HB 344 - Real estate appraisers; classifications
Georgia House of Representatives - 1995/1996 Sessions
HB 344 - Real estate appraisers; classifications
1. Skipper 137th 2. Watson 139th 3. Powell 23rd
House Comm: Ind / Senate Comm: ST&I /
House Vote: Yeas 158 Nays 0 Senate Vote: Yeas 47 Nays 0
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House Action Senate
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1/23/95 Read 1st Time 2/28/95
1/24/95 Read 2nd Time 3/8/95
2/8/95 Favorably Reported 3/7/95
Sub Committee Amend/Sub
2/27/95 Read 3rd Time 3/9/95
2/27/95 Passed/Adopted 3/10/95
CS Comm/Floor Amend/Sub FS
3/14/95 Amend/Sub Agreed To
4/5/95 Sent to Governor
4/21/95 Signed by Governor
490 Act/Veto Number
7/1/95 Effective Date
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Action Suspended 3/9/95
Code Sections amended: 43-39A-11, 43-39A-14, 43-40-1, 43-40-10, 43-40-12,
43-40-15, 43-40-17, 43-40-18,43-40-29, 43-40-30, 43-14-601
HB 344 HB 344/AP
H. B. No. 344 (AS PASSED HOUSE AND SENATE)
By: Representatives Skipper of the 137th, Watson of the
139th and Powell of the 23rd
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 43 of the Official Code of Georgia Annotated,
1- 2 relating to professions and businesses, so as to change the
1- 3 provisions relating to fees for examination, activation, and
1- 4 renewal of appraiser classifications; to change the
1- 5 provisions relating to required conduct of applicants and
1- 6 grounds for refusal of appraiser classification; to provide
1- 7 conditions under which the Georgia Real Estate Appraisers
1- 8 Board may issue an appraiser classification after certain
1- 9 sanctions or a lapsing or surrender of the applicant's
1-10 license or classification; to change the definition of the
1-11 term "broker"; to define additional terms applicable to real
1-12 estate brokers and salespersons; to change the provisions
1-13 relating to the granting of a broker's license, associate
1-14 broker's license, or salesperson's license to a corporation,
1-15 limited liability company, or partnership; to change the
1-16 provisions relating to license fees applicable to real
1-17 estate brokers and salespersons; to provide for the effect
1-18 of emergencies or natural disasters with respect to the
1-19 payment of certain license fees by real estate brokers and
1-20 certain other persons; to change the provisions relating to
1-21 the granting, revocation, or suspension of licenses; to
1-22 provide conditions under which the Georgia Real Estate
1-23 Commission may issue an associate broker's or broker's
1-24 license after an applicant has been sanctioned or after the
1-25 lapsing or surrender of an associate broker's or broker's
1-26 license; to change the provisions relating to the revocation
1-27 or suspension of licenses of copartnerships; to provide for
1-28 the revocation or suspension of licenses of limited
1-29 liability companies; to change the provisions relating to
1-30 management of firm and licensed affiliates; to change
1-31 certain exceptions applicable to real estate brokers and
1-32 salespersons; to provide an exception with respect to
1-33 property management services on properties available for
1-34 less than 90 days' occupancy under certain conditions; to
1-35 repeal a certain exception relating to the management of
1-36 residential rental property; to change the provisions
1-37 relating to a person acting without a license; to amend Code
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2- 1 Section 44-14-601 of the Official Code of Georgia Annotated,
2- 2 relating to definitions applicable to the "Commercial Real
2- 3 Estate Broker Lien Act," so as to change a certain
2- 4 reference; to repeal conflicting laws; and for other
2- 5 purposes.
2- 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
2- 7 Title 43 of the Official Code of Georgia Annotated, relating
2- 8 to professions and businesses, is amended by striking in its
2- 9 entirety Code Section 43-39A-11, relating to fees for
2-10 examination, activation, and renewal of appraiser
2-11 classifications, and inserting in lieu thereof a new Code
2-12 Section 43-39A-11 to read as follows:
2-13 "43-39A-11. (Index)
2-14 (a) To pay its share of the expense of the maintenance and
2-15 operation of the office of the commission and the
2-16 enforcement of this chapter, the board shall establish
2-17 reasonable fees in accordance with Code Section 43-39A-4
2-18 and in accordance with its rule-making authority. No fee
2-19 or portion of a fee required under this chapter which is
2-20 paid to the board shall be refunded. Each appraiser shall
2-21 be responsible for paying his or her own fees.
2-22 (b) If the board administers an examination, at the time
2-23 an application for examination is submitted, the board
2-24 shall collect from the applicant a fee for the examination
2-25 and an investigation fee if necessary. If an applicant
2-26 fails to pass an examination, upon filing a new
2-27 application and paying an additional fee, the applicant
2-28 may take another examination as soon as scheduling
2-29 permits.
2-30 (c) Prior to the issuance of an original appraiser
2-31 classification, each applicant shall pay an activation fee
2-32 in advance as established by the board.
