Learning Objectives

Upon completion of this Unit, the student should be able to:

1. Explain the role and authority of the Georgia Real Estate Commission (GREC).
2. Describe the composition and basic organizational structure of the Commission.
3. Explain the major powers and duties of the Commission.
4. Distinguish between Georgia Real Estate License Law and Commission Rules and Regulations.
5. Identify the principal categories and statuses of Georgia real estate licenses.
6. Explain basic license renewal and Continuing Education requirements.
7. Identify the fundamental responsibilities of a Georgia real estate licensee.
8. Recognize conduct that may violate Georgia License Law or Commission Rules.
9. Explain the basic complaint, investigation, and disciplinary process.
10. Explain the relationship among the Commission, the broker, and an affiliated salesperson.

Recognize situations in which a salesperson should seek guidance from the broker before acting.

1.1    Role and Authority of the Georgia Real Estate Commission

The Georgia Real Estate Commission (GREC) is the state regulatory authority responsible for administering and enforcing Georgia’s real estate licensing laws.

The Commission regulates individuals and firms engaged in real estate brokerage activities and administers requirements involving licensing, education, brokerage practices, and professional conduct.

The primary purpose of real estate regulation is protection of the public.

Real estate transactions can involve substantial financial commitments, contractual obligations, confidential information, property rights, and money belonging to others. Georgia therefore requires persons engaging in activities defined as real estate brokerage to be properly licensed unless an exemption applies.

For a newly licensed salesperson, GREC should not be viewed simply as the government agency that issued the license.

The Commission continues to regulate the licensee throughout the person’s real estate career.

A fundamental principle is:

Obtaining a license gives you authority to practice real estate. Maintaining that authority requires continued compliance with Georgia law and Commission Rules.

1.2    Composition of the Commission

The Georgia Real Estate Commission consists of six members.

All six members are appointed by the Governor of Georgia and confirmed by the Georgia Senate. Each member serves a five-year term.

The composition is specifically designed to include both real estate industry experience and consumer representation.

Five members must:

• be real estate licensees;
• have been residents of Georgia; and
• have been actively engaged in the real estate business for at least five years.

The sixth member must have no connection with the real estate industry and must have a recognized interest in consumer affairs and consumer protection.

The Commission selects a Chair from among its members. Four members constitute a quorum for conducting Commission business.

The Commission generally meets at least once each month or as often as necessary to conduct its responsibilities.

Why Is There a Consumer Member?

The consumer member provides a perspective that is independent of the real estate industry.

This reflects one of the Commission’s fundamental purposes:

The Commission exists not merely to regulate licensees, but to protect the public.

GREC Is Not a REALTOR® Association

The Georgia Real Estate Commission is a government regulatory body.

It should not be confused with organizations such as a local Board or Association of REALTORS®, the Georgia Association of REALTORS®, or the National Association of REALTORS®.

A simple distinction is:

GREC → Government regulation and licensing
REALTOR® associations → Professional trade organizations

A person may hold a Georgia real estate license without being a REALTOR®. The term REALTOR® refers to membership in the REALTOR® organization and should not be used as a synonym for every real estate licensee.

1.3    Powers and Duties of the Commission

The Commission has broad authority to administer and enforce Georgia Real Estate License Law.

Its responsibilities include:

• administering licensing requirements;
• adopting rules and regulations;
• regulating real estate brokerage activities;
• establishing educational requirements;
• approving schools and instructors;
• maintaining licensing records;
• receiving complaints;
• investigating possible violations;
• conducting or initiating disciplinary proceedings; and
• imposing sanctions or other remedies authorized by law.

The Commission is specifically authorized to adopt rules and regulations concerning the professional conduct of licensees and the administration of Georgia’s real estate licensing law.

For a salesperson, the practical lesson is straightforward:

When you are uncertain whether an action complies with Georgia License Law or Commission Rules, consult your broker before acting.

1.4    Georgia Real Estate License Law

Georgia Real Estate License Law is primarily contained in O.C.G.A. Title 43, Chapter 40 — Real Estate Brokers and Salespersons.

It establishes the statutory framework governing real estate licensure and brokerage activity in Georgia.

Among other matters, License Law addresses:

• who must be licensed;
• qualifications for obtaining a license;
• categories of licenses;
• activities requiring a license;
• responsibilities of licensees;
• prohibited conduct;
• disciplinary authority; and
• requirements affecting brokerage operations.

License Law should not be confused with all laws affecting a real estate transaction.

