Which of these is true regarding the georgia real estate commissions licensing power?

Question: A real estate developer of Mexican descent hires a broker to market his new subdivision. The developer asks the broker to give first preference to Latino homebuyers. Under these conditions, which of the following statements is true?

A: As long as the request is not in writing as part of the listing agreement, the broker may follow the instructions

B: The broker should make sure that a Spanish-speaking salesperson heads the marketing team

C: The broker should refuse to market the subdivision under these circumstances

D: As long as the broker does not use any discriminatory advertising, no Fair Housing laws will be violated

C. Explanation: In this scenario, giving priority to any minority group defined under Fair Housing guidelines would clearly violate the law without exception.

A property owner asks a licensed salesperson to find someone to lease his home. Interviewing potential tenants, the licensee would NOT be in violation of Fair Housing laws if he refused to rent to which of the following?

A: A person infected with the AIDS virus

B: A pregnant single woman

C: A nonresident couple from China

D: Two college students

D.Explanation: Handicapped/disabled, familial status, and national origin are all protected classes under Fair Housing laws. College students are not.

A salesperson might be in violation of Fair Housing laws in all of the following circumstances EXCEPT:

A: When a couple from France asks a licensee to show them homes, the salesperson immediately refers them to another salesperson in the office who is also from France

B: The licensee signs a buyer agency agreement with a minority couple, but subsequently fails to use his best efforts to find them a home

C: A licensee tells a minority customer that a home that the licensee has listed is under contract when, in fact, the property does not yet have a binding contract

D: When a minority homeowner asks a licensee to list her property, the licensee declines because that particular home is considerably outside the geographical boundaries with which the licensee has any knowledge or expertise

D. Explanation: A licensee may be found in violation of Fair Housing laws if no attempt is made to work with minority prospects, even if language issues are present. Licensees must use their best efforts with ALL prospects. ALL prospects must be treated fairly and equally regarding property information; a licensee is NOT in violation of Fair Housing if the licensee does not accept work outside areas with which the licensee is familiar.

All of the following are true regarding Fair Housing laws EXCEPT:

A: Violations may be litigated in administrative courts set up by HUD

B: There are never any exceptions to the law when race is involved

C: Fair Housing law violations are a part of federal, state, and Georgia real estate license law

D: Both residential and commercial real estate are covered by Fair Housing laws

D. Explanation: Fair Housing laws only cover residential real estate, not commercial. HUD courts were set up under the 1988 Amendment. Race is the only non-exception to the laws. Violations of Fair Housing involve state, federal, and license law.

What is true regarding any funds paid from the Georgia Real Estate Education, Research, and Recovery Fund?

A: A court-ordered judgment against the licensee must occur before the Fund will make any payments

B: The liability for each licensee shall never exceed $20,000

C: Real estate licensees are not eligible to recover money from this fund

D: Both A and C are correct

D. Explanation: Only non-licensees who have been "injured" by the actions of a licensee may seek payment from this Fund. They must have been awarded a court judgment against the licensee and have been unsuccessful in their attempts to collect this full judgment. The liability for each licensee shall not exceed $75,000.

The Georgia Real Estate Commission's Education, Research, and Recovery Fund is used to compensate:

A: Principals in real estate transactions who feel they have been defrauded by a real estate licensee

B: Brokers who have been unable to collect their earned compensation from sellers and buyers in a real estate transaction

C: Licensees who have not received their proper commission splits from their brokers

D: Real estate brokers and salespersons who are unable to work because of illness or injury

a. Explanation: The Recovery Fund only pays out money to non-licensees. Brokers and real estate salespeople are ineligible to collect from this Fund.

A home seller has sued her listing agent for fraud and the court has awarded the plaintiff a judgment in the amount of $50,000. However, the plaintiff was only able to collect $25,000 from the assets of the licensee. In this situation, what would be the maximum amount that this individual could expect from the Real Estate Education, Research, and Recovery Fund?

A: $25,000

B: $50,000

C: $15,000

D: $45,000

a. Explanation: No individual may ever collect more than $25,000 from the Fund. Also, no more than $25,000 may ever be paid out for misdeeds in a single transaction.