2-33 (d) All appraiser classifications shall be renewed
2-34 periodically as determined by the board in its rules and
2-35 regulations, and the board shall charge a fee for any such
2-36 appraiser classification renewed. The time for renewal of
2-37 an appraiser classification and the number of years for
2-38 which it may be renewed shall be in the discretion of the
2-39 board. All fees shall be deposited into the state
2-40 treasury for the expenses of the board. This Code section
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3- 1 shall not obviate any other fees or conditions required to
3- 2 maintain such appraiser classification in accordance with
3- 3 this chapter. An appraiser classification not renewed in
3- 4 accordance with this subsection shall be lapsed.
3- 5 (e) Applications and fees must be filed personally in the
3- 6 board's offices during regular business hours or may be
3- 7 mailed to the board's offices in a letter postmarked by
3- 8 the United States Postal Service.
3- 9 (f) Any resident appraiser whose appraiser classification
3-10 lapses for failure to pay a renewal fee may reactivate
3-11 that appraiser classification within two years of the date
3-12 of its lapsing by paying the total amount of all renewal
3-13 fees and late charges which would have been due during the
3-14 period when the appraiser classification was lapsed plus a
3-15 reactivation fee. If any resident appraiser allows an
3-16 appraiser classification to lapse for a period longer than
3-17 two years due solely to a failure to pay a renewal fee,
3-18 the resident appraiser may have that appraiser
3-19 classification reinstated by paying the total amount of
3-20 all renewal fees and late charges which would have been
3-21 due during the period when the appraiser classification
3-22 was lapsed plus a reactivation fee and by successfully
3-23 completing any educational course or courses which the
3-24 board may require. Any resident appraiser whose appraiser
3-25 classification has lapsed for longer than ten years and
3-26 who seeks to have that appraiser classification reinstated
3-27 must requalify as an original applicant as set forth in
3-28 Code Section 43-39A-8. Any nonresident appraiser whose
3-29 appraiser classification lapses for failure to pay a
3-30 renewal fee may reactivate that appraiser classification
3-31 by paying the fee required of an original applicant if
3-32 such nonresident appraiser has maintained an active
3-33 classification in his or her state of residence during the
3-34 period that his or her classification lapsed. The board
3-35 may refuse to renew an appraiser classification if the
3-36 appraiser has continued to perform real estate appraisal
3-37 activities following the lapsing of that appraiser
3-38 classification.
3-39 (g) Any appraiser who does not wish to be actively engaged
3-40 in real estate appraisal activity may continue an
3-41 appraiser classification by making a written request
3-42 within 14 days of ceasing work that the appraiser
3-43 classification be placed on inactive status. Any
3-44 appraiser whose appraiser classification has been placed
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4- 1 on an inactive status may not engage in real estate
4- 2 appraisal activity. To reactivate an appraiser
4- 3 classification held on inactive status, an appraiser must
4- 4 make application to the board prior to resuming real
4- 5 estate appraisal activity. Any appraiser who seeks to
4- 6 reactivate an appraiser classification which has been
4- 7 placed on inactive status shall be required to meet any
4- 8 continuing education requirement which the appraiser might
4- 9 have otherwise been required to meet during the period
4-10 when the appraiser's appraiser classification was placed
4-11 on inactive status. The education requirement for
4-12 activating an appraiser classification on inactive status
4-13 shall not apply to an appraiser who meets the continuing
4-14 education requirement of subsection (b) of Code Section
4-15 43-39A-8 in each renewal period that such appraiser is on
4-16 inactive status nor to an appraiser who has maintained an
4-17 active appraiser classification in another state that has
4-18 continuing education requirements while such appraiser's
4-19 classification was on inactive status in Georgia.
4-20 (h) Any appraiser who places an appraiser classification
4-21 on inactive status shall be required to pay the renewal
4-22 fee provided for in subsection (d) of this Code section.
4-23 Whenever any appraiser on inactive status fails to pay the
4-24 required fee, the appraiser classification shall be
4-25 lapsed. If an appraiser on inactive status changes
4-26 address, the appraiser shall notify the board of the new
4-27 address, in writing, within 14 days.
4-28 (i) Any check which is presented to the board as payment
4-29 for any fee which the board is permitted to charge under
4-30 this chapter and which is returned unpaid may be cause for
4-31 denial of an appraiser classification or for imposing any
4-32 sanction permitted by this chapter.
4-33 (j) Any school approved to offer required education
4-34 courses under this chapter, except units of the University
4-35 System of Georgia, shall pay an original application fee
4-36 and renewal fee as established by the board. If such an
4-37 approval lapses, the school may reinstate the approval by
4-38 paying the total amount of all renewal fees and late
4-39 charges which would have been due during the period the
4-40 approval was lapsed plus a reactivation fee.
4-41 (k) A reasonable fee, not to exceed the renewal fee
4-42 charged for an appraiser classification, may be imposed by
4-43 the board on any applicant or appraiser who:
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5- 1 (1) Fails to notify the board in writing within 14 days
5- 2 of a change of address; or
5- 3 (2) Fails to respond within 14 days to a written inquiry
5- 4 from the board requesting further information on any
5- 5 application the applicant or appraiser has filed with
5- 6 the board.
5- 7 (l) The board is authorized to collect and forward to the
5- 8 Federal Financial Institutions Examination Council the
5- 9 annual registry fee required for appraisers who perform or
5-10 seek to perform appraisals in federally related
5-11 transactions as set forth in 12 U.S.C. Section 3338 and to
5-12 submit to the Appraisal Subcommittee, no less than
5-13 annually, a roster listing real estate appraisers who have
5-14 appraiser classifications suitable for inclusion in the
5-15 federal registry.