A transaction may also involve contract law, property law, Fair Housing laws, landlord-tenant law, lending laws, environmental requirements, tax law, and other federal, state, or local laws.

Georgia Real Estate License Law specifically regulates real estate licensing and the professional conduct of licensees.

A real estate license also does not authorize a salesperson to practice law. Questions requiring legal advice should be referred to the broker and, when appropriate, to a qualified attorney.

1.5    Commission Rules and Regulations

Georgia Real Estate License Law is supplemented by the Rules and Regulations of the Georgia Real Estate Commission.

The distinction can be understood simply:

The Georgia General Assembly enacts the law. The Commission adopts rules and regulations to administer and implement the licensing system established by law.

Commission Rules address practical regulatory matters such as:

• obtaining and maintaining licenses;
• brokerage relationships;
• management responsibilities of real estate firms;
• trust accounts;
• advertising;
• handling real estate transactions;
• licensees acting as principals;
• business brokerage; and
• Fair Housing.

A Georgia licensee must comply with both applicable statutes and Commission Rules.

Throughout this course, we will return to these laws and rules as they apply to actual brokerage situations.

1.6    License Categories and Status

Georgia recognizes several categories of real estate licenses.

Salesperson

A salesperson is licensed to perform authorized real estate brokerage activities while affiliated with and operating on behalf of an active Georgia broker.

Associate Broker

An associate broker has qualified for broker licensure but is affiliated with another broker rather than acting as the qualifying broker of the firm.

Broker

A broker has satisfied Georgia’s requirements for broker licensure and may perform brokerage activities authorized by that license. A broker may also serve as the qualifying broker responsible for a licensed brokerage firm.

Community Association Manager (CAM)

A Community Association Manager is licensed to perform community association management services within the scope authorized by Georgia law.

Georgia also licenses brokerage firms.

Active and Inactive Status

License category and license status are different concepts.

An active salesperson, associate broker, or Community Association Manager must be affiliated with an active Georgia broker and may not be affiliated with more than one Georgia broker at the same time.

An inactive licensee may not perform real estate brokerage activities except as specifically permitted by law.

Therefore:

Having a license number does not necessarily mean that a person is currently authorized to perform brokerage activities.

Always consider both the type of license and its current status.

1.7    License Renewal and Continuing Education

Obtaining a real estate license does not end a licensee’s educational obligations.

Georgia individual real estate licenses operate on a four-year renewal cycle.

To renew an active license, a licensee generally must satisfactorily complete 36 instructional hours of approved Continuing Education during the renewal period.

Of those 36 hours, at least 3 hours must be approved education specifically on the topic of Georgia License Law.

The 3-hour License Law requirement is included within the 36-hour CE requirement; it is not an additional 3 hours.

A licensee should periodically verify:

• current license status;
• expiration date;
• Continuing Education credits;
• completion of the required License Law education; and
• information maintained in the Commission’s records.

A professional license is ultimately the responsibility of the licensee.

1.8    Post-License Requirements

As explained in the Introduction, newly licensed Georgia salespersons are subject to a separate Post-License education requirement.

A Sales Post-License Course must contain at least 25 instructional hours and must focus on legal fundamentals and/or basic practices in the sale or management of residential, agricultural, commercial, or industrial property.

If the course addresses residential sales, it must include instruction on:

• Georgia Residential Mortgage Fraud law;
• methods for identifying possible fraud in transactions; and
• properly reporting alleged fraud.

Every Post-License course must also address the ethical implications of the subject matter taught.

Post-License education should not be viewed simply as another examination requirement.

Its purpose is to help bridge the gap between:

Learning how real estate works → Learning how to practice real estate responsibly.

The deadline for completing Post-License education was discussed in the Introduction and will not be repeated here.

1.9    Licensee Responsibilities

Every Georgia real estate licensee has responsibilities that extend beyond finding clients and closing transactions.

A salesperson must conduct brokerage activity in accordance with Georgia law, Commission Rules, and the supervision and lawful policies of the broker.

Important responsibilities include:

• acting within the scope of the license;
• complying with Georgia License Law and Commission Rules;
• following lawful brokerage policies and broker instructions;
• properly handling transaction documents;
• protecting confidential information when required;
• complying with advertising requirements;
• properly handling earnest money and other trust funds;
• avoiding misrepresentation;
• making required disclosures;
• completing required education; and
• keeping required licensing information current.

