Rule 520-2-.05. Sanctions and Citations +4Georgia · Real Estate · English

Any violation of Chapter provisions, or falsification/misrepresentation on applications, reports, or certifications, may result in withdrawal of approval or other sanctions under O.C.G.A. § 43-40-25, or citations under O.C.G.A. § 43-40-25.2.

• ✓Falsification or misrepresentation on applications for approval/renewal or on required reports/certifications may trigger sanctions
• ✓Sanctions may include withdrawal of approval or any sanction permitted by O.C.G.A. § 43-40-25 or citation under § 43-40-25.2

A prelicensing school whose annual student pass rate on the real estate exam falls ten percentage points or more below the total examinee pass rate for that calendar year may have its approval withdrawn or face sanctions/citations.

• ✓Threshold trigger is a pass rate falling ten percentage points or more below the state's total examinee pass rate in a calendar year
• ✓Consequences include withdrawal of approval, sanctions under § 43-40-25, or citations under § 43-40-25.2

If an instructor (or instructor applicant) holds a sanctioned real estate license, that sanction may be grounds to withdraw or deny instructor approval. Before any sanction, the Commission must provide a hearing under the Georgia Administrative Procedure Act (O.C.G.A. Chapter 50-13).

• ✓A sanctioned real estate license may be grounds for withdrawal or denial of instructor approval
• ✓The Commission must afford a hearing under the Georgia Administrative Procedure Act (O.C.G.A. Chapter 50-13) before imposing any sanction

Any violation of this Chapter, or any falsification or misrepresentation on applications, reports, or certifications required by this Chapter, may result in withdrawal of approval, any sanction permitted by O.C.G.A. § 43-40-25, or any citation permitted by O.C.G.A. § 43-40-25.2.

• ✓Falsification or misrepresentation on required documents is a violation
• ✓Sanctions include withdrawal of approval, penalties under 43-40-25, or citations under 43-40-25.2

Any prelicensing school whose annual percentage of students passing the real estate exam falls ten percentage points or more below the percent of total examinees passing the state exam in any calendar year may have its approval withdrawn or face sanctions or citations.

• ✓Trigger is a pass rate ten or more percentage points below the total examinee pass rate
• ✓Measured annually per calendar year
• ✓May result in withdrawal of approval, sanctions, or citations

If an instructor or applicant for instructor holds a real estate license that is sanctioned by the Commission, that sanction may be grounds for withdrawal of approval or denial of approval as an instructor.

• ✓A sanctioned real estate license may justify withdrawal of instructor approval
• ✓A sanctioned license may justify denial of instructor approval

Before imposing any sanction for a violation of this Chapter, the Commission shall afford a hearing in accordance with the Georgia Administrative Procedure Act (O.C.G.A. Chapter 50-13) to the school or instructor allegedly violating the Chapter.

• ✓A hearing must be provided before imposing sanctions
• ✓Hearing must comply with the Georgia Administrative Procedure Act (O.C.G.A. 50-13)

Only instructors approved by name by the Commission, or guest instructors as provided, may teach Community Association Managers Prelicense, Salespersons Prelicense, and Brokers Prelicense courses. The Commission must act on complete instructor applications within sixty days.

• ✓Only Commission-approved instructors or authorized guest instructors may teach prelicense courses
• ✓Commission must act on complete instructor application within 60 days

Applicants must submit an application with fee, license status, resume, teaching experience, formal education, real estate education, and real estate experience. A criminal background report (GCIC certified report, or resident-state equivalent/FBI report for non-Georgians) must be obtained no more than sixty days before application. Applicants must show, within one year prior, completion of an instructor development workshop and a Salespersons Prelicense Course including passing the exam.

• ✓Criminal history report must be obtained no more than 60 days prior to application
• ✓Must complete instructor development workshop and Salespersons Prelicense Course within one year prior to application
• ✓Non-residents must provide equivalent state report or FBI report if record exists

All instructors must apply for renewal by December 31 of the expiration year, submitting the renewal fee, evidence of teaching 60 instructional hours during the current period, and evidence of 36 hours of instructor continuing education, including a minimum of 12 hours from the Commission's annual meetings for approved schools and instructors.