5-16 (m) Whenever an appraiser who resides in a county
5-17 designated as a disaster area by state or federal
5-18 authorities suffers uninsured major damage or loss to such
5-19 appraiser's residence or place of business, the board may
5-20 extend such appraiser's renewal period for up to two years
5-21 without further payment of any fee by the appraiser upon
5-22 satisfactory proof of the appraiser's uninsured major
5-23 damage or loss. The board is further authorized to make
5-24 appropriate adjustments in deadline dates mandated by this
5-25 chapter for applications filed by applicants and
5-26 appraisers located in counties designated as disaster
5-27 areas by state or federal authorities."
SECTION 2.
5-28 Said title is further amended by striking in its entirety
5-29 subsection (h) of Code Section 43-39A-14, relating to
5-30 required conduct of applicants and grounds for refusal of
5-31 appraiser classification, and inserting in lieu thereof a
5-32 new subsection (h) to read as follows:
5-33 "(h) Whenever any occupational licensing body of this
5-34 state, any other state, or any foreign country has
5-35 sanctioned any license or classification of an applicant
5-36 for any appraiser classification or whenever such an
5-37 applicant has allowed a license or classification to lapse
5-38 or has surrendered a license or classification to any
5-39 occupational licensing body of this state, any other
5-40 state, Where an applicant for an appraiser classification
5-41 has been sanctioned by the board or by a similar board of
5-42 any other state or any foreign country after that
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6- 1 occupational licensing body has initiated an investigation
6- 2 or a disciplinary process regarding such applicant's
6- 3 licensure or classification, such sanction, lapsing, or
6- 4 surrender in itself may be a sufficient ground for refusal
6- 5 of an appraiser classification. An applicant for an
6- 6 appraiser classification who has had an occupational
6- 7 registration, license, or certification revoked by
6- 8 Whenever any occupational licensing body of this state,
6- 9 any other state, or any foreign country has revoked the
6-10 license or classification of an applicant for a
6-11 classification or whenever such an applicant has allowed a
6-12 license or classification to lapse or has surrendered a
6-13 license or classification to any occupational licensing
6-14 body of this state, any other state, or any foreign
6-15 country after that body has initiated an investigation or
6-16 a disciplinary process regarding such applicant's license
6-17 or classification, the board may be granted issue an
6-18 appraiser classification by the board only if:
6-19 (1) At least five years have passed since the date that
6-20 the applicant's occupational registration, license, or
6-21 certification was revoked;
6-22 (2) No criminal charges are pending against the
6-23 applicant at the time of application; and
6-24 (3) The applicant presents to the board satisfactory
6-25 proof that the applicant now bears a good reputation for
6-26 honesty, trustworthiness, integrity, and competence to
6-27 transact real estate appraisal activity in such a manner
6-28 as to safeguard the interests of the public."
SECTION 3.
6-29 Said title is further amended by striking in its entirety
6-30 Code Section 43-40-1, relating to definitions applicable to
6-31 said chapter, and inserting in lieu thereof a new Code
6-32 Section 43-40-1 to read as follows:
6-33 "43-40-1. (Index)
6-34 As used in this chapter, the term:
6-35 (1) 'Associate broker' means a person who acts on behalf
6-36 of a real estate broker in performing any act authorized
6-37 by this chapter to be performed by the broker.
6-38 (2) 'Broker' means any person who, for another, and who,
6-39 for a fee, commission, or any other valuable
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7- 1 consideration or with the intent or expectation of
7- 2 receiving the same from another, negotiates another:
7- 3 (A) Negotiates or attempts to negotiate, or assists in
7- 4 procuring prospects for the listing, sale, purchase,
7- 5 exchange, renting, lease, or option for any real
7- 6 estate or of the improvements thereon, including
7- 7 persons holding themselves thereon;
7- 8 (B) Holds himself or herself out as a referral agents
7- 9 agent for the purpose of securing prospects for the
7-10 listing, sale, purchase, exchange, renting, lease, or
7-11 option for any real estate, or collects estate;
7-12 (C) Collects rents or attempts to collect rents, or
7-13 who advertises or holds himself out as engaged in any
7-14 of the foregoing. 'Broker' also includes: rents;
7-15 (A)(D) Is Any person employed by or on behalf of the
7-16 owner or owners of lots, time-share intervals, or
7-17 other parcels of real estate at a salary, fee,
7-18 commission, or any other valuable consideration to
7-19 sell such real estate or any part thereof in lots or
7-20 parcels or intervals or other disposition thereof;
7-21 (B)(E) Engages Any person who engages in the business
7-22 of charging an advance fee or contracting for
7-23 collecting of a fee, other than an advertising fee, in
7-24 connection with any contract whereby he or she
7-25 undertakes primarily to promote the sale of real
7-26 estate either through its listing in a publication
7-27 issued primarily for such purpose, or for referral of
7-28 information concerning such real estate to brokers, or
7-29 both;
7-30 (C)(F) Auctions Any person who, for another, auctions
7-31 or offers or attempts or agrees to auction real
7-32 estate; or
7-33 (D)(G) Buys Any person who, for another, buys or
7-34 offers to buy, sells or offers to sell, or otherwise
7-35 deals in options to buy real estate;.
