Rule 520-1-.14. Citations +6Georgia · Real Estate · English

When the Commission determines from investigation evidence that a licensee has violated O.C.G.A. Chapter 43-40, Commission rules, or committed an unfair trade practice, it may either initiate sanction proceedings as a contested case under Chapter 13 of Title 50, or issue a citation in lieu of sanctions. A citation may order completion of a course of study, periodic independent accountant reports on the broker's trust account, and/or a fine.

• ✓Fine may not exceed $1,000.00 for each violation
• ✓Fines for multiple violations are limited to $5,000.00 in any one citation
• ✓Commission may issue citation in lieu of initiating sanction process

When the Commission issues a citation on its own motion, the order becomes final 30 days after service upon the licensee (personal, certified mail, or statutory overnight delivery) unless the licensee reaches alternative terms or requests a contested case hearing. Once final, the licensee must meet requirements within 30 days unless the order prescribes a different timetable.

• ✓Citation order becomes final 30 days after service
• ✓Licensee may request a contested case hearing before finality
• ✓Requirements must be met within 30 days of the effective date unless otherwise stated

When the Commission determines from investigation evidence that a licensee violated O.C.G.A. Chapter 43-40, Commission rules, or committed an unfair trade practice, it may either initiate contested case sanctions under Chapter 13 of Title 50, or issue a citation in lieu of sanctions. Citations can order completion of real estate coursework, independent accountant reports on trust accounts, and/or fines.

• ✓A citation fine cannot exceed $1,000.00 for each violation
• ✓Fines for multiple violations are limited to $5,000.00 in any one citation
• ✓The Commission may require approved continuing education or post license courses in addition to or in lieu of financial penalties

More serious violations, particularly involving trust funds and false statements, carry fines of $800 or $900.

• ✓Failure to deposit earnest money/trust funds according to contract terms: $800 per contract
• ✓Broker disbursing trust funds without express agreement of all parties and failing to notify in writing: $800
• ✓False statement of material fact on application: $800 (43-40-15(d))
• ✓Failure to handle trust funds where client/customer claims loss and full restitution made: $900
• ✓Failure to reconcile trust/escrow account monthly: $600 if account balances, $900 if not in balance

The Commission may elect to require successful completion of approved continuing education or post license education courses in addition to or in lieu of the financial penalties in the schedule of violations.

• ✓Approved CE or post-license courses may substitute for financial penalties
• ✓Education may be required in addition to fines

Certain violations carry a $500 fine: failure of a CAM, salesperson, or associate broker to turn over trust funds to the broker as soon as practicable (43-40-25(b)(23)); failure to include financing terms in a contract with financing contingency (43-40-25.1); failure to provide a copy of a document to any signer (43-40-25(b)(19)); brokerage firm operational violations under listed statutes.

• ✓Failure to turn over trust funds to broker promptly = $500 fine
• ✓Failure to include financing terms in contingent contract = $500 fine
• ✓Failure to provide copy of signed document = $500 fine

Many violations carry $600 fines including: failure to present a signed offer promptly or deliver accepted contract copies; conducting business under a name not registered with GREC; trust account violations found on examination; failure to notify broker of personal real estate activities; incorrect amount of earnest money/security deposit; paying commission to unlicensed persons; certain advertising violations; failure to register a trust account (per account); failure to deposit trust funds within three business days.

• ✓Failure to deposit trust funds within three business days of receipt = $600 fine
• ✓Paying commission to unlicensed persons = $600 fine
• ✓Failure to register trust account = $600 per account not registered
• ✓Failure to notify Commission of final action within ten days = $600 fine

Higher fines apply to more serious violations: $800 for failure to deposit trust funds per contract terms (per contract), disbursing trust funds without notice, and false statements on applications; $900 for failure to handle trust funds where a client claims a loss with full restitution made, low school passing rates, and out-of-balance trust account reconciliations.

• ✓Failure to deposit funds per contract terms = $800 per contract
• ✓False statement of material fact on application = $800 fine
• ✓Trust reconciliation violation with account not in balance = $900 per violation
• ✓Failure to reconcile trust account monthly with balanced account = $600 per violation

After initiating a contested case, the Commission may dismiss it and issue a citation with the licensee's consent. The Commission may sanction a licensee who fails to comply with a final citation order after notice and hearing opportunity. In later contested cases, the Commission may not consider prior citations if the licensee fully complied with them.