A new salesperson should understand one particularly important principle:

The salesperson performs brokerage activities on behalf of the broker—not independently of the broker.

This principle affects advertising, contracts, earnest money, transaction records, brokerage relationships, and many other aspects of real estate practice.

1.10 Prohibited Conduct

Georgia law authorizes disciplinary action for various forms of prohibited conduct.

Examples may include:

• substantial misrepresentation;
• false or misleading representations;
• improper handling of money belonging to others;
• failure to account for trust funds;
• improper advertising;
• undisclosed conflicts of interest;
• dishonest or improper dealings;
• failure to make required disclosures;
• violations of Commission Rules; and
• other conduct prohibited by Georgia law.

A licensee cannot avoid responsibility simply because a client instructed the licensee to take an improper action.

Georgia Practice Scenario

A seller tells the listing agent:

“Don’t tell the buyer about the water problem. If the buyer’s inspector is good, he will find it.”

The seller’s instruction does not relieve the licensee of the licensee’s own legal and regulatory obligations.

The salesperson should recognize the potential disclosure issue and immediately involve the broker.

Remember:

A client’s instruction never authorizes a licensee to violate the law.

1.11 Investigations and Complaints

The Commission receives and investigates complaints concerning possible violations by real estate licensees.

The filing of a complaint does not automatically establish that a licensee has violated the law.

An investigation may involve examination of:

• contracts;
• brokerage agreements;
• advertisements;
• emails and other communications;
• transaction files;
• trust account records; and
• other relevant documents or evidence.

This demonstrates why proper documentation is an essential risk-management practice.

A telephone conversation may later be remembered differently by the parties. Written documentation can provide evidence of what was communicated, agreed upon, or disclosed.

A useful professional principle is:

If it is important to the transaction, document it appropriately.

A salesperson who receives notice of a Commission complaint or investigation should promptly involve the broker rather than attempting to handle the regulatory matter independently.

1.12 Disciplinary Actions

When an investigation indicates that a violation may have occurred, the Commission has authority to take action as permitted by Georgia law.

Depending on the violation and circumstances, Commission action may include citations, educational requirements, fines, or more significant disciplinary proceedings affecting the license.

Commission Rules also permit citations for specified violations. A citation may include required education, certain reporting requirements, and/or monetary penalties within the limits established by the rules.

Disciplinary problems often begin with seemingly ordinary mistakes:

• poor communication;
• inadequate documentation;
• missed deadlines;
• improper advertising;
• mishandled earnest money;
• failure to disclose;
• acting beyond one’s authority; or
• failing to involve the broker when a problem first develops.

The most effective risk-management strategy is prevention.

Do not wait for a problem to become a complaint before involving your broker.

1.13 Maintaining and Updating License Information

Licensees have an ongoing responsibility to maintain required licensing information with the Commission.

Commission Rules impose notification requirements for specified changes, including certain changes involving:

• address information;
• brokerage affiliation;
• transfer to another firm;
• inactive status; and
• designated trust accounts where applicable.

Certain required notices must be provided to the Commission within 30 days.

A salesperson should not automatically assume that telling the broker satisfies every individual obligation owed to the Commission.

A good professional practice is to periodically review the license record and confirm that the information maintained by GREC is accurate.

1.14 Relationship Between the Commission, Broker, and Salesperson

One of the most important concepts for a newly licensed salesperson is understanding the relationship among the Commission, the broker, and the salesperson.

The Georgia Real Estate Commission

GREC administers and enforces Georgia’s real estate licensing laws and regulates real estate brokerage activity.

The Broker

The broker is responsible for supervising brokerage activities conducted through the firm and for maintaining brokerage policies and procedures consistent with Georgia law and Commission Rules.

The Salesperson

The salesperson performs authorized brokerage activities on behalf of and under the supervision of the broker.

The relationship can be summarized as:

GREC regulates the profession → Broker supervises the brokerage → Salesperson performs brokerage activities on behalf of the broker.

Broker supervision does not eliminate the salesperson’s individual responsibility.

A salesperson cannot automatically defend improper conduct by saying:

“My broker told me to do it.”

At the same time, a salesperson should not independently make legal or regulatory decisions that should properly be brought to the broker.

When Should You Contact Your Broker?

As a practical rule, when a transaction involves a significant question concerning:

Money → Disclosure → Contract → Conflict → Complaint → Possible Violation

Contact your broker before acting whenever reasonably possible.

Knowing when to involve the broker is one of the most important professional skills a newly licensed salesperson can develop.