7-36 (H) Performs property management services;
7-37 (I) Provides or attempts to provide to any party to a
7-38 real estate transaction consulting services designed
7-39 to assist the party in the negotiations or procurement
7-40 of prospects for the listing, sale, purchase,
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8- 1 exchange, renting, lease, or option for any real
8- 2 estate or the improvements thereon; or
8- 3 (J) Advertises or holds himself or herself out as
8- 4 engaged in any of the foregoing.
8- 5 (3) 'Commission' means the Georgia Real Estate
8- 6 Commission.
8- 7 (4) 'Commissioner' means the real estate commissioner.
8- 8 (5) 'Licensee' means any person who is licensed as a
8- 9 salesperson, associate broker, or broker.
8-10 (6) 'Person' means individuals, corporations, limited
8-11 liability companies, and partnerships.
8-12 (7) 'Property management services' means the provision,
8-13 for a valuable consideration, to another of marketing;
8-14 leasing; physical, administrative, or financial
8-15 maintenance; and overall management of real property; or
8-16 supervision of the foregoing activities for another
8-17 pursuant to a property management agreement.
8-18 (7)(8) 'Purchaser' means a person who acquired or
8-19 attempts to acquire or succeeds to an interest in land.
8-20 (8)(9) 'Real estate' means condominiums and leaseholds,
8-21 as well as any other interest or estate in land, whether
8-22 corporeal, incorporeal, freehold or nonfreehold and
8-23 whether the real estate is situated in this state or
8-24 elsewhere; and shall also include a mobile home when
8-25 such mobile home is affixed to land. 'Mobile home,' as
8-26 used in this paragraph, means any factory-built
8-27 structure or structures equipped with the necessary
8-28 service connections and made so as to be readily movable
8-29 as a unit or units and designed to be used as a dwelling
8-30 unit or units.
8-31 (9)(10) 'Salesperson' means any person, other than an
8-32 associate broker, who acts on behalf of a real estate
8-33 broker in performing any act authorized by this chapter
8-34 to be performed by the broker."
SECTION 4.
8-35 Said title is further amended by striking in its entirety
8-36 subsection (a) of Code Section 43-40-10, relating to the
8-37 granting of a broker's license, associate broker's license,
8-38 or salesperson's license to a corporation, limited liability
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9- 1 company, or partnership, and inserting in lieu thereof a new
9- 2 subsection (a) to read as follows:
9- 3 "(a) No broker's license shall be granted to a
9- 4 corporation, limited liability company, or partnership
9- 5 unless: (1) said corporation, limited liability company,
9- 6 or partnership designates an individual licensed as a
9- 7 broker as its qualifying broker who shall be responsible
9- 8 for assuring that the corporation, limited liability
9- 9 company, or partnership and its affiliated licensees
9-10 comply with the provisions of this chapter and its
9-11 attendant rules and regulations; and (2) said corporation,
9-12 limited liability company, or partnership authorizes its
9-13 qualifying broker to bind the corporation, limited
9-14 liability company, or partnership to any settlement of a
9-15 contested case before the commission as defined in Chapter
9-16 13 of Title 50, the 'Georgia Administrative Procedure
9-17 Act,' in which said corporation, limited liability
9-18 company, or partnership may be a named respondent.
9-19 Violations of this chapter or its rules and regulations by
9-20 a corporation, limited liability company, or partnership
9-21 licensed as a broker shall subject the license of the
9-22 qualifying broker to sanction as authorized by this
9-23 chapter. No broker's license shall be granted to a
9-24 corporation, limited liability company, or partnership
9-25 unless every person who acts as a licensee for such
9-26 corporation, limited liability company, or partnership
9-27 shall hold a real estate license."
SECTION 5.
9-28 Said title is further amended by striking in its entirety
9-29 Code Section 43-40-12, relating to license fees, and
9-30 inserting in lieu thereof a new Code Section 43-40-12 to
9-31 read as follows:
9-32 "43-40-12. (Index)
9-33 (a) To pay the expense of the maintenance and operation of
9-34 the office of the commission and the enforcement of this
9-35 chapter, the commission shall establish reasonable fees in
9-36 accordance with Code Sections 43-40-13 and 43-40-3 and in
9-37 accordance with its rule-making authority. No fee or
9-38 portion of a fee required under this chapter which is paid
9-39 to the commission shall be refunded. Each licensee shall
9-40 be responsible for filing his or her own fees.
9-41 (b) When the commission administers an examination, at the
9-42 time an application for examination is submitted, the
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10- 1 commission shall collect from the applicant a fee for the
10- 2 examination and an investigation fee if necessary. If an
10- 3 applicant fails to pass an examination, upon filing a new
10- 4 application and paying an additional fee, the applicant
10- 5 may take another examination as soon as scheduling
10- 6 permits.
10- 7 (c) Prior to the issuance of an original license, each
10- 8 applicant who has passed the examination required by Code
10- 9 Section 43-40-8 and each corporation, limited liability
10-10 company, and partnership shall pay an activation fee in
10-11 advance.
