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Chapter 2Chapter 2

Thomas E.Gillett

Charles J.Jacobus

Thomas E.Gillett

© 2008 by South-Western, Cengage Learning

Georgia Real EstateGeorgia Real EstateAn Introduction to the ProfessionAn Introduction to the Profession

Seventh EditionSeventh Edition

Chapter 2Chapter 2

Licensing Laws Licensing Laws and Professional Affiliationand Professional Affiliation

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LicenseeLicensee

Rational for Licensing

Loyalty, Honetsty, Truthfulness

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LicenseeLicenseeOne who for another and for promise of or for compensation:

Lists or offers to ListSells or offers to SellBuys or offers to BuyNegotiates or offers to Negotiate

Purpose of:Sale, Purchase, Option, Exchange, Auction, Lease, Rental of Real Estate

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Licensee ClassesLicensee Classes

Real Estate BrokerLicensed to act independently in conducting real estate brokerage business.

Real Estate SalespersonEmployed by a broker.

Sales Associate

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QualificationsQualifications

Examination

Education Requirements

Continuing Education

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LicensingLicensing

ProcedureRenewal

Nonresident LicensingReciprocityNotice of ConsentMoving

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LicensingLicensing

Business Firm

Fictitious Business Name

Branch Offices

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Real Estate RegulationReal Estate Regulation

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Suspension & RevocationSuspension & Revocation

Reasons for suspension or revocation

Investigations by the Commission

Statements takenConferenceFormal Hearing Appeal

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Bonds & Recovery FundsBonds & Recovery FundsBond Requirements

$1,000 - $100,000

Recovery Fund Funded w/ Licensing feesGeorgia

Minimum balance - $1,000,000$15,000 per Transaction$45,000 per Licensee

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Training – complement, enhance, and encourage personal development.

Compensation Percentage of earned commissions

Co-op

100% Commission

Broker AffiliationBroker Affiliation

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Broker AffiliationBroker Affiliation

Support – Services offered.

Interviewing Brokers

Employment Contract

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Independent ContractorIndependent Contractor

Paid only if a sale produces a commission Responsible for income taxes and social security.

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Brokerage CompaniesBrokerage Companies

FranchisesNational identification

National Real Estate Firms“Full Service”

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REALTOR®REALTOR®Registered trade nameMember of NAR

not synonymous with real estate agentCode of ethics first adopted in 1913

Standards of practiceGRI designation by taking sponsored education courses by NARhttp://www.realtor.org

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Key TermsKey Terms

BrokerIndependent contractorLicense revocationLicense suspensionLicensee

Principal brokerReal estate commissionREALTOR®Recovery fundSales associateSalesperson