1. May I have an interest-bearing account for earnest money and security deposits?
2. Can the Commission recommend a bank that does not charge too much to keep a trust account open?
3. What kind of record keeping do I need?
4. How much of my own money can I keep in a trust account?
5. Do I need separate trust accounts for rental property?

Q. May I have an interest-bearing account for earnest money and security deposits?
A. Yes, provided: (1) all parties to each transaction specifically agree in writing who is to receive any interest earned, (2) the bank designates the account as a trust account, and (3) you register it with the Commission on a Commission approved application. See License Law 43-40-20 and Rule 520-1-.08.

You can open, close and renew trust account online or by downloading the appropriate form. To access these services please see the Trust Account section of this website.

Q. Can the Commission recommend a bank that does not charge too much to keep a trust account open?
A. No. Contact several banks about their charges for such accounts.

Q. What kind of record keeping do I need?
A. For an overview of Trust Accounts and the required record keeping we recommend reviewing our article “Trust Accounting 101”. You can also see License Law 43-40-25 (a )( 27) and Rule 520-1-.08.

Q. How much of my own money can I keep in a trust account?
A. Enough to cover service charges the bank may charge. See Rule 520-1-.08.

Q. Do I need separate trust accounts for rental property?
A. Not necessarily. The volume of your business and your accountant should help determine this issue for you. If you do have a separate account for rentals, it must be properly registered with the Commission. See License Law 43-40-20 and Rule 520-1-.08.

1. Can I be a broker for more than one company?
2. Can I be a broker for one company and an associate broker with another company?
3. Can I be the qualifying broker for a corporation if I do not own any stock in the corporation?
4. Can I open a company in my home?
5. Can someone else use my company’s name without my permission?
6. I have just made application to open a new company. How soon may I begin taking listings and handling other brokerage business?
7. I am a broker of one company and have an associate broker’s license with another company. I am closing the company for which I am the broker, but wish to keep my associate broker’s license with the other firm. Which box do I check on the application?

Q. Can I be a broker for more than one company?
A. Yes. See Rule 520-1-.07 (4).

Q. Can I be a broker for one company and an associate broker with another company?
A. Yes, provided that you give the required notice to the broker holding your associate broker’s license. See Rule 520-1-.07 (4).

Q. Can I be the qualifying broker for a corporation if I do not own any stock in the corporation?
A. Yes, but you must be an officer. See License Law 43-40-18.

Q. Can I open a company in my home?
A. Yes, as long as you comply with all local ordinances regarding business activities.

Q. Can someone else use my company’s name without my permission?
A. Company names are not a license law matter. Names of corporations are controlled through the Corporations Division of the Secretary of State’s office. Other trade names must be registered with the Clerk of the Superior Court in the county in which the firm is operating. Whether someone is improperly using your trade name should be addressed by an attorney. See Rules 520-1-.04 (6) & 520-1-.09.

Q. I have just made application to open a new company. How soon may I begin taking listings and handling
other brokerage business?
A. A new company is an original application for licensure. You may not begin brokerage activity until you receive a wall certificate for the company from the Commission (usually seven to ten working days after the Commission receives a complete and correct application). See Rule 520-1-.05 (2).

Q. I am a broker of one company and have an associate broker’s license with another company. I am closing the company for which I am the broker, but wish to keep my associate broker’s license with the other firm. Which box do I check on the application?
A. Surrender an additional license.

1. Can I work for more than one broker at the same time?
2. I have just passed the salesperson’s examination. How soon can I go to work?
3. I passed the salesperson’s examination. How soon should I apply to go on inactive status?
4. How do I incorporate as a Salesperson or Associate Broker with my broker?
5. What do I do if I do not agree with the employment or independent contractor agreement my broker offers to me?

