2020 Georgia Code
Title 43 - Professions and Businesses
Chapter 40 - Real Estate Brokers and Salespersons
- § 43-40-1. Definitions
- § 43-40-2. Creation of Commission; Members; Meetings; Recusal for Conflict of Interest; Removal; Compensation; Annual Report; Budget Unit
- § 43-40-3. Determination of Fees by Commission
- § 43-40-3.1. Rules and Regulations
- § 43-40-4. Office of Commissioner; Qualifications; Restrictions; Staff; Oath; Duties and Powers; Reimbursement
- § 43-40-5. Status of License of Commissioner and Commission Employees
- § 43-40-6. Seal; Records
- § 43-40-7. Application for Licenses; Confidentiality
- § 43-40-8. Qualifications of Licensees; Course of Study for Licensed Salespersons; Lapse; Reinstatement; Renewal; Continuing Education; Standards for Courses
- § 43-40-9. Nonresident Licensees; Service of Process; Reciprocity; Contracts With Licensed Georgia Brokers
- § 43-40-10. Requirements for Firm to Be Granted Broker's License
- § 43-40-11. Form of License
- § 43-40-12. Fees; Inactive Status; Licensure of Broker as Salesperson; Penalty Fees; Extension of Renewal Period
- § 43-40-13. Disposition of Fees Collected Under Chapter
- § 43-40-14. Power of Commission to Issue, Revoke, or Suspend Licenses and Censure Licensees; Power to Enter Contracts; Retention of Funds
- § 43-40-15. Grant of Licenses; Grounds for Suspension or Revocation of License; Other Sanctions; Surrender or Lapse; Conviction
- § 43-40-16. Refusal to Issue Licenses; Hearings; Judicial Review
- § 43-40-17. Revocation or Suspension of License Issued to Partnership, Limited Liability Company, or Corporation
- § 43-40-18. Management of Firm and Licensed Affiliates; Compliance With Local Ordinances
- § 43-40-19. Change of Place of Business; Transfer of Salesperson, Associate Broker, or Community Association Manager
- § 43-40-20. Trust or Escrow Checking Account for Real Estate Business; When Entitled to Commission
- § 43-40-21. Violations Involving Real Estate Accounts; Report to Attorney General; Injunctions; Appointment of Receiver
- § 43-40-22. Real Estate Education, Research, and Recovery Fund; Revocation of License Upon Court Order for Payment From Fund; Subrogation
- § 43-40-22.1. Fidelity Bond or Insurance Requirements for Broker Providing Community Management Services
- § 43-40-23. Applicability of County or Municipal License, Occupational, or Professional Taxes
- § 43-40-24. Requisites for Maintenance of Action Under Chapter
- § 43-40-25. Violations by Licensees, Schools, and Instructors; Sanctions; Unfair Trade Practices
- § 43-40-25.1. Completion of Certain Forms Not Practice of Law; Contents of Certain Forms
- § 43-40-25.2. Alternative Disciplinary Procedures; Citations
- § 43-40-26. Hearings Before Commission; Judicial Review
- § 43-40-27. Investigation of Complaints; Subpoenas; Confidentiality; Publication of Licensee Name Upon Revocation or Suspension; Closed Meetings
- § 43-40-27.1. Conviction Data
- § 43-40-28. Injunctive Actions
- § 43-40-29. Exceptions to Operation of Chapter
- § 43-40-30. Acting Without a License; Cease and Desist Order; Judicial Review; Effect of Code Section on Other Remedies
- § 43-40-30.1. Employer-Employee or Broker-Independent Contractor Relationships Between Licensees
- § 43-40-30.2. Broker's License Granted to Corporation, Partnership, or Limited Liability Company Engaged in Providing Community Association Management Services; Qualifications of Qualifying Broker
- § 43-40-31. Penalty
- § 43-40-32. Termination
- Principal-agent relationship between property owner and broker, § 10-6-32.
Editor's notes.- Ga. L. 1981, p. 1898, which revised the powers and duties of the joint-secretary, did not apply to the Georgia Real Estate Commission; see § 5 of the 1981 Act. See also the editor's notes under Code Sections 43-1-2, 43-1-4, 43-1-7 and 43-1-12.
Administrative Rules and Regulations.- Substantive regulations, Official Compilation of the Rules and Regulations of the State of Georgia, Georgia Real Estate Commission, Chapter 520-1.
Law reviews.- For article, "Checklists for Georgia Real Estate Contracts," see 2 Ga. St. B. J. 343 (1966). For article, "Compensation of the Georgia Real Estate Broker," see 6 Ga. L. Rev. 375 (1972). For article surveying recent legislative and judicial developments in Georgia's real property laws, see 31 Mercer L. Rev. 187 (1979). For article surveying Georgia cases in the area of real property from June 1979 through June 1980, see 32 Mercer L. Rev. 175 (1980).
JUDICIAL DECISIONS
Editor's notes.
- In light of the similarity of the statutory provisions, decisions under Ga. L. 1925, p. 325, and under former Code 1933, Ch. 84-14, as it read prior to revision by Ga. L. 1973, p. 100, are included in the annotations for this Code section.
State may impose license fee upon occupation without abridging constitutional rights and privileges of others carrying on business in the state, or depriving others of equal protection of laws, or taking others' property without due process of law. Camp v. State, 171 Ga. 25, 154 S.E. 436 (1930) (decided under Ga. L. 1925, p. 325).
