Thursday, December 4, 2014

GREC Schedule of Violations & Penalties

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.



GREC Changes to (Internet) Advertising - Effective May 1, 2014

GREC Changes to (Internet) Advertising Effective May 1, 2014

Advertising – This Rule change primarily addresses the use of the Internet to advertise real estate. In response to a pattern of repeated violations related to advertising, particularly involving the internet, it became clear that the Rule needed to be updated to take into consideration the many methods now utilized for advertising real estate including internet, wireless, texting, messaging, digital, and various other types of technology. The revised Rule applies to all forms of media as detailed in the definition. To understand the advertising Rule, it is critical to understand the definition of media and the definition of
advertising. It is also important to understand that the advertising Rule is limited to the advertisement of specific real estate, not services

Media. For the purposes of this Rule, the term “media” includes, but is not limited to, print, photographs, broadcast, and the Internet including, but not limited to, such examples as newspapers, magazines, flyers, posters, business cards, billboards, radio, videos, television, signs (including office, directional, "for sale," "for lease," “sold,” or vehicle signs), newsletters, voicemail, email, facsimile transmissions, Internet websites, blogs, video blogs, property listing database services, email
farming, news groups, discussion lists, bulletin boards, social networking/social media, instant text messages, multimedia advertising, banner ads, pop-ups, and similar media.

Advertising” or “advertisement” means any manner, method, or activity by which a licensee through the use of any media makes known to the general public real estate for sale, rent, lease, or exchange.”

Advertising on the Internet.
 Any advertising on the Internet by a licensee of real estate for sale, rent, lease, or exchange shall disclose the name and telephone number of the licensee's firm on every viewable web page of a website….with some exceptions
• Some forms of internet advertising have very limited space or a limited number of characters that can be displayed. When it is not possible to include the firm  name and telephone number on every page, the Rule offers a method to be in compliance by including a direct link (needing only one-click) to a web page that can comply with this Rule and provide the needed information.

• Examples of situations that require a direct link to a display that contains this information include:
o Electronic messages of limited information or characters (such as texts, tweets,
                   instant messaging, etc.)
o Advertising on an internet website not owned or controlled by the licensee or firm and that                 
    website's terms of use limit the licensee's ability to comply with this paragraph, such as not
     allowing the inclusion of the listing firm name, firm phone number and in the correct font
     size, etc.

The long standing rule that the licensee’s name and phone number cannot be any larger or more prevalent than the firm name and main phone number still holds true.
• The name of the firm advertising the real estate for sale, rent, or exchange and the firm’s telephone number must appear in equal or greater size, prominence, and frequency than the name or names of any affiliated licensees or groups of licensees; and the phone number must be a number at which the public can reach a broker or a manager of the firm.

Maintenance and Updating of Data
Advertising real estate on a website or internet posting etc. that is outdated shall be updated or removed from the website within thirty (30) days of the information becoming outdated.
• The requirements of this Rule apply to advertising and information on a
website that is within the licensee's ownership or direct control.
• Many brokers hire independent firms or consultants to maintain the firm or individual’s web site and use various listing services to advertise real estate. If a licensee's website is maintained by an authorized third party (other than its firm or its franchisor’s webmaster), the licensee shall provide to the third party, a timely written notice, by mail, fax, or electronic means, of any updates to outdated information or information to be removed from the website, so that such updates or information removal may
be accomplished in accordance with this Rule.
• Prior to this Rule change, a broker or firm had 10 days to remove outdated internet advertising. This revision increases the time period to remove or correct information to 30 days as opposed to the 10 days previously stated in the rules.
• A licensee who provides such timely notice to the authorized third party shall not be in  violation of this Rule if the third party fails to effect an information change as notified.
• A broker should establish policies and procedures to maintain records of the notice provided to the authorized third party.

