Appendix 8: GREC Schedule of Violations & Penalties
(from GREC Rule 520-01-.14 Citations)
(3) Schedule of Violations
and Penalties. Violation of the
following rules, regulations, and unfair trade practices may become the basis
for the issuance of a citation. While the Commission may determine that
circumstances warrant the imposition of a lesser penalty, the monetary
penalties prescribed constitute the maximum penalty for a single
violation of the cited rule, regulation, or unfair trade practice. In the event
of any conflict between the description of a violation in the schedule below
and the language in the code section or rule, the language in the code section
or rule shall control.
Violation
|
Fine
|
(a) Failure of a community
association manager, salesperson, or associate broker to turn over trust
funds to the broker as soon as practicably possible. 43-40-25(b)(23) &
520-1-.08.
|
Fine of $500.00.
|
(b) Failure of a licensee to
include financing terms in a sales contract having a financing contingency.
43-40-25.1.
|
Fine of $500.00.
|
(c) Failure of a licensee to
provide a copy of any document used in a real estate
transaction to any individual
signing such document. 43-40-25(b)(19), 520-1-.06(1) &
(2), & 520-1-.10(2).
|
Fine of $500.00.
|
(d) Where a Commission
examination of a brokerage firm’s operations reveals a violation of
requirements set forth in 43-40-11, 43-40-18, 43-40-25.1, 520-1-.06, 520-1-.07,
& 520-1-.08(5)(c).
|
Fine of $500.00.
|
(e) Where an examination of
an approved school reveals a violation of requirements set forth in Chapter
520 of the Rules of the Commission.
|
Fine of $100.00.
|
(f) Failure of a licensee to
present promptly a signed offer to a seller or failure to deliver copies of
an accepted contract to the parties within a reasonable time. 43-40-25(b)(19)
& 520-1-.07.
|
Fine of $600.00.
|
(g) Conducting business under
a name other than that which is registered with the GREC. 520-1-.07.
|
Fine of $600.00.
|
(h) Where a Commission
examination of a brokerage firm’s operations reveals a trust
account violation. 43-40-20
& 520-1-.08.
|
Fine of $600.00.
|
(i)
Failure of a community association manager, a salesperson, or an associate
broker to notify the broker of personal real estate activities. 520-1-.11.
|
Fine of $600.00.
|
(j) Failure of a licensee to
include the correct amount of earnest money, security deposit, or terms in a
sales or lease contract. 43-40-25.1.
|
Fine of $600.00.
|
(k) Where an approved school
violates the requirements set forth in the Rules of the
Commission
developing or offering computer-based courses.
|
Fine of $200.00.
|
(l) Where a licensee pays a
commission or a referral fee for performing a real estate
brokerage activity to a
person who does not hold a current, active real estate license in this or
some other state except as provided in 43-40-25(b)(17).
|
Fine of $600.00.
|
(m) Advertising that violates
a provision of 43-40-25(b)(11) or 520-1-.09(3), (5), or (6);
but is not discriminatory or
intentionally misleading or inaccurate in violation of 43-40-
25(b)(1)
or (2) or 520-1-.09(2) or (4).
|
Fine of $600.00.
|
Violation
|
Fine
|
(n) Failure of a licensee to
register with the GREC an account into which trust funds have been deposited.
43-40-20(b) & 520-1-.08(1).
|
Fine of $600.00 per account
not registered.
|
(o) Failure of a licensee to have the bank
designate an account as a trust or escrow account, except where the bank has
erred. 43-40-20(b).
|
Fine of $600.00 per account
not designated.
|
(p) Failure of a licensee to
disclose his or her licensure in a contract requiring such disclosure.
520-1-.11.
|
Fine of $600.00 per contract.
|
(q) Where a broker continues
to allow an affiliated licensee to conduct brokerage transactions after the
licensee’s license has been in a lapsed status for more than one month.