• ✓Instructors must renew by December 31 of the expiration year
• ✓Must show teaching of 60 instructional hours during the renewal period
• ✓Must complete 36 hours of instructor CE, including at least 12 hours from Commission annual meetings

Only instructors approved by name (or guest instructors) may teach CAM, Salespersons, and Brokers Prelicense Courses. The Commission acts within sixty days on a complete instructor application. Applicants must provide teaching experience, education, real estate background, and a criminal history report.

• ✓Only Commission-approved instructors (or guest instructors under paragraph 5) may teach prelicense courses
• ✓A certified criminal history report must be obtained no more than sixty days prior to application
• ✓Applicants must complete a Commission-approved instructor development workshop and a Salespersons Prelicense Course (with passing exam) within one year prior to application

Instructors must apply for renewal by December 31 of the year their approval expires, with fee, teaching evidence, and continuing education.

• ✓Must provide evidence of teaching 60 instructional hours during the current renewal period
• ✓Must complete 36 hours of instructor continuing education, including a minimum of 12 hours from Commission annual meetings
• ✓Renewal application must be filed by December 31 of the expiration year

The Commission considers application qualifications and may approve a non-resident instructor approved by another jurisdiction with at least five years of active prelicense teaching. Schools may use guest instructors with expertise in particular areas if an approved instructor is present, or without one with prior written Commission approval.

• ✓Non-resident instructors need at least five years of active prelicense teaching approval
• ✓Guest instructors require an approved instructor present unless prior written Commission approval
• ✓The Commission is the final determinant of instructor approval

Schools may use guest instructors with expertise if an approved instructor is present, or without one present with prior written Commission approval. The Commission may approve non-resident instructors approved elsewhere.

• ✓Guest instructors require a properly approved instructor present unless the Commission gives prior written approval
• ✓A non-resident instructor may be approved with evidence of at least five years actively teaching prelicense courses as an approved instructor
• ✓The Commission is the final determinant of instructor approval

The Commission may require licensees completing courses under this Rule to submit transcripts or other verification of completion that the Commission deems necessary and adequate.

• ✓Commission may require transcripts or other verification
• ✓Verification must be deemed necessary and adequate by the Commission

An individual applicant activating an original license pays an activation fee plus a renewal fee covering fees until the applicant's birth month in the fourth calendar year following activation. A firm's fees run until the fourth anniversary of firm activation. Individual activation fee is $45.00 (includes $20 for the Real Estate Education, Research, and Recovery Fund); firm/school/instructor activation is $75.00 (includes $20).

• ✓Individual original activation fee is $45.00, including $20 for the Recovery Fund
• ✓Firm, school, or instructor activation fee is $75.00, including $20 for the Recovery Fund
• ✓Individual renewal period runs to the birth month in the fourth calendar year after activation
• ✓Firm renewal period runs to the fourth anniversary of activation

Four-year renewal fees are $125.00 (or $100.00 via the Commission's online system). Reinstatement of a lapsed license adds $100.00 if within four months of lapsing; if later, $100.00 plus $25.00 (individual/instructor) or $50.00 (firm/school) per month beyond six months from lapsing.

• ✓Renewal fee is $125.00, reduced to $100.00 when paid through the online system
• ✓Reinstatement within four months of lapsing costs $100.00
• ✓Reinstatement after six months adds per-month fees of $25 (individual) or $50 (firm)

Candidates must take a Commission-approved exam and pass using psychometrically sound criterion-related methods assessing minimal competence. Methods and passing score are published before administration.

• ✓Candidates must pass a Commission-approved examination
• ✓Passing scores are set by psychometrically sound criterion-related methods
• ✓Methods and minimum passing score are published before the examination

When an individual activates an original license, they pay an activation fee plus a renewal fee covering all fees until the birth month in the fourth calendar year following activation. Firms pay until the fourth anniversary of activation.

• ✓Individual original license activation fee is $45.00 (including $20.00 for the Real Estate Education, Research, and Recovery Fund)
• ✓Firm/school/instructor original activation fee is $75.00 (including $20.00 for the Recovery Fund)
• ✓Four-year renewal fees are $125.00 (or $100.00 if submitted through the Commission's Internet online system)

In addition to the renewal fee, reinstatement fees apply to licenses that lapsed for nonpayment or failure to meet education requirements, increasing with the length of the lapse.