• ✓Commission may sanction for failure to comply with a final citation order after notice and hearing
• ✓Prior fully-complied citations are not considered in subsequent disciplinary actions

Certain violations carry a maximum $500 penalty per single violation. In any conflict between the schedule description and the code/rule language, the code section or rule controls.

• ✓Failure of a CAM, salesperson, or associate broker to turn over trust funds to the broker as soon as practicably possible: $500 (43-40-25(b)(23) & 520-1-.08)
• ✓Failure to include financing terms in a sales contract having a financing contingency: $500 (43-40-25.1)
• ✓Failure to provide a copy of a document to any individual signing it: $500
• ✓Brokerage firm examination revealing violations of 43-40-11, 18, 25.1, and related rules: $500
• ✓Approved school examination revealing Chapter 520 violations: $100

Many violations carry a maximum $600 penalty per single violation, including advertising, trust account registration, disclosure, and lapsed-license activity violations.

• ✓Failure to present promptly a signed offer or deliver accepted contract copies within reasonable time: $600
• ✓Conducting business under a name not registered with GREC: $600
• ✓Trust account violation found in brokerage examination: $600
• ✓Failure to register a trust account with GREC: $600 per account not registered
• ✓Paying commission/referral fee to a person without a current active license (except per 43-40-25(b)(17)): $600
• ✓Broker allowing an affiliated licensee to work after license lapsed more than one month: $600 per transaction
• ✓Failure to deposit trust funds within three business days after receipt unless contract provides otherwise: $600
• ✓Failure to notify Commission of final disposition of action within ten days: $600
• ✓Failure to disclose licensure in a contract requiring disclosure: $600 per contract

A Commission-issued citation becomes final 30 days after service unless the licensee reaches alternative terms with the Commission or requests a contested case hearing. Service is by personal delivery, certified mail, or statutory overnight delivery to the last address provided.

• ✓A citation becomes final 30 days after service unless alternative terms are reached or a contested case hearing is requested
• ✓Once final, the licensee must meet requirements within 30 days unless the order prescribes a different timetable
• ✓Service upon a licensee's attorney is deemed service upon the licensee
• ✓Service goes to the last address provided to the Commission (via broker for affiliated licensees)

The Commission may offer consent in lieu of a citation, dismiss a contested case to issue a citation, sanction failure to comply, and disregard prior fully-complied citations in later discipline.

• ✓The Commission may sanction a licensee who fails to comply with a final citation order after notice and opportunity for hearing
• ✓In imposing discipline in a contested case, the Commission shall not consider prior citations the licensee fully complied with
• ✓After initiating a contested case, the Commission with licensee consent may dismiss it and issue a citation

In lieu of imposing a citation, the Commission in its discretion may offer the licensee the opportunity to consent to completing a course of study, submitting periodic reports on a designated trust account, paying a fine, or a combination of these or other penalties.

• ✓Commission may offer consent agreement instead of a citation
• ✓Consent may include course of study, reports, fine, or combinations

Service of a final citation order is by personal delivery, certified mail, or statutory overnight delivery to the last address provided to the Commission. For affiliated licensees, service goes to the last address provided by the broker; for inactive licensees, the last address they provided. Service upon a licensee's attorney is deemed service upon the licensee.

• ✓Service must go to the last address provided to the Commission
• ✓Service upon the licensee's attorney is deemed service upon the licensee

Any interested person may petition the Commission (in writing with notarized signature) to promulgate, amend, or repeal a rule. Within 30 days, the Commission must deny in writing or begin rule-making. The Commission also supplies declaratory rulings within 60 days of receipt, unless it seeks the Attorney General's opinion.

• ✓Rule petitions must be in writing with the petitioner's signature notarized
• ✓The Commission must respond to a rule petition within thirty (30) days
• ✓Declaratory rulings must be responded to within sixty (60) days of receipt
• ✓No declaratory ruling is rendered on matters related to pending investigative hearings

Any interested person may petition the Commission requesting promulgation, amendment, or repeal of a rule. The petition must be in writing with a notarized signature.

• ✓Petitions must be in writing with the petitioner's signature notarized
• ✓Within 30 days of submission, the Commission must either deny the petition in writing with reasons or instigate rule-making procedures under the Georgia Administrative Procedure Act

The Commission supplies declaratory rulings on the applicability of any statutory provision or rule. Requests must be written with notarized signature, and the Commission responds within 60 days unless it seeks the Attorney General's opinion.

