Compilation of Rules and Regulations of the State of Georgia › Department 520 - GEORGIA REAL ESTATE COMMISSION › Chapter 520-1 - LICENSURE AND BROKERAGE › Rule 520-1-.14 - Citations

Current through Rules and Regulations filed through June 27, 2024
(1)
Imposition of Penalties.
Whenever the Commission determines from
			 the evidence gathered in an investigation that a licensee has violated one or
			 more of the provisions of O.C.G.A. Chapter 43-40 or the rules and regulations
			 adopted by the Commission or has committed an unfair trade practice, the
			 Commission, in its discretion, may (a) initiate the process for the imposition
			 of sanctions in accordance with the hearing procedures established for
			 contested cases by Chapter 13 of Title 50; or (b) issue a citation to the
			 licensee in lieu of initiating the process for the imposition of sanctions. A
			 citation issued by the Commission may include an order to complete a course of
			 study in real estate brokerage or instruction; to file periodic reports by an
			 independent accountant on a real estate broker's designated trust account;
			 and/or to pay a fine not to exceed $1,000.00 for each violation, with fines for
			 multiple violations limited to $5,000.00 in any one citation.
(2)
Approved Education.
The
			 Commission may elect to require successful completion of approved continuing
			 education or post license education courses in addition to or in lieu of the
			 financial penalties cited in paragraph (3) below.
(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.
(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.
(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
			 financial institution designate an account as a trust or escrow account, except
			 where the financial institution 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.
(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
			 Commission and the respondent parties agree upon.