• ✓Reinstatement within four months of lapsing costs $100.00
• ✓Reinstatement more than four months after lapsing costs $100.00 plus $25.00 per month (individual/instructor) or $50.00 per month (firm/school) beyond six months from lapsing
• ✓A $100.00 fee applies for returned/unpaid checks or disputed credit card charges resulting in a chargeback

Candidates must take a Commission-approved examination and achieve a passing score determined by psychometrically sound criterion-related methods. Methods and minimum passing score are published before administration.

• ✓Candidates must take a Commission-approved examination and make a passing score assessing minimal competence
• ✓The methods used and minimum passing score must be published prior to administration of the examination

A candidate moving to Georgia or seeking non-resident licensure may be licensed without further examination or education if they produce an original certification (issued within twelve months) meeting specified conditions.

• ✓The certification must show the candidate passed the examination, met all prelicense/continuing education requirements, is licensed in good standing, and had no disciplinary action
• ✓The certification must be issued no more than twelve months prior to making application
• ✓Candidates whose certification does not comply with all conditions must take and pass the Georgia qualifying examination

A $25.00 fee applies for failure to notify the Commission within 30 days of a change of address, opening/closing a trust account, transferring companies, or going inactive; and for incomplete applications. A $100.00 fee applies for returned checks or disputed charges resulting in a chargeback.

• ✓Notify the Commission in writing within 30 days of address change, trust account changes, or company transfers
• ✓A $25.00 fee applies for failure to timely notify or for incomplete applications
• ✓A $100.00 fee applies for returned checks or chargebacks

A candidate meeting the broker/associate broker experience requirement based on out-of-state experience must have obtained it within five years of applying and have the prior jurisdiction certify licensure during those five years. The Commission may accept other credible evidence such as transaction files or affidavits from currently licensed brokers.

• ✓Out-of-state experience must have been obtained within five years prior to application
• ✓The former jurisdiction must certify the applicant was licensed during the prior five years
• ✓Credible evidence may include transaction files and affidavits from licensed brokers

Qualifying veterans (one year+ active duty, 90+ days during wartime/conflict) earn a 5-point credit. Disabled veterans rated below 10% earn 5 points; those rated 10% or above earn 10 points. Credits do not apply to those not honorably discharged. Applicants must submit VA or DOD proof of service.

• ✓Qualifying veterans receive a 5-point examination credit
• ✓Disabled veterans rated 10% or above receive a 10-point credit
• ✓Veterans not honorably discharged are ineligible for preference points
• ✓Proof of service must be submitted on official VA or DOD forms

A candidate moving from another state or seeking non-resident licensure may be licensed without further exam or education if they produce a certification (issued within 12 months) showing they passed an exam, met education requirements, are licensed in good standing, and have no disciplinary actions. Otherwise, they must take and pass the Georgia exam.

• ✓Certification must be issued no more than twelve months before application
• ✓The certification must show good standing, met education, and no disciplinary action
• ✓Candidates not meeting all conditions must pass the Georgia qualifying examination

A candidate with a prior criminal conviction or professional license disciplinary action must comply with paragraphs (8) and (9) and O.C.G.A. 43-40-15(a) et seq. Any person who without authorization supplies exam content to others violates the rule.

• ✓Candidates with prior convictions or disciplinary actions are subject to O.C.G.A. 43-40-15
• ✓Supplying qualifying examination content to others without authorization is prohibited

A $25.00 fee applies for failure to notify the Commission within 30 days of address changes, trust account changes, company transfers, or going inactive, as well as for other notification failures.

• ✓Licensees must notify the Commission in writing within 30 days of a change of address, opening/closing a designated trust account, transferring to a new company, or going inactive
• ✓Failure to affiliate or apply for inactive status within 30 days of notice that a broker no longer holds the license incurs a $25.00 fee
• ✓A $25.00 fee applies when the Commission must return an incomplete application

To meet the broker's license experience requirement based on out-of-state experience where records are incomplete, a candidate must have obtained the experience within five years and have the former jurisdiction certify licensure at some time in the prior five years.

• ✓Out-of-state experience must have been obtained within five years prior to the Georgia application
• ✓The former licensing jurisdiction must certify the applicant was licensed at some time during the prior five years
• ✓The Commission may consider other credible evidence including transaction files and affidavits from licensed brokers

Qualifying veterans and disabled veterans receive additional points on licensing examinations, with amounts depending on service and disability rating.