Q. Can I work for more than one broker at the same time?
A. No, except when transferring to a new broker with respect to transactions begun prior to the transfer, and even then only under certain conditions. A licensee may work for a Georgia broker and for a broker from another state, if the other state permits such a practice and if the brokers have agreed to it in writing. See License Law 43-40-19 (d) and Rules 520-1-.05 (2) & 520-1-.07.

Q. I have just passed the salesperson’s examination. How soon can I go to work?
A. You may not begin brokerage activity until your broker receives your wall certificate and pocket card from the Commission. See Rule 520-1-.05 (2).

Q. I passed the salesperson’s examination. How soon should I apply to go on inactive status?
A. Any person who passes a salesperson’s examination must apply for an active or inactive license within three months of the exam date. If you do not apply until after three months but before twelve months, the fee charged to activate your license will double. If you do not apply for a license within twelve months, you must retake the examination before you can apply for a license (you will not be required to retake the Salespersons Prelicense course). See Rule 520-1-.04 (5).

Q. How do I incorporate as a Salesperson or Associate Broker with my broker?
A. Such licenses were issued by the Commission before July 1, 2006. Effective July 1, 2006, the law changed so that such licenses are no longer permitted or required. The law now allows licenses who have an ownership position in such firms to have their commissions paid to such an unlicensed firm provided they and the brokerage firm with which they are affiliated enter into a written agreement that:

1. authorizes the brokerage firm to pay the commission to the unlicensed business entity,
2. affirms that the individual licensee affiliated with the brokerage firm owns more than a 20 percent interest in the unlicensed business entity,
3. provides that the individual licensee earned the commission in behalf of the brokerage firm, and
4. affirms that the unlicensed business entity does not perform real estate brokerage activity.

O.C.G.A. Section 43-40-25 (b) (17) (c).

Q. What do I do if I do not agree with the employment or independent contractor agreement my broker offers to me?
A. The terms of such written agreements are controlled solely by negotiation between the parties. If you do not understand parts of the agreement you are asked to sign or disagree with any of its terms, you should discuss those with the broker and negotiate a clear agreement before signing. See Rule 520-1-.07 (5).

1. May I pay a referral fee to an unlicensed person?
2. Can the Commission call my broker and get my commission check corrected (or paid)?
3. Can I file a complaint with the Commission against another company in order to collect my share of a commission?

Q. May I pay a referral fee to an unlicensed person?
A. No. See License Law 43-40-25 (a )( 17).

Q. Can the Commission call my broker and get my commission check corrected (or paid)?
A. No. Payment of commissions between licensees is a matter of contract law, not license law. Such issues are generally controlled by company policies and employment or independent contractor agreements between the licensees. If disputes arise and cannot be resolved by direct negotiations, licensees must resort to arbitration or the courts for settlement. See Rule 520-1-.07 (5).

Q. Can I file a complaint with the Commission against another company in order to collect my share of a commission?
A. No. The license law does not permit the Commission to intervene in disputes between licensees about fees.

1. May I sell my house without paying my broker a commission?
2. I own rental property that I obtained before I associated with my broker. Does my broker need to be told anything?
3. Do I have to identify myself as an agent to sell or rent my own property?

You can also see our article “Licensees Acting as Principals” for more information this subject.

Q. May I sell my house without paying my broker a commission?
A. You must disclose to your broker in writing your intention to sell, buy, lease, or exchange property for your own account. Whether you pay a commission under such circumstances depends on what agreement you reach with your broker. See Rule 520-1-.11.

Q. I own rental property that I obtained before I associated with my broker. Does my broker need to be told anything?
A. Yes, in writing. Your broker will have to approve procedures for your holding security deposits and collecting rent. See License Law 43-40-20 (h) and Rule 520-1-.11.

Q. Do I have to identify myself as an agent to sell or rent my own property?
A. Yes. In advertisements, if the property is not listed with a real estate firm; and in sales contracts or leases, regardless of whether you listed the property with a real estate firm. In advertisements, you must use the legend “(seller, buyer, landlord, tenant – select the appropriate name) holds a real estate license.” or use the legend “Georgia Real Estate License # (insert your six digit number).” See License Law 43-40-25 (a )( 9) and Rules 520-1-.09 (8) & 520-1-.11.

