Podcast
Questions and Answers
Which practice is not permitted regarding trust funds?
Which practice is not permitted regarding trust funds?
- Failing to turn over trust funds promptly to the broker (correct)
- Commingling trust funds with personal funds (correct)
- Maintaining a separate account for trust funds
- Using an escrow agent with written agreement
What constitutes blockbusting in real estate?
What constitutes blockbusting in real estate?
- Promoting a property with aggressive marketing
- Advertising without the owner's consent
- Selling properties below market value
- Indicating an area's demographics are likely to change (correct)
Which of the following actions is considered unfair when advertising?
Which of the following actions is considered unfair when advertising?
- Maintaining transparency about commissions
- Disclosing license status in advertising
- Using factual statements about a property
- Creating misleading advertising materials (correct)
How long must transactional records and accounting records for trust accounts be retained?
How long must transactional records and accounting records for trust accounts be retained?
Which action is permitted when handling trust funds?
Which action is permitted when handling trust funds?
What must licensees disclose in writing when they receive value on behalf of a principal?
What must licensees disclose in writing when they receive value on behalf of a principal?
What is a consequence of not disclosing license status in advertising?
What is a consequence of not disclosing license status in advertising?
Which of the following is considered a fair advertising practice?
Which of the following is considered a fair advertising practice?
What is the main purpose of Georgia’s Fair Business Practices Act?
What is the main purpose of Georgia’s Fair Business Practices Act?
Which of the following best describes the Georgia Uniform Deceptive Trade Practices Act (UDTPA)?
Which of the following best describes the Georgia Uniform Deceptive Trade Practices Act (UDTPA)?
What type of practices does the Georgia Code §43-40-25 specifically address?
What type of practices does the Georgia Code §43-40-25 specifically address?
Which of the following actions would NOT be considered an unfair practice related to fair housing in Georgia?
Which of the following actions would NOT be considered an unfair practice related to fair housing in Georgia?
What can consumers, brokers, or the state do under the Georgia Uniform Deceptive Trade Practices Act?
What can consumers, brokers, or the state do under the Georgia Uniform Deceptive Trade Practices Act?
Which of the following is a requirement to prosecute under Georgia’s Fair Business Practices Act?
Which of the following is a requirement to prosecute under Georgia’s Fair Business Practices Act?
What is one of the consequences for a licensee found in violation of unfair trade practices in Georgia?
What is one of the consequences for a licensee found in violation of unfair trade practices in Georgia?
Which of the following is considered an unfair practice under Georgia law?
Which of the following is considered an unfair practice under Georgia law?
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Study Notes
Exam Overview
- Expect around 16 questions on state laws and rules for Georgia licensees on the licensing exam.
Unfair Practices
- Defined as deceptive, fraudulent, or unethical practices that seek to obtain business.
- Georgia’s Fair Business Practices Act prohibits unfair and deceptive acts in transactions concerning goods, services, or property.
- Act targets consumer transactions rather than business-to-business dealings.
- Misleading or fraudulent advertising across all media types is strictly forbidden.
- Requires a transaction to have occurred to pursue legal action for deceptive advertising.
Georgia Uniform Deceptive Trade Practices Act (UDTPA)
- Addresses issues like price fixing and deceptive practices affecting free trade competition.
- Violations can occur without a consumer transaction taking place.
- Allows consumers, brokers, or the state to sue for breaches of the UDTPA.
- Remedies can include triple damages, fines, injunctions, or a combination thereof.
Georgia Code §43-40-25
- Governs unfair trade practices specifically in the real estate sector.
Fair Housing Violations
- Licensees cannot discriminate based on the federally protected classes (race, color, religion, sex, disability, familial status, national origin).
- Illegal actions include refusal to sell/rent to bona fide offers and discriminatory terms in sales or rentals.
- Prohibited advertising indicating preference or discrimination regarding housing.
- Blockbusting strategies that misrepresent neighborhood demographics are banned.
Trust Fund Mismanagement
- Unacceptable practices include improper handling of trust funds, not promptly transferring funds to brokers, and commingling personal and trust funds.
- Required to maintain separate federally insured accounts for trust funds or use an agreed-upon escrow agent.
- Must secure written agreements on the interest earned before placing funds in an interest-bearing account.
Disclosure Obligations
- Licensees must disclose in writing any received items of value concerning reimbursements or referrals made during a transaction.
- Payments made to other brokers for referrals must also be disclosed.
Advertising Regulations
- Prohibition against using deceptive or inaccurate information in advertising.
- License status must be disclosed in all advertising.
- Signs may not be placed on properties without written consent; they must be removed within 10 days post-listing expiration.
- Discriminatory ads are also prohibited.
Recordkeeping Requirements
- Transactional records and accounting records for trust accounts must be retained for a minimum of three years.
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