• ✓Qualifying veterans who served one year or more (with 90+ days during wartime/conflict) receive a credit of five points
• ✓Disabled veterans rated at 10 percent or above receive a credit of ten points; those rated less than 10 percent receive five points
• ✓Preference points do not apply to any candidate who has not been honorably discharged

If an out-of-state candidate's criminal history report shows prior convictions or prior professional license disciplinary action, the candidate must comply with additional rule provisions and O.C.G.A. 43-40-15.

• ✓Candidates with prior criminal convictions or disciplinary actions must comply with paragraphs (8) and (9) of the rule
• ✓Such candidates are subject to the provisions of O.C.G.A. 43-40-15(a) et seq.

Any examinee, applicant, candidate, or licensee who without authorization supplies or attempts to supply examination content to others violates the rule.

• ✓Supplying or attempting to supply examination content to others without proper authorization is prohibited
• ✓This prohibition applies to examinees, applicants, candidates for licensure, and licensees

An 'instructional hour' means at least fifty minutes of instruction or learning activity. In-class instruction and testing must not exceed seven and one-half hours per day, held between 7:00 a.m. and 10:00 p.m., with at least fifteen minutes of breaks every two hours. Brokers Prelicense in-class instruction must be separate from Salespersons Prelicense. Instructors may use no more than thirty minutes of audio/video toward required hours without written authorization.

• ✓An instructional hour equals at least fifty minutes
• ✓In-class instruction and testing must not exceed 7.5 hours per day
• ✓In-class instruction must be held between 7:00 a.m. and 10:00 p.m. with 15 minutes of breaks every two hours
• ✓Brokers Prelicense in-class instruction must be separate from Salespersons Prelicense

The Community Association Managers Prelicense Course requires a minimum of 25 instructional hours; the Salespersons Prelicense Course requires a minimum of 75 hours; and the Brokers Prelicense Course requires a minimum of 60 hours. Break time is not counted; graded exercises/tests may not exceed ten percent of instruction time.

• ✓Community Association Managers Prelicense Course = minimum 25 hours
• ✓Salespersons Prelicense Course = minimum 75 hours
• ✓Brokers Prelicense Course = minimum 60 hours
• ✓Graded exercises/tests may not exceed 10 percent of instruction time

Every approved school must offer a CE course annually to help licensees meet O.C.G.A. § 43-40-8(e) requirements. No CE course may be fewer than three credit hours (an instructional hour = at least fifty minutes). Courses over 24 classroom hours must also meet Sales Postlicense standards. A licensee may not repeat a CE course unless at least one full year has passed since completion.

• ✓No CE course may be fewer than three credit hours
• ✓A licensee cannot repeat a CE course until at least one full year has passed
• ✓Courses exceeding 24 classroom hours must meet Sales Postlicense requirements

Prelicense and Sales Postlicense courses must conclude with a school-administered examination. Salespersons and Brokers Prelicense final exams must be given on a day with no in-class instruction. Passing scores must be consistent with state qualifying exams unless the Commission approves otherwise. Students failing may retake once on another day; a second failure requires repeating all instruction.

• ✓Salespersons and Brokers Prelicense final exams must be on a day with no in-class instruction
• ✓Passing score must be consistent with state qualifying exams unless Commission permits otherwise
• ✓Second final exam failure requires repeating all instruction before another attempt

Each prelicense course type has a minimum instructional hour requirement, with testing time limited to ten percent and break time excluded.

• ✓Community Association Managers Prelicense Course: minimum twenty-five instructional hours
• ✓Salespersons Prelicense Course: minimum seventy-five instructional hours
• ✓Brokers Prelicense Course: minimum sixty instructional hours
• ✓Time spent on graded exercises/tests/final exams may not exceed ten percent of required instruction time

Every approved school must offer a CE course annually to meet O.C.G.A. § 43-40-8(e). CE courses have minimum length, subject area guidelines, and repeat restrictions.