Members of the Georgia Real Estate Commission:

A: Must all have five years of active real estate license experience

B: Are appointed by the Governor and approved by the legislature

C: May not have an active real estate license

D: Are selected by the Real Estate Commissioner

b. Explanation: Only five of the six Commission members must have five years as an active licensee; the sixth member has no connection to the real estate industry. The Commissioner does not hire the Commission members; they are appointed by the governor.

A real estate salesperson wants to sell investment property that he owns but decides not to use his broker's name in advertising the property. Under these circumstances, what would be true?

A: The salesperson need only inform his employing broker in writing of his plans

B: The salesperson may deposit any earnest money received in his personal bank account

C: The salesperson must have the written consent of his employing broker and must also disclose that he is a licensed real estate salesperson

D: The salesperson must list the home with a broker

c. Explanation: If a licensee wants to sell personal property without using the employing broker's name in advertising the property, the licensee must receive written permission from the broker as well as disclose his or her real estate license status in any advertising. The salesperson, though, is not under any obligation to list the home with any broker.

The Georgia Real Estate Commission might investigate a licensee under all of the following circumstances EXCEPT:

A: A Its own initiative

B: If a sworn written complaint against a broker is received

C: As part of a random selection of all licensees

D: When a broker sends a letter suspecting unfair practices from an affiliate

Status: Unanswered

c. Explanation: The Georgia Real Estate Commission may not initiate a random search for investigations of its licensees. There must be legitimate cause. The Commission does have an obligation to investigate complaints in writing from citizens or if inappropriate behavior by a licensee is suspected.

The Rules passed by the Georgia Real Estate Commission:

A: Must be approved by the state legislature

B: Are a specific part of license law passed by the state legislature

C: Must be based on license law

D: Regulate the activities of the Real Estate Commissioner

C. Explanation: The rules and regulations passed by the Georgia Real Estate Commission are always based on specific provisions of license law. The rules are NOT a part of license law.

If the Real Estate Commission votes to revoke a license, Georgia law gives the licensee the right to:

A: Bring the case before the Real Estate Commissioner

B: Pay damages in lieu of surrendering the license

C: Appeal to the courts

D: Have the Secretary of State interplead on the licensee's behalf

C. Explanation: When a license is suspended or revoked, the holder may appeal for a judicial review if not satisfied with the reasons for the Commission's action.

A Georgia real estate company hires an office manager to run one of the branch offices. The office manager's duties include downloading information from agent listings to the local MLS, supervising clerical personnel, and making sure agents adhere to office policy in filling out their independent contractor compensation forms. In these capacities, the office manager:

A: Must have a broker's license

B: B Only needs a salesperson's license

C: Violates Georgia license law

D: Would need no real estate license

d. Explanation: The office manager is performing ministerial, non-real estate activities and, therefore, is exempt from licensing requirements.

Under Georgia law, a business formed as a limited partnership that plans to sell shares of real property stock to attract other members to this partnership:

A: Needs only have a real estate license

B: Needs either a real estate license or a securities license

C: Must have a real estate license in addition to a securities license

D: Needs only a securities license

c. Explanation: Under Georgia law, any business that plans to specialize in selling real property securities must hold both a real estate license and a securities license.

To receive a broker's license in Georgia, an applicant must:

A: Be at least 20 years of age

B: Successfully complete 75 hours of state-approved real estate courses

C: Have held an active real estate license for two years

D: Present an acceptable GCIC report to the Commission

D. Explanation: To receive a broker's license in Georgia, one must be actively engaged in real estate for three years, complete a 60-hour prelicense course, and pass a GCIC background check.

A real estate license is necessary for persons involved in which of the following business activities?

A: Someone who owns and personally manages a 10-unit apartment complex

B: A woman who has power of attorney to negotiate the sale of her brother's home

C: The director of the local MLS

D: An individual who, for compensation or the promise of compensation, assists in the buying, selling, leasing, exchange, or auctioning of real property

Explanation: Georgia law requires a real estate license for any situation where persons are engaged in real estate activity for compensation or the promise of compensation. Exempt from licensing requirements are owners who manage their own properties. Personnel who manage or work for multiple listing services, or individuals who have written authority to negotiate the sale of a relative's property.

