Rule 520-1-.07. Management Responsibilities of Real Estate Firms +6Georgia · Real Estate · English

A broker may not conduct business under any name other than the one on the license. Brokers/qualifying brokers are responsible for violations by affiliated licensees, must instruct affiliates on license law, and must notify the Commission of violations.

• ✓Broker may not use any name other than the licensed name
• ✓Broker responsible for affiliated licensees' violations
• ✓Broker must instruct affiliates on License Law and rules
• ✓Broker must notify the Commission of any violation

When a firm's qualifying broker dies, resigns, or is discharged unexpectedly, the firm must secure a new qualifying broker within 60 days or cease brokerage activity. During the interim, a designated partner/member/officer may sign documents and disburse trust funds.

• ✓Firm must secure new qualifying broker within 60 days or cease activity
• ✓A designated partner/member/officer may sign documents in the interim
• ✓Designee may disburse trust funds as required by contracts

Support personnel may perform only ministerial duties requiring no discretion. Both firm and affiliated licensee are responsible for their acts. Written agreements are required. Permitted tasks include answering phones, submitting MLS data, and assembling closing documents; prohibited tasks include showing property, cold calling, and negotiating.

• ✓Support personnel perform only ministerial duties, no discretion
• ✓Firm and affiliated licensee responsible for their acts
• ✓Written agreements required specifying permitted/prohibited tasks
• ✓Prohibited: cold calling, showing real estate, negotiating fees, discussing terms
• ✓Unlicensed/inactive support personnel may not hold out as actively licensed

A broker or qualifying broker may serve one or more other licensed firms. An associate broker may serve as broker/qualifying broker for other firms only after notifying, in writing, the broker with whom they are affiliated.

• ✓Broker/qualifying broker may serve multiple licensed firms
• ✓Associate broker must notify their affiliated broker in writing before serving another firm as broker

When a licensee requests a release, the releasing broker must immediately sign it and forward the wall certificate to the Commission or note it was sent to the new broker. Disputes over compensation cannot justify refusing to sign a release. Departing licensees must account for and return firm property.

• ✓Releasing broker must immediately sign release and forward wall certificate
• ✓Compensation disputes are not grounds to refuse a release
• ✓Departing licensee must return firm keys, signs, records, and account for clients
• ✓Licensee must transfer or go inactive within one month of Commission receiving the certificate

A Georgia broker may divide or share a commission with a broker licensed in another state, and may pay a referral fee to an out-of-state broker. Referring out-of-state brokers may not perform other broker acts on Georgia property without a nonresident license or written agreement with a Georgia broker.

• ✓Georgia broker may share commission with an out-of-state licensed broker
• ✓May pay referral fee to a referring out-of-state broker
• ✓Referring broker may not perform other broker acts on Georgia property without nonresident license or written agreement

Brokers may maintain multiple designated trust/escrow accounts and must notify the Commission of each within one month of opening. Licensees must place all cash, checks, and items of value received in a brokerage capacity into the broker's custody as soon as practicably possible. The broker must promptly deposit funds into a federally insured trust account unless parties agree otherwise in writing.

• ✓Must notify Commission of each trust account within one month of opening
• ✓Licensees must deliver received funds to broker as soon as practicably possible
• ✓Funds must be deposited into a federally insured, registered trust account unless agreed otherwise in writing

A broker may keep their own funds in a trust account only when clearly identified and only to cover a required minimum balance, service charges/fees, or commissions due the broker. Excess broker funds must be removed monthly, and only checks payable to the broker may withdraw broker funds.

• ✓Broker's own funds allowed only for minimum balance, service charges, or commissions due
• ✓Excess broker funds must be removed each month
• ✓Only checks payable to the broker may withdraw the broker's designated funds

Disbursing trust funds contrary to the contract, or failing to disburse per the contract, demonstrates incompetence. Proper disbursement occurs upon offer rejection/withdrawal, closing, a separate signed written agreement, interpleader filing, court order, or reasonable contract interpretation. When parties do not all agree, the broker must immediately notify all parties in writing.