• ✓No school may offer a CE course of fewer than three credit hours
• ✓A licensee may not repeat a CE course unless at least one full year has passed since completion
• ✓Courses exceeding twenty-four classroom hours count for CE only if they meet Sales Postlicense course requirements
• ✓Effective July 1, 2020, license-law CE courses must be at least three credit hours and cover specified license-law areas

Every prelicense course must cover the ethical implications of its subject matter, include reading assignments and extensive graded written exercises, and require student certification statements on out-of-class assignments. The Salespersons Prelicense Course must cover real estate contracts, agency, closing procedures (RESPA), pricing, financing, Georgia's Residential Mortgage Fraud law, fair housing, anti-trust laws, and Georgia license law, among others.

• ✓Every prelicense course must include coverage of ethical implications
• ✓Salespersons Prelicense Course must cover Georgia's Residential Mortgage Fraud law, fair housing, and anti-trust laws
• ✓Out-of-class assignments must include a student personal-completion certification

A Sales Postlicense Course must provide a minimum of twenty-five instructional hours, with graded testing not exceeding ten percent of required time. The curriculum focuses on legal fundamentals and/or basic practices in sales or management of residential, agricultural, commercial, or industrial properties. Residential-focused courses must include a Georgia Residential Mortgage Fraud law component.

• ✓Sales Postlicense Course = minimum 25 instructional hours
• ✓Residential sales postlicense courses must include a Residential Mortgage Fraud law component
• ✓Every postlicense course must cover ethical implications

Appropriate CE topics include all forms of real estate, development/construction, legal descriptions, land use/zoning, property management, taxes, title issues, water rights, inspections, business brokerage, auctions, and ethics. Inappropriate topics (without prior written authorization) include psychology of selling, personality assessments, business development, personal investing, retirement planning, branding, motivation, time management, unrelated marketing, technology instruction, and social media training.

• ✓Ethics and property management are appropriate CE topics
• ✓Psychology of selling, motivational seminars, and social media training are not appropriate CE without prior written authorization
• ✓Courses designed for personal growth or business development are discouraged

Any CE course on license law under Rule 520-1-.05(1)(e) must have a minimum of three credit hours and be limited to specified areas: effects of prohibited conduct under O.C.G.A. § 43-40-15; transfer requirements; trust/escrow account requirements under 43-40-20 and Rule 520-1-.08; unfair trade practices under 43-40-25(b); brokerage relationships; management responsibilities; advertising; handling transactions; and licensees acting as principals.

• ✓License law CE course must be a minimum of three credit hours
• ✓Content is limited to specific license law areas including trust accounts, unfair trade practices, advertising, and agency
• ✓Effective July 1, 2020

Instruction should include role play, simulations, or similar techniques for skills like writing/presenting offers, calculating costs, pricing property, and fair housing compliance. Schools must use interactive instructional techniques and may not provide instruction primarily by reading text, listening to audio, watching video, or studying exam-like questions.

• ✓Schools must use interactive instructional techniques
• ✓Instruction may not be provided primarily through reading, audio, video, or exam-like question study
• ✓Instruction should include role play and simulations for skill mastery

Distance education courses may be approved if they meet chapter requirements or ARELLO certification standards; a distance education credit hour equals sixty minutes. Synchronous internet/webinar courses require ARELLO certification. Computer-based courses must 'teach to mastery,' dividing content into modules with learning objectives, diagnostic assessment, tailored remediation, and mastery demonstration before completion.

• ✓In distance education, a credit hour equals sixty minutes
• ✓Synchronous internet/webinar courses require ARELLO certification
• ✓Computer-based courses must teach to mastery with modules, objectives, and remediation

Computer-based courses must reasonably require students to expend the full course hours (25 for CAM, 75 for Salespersons, 25 for Sales Postlicense, 60 for Brokers Prelicense). Prelicense/Brokers courses must be offered under an approved instructor. Students must submit a personal-completion certification, and credit may be withdrawn if another person completed any part.

• ✓Computer-based Salespersons Prelicense must require 75 hours; Brokers Prelicense 60 hours
• ✓Computer-based prelicense courses must be offered under an approved instructor
• ✓Student must certify personal completion of each assigned module

Schools need not submit exams if they are multiple choice with at least four choices, with Salespersons/Brokers Prelicense exams having no fewer than 100 questions and CAM/Sales Postlicense exams no fewer than 50 questions. Schools must maintain at least two exam forms, keep exams secure, not review specific questions with students, and provide proctors for all prelicense/postlicense and required CE exams.