10-12 (d) All licenses shall be renewed periodically as
10-13 determined by the commission in its rules and regulations,
10-14 and the commission shall charge a fee for any such license
10-15 renewed. The time for renewal of a license and the number
10-16 of years for which it may be renewed shall be in the
10-17 discretion of the commission. All fees shall be deposited
10-18 into the state treasury for the expenses of the
10-19 commission. This Code section shall not obviate any other
10-20 fees or conditions required to maintain such license in
10-21 accordance with this chapter. A license not renewed in
10-22 accordance with this subsection shall be viewed as lapsed.
10-23 (e) Applications and fees must be filed personally in the
10-24 commission's offices during regular business hours or may
10-25 be mailed to the commission's offices in a letter
10-26 postmarked by the United States Postal Service.
10-27 (f) Any licensee whose license lapses for failure to pay a
10-28 renewal fee may reinstate that license within two years of
10-29 the date of its lapsing by paying the total amount of all
10-30 renewal fees and late charges which would have been due
10-31 during the period when the license was lapsed plus a
10-32 reinstatement fee. If any licensee who has passed an
10-33 examination administered by or approved by the commission
10-34 allows a license to lapse for a period longer than two
10-35 years and less than ten years due solely to a failure to
10-36 pay a renewal fee, the licensee may reinstate that license
10-37 by paying the total amount of all renewal fees and late
10-38 charges which would have been due during the period when
10-39 the license was lapsed plus a reinstatement fee and by
10-40 successfully completing any educational course or courses
10-41 which the commission may require. Any licensee whose
10-42 license has lapsed for longer than two years and who
10-43 reinstates it under the terms of this subsection shall
10-44 thereafter be subject to the continuing education
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11- 1 requirements of subsection (d) of Code Section 43-40-8.
11- 2 Any licensee whose license has lapsed for longer than ten
11- 3 years for failure to pay a renewal fee and who seeks to
11- 4 reinstate that license must meet the education and
11- 5 examination requirements for that license as set forth in
11- 6 Code Section 43-40-8. Any nonresident licensee whose
11- 7 license lapses for failure to pay a renewal fee may
11- 8 reactivate that license by paying the fee required of an
11- 9 original applicant if such nonresident licensee has
11-10 maintained an active license in his or her state of
11-11 residence during the period that his or her license lapsed
11-12 and has met its continuing education requirements. Any
11-13 licensee whose license has lapsed for longer than one year
11-14 and who is not subject to the continuing education
11-15 requirements of subsection (d) of Code Section 43-40-8 and
11-16 who reinstates such license under the terms of this
11-17 subsection shall thereafter be subject to the continuing
11-18 education requirements of subsection (d) of Code Section
11-19 43-40-8.
11-20 (g) Any real estate broker who does not wish to be
11-21 actively engaged in the brokerage business or any licensee
11-22 who is temporarily not actively engaged on behalf of a
11-23 broker may continue a license by making a written request
11-24 within 14 days of ceasing work that the license be placed
11-25 on inactive status. Any licensee whose license has been
11-26 placed on an inactive status may not engage in the real
11-27 estate brokerage business except in connection with
11-28 property owned by the licensee. To reinstate a license
11-29 held on inactive status, a licensee other than a broker
11-30 must secure the signature of the broker for whom the
11-31 licensee wishes to act; and a broker must make application
11-32 to the commission prior to resuming brokerage activity.
11-33 Any individual licensee who seeks to activate a license
11-34 which has been on inactive status for a period of two
11-35 years or longer shall be required to attend a commission
11-36 approved course of study prior to activating an inactive
11-37 license. The course of study shall consist of a commission
11-38 approved education course or courses totaling at least six
11-39 hours for each year the license was on inactive status.
11-40 This education requirement for activating a license on
11-41 inactive status shall not apply to licensees who meet the
11-42 continuing education requirement of subsection (d) of Code
11-43 Section 43-40-8 in each renewal period that they are on
11-44 inactive status nor to licensees who maintained an active
11-45 license in another state that has continuing education
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12- 1 requirements while such licensee's license was on inactive
12- 2 status in Georgia.
12- 3 (h) Any licensee who places a license on inactive status
12- 4 after June 30, 1985, shall be required to pay the license
12- 5 renewal fee provided for in subsection (d) of this Code
12- 6 section. Whenever any licensee on inactive status fails to
12- 7 pay the required renewal fees, the licensee's license
12- 8 shall be lapsed. Licensees whose licenses were placed on
12- 9 inactive status prior to July 1, 1985, shall remain
12-10 subject to the conditions for reactivating their licenses
12-11 which were in effect at the time they placed their
12-12 licenses on inactive status. However, any license placed
12-13 on inactive status prior to July 1, 1985, which has been
12-14 or will be on inactive status for a period of five years
12-15 or longer shall be lapsed, provided that, if such licensee
12-16 seeks reinstatement within ten years of placing a license
12-17 on inactive status, the licensee shall be allowed to
12-18 reinstate the license under the terms the law permitted at
12-19 the time the license was placed on inactive status. If a
12-20 licensee on inactive status changes address, the licensee
12-21 shall notify the commission of the new address, in
12-22 writing, within 14 days.
12-23 (i) Any check which is presented to the commission as
12-24 payment for any fee which the commission is permitted to
12-25 charge under this chapter and which is returned unpaid may
12-26 be cause for denial of license or for imposing any
12-27 sanction permitted under Code Section 43-40-25.