• ✓Requests for declaratory rulings must be in writing with notarized signature
• ✓The Commission must respond within 60 days of receipt, except when seeking the Attorney General's opinion
• ✓The Commission will not render declaratory rulings on matters related to pending investigative hearings

The Georgia Real Estate Commission maintains offices where the public may obtain information and make submissions. Inquiries are addressed to the Commission at its Atlanta office (Suite 1000 - International Tower, 229 Peachtree Street, N.E., Atlanta, Georgia 30303-1605).

• ✓The public may obtain information or make submissions by addressing inquiries to the Commission's Atlanta office
• ✓Written requests must be directed to the Real Estate Commissioner at the official address

At the regularly scheduled first monthly meeting of the calendar year, the Commission selects a chair and a vice-chair from its members. Elections may also occur upon vacancy or when a quorum calls for a new election. The vice-chair presides in the chair's absence.

• ✓The chair and vice-chair are elected at the first monthly meeting of the calendar year
• ✓Elections are by secret ballot, continuing until a member obtains a majority of votes cast
• ✓The vice-chair presides in the absence of the chairperson

Requests for scheduled appearances must be submitted in writing to the Real Estate Commissioner. The first three persons/groups submitting written requests before the first day of the month preceding the meeting are scheduled. Scheduled appearances are limited to 15 minutes; unscheduled to 5 minutes.

• ✓Scheduled appearances are limited to fifteen minutes
• ✓Unscheduled appearances are limited to five minutes
• ✓The first three written requests received are scheduled for the monthly meeting

The Georgia Real Estate Commission maintains offices where the public may obtain information or make submissions by addressing inquiries to the Commission at its Atlanta address.

• ✓Public inquiries and submissions must be directed to the Georgia Real Estate Commission, Suite 1000 - International Tower, 229 Peachtree Street, N.E., Atlanta, Georgia 30303-1605
• ✓The public may obtain information regarding Commission operations by written inquiry

At its regularly scheduled first monthly meeting of the calendar year, the Commission selects a chair and vice-chair from its members by secret ballot. Elections may also occur upon vacancy or when a quorum calls for a new election.

• ✓Chair and vice-chair are elected at the first monthly meeting of the calendar year
• ✓Elections are by secret ballot, continuing until a member obtains a majority of votes cast
• ✓The vice-chair presides in the absence of the chairperson

Requests for scheduled appearances must be submitted in writing to the Real Estate Commissioner. The first three persons/groups submitting written requests before the first day of the preceding month are scheduled to be heard.

• ✓Scheduled appearance requests must be submitted in writing on or before the first day of the month preceding the monthly meeting
• ✓Scheduled appearances are limited to fifteen minutes and unscheduled appearances to five minutes, except by leave of the Commission

Approved instructors, schools, and their staff are strictly prohibited from obtaining, accepting, or using qualifying examination content in non-approved courses. Violations may result in denial, withdrawal, or suspension of approved status for both instructors and schools.

• ✓Instructors/schools may not obtain exam content from examinees
• ✓May not use such content in non-approved courses
• ✓Violations grounds for sanctions under O.C.G.A. 43-40-25 on both instructor and school

A person may not take a qualifying examination without written permission of the Commission except in specific circumstances: to qualify for or reinstate the license, for reciprocity purposes when another state requires a Georgia exam, or when ordered by the Commission in a disciplinary matter.

• ✓Written permission required unless qualifying/reinstating the license
• ✓Exception allowed when applying to another state by reciprocity that requires a passed Georgia exam
• ✓Exception allowed when required by Commission Order in a disciplinary matter

Correspondence courses and courses that qualify for continuing education units do not satisfy the prelicense education requirements. Prelicense education must be through classroom or approved computer-based instruction.

• ✓Correspondence courses do NOT satisfy prelicense education requirements
• ✓CEU-qualifying courses do NOT satisfy prelicense education requirements

The Commission approves as meeting education requirements for examination any instructor who submits satisfactory proof of having taught a named course within two years prior to applying to sit for an examination.

• ✓Instructor must have taught a course named in the Rule
• ✓Teaching must have occurred within two years prior to application

Prelicense education courses for community association managers, salespersons, and brokers authorized by the regulatory body of any U.S. state, district, territory, possession, or province of Canada are approved in Georgia, provided they are similar in credit hours and offered through classroom or compliant computer-based instruction.