43-40-18 & 520-1-.05(4).
|
Fine of $600.00 per brokerage
transaction.
|
(r) Where a licensee performs
real estate brokerage activity in violation of 520-1-.05(4) beyond the month
in which a license lapses for non-payment of renewal fees.
|
Fine of
$600.00 per brokerage
transaction.
|
(s) Where an approved school
offers a course without prior authorization, if such prior authorization is
required.
|
Fine of $200.00 per student
enrolled, not to exceed the limits set forth in 520-1-.14 (1).
|
(t) Failure of a licensee to
deposit trust funds promptly where the deposit was made more than three
business days after receipt unless the contract provides otherwise. 43-40-25(b)(3).
|
Fine of $600.00.
|
(u) Failure of a licensee to
notify the Commission of the final disposition of any
administrative, civil, or
criminal action within ten days of the conclusion of court or administrative
proceedings. 520-1-.05(5).
|
Fine of $600.00.
|
(v) Failure of a licensee to
obtain written permission before depositing trust funds into an
interest-bearing account where the licensee retained the interest. 43-40-25(b)(30)
& 520-1-.08(1).
|
Fine of $600.00.
|
(w) Failure of a broker to
sign a release form immediately upon personally receiving the request of a
community association manager, salesperson, or associate broker to be
released from the broker’s firm. 520-1-.07(5).
|
Fine of $600.00.
|
(x) Failure of a transferring
salesperson or associate broker to account for or to return to the releasing
broker all items belonging to that broker. 520-1-.07(5).
|
Fine of $600.00.
|
(y) Failure of a licensee to
deposit into a trust account trust funds received in connection with a
transaction in which a licensee is a principal. 43-40-20(f), 520-1-.08(1)
& (4).
|
Fine
of $600.00.
|
(z) Failure of a licensee to
include a fixed date of expiration in a listing agreement or failure to leave
a copy with the principal. 43-40-25(b)(18).
|
Fine of $600.00.
|
(aa) Where an approved school
allows a person who has not been approved by the Commission as a pre-license
instructor to instruct a Community Association Managers Course, a
Salespersons Prelicense Course, or a Brokers Prelicense Course.
|
Fine of
$300.00 per course, not to
exceed the limits set forth in 520-1-.14 (1).
|
(bb) Failure of a licensee to
deposit earnest money, security deposits or other trust funds according to
the terms of a contract. 43-40-25(b)(5) & 520-1-.08(1).
|
Fine of $800.00 per
contract.
|
(cc) Where a broker upon
disbursing trust funds without obtaining the express agreement to all the
parties to the contract, fails to notify all parties in writing of the
disbursal. 520-1-.08(3).
|
Fine of $800.00.
|
Violation
|
Fine
|
(dd) Where a licensee has
made a false statement of material fact on his or her application or caused
to be submitted or been a party to preparing or submitting any falsified
application to the commission on paper, electronically, or by any other means
or media. 43-40-15(d) & 520-2-.16(1), & 520-3-.07.
|
Fine of $800.00.
|
(ee) Failure to handle trust
funds as required by 43-40-20; 43-40-25(b)(3), (4), & (5); &
520-1-.08 in a transaction in which a client or a customer claims a loss and
full restitution has been made.
|
Fine of $900.00.
|
(ff) Where the annual
percentage of students passing the real estate examination from any
prelicense school falls ten percentage points or more below the percentage of
all examinees passing the real estate examination in any two consecutive
calendar years. 520-2-.16(2).
|
Fine of $900.00.
|
(gg) Where an approved school
fails to have students complete the required number of hours in any course or
to complete all exercises and/or examinations required by the school.
520-2-.10(3), (4), (5), & (6).
|
Fine of $400.00 or $100.00
per student, whichever is
greater, but not to exceed
the limits set forth in 520-1-.14 (1).
|
(hh) Failure to reconcile a
trust or escrow account at least monthly; to provide the required information
in the reconciliation statement; or, in the event of a discrepancy in the
account, to provide an explanation or description of the discrepancy and the corrective
action taken. 520-1-.08(6).
|
Fine of $600.00 per violation
if the account
balances; fine of $900.00 per
violation if the account is not in balance. And such other violations and
fines as the ommission and the respondent parties agree upon.
|