12-28 (j) Any licensed broker or associate broker who wishes to
12-29 be licensed as a salesperson may do so by surrendering
12-30 that broker's license and applying for a license as a
12-31 salesperson. No examination shall be required of a
12-32 licensed broker or associate broker who surrenders that
12-33 license and applies for a salesperson's license. In the
12-34 event that such person later wishes to be relicensed as a
12-35 broker, no additional broker's examination shall be
12-36 required. When a licensee changes status as contemplated
12-37 in this subsection, the licensee shall be required to pay
12-38 the same fee as an original applicant.
12-39 (k) Should a license be suspended or revoked, as provided
12-40 for by this chapter, said suspension or revocation shall
12-41 prevent the licensee from making either application as set
12-42 out in subsection (j) of this Code section.
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13- 1 (l) Any school approved to offer required education
13- 2 courses under this chapter and instructors approved to
13- 3 teach those courses shall pay the same original
13- 4 application fee and renewal fee established by the
13- 5 commission for broker applicants and licensees. If such
13- 6 approvals lapse, the school or instructor may reinstate
13- 7 the approval by paying the total amount of all renewal
13- 8 fees and late charges which would have been due during the
13- 9 period the approval was lapsed plus a reactivation fee and
13-10 by successfully completing any educational course or
13-11 courses which the commission may require.
13-12 (m) A reasonable fee, not to exceed the renewal fee
13-13 charged broker licensees, may be imposed by the commission
13-14 on a licensee who:
13-15 (1) Fails to notify the commission in writing within 14
13-16 days of a change of address, of the opening or closing
13-17 of a designated trust account, of transferring to a new
13-18 company, or of leaving a firm to go on inactive status;
13-19 (2) Fails to affiliate with a new company or to apply to
13-20 go on inactive status within 14 days of the commission's
13-21 receipt of notice that the broker holding the licensee's
13-22 license no longer wishes to do so and has mailed a
13-23 letter to the licensee's last known address indicating
13-24 that the broker is returning the license to the
13-25 commission; and
13-26 (3) Fails to respond within 14 days to a written inquiry
13-27 from the commission requesting further information on
13-28 any application the licensee has filed with the
13-29 commission.
13-30 (n) Whenever a licensee who resides in a county designated
13-31 as a disaster area by state or federal authorities suffers
13-32 uninsured major damage or loss to such licensee's
13-33 residence or place of business, the commission may extend
13-34 such licensee's renewal period for up to two years without
13-35 further payment of any fee by the licensee upon
13-36 satisfactory proof of the licensee's uninsured major
13-37 damage or loss. The commission is further authorized to
13-38 make appropriate adjustments in deadline dates mandated by
13-39 this chapter for applications filed by applicants and
13-40 licensees located in counties designated as disaster areas
13-41 by state or federal authorities."
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SECTION 6.
14- 1 Said title is further amended by striking in its entirety
14- 2 subsection (h) of Code Section 43-40-15, relating to the
14- 3 granting, revocation, or suspension of licenses, and
14- 4 inserting in lieu thereof a new subsection (h) to read as
14- 5 follows:
14- 6 "(h) Whenever any occupational licensing body of this
14- 7 state, any other state, or any foreign country has
14- 8 sanctioned the license of an applicant for a
14- 9 salesperson's, associate broker's, or broker's license or
14-10 whenever such an applicant has allowed a license to lapse
14-11 or has surrendered a license to any occupational licensing
14-12 body of this state, any other state, or any Where an
14-13 applicant for a salesperson's, associate broker's, or
14-14 broker's license has been sanctioned by the commission or
14-15 by a similar commission of any other state or foreign
14-16 country after that body has initiated an investigation or
14-17 a disciplinary process regarding such applicant's license,
14-18 such sanction, lapsing, or surrender in itself may be a
14-19 sufficient ground for refusal of a license. An applicant
14-20 for licensure as an associate broker or a broker who has
14-21 had a license revoked by Whenever any occupational
14-22 licensing body of this state, any other state, or any
14-23 foreign country has revoked the license of an applicant
14-24 for a salesperson's, associate broker's, or broker's
14-25 license or whenever such an applicant has allowed a
14-26 license to lapse or has surrendered a license to any
14-27 occupational licensing body of this state, any other
14-28 state, or foreign country after that body has initiated an
14-29 investigation or a disciplinary process regarding such
14-30 applicant's license, the commission may be licensed by the
14-31 commission as issue an associate broker broker's o
14-32 broker broker's license only if:
14-33 (1) At least ten years have passed since the date that
14-34 the applicant's occupational license was revoked;
14-35 (2) No criminal charges are pending against the
14-36 applicant at the time of application; and
14-37 (3) The applicant presents to the commission
14-38 satisfactory proof that the applicant now bears a good
14-39 reputation for honesty, trustworthiness, integrity, and
14-40 competence to transact the business of a licensee in
14-41 such a manner as to safeguard the interest of the
14-42 public."
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SECTION 7.
