreement.
The entire agreement between the parties comprises all the terms in the sales contract and any attached addenda.
Licensees should describe the provisions of the sales contract and ensure the client understands them before obtaining
signatures.
Intro to Real Estate (University of Georgia)
,Georgia Exam Prep: Real Estate Practice
STUDY SHEET
Top Takeaways
You can expect to see approximately 21 questions related to real estate practice in Georgia on your licensing exam.
Real Estate Practice
Brokerage Oversight of Licensing Requirements in Georgia
A firm's qualifying broker is ultimately responsible for the actions of all licensees affiliated with the firm, as well as
unlicensed assistants who work for members of the firm.
The qualifying broker is responsible for the following brokerage activities and procedures:
Ensure that brokerage business is conducted only under the name that appears on the broker license when it was
issued.
Supervise all licensees affiliated with the firm and ensure they're properly trained to comply with license laws,
rules, and regulations.
Ensure that all individuals who represent the firm and perform activities requiring a license are properly licensed.
Provide a written policies and procedures manual to all licensees.
Confirm that advertising complies with the license law, including that all advertising is done in the broker's name.
Within 30 days of execution, review all offers and contracts written by associated licensees for compliance with
real estate laws.
Provide an ongoing review of trust account procedures and monitor trust account disbursements.
Properly maintain transactional documents and all other required records.
Have a written agreement in place that specifies the compensation agreement between the broker and licensees,
including what happens when a licensee leaves in the firm in the middle of a transaction.
Notify the Georgia Real Estate Commission (GREC) immediately of any violations.
A qualifying broker may:
Serve as qualifying broker for more than one firm.
Be an associate broker for one firm and a qualifying broker for another firm, provided the associate broker informs
the qualifying broker in writing of that intention.
Licensees may leave brokerages at will.
Brokers must transfer the affiliated licensee's license upon request, even when the licensee is in violation of the
law or owes the broker money.
Brokers may file a complaint with GREC against a licensee who's in violation.
Brokers may sue to collect money owed.
Brokers must notify GREC of the transfer.
The licensee has 30 days to affiliate with a new broker, or the license will be inactive.
Brokerage Oversight of Unlicensed Assistant Activities
With their broker's approval, licensees may employ unlicensed assistants to handle activities not requiring a license,
thereby freeing themselves to work on activities that will bring in more business and money.
The broker, licensee, and unlicensed assistant must sign a proper employment contract agreement, which details the
specific duties the assistant may and may not perform, compensation, etc. The broker will keep this agreement on file, and
the licensee and assistant will each receive a copy.
Unlicensed assistants must thoroughly understand what activities they can and can't perform when working for a real
estate firm.
Unlicensed assistants may not:
Sell, rent, lease, auction, or exchange real estate, or offer to take any of these actions.
List-or attempt, offer, or agree to list-real estate for sale, lease, or exchange.
Negotiate-or attempt, offer, or agree to negotiate-the sale, listing, exchange, purchase, or lease of real estate.
Discuss or explain a contract, listing, lease, agreement, or other real estate document with anyone outside the
brokerage.
Answer any questions on listings, title, financing, closing, etc.
Explain listing information to a client.
Collect or hold deposit money or rent.
Host open houses.
Show properties.
Negotiate commissions or fees.
Solicit business directly.
Receive compensation based on commission.
Provide advice, recommendations, or suggestions to clients or customers concerning the sale or lease of a property.
Unlicensed assistants may:
Have keys made for company listings.
, Write and place ads subject to the review and approval of the licensee and supervising broker.
Type contract forms at the direction of and with the approval from the licensee and supervising broker.
Compute commission checks.
Place signs on property.
Arrange the date and time of inspections, mortgage application, pre-settlement walk-through, and settlement.
Prepare flyers and promotional information for approval by the licensee and supervising broker.
Answer phones.
Assemble closing documents.
Act as a courier.
Accompany a licensee to an open house for security purposes.
Perform maintenance on a property.
Affiliating with a Georgia Broker
Salespeople select a qualifying broker to maintain their license in the broker's office.
This broker agrees to supervise and train their affiliated licensees and is responsible for their actions while they're
salespeople or associate brokers.
All listings and buyer representation agreements that affiliated licensees sign, as well as all real estate services and
marketing activities they perform, are done in the name of the qualifying broker.
The Employment Contract in Georgia
Licensees, as well as unlicensed people, who work for a qualifying broker in Georgia should define the terms of their
working relationship.
For employees, this is accomplished by using an employment contract (aka employment agreement). For independent
contractors, the independent contractor agreement is used. No matter the agreement, the licensee/employee and the broker
should all sign.
Employment contracts should define:
The terms under which the person is working for the broker (including start date and terms for termination)
Hours of work
Fees, dues, and expenses
The compensation plan (for an employee, this is a wage or salary plus benefits package)
The worker's title and responsibilities
Independent contractor agreements must define:
Licensure requirements (that it's the licensee's responsibility to maintain the license)
Rules regarding purchasing, leasing, or selling personally owned property
Any broker-required board/association membership or insurance protection
Provisions regarding copyright protection of items such as photos, videos, or virtual tours for listings (These are
the property of the broker, even if secured by the licensee.)
The commission sharing agreement
Some brokerages will include or attach to the independent contractor agreement a:
Termination agreement, stating what happens when the agent separates from the firm: who owns the listing, how
keys are to be returned.
Confidentiality agreement, stating that all proprietary firm and client confidential information is to remain
confidential.
Brokers will often ask licensees to provide an information sheet, and will review this sheet with the agent at least
annually, when the independent contractor agreement is renewed. This information should capture:
Contact information (ensuring it is up to date)
URLs the licensee is using or owns that are associated with real estate
Marketing plans, tools and approaches the licensee is using
Brokers need to ensure that their licensees keep their licenses active, and may require that they provide proof they've
completed their continuing education.
Sales Contracts
The Georgia Association of REALTORS ®(GAR) offers many attorney-prepared real estate forms to GAR members.
However, GREC does not require a broker to be a REALTOR ®or a GAR member or to use GAR forms.
Brokers who aren't GAR members must provide their own attorney-prepared forms that meet the requirements of Georgia
real estate law.
Licensees may complete listing, sales, or lease contracts that an attorney has prepared for their broker's use without
engaging in the unauthorized practice of law. Licensees can't alter the contract without attorney review.
Licensees should use standard forms and standard addenda. They may fill in blanks on the sales contract, but should use
caution to not give legal advice or go beyond filling in the blanks when drafting an addendum by using non-standard
language, which could be considered unauthorized practice of law.
The sales contract is the buyer's documented offer to the seller to purchase the property identified in the agreement. Other
names for the sales contract are the offer to purchase, purchase contract, or purchase agreement.
The entire agreement between the parties comprises all the terms in the sales contract and any attached addenda.
Licensees should describe the provisions of the sales contract and ensure the client understands them before obtaining
signatures.
