HB 344 - Real estate appraisers; classifications

Georgia House of Representatives - 1995/1996 Sessions

HB 344 - Real estate appraisers; classifications

Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12/ 13/ 14/ 15/ 16/ 17/ 18/ 19/ 20
Code Sections - 43-39A-11/ 43-40-1/ 43-40-12/ 43-40-17/ 43-40-29
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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 ---------------------------------------- House Action Senate ---------------------------------------- 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 ---------------------------------------- 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 H. B. No. 344 -1- (Index) HB 344/AP 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 H. B. No. 344 -2- (Index) HB 344/AP 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 H. B. No. 344 -3- (Index) HB 344/AP 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: H. B. No. 344 -4- (Index) HB 344/AP 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 H. B. No. 344 -5- (Index) HB 344/AP 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 H. B. No. 344 -6- (Index) HB 344/AP 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, H. B. No. 344 -7- (Index) HB 344/AP 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 H. B. No. 344 -8- (Index) HB 344/AP 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 H. B. No. 344 -9- (Index) HB 344/AP 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 H. B. No. 344 -10- (Index) HB 344/AP 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 H. B. No. 344 -11- (Index) HB 344/AP 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. H. B. No. 344 -12- (Index) HB 344/AP 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." H. B. No. 344 -13- (Index) HB 344/AP 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." H. B. No. 344 -14- (Index) HB 344/AP 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 H. B. No. 344 -15- (Index) HB 344/AP 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; H. B. No. 344 -16- (Index) HB 344/AP 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 H. B. No. 344 -17- (Index) HB 344/AP 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; H. B. No. 344 -18- (Index) HB 344/AP 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 H. B. No. 344 -19- (Index) HB 344/AP 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. H. B. No. 344 -20- (Index)

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Last Updated on 01/02/97