1. Since I am an independent contractor, may I do my own advertising?
2. Are addresses required on “For Sale” signs?
3. Do I need a sign outside the location of my business?

See our “Advertising Rules” flyer for more information this subject.

Q. Since I am an independent contractor, may I do my own advertising?
A. No. All advertising must be in the name of and approved by the broker. As an exception, the broker may authorize you to advertise property you personally own under certain circumstances or to pay for certain advertising of your listings. However, the broker must expressly approve all advertising. See License Law 43-40-25 (a )( 2) and Rule 520-1-.09.

Q. Are addresses required on “For Sale” signs?
A. The short answer is “Whatever your broker says must be on it.” Your broker is the final decision maker on what needs to be on signs since as noted in the answer to the preceding question: “All advertising must be in the name of and approved by the broker.” Commission rules do place some specific requirements on the broker. For example, while all signs do not require an address, the name and telephone number of the brokerage firm must appear on all signs and other advertisements of specific properties for sale, lease, or exchange and must be in print as large as or larger than the name(s) of any affiliated licensees. See Rule 520-1-.09.

Q. Do I need a sign outside the location of my business?
A. The license law does not require one. Some local ordinances may require a sign. See Rule 520-1-.09.

1. I am holding an open house in a new subdivision. May I give a door prize or free gift to each and every prospective purchaser that attends?
2. May we hire unlicensed hostesses to sit in open houses and pass out brochures with information on the houses?

Q. I am holding an open house in a new subdivision. May I give a door prize or free gift to each and every prospective purchaser that attends?
A. Yes, provided no lottery is involved and your prizes, procedures, and any advertising are expressly approved by your broker and your client. Such promotions generally are not regulated by the license law, but some are regulated under the Fair Business Practices Act administered by the Governor’s Office of Consumer Affairs. See License Law 43-40-25 (a )( 2) and Rule 520-1-.09.

Q. May we hire unlicensed hostesses to sit in open houses and pass out brochures with information on the houses?
A. No. See Rule 520-1-.07 (6) Utilizing Unlicensed Support Personnel – Task Guidelines.

1. May I tell a purchaser that I will represent him or her instead of the seller?
2. May I work for the purchaser and be paid a fee by the seller and listing broker?
3. Which agent is supposed to make the proper agency disclosure statement in a cooperating transaction?
4. Do I need a special form to make the agency disclosure or can I make the required disclosure in a written offer?

Q. May I tell a purchaser that I will represent him or her instead of the seller?
A. Only if specifically authorized to do so by your broker. See Rule 520-1-.06.

Q. May I work for the purchaser and be paid a fee by the seller and listing broker?
A. Yes, provided you make proper disclosure. See Rule 520-1-.06.

Q. Which agent is supposed to make the proper agency disclosure statement in a cooperating transaction?
A. The selling agent should make the disclosure to the prospective purchaser, and the listing agent should make the disclosure to the prospective seller. If the listing agent discovers that the selling agent has not made the disclosure to the prospective purchaser, then in order to protect properly the interests of the seller, the listing agent should see that the proper disclosure is made to the purchaser. See Rule 520-1-.06.

Q. Do I need a special form to make the agency disclosure or can I make the required disclosure in a written offer?
A. Either way. The license law requires that licensees make the disclosure at the time of or before any written offer. The earlier the written disclosure is made, the greater the protection for the agent. You should use the disclosure language which appears in Rule 520-1-.06 or language prepared by your firm’s attorney.

1. If an offer is accepted on the phone, is it a contract?
2. Should offers be changed by the listing agent when essentials are left out of the offer by a selling agent?
3. Do I always have to obtain earnest money?