• ✓Disbursing contrary to contract terms demonstrates incompetence
• ✓Proper disbursement circumstances include rejection, closing, written agreement, interpleader, court order
• ✓Must immediately notify all parties in writing of any disbursal not expressly agreed to

A broker must, at least monthly, prepare a written reconciliation statement comparing total trust liability to the reconciled financial institution balance. Statements must include specific details and be reviewed and retained for three years. Discrepancies, negative balances, or returned checks require explanation and corrective action.

• ✓Written monthly reconciliation required comparing trust liability to bank balance
• ✓Reconciliation statements must be retained for three years
• ✓Discrepancies and negative balances require explanation and corrective action

Every broker required to maintain a trust account must keep an accounting system detailing names of parties, deposit amount and date, property identification, and details of each check drawn. Manual or electronic systems are acceptable if complete, accessible, understandable, and available to the Commission.

• ✓Accounting must show party names, deposit amount/date, property, and check details
• ✓Manual or electronic systems permitted if complete and understandable
• ✓Records must be reasonably available to authorized Commission representatives

A broker may claim earnest money as commission after closing (or the passed closing date), delivery of possession in leases, or a separate signed agreement. All checks against each deposit should reflect a zero balance for each transaction, except when a portion is transferred to the broker for commission.

• ✓Broker may claim commission from trust funds after closing or possession delivery
• ✓Refunds of earnest money must be paid by check or credited at closing
• ✓Total checks per deposit should reflect a zero balance for each transaction

A licensee owning a trust account or a qualifying broker whose firm files bankruptcy must immediately notify the Commission in writing. Trust accounts are subject to Commission examination each renewal period or on reasonable cause; a broker may submit a CPA report in lieu of examination.

• ✓Bankruptcy filing requires immediate written notice to the Commission
• ✓Trust accounts examined each renewal period or upon reasonable cause
• ✓Broker may provide a CPA report in lieu of examination, subject to Commission discretion

Brokers managing property or associations may maintain separate rental/assessment trust accounts. Bills may only be paid if sufficient funds are credited to that owner/association. Security deposits must be clearly identified and credited to the tenant with a balance always equal to the total deposits.

• ✓Sufficient funds must be credited before paying an owner's or association's bill
• ✓Security deposits must be clearly identified and credited to the tenant
• ✓Account balance must always equal the total of security deposits held

A licensee believing funds are abandoned may not disburse unless the written authorization requires it, they comply with the Unclaimed Property Act, or other legal requirements. A non-broker licensee may open a trust account for their owned properties with broker approval; property is 'owned' if the deed shows only the licensee or their sole-owner entity.

• ✓Abandoned funds may not be disbursed without authorization or Unclaimed Property Act compliance
• ✓Non-broker licensee may open trust account for owned properties with broker approval
• ✓Less-than-100% owned property trust funds must go into a licensed firm's trust account

Brokers may maintain more than one trust account and must notify the Commission of each account's financial institution and name/number within one month of opening. Licensees must deliver funds received to the broker as soon as practicably possible; the broker deposits into a federally insured registered trust account.

• ✓Notify Commission of each trust account within one month of opening
• ✓Licensees deliver received funds to broker as soon as practicably possible
• ✓Broker deposits in federally insured registered trust account
• ✓Interest-bearing accounts require written agreement on who receives interest

A broker may keep own funds in a trust account only when clearly identified and only to meet minimum balance requirements, cover service charges, or hold earned commissions being paid from others' funds. Excess broker funds must be removed monthly, and only checks payable to the broker may withdraw broker funds.

• ✓Broker's funds allowed only to meet minimum balance or cover service charges
• ✓Earned commissions may remain if properly designated and accounted for
• ✓Excess broker funds must be removed monthly
• ✓Only checks payable to the broker may withdraw broker funds

Disbursing trust funds contrary to contract demonstrates incompetence. Proper disbursement is deemed fulfilled upon rejection/withdrawal of an offer, closing, written agreement of all parties, interpleader, court order, or reasonable contract interpretation. Broker must have assurance funds cleared and notify parties in writing of any disbursal not agreed to by all.