Which of the following penalties would the real estate commission NOT have authority to impose on a person found to be practicing real estate activities without a license?

A: $ 1,000 fine

B: An order for the individual to "cease and desist" the unauthorized activity

C: A six-month jail term

D: Additional fines for each day that the unauthorized person ignores the cease and desist order

c. Explanation: The Georgia Real Estate Commission has no authority to impose jail terms; it may issue a cease and desist order, assess an initial fine up to $1,000, and then impose an additional daily fine if the cease and desist order is ignore

To satisfy license renewal requirements in Georgia, a real estate salesperson or broker must:

A: Hold an active real estate license

B: Have completed a minimum of 24 hours of approved continuing education

C: Have participated in a minimum of 15 real estate transactions

D: Both A and B

d. Explanation: A salesperson or broker in Georgia must complete 24 hours of continuing education courses for each license renewal period of four years. The license must be active, although the licensee does not have to be working full time, nor is there a transaction requirement.

Continuing education courses in Georgia:

A: Are offered both in the classroom as well as on computer for independent study

B: Are a requirement for all licensees

C: Must involve some element of license law

D: Are always taught by Commission-approved instructors

A. Explanation: CE courses are taught in classrooms as well as offered on computer for independent study; those individuals who were licensed prior to January 1, 1980 would be exempt from continuing education requirements. CE courses do not have to have license law as a subject matter and do not have to taught by approved instructors.

If a Georgia licensee fails to renew his or her license by the appropriate time period, which of following could occur?

A: The licensee must take the state exam again

B: The licensee would automatically be placed on inactive status

C: The licensee may reinstate the license within two years of its lapse by paying all renewal fees, late charges, and reinstatement fees as well as showing proof of completion of necessary CE requirements

D: None of the above

c. Explanation: The licensee, within this two year period, would not have to retake the state exam nor would the license be placed on inactive status. The licensee would, however, be responsible for all appropriate fees and charges as well as showing proof of adequate CE requirements.

Under what circumstances might a broker in Georgia pay an unlicensed assistant a real estate commission?

A: If the assistant referred a customer who purchases one of the broker's listings

B: Under no circumstances

C: Only if the assistant's efforts in negotiation led directly to a successful transaction for the broker

D: If the commission earned takes the form of tangible personal property, this type of compensation is acceptable under law

b. Explanation: Under no circumstances are unlicensed assistants allowed to be paid commissions in any form from brokers.

Which of the following persons would NOT be required to possess a valid real estate license in Georgia?

A: An individual, who for compensation or the promise of compensation, negotiates contracts for buyers, sellers, renters, or landlords

B: A business owner who sells or leases his office building

C: Georgia Power employee who handles the acquisitions of commercial easements in gross for the company

D: C and B

d. Explanation: A real estate license is required for all persons in Georgia who receive compensation for procuring buyers, sellers, renters, etc. Property owners selling their own real estate or utility company employees engaged in company business that involves real estate do not need licenses.

How long may someone place his/her Georgia real estate license on inactive status?

A: A maximum of five years

B: For no more than two license renewal periods

C: There is no time limit

D: 10 years for a salesperson, 4 years for a broker

c. Explanation: Any type of Georgia real estate license may remain on inactive status indefinitely as long as it is renewed regularly on inactive status. Thus, the renewal fees must continue to be paid even though the license remains inactive.

Under what conditions might a licensed salesperson in Georgia hold an active license with more than one Georgia broker?

A: Under no conditions

B: If the salesperson is not a full-time affiliate

C: By signed agreement between the two Georgia brokers

D: With the written permission of the Georgia Real Estate Commissioner

a. Explanation: In Georgia, a salesperson may not hold a concurrent license with more than one Georgia broker.

License law in Georgia requires brokers to deposit transactional funds into a trust account:

A: No more than three days after a binding agreement is reached

B: Promptly, unless the contract states otherwise

C: Two working days after receiving the funds

D: Immediately, with no exceptions

b. Explanation: All monies received by a broker, on behalf of the principals in a real estate contract, must be deposited as soon as possible unless the contract provides otherwise.