Q. If an offer is accepted on the phone, is it a contract?
A. No.

Q. Should offers be changed by the listing agent when essentials are left out of the offer by a selling agent?
A. The listing agent should explain to the seller what essential items appear to be left out of the offer and advise the seller to make a counter offer with those items included. See License Law 43-40-25.1

Q. Do I always have to obtain earnest money?
A. While earnest money is not essential to create a binding contract, it is generally desirable to show the purchaser’s good faith. Whether to obtain earnest money and in what amount is a policy decision that your broker should make as influenced by the seller’s desires.

1. How long can I keep earnest money before I take it to the office?
2. May a salesperson give earnest money back to the purchaser if he or she is still holding it and has not turned it in?
3. How should a broker disburse earnest money that the buyer (or seller) is demanding?
4. Should a broker hold the earnest money or let the seller hold it when the seller is a builder?

Q. How long can I keep earnest money before I take it to the office?
A. Earnest money must be turned over to the broker as soon after receipt as is practically possible. Your broker should provide you with written guidelines indicating how and when you should turn in earnest money. See License Law 43-40-25 (a )( 23) and Rule 520-1-.08.

Q. May a salesperson give earnest money back to the purchaser if he or she is still holding it and has not turned it in?
A. No, unless specifically directed to by your broker. Once you receive earnest money in behalf of your broker, the decision as to whom and when the money should be remitted rests solely with the broker. See License Law 43-40-25 (a )( 3) & (23) & Rules 520-1-.08.

Q. How should a broker disburse earnest money that the buyer (or seller) is demanding?
A. In accordance with the terms of the sales contract and the procedures outlined in Rule 520-1-.08.

Q. Should a broker hold the earnest money or let the seller hold it when the seller is a builder?
A. The party who holds the earnest money is controlled by the negotiation of the parties as expressed in the provisions of the sales contract.

1. How can I do business in another state?
2. How can I let a broker from another state do business here?
3. May I obtain a license in another state by reciprocity?
4. I would like to “co-op” a deal with a broker in another state for some Georgia property. What must I do?

Q. How can I do business in another state?
A. To get started you will need to contact that state’s Real Estate Commission. Click below to find the contact details for other state agencies:

• State Real Estate Agencies
• State Appraisal Agencies

Q. How can I let a broker from another state do business here?
A. See License Law 43-40-9 & 43-40-25 (a )( 16) and Rule 520-1-.05 (6) & 520-1-.07 (7).

Q. May I obtain a license in another state by reciprocity?
A. Yes, in some states. If you are interested in obtaining a license in another state, you must contact that state directly for information on its licensing requirements for nonresidents. Click below to find the contact details for other state agencies:

• State Real Estate Agencies
• State Appraisal Agencies

Q. I would like to “co-op” a deal with a broker in another state for some Georgia property. What must I do?
A. See License Law 43-40-9 and Rule 520-1-.07 (7).

1. May I give gifts to clients and customers who do business with me?
2. May I pay a fee or give a gift to a person who refers a prospect to me?

Q. May I give gifts to clients and customers who do business with me?
A. Generally speaking, licensees may give gifts to clients and customers provided (1) they do not give such gifts to persons for performing the services of a real estate licensee; (2) a licensee’s broker expressly approves giving the gift; (3) if the licensee gives the gift to a customer, the licensee’s client knows of and approves of the giving of the gift; and (4) the gifts are consistent with the advertising provisions of the license law 43-40-25 (a)(2) & (17) and Rule 502-1-.09. However, there are other federal and state laws which regulate advertising and/or promotions (for example, the State’s Fair Business Practices Act). Therefore, if your broker is not certain whether a particular gift promotion meets the requirements of the law, your broker may need to consult legal counsel.

Q. May I pay a fee or give a gift to a person who refers a prospect to me?
A. No, unless that person is a real estate licensee. Referral of prospects is the act of a real estate licensee, and a licensee may pay compensation to a person who performs the acts of a licensee only if such person is licensed. See License Law 43-40-25(a )( 17).