• ✓Improper disbursement demonstrates incompetence
• ✓Proper disbursement upon rejection, withdrawal, closing, written agreement, interpleader, or court order
• ✓Must have assurance funds cleared before disbursing
• ✓Must notify all parties in writing of disbursals not expressly agreed to

Brokers must authorize Commission examination of trust accounts each renewal period or upon reasonable cause. Brokers may substitute a CPA report. At least monthly, brokers must prepare a written reconciliation comparing total trust liability with the reconciled bank balance and retain copies three years.

• ✓Trust accounts examined each renewal or upon reasonable cause
• ✓Broker may provide a CPA report in lieu of examination
• ✓Monthly written reconciliation comparing trust liability to bank balance
• ✓Reconciliation copies retained three years
• ✓Discrepancies, returned checks, and negative balances must be explained with corrective action

Every broker required to maintain a trust account must keep an accounting system detailing names of parties, deposit amount and date, property identification, and details of each check drawn. Systems may be manual or electronic but must be complete, accessible, understandable, and available to Commission representatives.

• ✓Record names of parties, deposit amount/date, and property identification
• ✓Record amount, payee, and date of each check drawn
• ✓System may be manual or electronic
• ✓Must be complete, accessible, understandable, and available to Commission

A broker claiming earnest money as commission complies with 43-40-20(e) if the sale closed or closing date passed, possession delivered in a lease, or a separate written agreement was secured. All earnest money refunds must be paid by check or credited at closing.

• ✓May claim commission after closing or closing date passes
• ✓Lease commission claimable after possession delivered
• ✓Separate written agreement can establish entitlement
• ✓Earnest money refunds must be by check or credited at closing

A licensee owning a trust account (or a qualifying broker whose firm files) must immediately notify the Commission of a bankruptcy petition. Abandoned trust funds may not be disbursed except per written authorization, the Disposition of Unclaimed Property Act, or other statutory/court requirements.

• ✓Bankruptcy petition requires immediate written notice to Commission
• ✓Abandoned funds may not be disbursed except per authorization or unclaimed property law
• ✓Compliance with O.C.G.A. 44-12-191 et seq. required for abandoned funds

Brokers managing property or associations may maintain separate rental/assessment trust accounts. Bills paid must have sufficient owner/association funds credited. Security deposits kept in trust must be identified and the account balance must always equal total deposits. Licensees managing owned rentals must keep deposits in a trust account, not post a bond.

• ✓Separate rental/assessment trust accounts permitted
• ✓Sufficient owner/association funds must exist before paying bills
• ✓Security deposit balance must always equal the total of deposits
• ✓Licensee managing owned rentals must keep deposits in trust; no bond in lieu

At renewal, a broker must submit a trust account data summary or a CPA report. A non-broker licensee may open a trust account for trust funds on properties they own with broker approval and regular reporting. Property is 'owned by a licensee' if the deed shows only the licensee or a wholly-owned entity.

• ✓Broker submits trust account summary or CPA report at renewal
• ✓Non-broker licensee may open a trust account with broker approval and regular reporting
• ✓'Owned by a licensee' means deed shows only licensee or wholly-owned entity
• ✓Less than 100% ownership requires depositing trust funds into a licensed firm's trust account

Any advertising that is misleading, inaccurate in a material fact, or misrepresents real estate is prohibited. Advertising directed at persons of a particular race, color, religion, sex, handicap, familial status, or national origin is prohibited; contents must be confined to information about the real estate itself.

• ✓Misleading or materially inaccurate advertising is prohibited
• ✓Advertising directed at protected classes is prohibited
• ✓Ad content must be confined to information about the real estate itself

All advertising by associate brokers, salespersons, and CAMs must be under the direct supervision of their broker and in the name of their firm. A licensee must first secure written permission of the owner or authorized agent before advertising property.

• ✓Affiliated licensee advertising must be under broker supervision and in the firm's name
• ✓Written permission of owner/agent required before advertising
• ✓Advertising another firm's listing requires disclosing that fact and the listing firm's name

Firms using trade names or franchisees must clearly include the registered firm name adjacent to advertised property. The firm's name and phone number must appear in equal or greater size, prominence, and frequency than any affiliated licensee's, and the phone number must reach a broker/manager without going through the affiliated licensee.