• ✓Courses must be authorized by the jurisdiction's real estate regulatory body
• ✓Courses must be similar in credit hours to Georgia-required prelicense courses
• ✓Must be classroom or compliant computer-based instruction

Applicants who successfully completed all three of the Sales I, Sales II, and Sales III courses prior to January 1, 1993, may present certificates of completion from approved schools to sit for the salesperson's qualifying examination.

• ✓All three Sales courses must have been completed before January 1, 1993
• ✓Certificates must be from approved schools

Approved instructors, schools, and their staff are prohibited from obtaining, accepting, or using confidential qualifying examination content. Violations can result in denial, withdrawal, or suspension of approved status and sanctions against both instructors and schools.

• ✓Instructors/schools may not obtain exam content from examinees
• ✓May not accept such information except as approved by Commission
• ✓May not use exam content in non-approved courses
• ✓Violations may sanction both instructor and school under O.C.G.A. 43-40-25

A person may not take a qualifying examination except to qualify for or reinstate the license, or under specific reciprocity conditions, or when ordered by the Commission in a disciplinary matter, unless written permission is first obtained.

• ✓Exam allowed to qualify for or reinstate the designated license
• ✓Reciprocity exception requires the person to hold a reciprocal Georgia license, be applying to another state, and that state requires a passed Georgia exam
• ✓Exam allowed when required by a Commission Order in a disciplinary matter
• ✓Otherwise written Commission permission required

An instructor may satisfy the education requirements for examination by proving they have taught a course named in the Rule within a specified period before applying for the exam. Correspondence courses and continuing education unit courses do NOT satisfy prelicense education requirements.

• ✓Instructors must submit satisfactory proof of teaching a named course within two years prior to applying to sit for an examination
• ✓Correspondence courses and courses qualifying for continuing education units do not satisfy the prelicense education requirement

Prelicense education for community association managers, salespersons, and brokers authorized by another U.S. or Canadian regulatory body is accepted in Georgia if similar in credit hours and offered through classroom or compliant computer-based instruction.

• ✓Out-of-jurisdiction courses must be authorized by the body regulating real estate licensees in any state, district, territory, possession, or province of the U.S. or Canada
• ✓Courses must be similar in credit hours to Commission-required prelicense courses and offered through classroom or compliant computer-based instruction

Applicants who completed all three legacy Sales courses (Sales I, II, and III) before January 1, 1993, may use certificates of completion from approved schools to qualify for the salesperson's licensing examination.

• ✓All three courses (Sales I, Sales II, Sales III) must have been completed prior to January 1, 1993
• ✓Certificates must come from Commission-approved schools to sit for the qualifying salesperson exam

'Agency' is a relationship where a broker acts for or represents another by express authority in a real property transaction. 'Brokerage relationship' covers the agency and non-agency relationships formed between broker and clients/customers. A 'dual agent' simultaneously has a brokerage relationship with both parties in the same transaction.

• ✓Agency requires the client's express authority in a real property transaction
• ✓A dual agent simultaneously represents both seller and buyer or both landlord and tenant
• ✓Brokerage relationships include both agency and non-agency relationships

A 'client' is a person who has entered into a brokerage engagement with a broker. A 'customer' has NOT entered a brokerage engagement but may receive ministerial acts from a broker. 'Ministerial acts' are acts not requiring discretion or the exercise of the broker's or licensee's own judgment.

• ✓A client has entered a brokerage engagement; a customer has not
• ✓Ministerial acts do not require discretion or exercise of the licensee's own judgment
• ✓Brokers may perform ministerial acts for customers

A 'brokerage engagement' is a WRITTEN contract wherein the seller, buyer, landlord, or tenant becomes the client and promises consideration for producing a ready, able, and willing party or for property/community association management. Examples include exclusive listing contracts, open listing contracts, buyer broker agreements, and property management agreements.

• ✓A brokerage engagement must be a written contract
• ✓Examples include exclusive/open listings, buyer broker agreements, and property management agreements
• ✓The client promises valuable consideration to the broker

Agency means every relationship where a broker acts for or represents another by express authority in a real property transaction. Brokerage relationship covers agency and non-agency relationships formed as a result of the brokerage engagement.