Regarding trust accounts and real estate brokerage offices in Georgia, all of the following statements are true EXCEPT:

A: License law requires that all brokerage offices open at least one trust account

B: A trust journal must be kept for each account

C: The trust account must be reconciled monthly

D: A broker may not commingle company operating funds with funds held in trust accounts

A. Explanation: For each trust account, an account journal must be kept and the account must be reconciled on a monthly basis; commingling company funds with trust account funds is a serious violation of license law. Only brokerage offices that choose to handle trust funds need open these accounts.

A broker in Georgia wants to expand her business and open a branch office in another town nearby. The broker applies to the Commission for a branch office license, using the same company name as the main office. In addition, the broker hires an unlicensed individual to manage the branch. Given these facts, would the Real Estate Commission likely approve this branch office license?

A: No, because the new office is in another city or town and it must be established as a primary office, not a branch

B: No, because an associate broker must be named to manage this branch office

C: Yes, because the manager of a branch office does not need to hold a real estate license

D: Yes, as long as the broker spends 50% of her time at the new branch

C. Explanation: License law does not require the manager of a branch office to hold a real estate license; also, a broker is not limited in the areas she might establish branch offices in Georgia

All Georgia real estate offices must:

A: Have at least one affiliate with a salesperson's license

B: Show the name of the company on signage at the office location

C: Open at least one trust account

D: Maintain copies of real estate contracts for at least three years

d. Explanation: License law requires brokers to keep transactional records for at least three years; brokers are not required to display the company's name on signage at the location, nor are brokers required to hire any salespeople; brokers must open trust accounts only if the office handles transactional funds.

A salesperson refers a home seller to the Acme Pest Control Company to obtain a contractually required termite letter. The salesperson has a longstanding relationship with this company and Acme Pest Control pays the salesperson a fee for every customer referral. Would this payment be a violation of license law in Georgia?

A: No, as long as the fee is paid directly to the salesperson's broker

B: No, because licensees are only in violation of the law if they accept referral fees directly from buyers or sellers

C: No, as long as the referral fee is disclosed to the seller

D: Yes, because a real estate licensee may only receive compensation from the employing broker who may only receive a referral fee from another broker

d. Explanation: A salesperson may only receive payments from the employing broker and, in this situation, the employing broker could not receive compensation from a non-licensee.

Once a deed is transferred in Georgia, how soon must it be recorded?

A: Within 30 days

B: There is no time limit

C: One week after the closing

D: Within a reasonable time

d. Explanation: To be enforceable, Georgia law only requires that a deed be recorded within a reasonable period of time.

Home and subdivision developers in Georgia have in recent years been subject to certain regulatory fees they must factor into their building costs. With regard to these costs:

A: They are called impact fees

B: They are fees charged by local governments as a form of prepayment for services the local jurisdictions expect to provide to the new subdivisions

C: They are often passed along to buyers through the home builder's and land developer's property pricing

D: All of the above

d. xplanation: Impact fees are fees imposed by local jurisdictions to pay for such things as utilities, roads, schools, and other services that an increase in population and traffic will bring.

In Georgia, legal life estates:

A: Include dower, which gives a widow one-third rights to any property acquired by her husband during the marriage

B: Include homestead protection, which permits a surviving spouse to retain possession of the home and not be forced to sell to satisfy any debts incurred by the deceased spouse

C: Include curtesy, which gives a husband one-third rights to property acquired by his wife during the marriage

D: Are not recognized in Georgia and therefore have no effect on the estate of either spouse

d. Explanation: Georgia does not legally recognize any of the three legal life estates.

Which of the following is NOT true regarding Georgia's Fair Business Practice Act (FBPA)?

A: This law protects consumers against anti-trust violations in real estate practices

B: Prosecution under this law can only happen as a result of an actual transaction occurring

C: This act covers any area of deceptive real estate practices

D: This anti-trust law deals primarily with fraudulent advertising in real estate

C. Explanation: The FBPA involves real estate anti-trust violations and may be invoked only if a specific transaction has taken place. This act primarily involves a narrow focus of deceptive advertising.