• ✓Firm name must appear in equal or greater size/prominence/frequency than any licensee's
• ✓Firm phone number must reach a broker or manager directly
• ✓Registered firm name required on contracts, documents, and office signs

Internet advertising must disclose the firm's name and telephone number on every viewable web page, or provide a direct link to a compliant display. Outdated website information must be updated or removed within 30 days. Third-party maintained sites require timely written notice of updates.

• ✓Firm name and phone number must appear on every viewable web page or via direct link
• ✓Outdated website information must be updated/removed within 30 days
• ✓Timely written notice required for third-party maintained websites

A licensee cannot advertise in a manner suggesting the offer is from an unlicensed private party. Affiliated licensees cannot advertise under their individual name. To advertise their own non-engaged property, the licensee must notify and get written broker consent (if affiliated) and include a legend disclosing their real estate license.

• ✓Cannot advertise implying the offer is from an unlicensed private party
• ✓Advertising own property requires written broker notice and consent if affiliated
• ✓Must include a legend disclosing the licensee holds a Georgia real estate license

Advertising means any manner or activity by which a licensee makes real estate known to the public through media. Media broadly includes print, photographs, broadcast, and Internet — including websites, social media, email, text messages, banner ads, and signs.

• ✓Advertising is any activity making real estate known to the public via media
• ✓Media includes print, broadcast, Internet, social media, and signs
• ✓Definitions apply broadly to all advertising forms

Advertising that is misleading, inaccurate in any material fact, or misrepresents real estate is prohibited. Licensees must stop non-compliant principal advertising. Advertising directed at persons of a particular race, color, religion, sex, handicap, familial status, or national origin is prohibited.

• ✓Misleading or materially inaccurate advertising is prohibited
• ✓Licensee must stop a principal's non-compliant advertising
• ✓Discriminatory advertising directed at protected classes is prohibited
• ✓Advertisement content must be confined to information about the real estate

A licensee may not advertise real estate for sale, rent, lease, or exchange without first securing the written permission of the owner or authorized agent. Advertising another firm's listing requires clear disclosure of that fact and the listing firm's name unless waived in writing.

• ✓Written permission of owner/authorized agent required before advertising
• ✓Advertising another firm's listing requires clear disclosure of that firm
• ✓Disclosure may be waived only by written agreement of listing firm

In advertising specific real estate, the firm's name (as registered) and telephone number must appear in equal or greater size, prominence, and frequency than any affiliated licensee's, and the phone number must reach a broker/manager without going through the licensee.

• ✓Firm name and phone must be equal or greater prominence than licensee's
• ✓Firm phone must reach a broker or manager directly
• ✓Trade name/franchise ads must include registered firm name adjacent to listings
• ✓Block ads compliant if firm name appears once at top with greater prominence

All advertising by associate brokers, salespersons, and CAMs must be under the direct supervision of their broker and in the name of their firm.

• ✓Affiliated licensee advertising must be supervised by the broker
• ✓Advertising must be in the name of the firm

Internet advertising must disclose the firm's name and telephone number on every viewable web page, with direct links where character-limited. Outdated website information must be updated or removed within 30 days; third-party maintainers must be timely notified.

• ✓Firm name and phone number on every viewable web page
• ✓Direct links required for character-limited or third-party sites
• ✓Outdated information updated/removed within 30 days
• ✓Timely notice to authorized third parties excuses their failure to update

A licensee may not advertise so as to appear to be an unlicensed private party. When advertising owned property not under a brokerage engagement, the licensee must notify and obtain written broker consent (if affiliated) and include a legend disclosing licensure.

• ✓May not appear to be a private unlicensed party
• ✓Owned property advertising requires written broker notification and consent if affiliated
• ✓Advertisement must include a legend disclosing the person holds a real estate license
• ✓Every reasonable attempt must ensure the public knows a licensee is contacting them

Advertising means any method by which a licensee uses media to make real estate known to the public. Media broadly includes print, photographs, broadcast, Internet, signs, social media, email, text messages, and similar channels.

• ✓Advertising is any media-based communication to the public about real estate
• ✓Media includes print, broadcast, Internet, signs, social media, email, and texts
• ✓Definitions apply throughout the advertising rule

A licensee must promptly tender any signed offer to purchase, sell, lease, or exchange to their client or customer. When the offeror is not the licensee's client, the receiving licensee must provide a copy to the licensee representing the offeree, unless a written agreement provides that licensee will not provide negotiation services.