• ✓'Agency' means a relationship in which a real estate broker acts for or represents another by express authority in a real property transaction
• ✓'Brokerage relationship' means agency and non-agency relationships between broker and clients/customers resulting from the brokerage engagement
• ✓'Dual agent' means a broker simultaneously having a brokerage relationship with both seller and buyer or both landlord and tenant in the same transaction

A brokerage engagement is a written contract wherein the seller, buyer, landlord, or tenant becomes the client of the broker and promises to pay valuable consideration (or agrees the broker may receive it from another) for producing a ready, able, willing party or for property/community association management services.

• ✓A brokerage engagement must be a written contract making the party a client of the broker
• ✓Examples include exclusive listing contracts, open listing contracts, buyer broker agreements, property management agreements, and exclusive tenant representation contracts

A client is a person who has entered into a brokerage engagement with a broker. A customer has NOT entered into a brokerage engagement but is someone for whom a broker may perform ministerial acts.

• ✓'Client' means a person who has entered into a brokerage engagement with a real estate broker
• ✓'Customer' means a person who has not entered into a brokerage engagement but for whom a broker may perform ministerial acts
• ✓'Ministerial acts' are acts not requiring discretion or the exercise of the broker's own judgment

Key terms such as 'associate broker,' 'broker,' 'commission,' 'commissioner,' 'community association,' 'community association management services,' 'community association manager,' 'licensee,' 'person,' 'property management services,' 'purchaser,' 'real estate,' and 'salesperson' carry the same meaning as defined in O.C.G.A. Section 43-40-1.

• ✓Statutory definitions in O.C.G.A. 43-40-1 apply throughout Chapters 520-1, 520-2, and 520-3
• ✓Terms include broker, associate broker, salesperson, licensee, and community association manager

A 'firm' means a sole proprietorship, partnership, LLC, or corporation licensed as a broker. A 'franchise name' requires permission from another with an existing right. 'Franchisee' is a licensee authorized to use the franchisor's trade name; 'franchisor' owns and controls the trade name.

• ✓A firm may be a sole proprietorship, partnership, LLC, or corporation licensed as a broker
• ✓A franchise name requires permission from the trade name owner

Key statutory terms such as associate broker, broker, commission, commissioner, community association, community association manager, licensee, person, property management services, purchaser, real estate, and salesperson carry the same definitions as in O.C.G.A. Section 43-40-1 throughout Chapters 520-1, 520-2, and 520-3.

• ✓Statutory terms defined in O.C.G.A. 43-40-1 apply throughout Chapters 520-1, 520-2, and 520-3
• ✓Terms include associate broker, broker, licensee, salesperson, property management services, and community association manager

A 'Firm' is a sole proprietorship, partnership, LLC, or corporation licensed by the Commission as a broker. Franchise name, franchisee, and franchisor definitions govern authorized use of trade names.

• ✓'Firm' means a sole proprietorship, partnership, limited liability company, or corporation licensed by the Commission as a broker
• ✓'Franchisee' means a firm licensee authorized to use a franchisor's trade name
• ✓'Franchisor' means a business entity owning a trade name whose use by others it controls and authorizes

'Instructional hour' means at least 50 minutes of instruction. 'Military' means U.S. armed forces including National Guard. 'Service Member' is an active or reserve member; 'Military Spouse' is a spouse of a service member or transitioning service member. 'Transitioning Service Member' is within 24 months of retirement or 12 months of separation.

• ✓An instructional hour equals at least fifty minutes of instruction
• ✓A transitioning service member is within 24 months of retirement or 12 months of separation
• ✓Statutory overnight delivery requires next-business-day delivery and a signed receipt

The rule defines Military, Military Spouse, Service Member, and Transitioning Service Member for purposes of licensing accommodations.

• ✓'Service Member' means an active or reserve member of the armed forces, including the National Guard
• ✓'Transitioning Service Member' means a member on active duty or separation leave within 24 months of retirement or 12 months of separation
• ✓'Military Spouse' means a spouse of a service member or transitioning service member

An instructional hour is at least fifty minutes of instruction or learning activity. Statutory overnight delivery requires next-business-day delivery direction and a signed receipt.

• ✓'Instructional hour' means at least fifty minutes of instruction or other learning activity
• ✓'Statutory overnight delivery' requires the sender direct next-business-day delivery and receive a signed receipt acknowledging delivery
• ✓'Timely' means a reasonable time under the particular circumstance