• ✓Salespersons and Brokers Prelicense final exams must have no fewer than 100 questions
• ✓CAM and Sales Postlicense final exams must have no fewer than 50 questions
• ✓Schools must maintain at least two forms of a final examination and provide proctors

Applicants may qualify for examination via college transcripts: at least 10 quarter hours or 6 semester hours for the salesperson's exam; 15 quarter hours or 9 semester hours for the broker's exam; and 4 quarter hours or 2 semester hours with a community association concentration for the CAM exam. Only qualifying real estate major courses, principles courses, or law school agency/property/contract courses satisfy this requirement.

• ✓Salesperson qualification: 10 quarter hours or 6 semester hours of real estate courses
• ✓Broker qualification: 15 quarter hours or 9 semester hours of real estate courses
• ✓CAM qualification: 4 quarter hours or 2 semester hours with community association concentration

Courses must be educational, not exam-oriented. An instructional hour is at least fifty minutes. In-class instruction and testing may not exceed seven and one-half hours per day.

• ✓An "instructional hour" means at least fifty minutes of instruction or learning activity
• ✓In-class instruction and testing may not exceed seven and one-half hours per day
• ✓In-class instruction must occur between 7:00 a.m. and 10:00 p.m. with breaks totaling at least fifteen minutes every two hours
• ✓Broker Prelicense in-class instruction must be separate from Salesperson Prelicense in-class instruction

Prelicense courses must cover fundamental subject areas, include ethics coverage, require out-of-class reading and written exercises, and obtain student certification statements.

• ✓Every prelicense course must include acknowledgment and coverage of the ethical implications of the subject matter
• ✓Each out-of-class assignment must include a signed student certification of personal completion; unsigned work must not be graded
• ✓An approved instructor and/or school coordinator/director must grade written course work
• ✓Salespersons course must cover Georgia's Residential Mortgage Fraud law and fair housing

A Sales Postlicense Course requires a minimum of twenty-five instructional hours focused on legal fundamentals and basic practices; residential-focused courses must cover mortgage fraud law.

• ✓Sales Postlicense Course requires a minimum of twenty-five instructional hours
• ✓Testing time may not exceed ten percent of required instruction time
• ✓If the course addresses residential sales, it must include a component on Georgia's Residential Mortgage Fraud law

Distance education is approved if it meets chapter requirements or ARELLO certification. Computer-based courses must teach to mastery with diagnostic assessment, remediation, and required student certification.

• ✓In distance education courses, a credit hour is defined as sixty minutes of instruction
• ✓Synchronous Internet/Webinar courses require ARELLO certification
• ✓Computer-based courses must teach to mastery, requiring demonstrated mastery before module completion
• ✓Computer-based prelicense courses must require the same hours as in-class (25 CAM, 75 Salesperson, 60 Broker, 25 Postlicense)

CAM, Salespersons, Sales Postlicense, and Brokers Prelicense courses must conclude with a school-administered final exam meeting scheduling, passing-score, retake, security, and format standards.

• ✓Salesperson and Broker Prelicense final exams must be given on a day with no in-class instruction
• ✓Passing score must be consistent with the state qualifying exam passing score unless the Commission approves otherwise
• ✓A student failing a second final exam must repeat all course instruction before another attempt
• ✓Salesperson and Broker Prelicense final exams must have no fewer than 100 questions; CAM and Sales Postlicense no fewer than 50 questions

Courses must be educational, not specifically oriented to passing licensing exams. Courses introduce professional language, basic theory, and practical skills with required practice exercises. A school may not hold out a course as meeting requirements until it is posted on the Commission's electronic record or the school receives written authorization.

• ✓Courses must be educational and not oriented to passing licensing exams
• ✓A course may not be offered until posted or authorized in writing by the Commission

Applicants may qualify to sit for examination by presenting qualifying college real estate coursework instead of prelicense courses.

• ✓Salesperson exam: at least ten quarter hours or six semester hours of real estate subjects
• ✓Broker exam: at least fifteen quarter hours or nine semester hours of real estate subjects
• ✓CAM exam: at least four quarter hours or two semester hours concentrated in community associations
• ✓Only real estate major courses or agency/real property/contract law at a school of law qualify; an official transcript must be submitted