15- 1 Said title is further amended by striking in its entirety
15- 2 Code Section 43-40-17, relating to revocation or suspension
15- 3 of a license of copartnership, and inserting in lieu thereof
15- 4 a new Code Section 43-40-17 to read as follows:
15- 5 "43-40-17. (Index)
15- 6 In the event of the revocation or suspension of the
15- 7 license issued to any partner of a partnership, to any
15- 8 member of a copartnership limited liability company, or to
15- 9 any officer of a corporation, the license issued to such
15-10 copartnership partnership, limited liability company, or
15-11 corporation shall be revoked by the commission unless,
15-12 within a time fixed by the commission, where a
15-13 copartnership partnership or limited liability company,
15-14 the connection therewith of the partner or member whose
15-15 license has been revoked is severed and his such person's
15-16 interest in the copartnership partnership or limited
15-17 liability company and his such person's share in its
15-18 activities brought to an end or, where a corporation, the
15-19 offending officer is discharged and shall have no further
15-20 participation in its activities."
SECTION 8.
15-21 Said title is further amended by striking in its entirety
15-22 subsection (e) of Code Section 43-40-18, relating to
15-23 management of firm and licensed affiliates, and inserting in
15-24 lieu thereof a new subsection (e) to read as follows:
15-25 "(e) Any firm which operates as a sole proprietorship must
15-26 be owned entirely by a licensed broker. The qualifying
15-27 broker for a firm which operates as a partnership must be
15-28 a partner. If all partners of a partnership are
15-29 corporations, the qualifying broker of such a partnership
15-30 must be one of the partner corporation's officers whose
15-31 actions are binding on both that corporation and the
15-32 partnership. The qualifying broker for a firm which
15-33 operates as a limited partnership must be the general
15-34 partner. If the general partner of a limited partnership
15-35 is a corporation, the qualifying broker of such a limited
15-36 partnership must be one of that corporation's officers
15-37 whose actions are binding on both the corporation and the
15-38 general partner. The qualifying broker for a firm which
15-39 operates as a limited liability company must be a member
15-40 or, if the articles of organization or a written operating
15-41 agreement vests management of the limited liability
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16- 1 company in a manager or managers, a manager may serve as
16- 2 the qualifying broker. The qualifying broker for a firm
16- 3 which operates as a corporation must be an officer of the
16- 4 corporation. The broker or qualifying broker of any real
16- 5 estate firm must have signatory powers on all trust
16- 6 accounts which the firm maintains."
SECTION 9.
16- 7 Said title is further amended by striking in its entirety
16- 8 Code Section 43-40-29, relating to exceptions to operation
16- 9 of said chapter, and inserting in lieu thereof a new Code
16-10 Section 43-40-29 to read as follows:
16-11 "43-40-29. (Index)
16-12 (a) Except as otherwise provided, this chapter shall not
16-13 apply to:
16-14 (1) Any person who, as owner, as the spouse of an owner,
16-15 as general partner of a limited partnership, as lessor,
16-16 or as prospective purchaser or their regular employees,
16-17 performs any act with reference to property owned,
16-18 leased, or to be acquired by such owner, limited
16-19 partnership, lessor, or prospective purchaser where such
16-20 acts are performed in the regular course of, or as
16-21 incident to, the management of such property and the
16-22 investment therein or any person who manages residential
16-23 apartment complexes under a contract approved by any
16-24 federal agency for an organization which is exempt from
16-25 federal taxes pursuant to Section 501(c)(3) of the
16-26 Internal Revenue Code, as defined in Code Section
16-27 48-1-2, provided that such person was engaged in
16-28 managing such property under such type contract prior to
16-29 January 1, 1989;
16-30 (2) An attorney in fact under a duly executed power of
16-31 attorney to convey real estate from the owner or lessor;
16-32 (3) A licensed practicing attorney acting solely as an
16-33 incident to the practice of law;
16-34 (4) Any person acting as receiver, trustee in
16-35 bankruptcy, administrator, executor, or guardian or
16-36 acting under a court order or under the authority of a
16-37 will or of a trust instrument;
16-38 (5) Any officer or employee of a government agency in
16-39 the conduct of official duties;
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17- 1 (6) Any person employed by a public or private utility
17- 2 who performs any act with reference to property owned,
17- 3 leased, or to be acquired by the utility employing that
17- 4 person, where such acts are performed in the regular
17- 5 course of, or as incident to, the management of such
17- 6 property and the investment therein;
17- 7 (7) Any person who, as owner or through another person
17- 8 engaged by such owner on a full-time basis, provides
17- 9 property management services, buys, sells, leases,
17-10 manages, auctions, or otherwise deals with property
17-11 owned by such person;
17-12 (8) Any person employed on a full-time basis by the
17-13 owner of property for the purpose of providing property
17-14 management services, selling, buying, leasing, managing,
17-15 auctioning, or otherwise dealing with such property; or
17-16 (9) Any person acting as a referral agent who is not
17-17 involved in the actual negotiations, execution of
17-18 documents, collection of rent, management of property,
17-19 or other related activity which involves more than the
17-20 mere referral of one person to another and who:
17-21 (A) Does does not receive a fee for such referral from
17-22 the party being referred;
17-23 (B) Does not charge an advance fee; and
17-24 (C) Does not act as a referral agent in more than
17-25 three transactions per year;
17-26 (10) Any individual employed by a broker to assist in
17-27 the management of property on which the broker has a
17-28 written management agreement that the broker procured
17-29 from and negotiated with the owner, provided that such
17-30 individual's activities are limited to one or more of
17-31 the following:
17-32 (A) Delivering a lease application, a lease, or any
17-33 amendment thereto to any person;
17-34 (B) Receiving a lease application, a lease, or any
17-35 amendment thereto, a security deposit, rental payment,
17-36 or any related payment for delivery to and made
17-37 payable to the broker or the owner;
17-38 (C) Showing a rental unit to any person, provided that
17-39 the employee is acting under the direct instructions
17-40 of the broker and makes no representations regarding
17-41 the condition of the property, amenities that the
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18- 1 owner or broker may provide, or the terms under which
18- 2 the property may be leased;
18- 3 (D) Providing, without any verbal representations as
18- 4 to its contents, written information prepared by the
18- 5 broker or previously expressly approved by the broker
18- 6 about a rental unit, a lease application, or a lease;
18- 7 (E) Providing information to a tenant about the status
18- 8 of such tenant's security deposit or rent payments or
18- 9 to an owner about the owner's financial accounts and
18-10 payments from the owner's tenants; and
18-11 (F) Performing physical maintenance on a property.