Rules and Regulations passed by the Georgia Real Estate Commission:

A: Must be approved by the Georgia state legislature

B: Serve to clarify license law and carry the same regulatory authority as license law

C: Regulate the activities only of residential real estate in the state

D: May be found directly in statutes of license law

b. Explanation: Commission rules and regulations have their own section apart from the specific license laws passed by the legislature; these rules regulate activities of all real estate licensees in Georgia and are designed to clarify the more general statements of license law.

The Georgia Real Estate Commission might revoke a broker's license in all of the following circumstances EXCEPT:

A: The broker advertises that he or she is a member of the National Association of REALTORS(R) when, in fact, this is not the case

B: A broker negotiates with the seller a commission rate lower than what the company policy normally accepts

C: A broker deposits earnest money in the company operating account

D: The broker was charged with a DUI, which resulted in the injury of clients riding in the broker's vehicle

b. Explanation: Negotiation of commission rates is always permissible and is not a violation of license law; however, the Commission does have authority to revoke the license of a broker convicted of a felony or engaged in false advertising or the commingling of funds.

A real estate license would automatically be revoked under which of the following circumstances?

A: A broker's failure to immediately inform the Real Estate Commission of an affiliate/salesperson's violation of license law

B: Depositing earnest money in a non-FDIC bank account

C: A licensee having been found guilty for acts that result in a payout from the Georgia Real Estate Recovery Fund

D: Changing the price of a listing without the written approval of the seller

C. Explanation: Answers A, B, and D all may be grounds for the Commission to suspend or revoke a real estate license, but none of these three acts would result in an automatic suspension or revocation. On the other hand, once any money is paid out from the Recovery Fund as the result of a licensee's actions, the real estate license will be AUTOMATICALLY revoke

If a broker submits a contract to a lender that is different from the binding agreement signed by the buyer and seller:

A: The original contract between buyer and seller becomes void

B: As long as a certified appraisal can support the value of the second contract, no license law violation has occurred

C: The broker's license will likely be suspended or revoked

D: Errors and Omissions insurance would cover the broker for any litigated damages assessed

c. Explanation: This type of situation involves mortgage fraud; the broker likely would not only lose his or her license, but also may be fined and imprisoned for committing a felony. There are no justifications or "fixes" for this action and Errors and Omissions insurance never covers fraudulent activities by licensees.

As an inducement to acquire listings, a broker advertises that he will buy any property he lists if that property does not sell in 120 days. Would this type of promise be a violation of license law in Georgia?

A: Yes, this type of arrangement, known as a guaranteed sales plan, is not legal under real estate law in Georgia

B: Yes, license law prohibits brokers from buying properties they have listed

C: No, this plan is legal providing the promise to purchase is written as a separate purchase and sale binding agreement that would accompany the listing contract between the broker and seller

D: Yes, this plan is a "tie-in" contract, which is a violation of real estate anti-trust laws

c. Explanation: The plan is not a violation of real estate law in Georgia as long as two contracts are created at the same time: one, a purchase and sale commitment from the broker for a specific price on a specific date; and two, a listing contract between seller and broker. There are no laws prohibiting brokers from buying their own listings, nor is this situation an example of a "tie-in" contract that obligates the seller to a second contract by signing one contract, which is a clear violation of anti-trust law.

What is the legal term for the constructive notice provided for a prospective property buyer on which litigation currently exists?

A: An attachment lien

B: Relation back notice

C: Lis pendens

D: Habeas corpus

c. Explanation: In Georgia, when an action of litigation involving real property is filed, constructive notice to future prospective buyers of the property is provided by recording a "lis pendens."

A Georgia resident dies without a will and is survived by his wife and four children. The couple has community property worth $250,000 and the husband has a separate estate of $300,000. How will this estate be distributed?

A: The wife will receive the community property and the separate estate will by divided among the children

B: However the probate court judge deems appropriate for the family

C: The estate will be distributed according to Georgia's law of intestate succession

D: All of the property will be distributed equally among the wife and children

c. Explanation: As Georgia does not recognize community property law, the estate will be distributed by the laws of descent and distribution under intestate succession

How does Georgia license law define the Commission quizlet?

How does Georgia license law define the commission?

What can the Georgia Real Estate Commission do?

Which entity is the authority behind Georgia real estate license law?