 No licensee shall be responsible for any information taken from the licensee's website, or other advertising, if placed on a website, or in other advertising outside the licensee's ownership and/or direct control and without the licensee's consent.
Most of the advertising rules have not changed, such as the requirements regarding:
1. Written permission from the owner to advertise real estate – in any media.
2. Broker supervision of all advertising by affiliates (associate brokers, salespersons, and community association managers), (including advertising the licensee’s own property).
3. Prohibition of discriminatory advertising.
4. Prohibition of misleading advertising.
5. Restrictions and requirements regarding licensees disclosure when advertising as principals (and including GA R.E. License #)
6. The use of Trade Names and franchise names.
7. Advertising approved schools or courses.

Every broker and every other licensee can benefit by a review of the entire advertising Rules and Regulations accessible from the Commission website.

In addition to the updated advertising Rule, a licensees must comply with the Unfair Trade
Practices found in O.C.G.A. §43-40-25 (b) (1), (2), (11), (12) and (21) which address misleading advertising regarding services, not just specific real estate. Representation, disclosure, and other practices are addressed as well.

The Commission approved the advertising Rule change to further protect the public interest and insure that any advertisement of real estate is in compliance with the License Laws, Rules, and Regulations. The update Rule also states that a licensee shall make every reasonable attempt in advertising to assure the public knows that they are being contacted by a licensee

Key Points: In Effect May 1, 2014
• The definition of Media is very broad, including, internet, texting, etc., etc., etc.
• The broker is responsible for all advertising of real estate in any media done by the firm or its
affiliates. It must include the firm name and phone number unless space is limited, and then it
must have a direct link to a webpage(s) each citing the firm name and phone number.
• Advertising of real estate in any media must be updated or removed within 30 days of
becoming outdated.


Transferring Between MX1 Companies

Transferring Between MX1 Companies

If you wish to transfer between any of our companies (i.e. MX1 Executives to MX1 Greater Atlanta or vice versa or from MXGR to MXGA or vice versa) you must do the following:
·         Complete a new Independent Contract Agreement for the New Company (Let the Agent Services Coordinator or your Branch Manager know so we may send you this form)
·         Upon receipt of your signed paperwork, we will transfer you in GREC, FMLS & GAMLS
·         If you have any active listings, those too must be transferred / re-entered in FMLS & GAMLS under your new Broker Code
o   Complete FMLS Form #116

o   Complete GAMLS Form: Transfer / Withdraw Listings

Submission of Contracts to Brokerage - 72 Hours

Submission of Contracts to the Brokerage – 72 Hours

You are required to upload into Paperless Pipeline any new listings, pending contracts, terminated contracts, leases, etc. and all earnest money within 72 hours of accepted agreement.  A late fee of $75 will be added to your bill or taken out of your commission check if you fail to submit my paperwork within 72 hrs  of acceptance and that the Broker may be required to report this activity to other parties of the contract or to the Georgia Real Estate Commission.


RE Forms: Purchase & Sale Contracts

RE Forms: Purchase & Sale Contracts

As of August 2014, if you have a contract Binding on an RE Form, Purchase & Sale Agreement, you are required to attach the “Standard Terms” as an Exhibit to this contract.  Form RE-001


Purchasing / Selling a Primary Residence for Yourself or Immediate Family Member

Purchasing a Primary Residence for Yourself or Immediate Family Member

If you choose to take $0.00 in commission on a transaction, the following shall apply:
·         Transaction fee to Maximum One shall be $50 ($40 if you are on Plan B) if this transaction is for an Owner-Occupied / Primary Residence property for yourself or your immediate family with a maximum of two transactions per year.
·         If the above does not apply, then the transaction fee to Maximum One shall be the transaction fee based on your plan, if you are on a commission split, then the Maximum One fee shall be your split (based on your plan) based on 3% of the sales price of the property.

·         If this is a primary residence for you, there is an “Agent Owner” letter on FMLS you may complete for $0 FMLS fee

Providing Documents to the Public Upon Request

Providing Documents to the Public Upon Request


Do not give out any specific information or documents regarding any of our transactions to anyone…. Even if they identify themselves as an attorney!!!  Our client files and information is confidential and is NOT to be given out to any member of the public – attorney or not – by any member of the staff or any agents.  The files belong to the BROKERAGE and the specific clients and not the agents!