18-12 Any broker utilizing the services of such an employee
18-13 shall be held responsible under this chapter for the
18-14 activities of that individual; or
18-15 (11) Any person who provides property management
18-16 services on properties available for less than 90 days'
18-17 occupancy by guests or occupants and meets all of the
18-18 following conditions:
18-19 (A) The property manager enters into a written
18-20 agreement with the owner specifying all terms and
18-21 conditions under which the property is to be managed,
18-22 the reporting of income and expenses, and the
18-23 remitting of income to the owner;
18-24 (B) The management agreement between the property
18-25 manager and the owner does not allow the property
18-26 manager to rent or lease the property and any
18-27 agreement between the property manager and the guest
18-28 or occupant is not a lease or rental agreement;
18-29 (C) Any applicable zoning laws do not prohibit
18-30 short-term occupancy uses of the property;
18-31 (D) The guest's or occupant's occupancy is for less
18-32 than 90 days;
18-33 (E) No deposit exceeds the cost of the rental required
18-34 for the minimum rental period;
18-35 (F) The guest or occupant pays any required state or
18-36 local sales taxes or excise taxes on rooms, lodgings,
18-37 and accommodations and the property manager has any
18-38 required state or local business licenses or permits;
18-39 (G) The property manager has the authority to specify
18-40 rooms or units that the guest or occupant will occupy;
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19- 1 (H) No extra charge is made for basic utilities;
19- 2 (I) Notice is not required for a guest or occupant to
19- 3 terminate occupancy of the room or unit, except as
19- 4 provided under the provisions of Article 1 of Chapter
19- 5 21 of this title; and
19- 6 (J) The room or unit is not the permanent residence of
19- 7 the guest or occupant.
19- 8 (b) The exceptions provided by subsection (a) of this Code
19- 9 section shall not apply to any person, other than an owner
19-10 or individuals who are full-time employees of the owner,
19-11 who performs the acts of a broker on property required to
19-12 be registered under Article 1, 2, or 5 of Chapter 3 of
19-13 Title 44.
19-14 (c) The exceptions provided by subsection (a) of this Code
19-15 section shall not apply to any person who holds a real
19-16 estate license.
19-17 (d) Any individual employed by a broker to manage
19-18 residential rental property on behalf of the broker under
19-19 a written management agreement which the broker procured
19-20 from and negotiated with the owner shall not be required
19-21 to be licensed under this chapter. Any broker utilizing
19-22 the services of such an individual shall be held
19-23 responsible under this chapter for the brokerage
19-24 activities of that individual.
19-25 (e)(d) The exceptions in subsection (a) of this Code
19-26 section are not applicable to a person who uses or
19-27 attempts to use them for the purpose of evading licensure
19-28 required by this chapter."
SECTION 10.
19-29 Said title is further amended by striking in its entirety
19-30 subsection (b) of Code Section 43-40-30, relating to a
19-31 person acting without a license and cease and desist orders,
19-32 and inserting in lieu thereof a new subsection (b) to read
19-33 as follows:
19-34 "(b) It shall be unlawful for any person, directly or
19-35 indirectly, to engage in or conduct the business of, or
19-36 advertise or hold himself or herself out as engaging in or
19-37 conducting the business of, or act in the capacity of, a
19-38 licensee within this state without first obtaining a
19-39 license as provided in this chapter unless such person is
19-40 exempted from obtaining a license under Code Section
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20- 1 43-40-29. Except as provided by subsection (d) of Code
20- 2 Section 43-40-29, it shall be unlawful for a real estate
20- 3 licensee to permit an unlicensed person to perform the
20- 4 acts of a real estate licensee in behalf of such
20- 5 licensee."
SECTION 11.
20- 6 Code Section 44-14-601 of the Official Code of Georgia
20- 7 Annotated, relating to definitions applicable to the
20- 8 "Commercial Real Estate Broker Lien Act," is amended by
20- 9 striking paragraph (5) in its entirety and inserting in lieu
20-10 thereof a new paragraph (5) to read as follows:
20-11 "(5) 'Real estate' means real estate as defined in
20-12 paragraph (8) (9) of Code Section 43-40-1."
SECTION 12.
20-13 All laws and parts of laws in conflict with this Act are
20-14 repealed.
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Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97