• ✓Signed offers must be promptly tendered to clients/customers
• ✓Copy of offer must be provided to the licensee representing the offeree
• ✓Direct negotiation allowed only if the offeree waived negotiation services in writing

Sales contracts, brokerage engagements, closing statements, leases, and related documents must be kept three years and made available to the Commission on reasonable request. Brokers required to retain include those identified in documents, those participating in negotiations, and those maintaining a trust account. Records may be paper, film, or electronic.

• ✓Transaction documents must be retained for three years
• ✓Retention applies to brokers identified, negotiating, or maintaining a trust account
• ✓Records may be kept in any media if true copies can be produced for the Commission

No licensee shall falsify transaction documents or misrepresent the true sales/lease/exchange price, downpayment, earnest money/deposit amount or form, cash payment method, or use any artifice with intent to deceive. Any such practice constitutes a misrepresentation.

• ✓Cannot falsify documents or misrepresent the true sales price or downpayment
• ✓Cannot misrepresent earnest money/deposit amount, form, or payment method
• ✓Any artifice with intent to deceive constitutes a misrepresentation

A licensee preparing or signing a brokerage engagement or offer must include the six-digit Commission license number of each firm and each licensee participating. Copies of documents must be provided to each signer, and accepted/signed offers distributed to each signer and each brokerage firm.

• ✓Six-digit license numbers of each firm and licensee required on engagements/offers
• ✓Copies of documents must be given to each signing individual
• ✓Accepted offers distributed to each signer and each involved brokerage firm

Disclosures to a principal may be made in advance based on pre-established terms in a written agreement. Referral fees must be disclosed in writing by the receiving broker no later than closing. A licensee may rebate part of a commission to a principal if disclosed on the closing statement and not misleading regarding funds source.

• ✓Disclosures may be made in advance per pre-established written agreement terms
• ✓Referral fees must be disclosed in writing no later than closing
• ✓Rebates to a principal require disclosure on the closing statement and must not mislead

A licensee must promptly tender any signed offer to their client or customer. When the offeror is not the licensee's client, the receiving licensee must provide a copy to the licensee working with the offeree, unless a written agreement precludes negotiation services.

• ✓Promptly tender all signed offers to the client/customer
• ✓Provide a copy to the licensee representing the offeree when applicable
• ✓May negotiate directly if a written outstanding agreement precludes the other licensee's services

Brokers must keep copies of sales contracts, brokerage engagements, closing statements, leases, and related documents for three years and make them available to the Commission. Records may be stored in paper, film, or electronic media if true copies can be produced.

• ✓Retain transaction documents for three years
• ✓Applies to identified brokers, participating firms, and trust-account brokers
• ✓Records may be paper, film, or electronic if true copies can be produced
• ✓Records must be available to the Commission at reasonable cost

No licensee may falsify transaction documents or misrepresent the true sales price, downpayment, earnest money/trust funds, the form of trust funds, or use any artifice to deceive. Any such practice constitutes misrepresentation.

• ✓No falsification of transaction documents
• ✓No misrepresentation of true sales price or downpayment
• ✓No misrepresentation of earnest money amount or form
• ✓Any artifice with intent to deceive is prohibited

A licensee preparing or signing a brokerage engagement or offer must include the six-digit license number of each firm and licensee. Copies of documents must go to each signer, and executed offers must be distributed to each signer and each brokerage firm involved.

• ✓Include six-digit license numbers of each firm and participating licensee
• ✓Provide a copy to each individual signing a document
• ✓Distribute executed offers to each signer and each involved firm

Required disclosures to a principal may be made in advance based on preset written terms. Referral compensation must be disclosed in writing by closing. Rebates to a principal are allowed if disclosed on the closing statement and not misleading. Gifts not contingent on the transaction need no disclosure.

• ✓Disclosures may be made in advance per pre-established written terms
• ✓Referral compensation disclosed in writing no later than closing
• ✓Rebates allowed if disclosed on closing statement and not misleading
• ✓Non-contingent gifts require no disclosure