O.C.G.A. T. 43, C. 40 is merely regulatory in nature and does not have the effect of changing the substantive law applicable in a civil action to recover for a real estate agent's alleged misconduct. Johnson Realty, Inc. v. Hand, 189 Ga. App. 706, 377 S.E.2d 176 (1988).
Chapter sets forth the scope and limit of legislation as to authority of commission to adopt rules and regulations. O'Neal v. Georgia Real Estate Comm'n, 129 Ga. App. 211, 199 S.E.2d 362 (1973) (decided under former Code 1933, Ch. 84-14).
Minimum purchase price upheld.
- Award of realty firm's minimum purchase price to sellers was proper; the contract unambiguously provided for a $70,000 minimum purchase price to be paid even if the sellers were no longer entitled to commission overrides because the sellers' relationship with the firm was terminated prior to the end of a three-year period. Mt. Aire Realty, Inc. v. Birdie White Enters., 265 Ga. App. 366, 593 S.E.2d 900 (2004).
Cause of action may be based in tort by showing conspiracy to deprive real estate broker of commissions due under contract. Mathews v. Greiner, 130 Ga. App. 817, 204 S.E.2d 749 (1974) (decided under former Code 1933, Ch. 84-14).
Conditions for recovery of commission for real estate sale.
- Petition which seeks to recover commissions for sale of real estate only is fatally defective unless the petition alleges that the plaintiff has complied with the provisions of the law as it pertains to real estate salespeople or brokers. When a petition is grounded upon single contract for sale of real estate and personalty it is good as against a general demurrer (now motion to dismiss). The amount of recovery is a question of fact. Moreland v. Kilgore, 83 Ga. App. 606, 64 S.E.2d 295 (1951) (decided under former Code 1933, Ch. 84-14).
Compensation in assumpsit on quantum meruit basis is available to realtors.
- Court of Appeals erred in holding that compensation claimed in assumpsit on quantum meruit basis was not within contemplation of law pertaining to real estate brokers. Stokes & Co. v. McCoy, 212 Ga. 78, 90 S.E.2d 404 (1955) (decided under former Code 1933, Ch. 84-14).
Cited in Dwyer v. Impeciato, 134 Ga. App. 147, 213 S.E.2d 529 (1975); Krizan v. Newman & Co., 246 Ga. 214, 271 S.E.2d 135 (1980).
OPINIONS OF THE ATTORNEY GENERAL
Editor's notes.
- In light of the similarity of the statutory provisions, opinions under former Code 1933, Ch. 84-14 as it read prior to revision by Ga. L. 1973, p. 100, are included in the annotations for this Code section.
Broker may charge fixed fee and collect part or all of that fee before performance of service. 1977 Op. Att'y Gen. No. 77-79.
Georgia Real Estate Commission may not sue or be sued except when Attorney General initiates action in interest of state. 1976 Op. Att'y Gen. No. 76-93.
Exempt veteran must pay realtor license fees.- Veteran's certificate of exemption does not exempt either a real estate broker or a general insurance agent from payment of license fees. 1950-51 Op. Att'y Gen. p. 229 (decided under former Code 1933, Ch. 84-14 as it read prior to revision by Ga. L. 1973, p. 100.)
RESEARCH REFERENCES
Am. Jur. 2d.
- 2 Am. Jur. 2d, Administrative Law, § 21 et seq. 15A Am. Jur. 2d, Commerce, §§ 1 et seq., 90 et seq. 16A Am. Jur. 2d, Constitutional Law, §§ 266, 284 et seq., 332, 339 et seq. 51 Am. Jur. 2d, Licenses and Permits, § 1 et seq. 58 Am. Jur. 2d, Occupations, Trades and Professions, § 1 et seq. 63C Am. Jur. 2d, Public Officers and Employees, § 14 et seq. 72 Am. Jur. 2d, States, Territories and Dependencies, §§ 42, 64 et seq. 73 Am. Jur. 2d, Statutes, §§ 17 et seq., 58 et seq.
Real Estate Broker's Fraud as to Income from or Earnings of Property, 11 POF2d 623.
Real Estate Broker's Misrepresentation of Condition or Value of Realty, 16 POF2d 719.
Real Estate Broker's Misrepresentation or Nondisclosure as to Condition or Value of Realty, 39 POF3d 309.
Real Estate Purchaser's Recovery of Damages in Tort for Fraudulent Misrepresentation of Quantity of Land Sold, 61 POF3d 411.
Real Estate Seller's Claims for Relief for Fraudulent-Concealment of Identity of True Purchaser of Realty, 63 POF3d 257.
Resolving Real Estate Disputes through Arbitration, 27 Am. Jur. Trials 621.
Resolving Real Estate Brokers' Disputes, 88 Am. Jur. Trials 321.
Prospective Purchaser's Recovery of Damages for Tortuous Interference with Real Estate Contract, 97 Am. Jur. Trials 107.
Real Estate Broker's Breach of Fiduciary Duty to Disclose Material Facts to Seller-Principal, 101 Am. Jur. Trials 1.
C.J.S.- 15 C.J.S., Commerce, §§ 9 et seq., 83 et seq., 111 et seq. 16 C.J.S., Constitutional Law, § 280 et seq. 16A C.J.S., Constitutional Law, § 580 et seq. 16B C.J.S., Constitutional Law, §§ 1055-1058, 1444-1448. 16D C.J.S., Constitutional Law, §§ 2085, 2086. 53 C.J.S., Licenses, § 6 et seq. 67 C.J.S., Officers and Public Employees, § 12 et seq. 73 C.J.S., Public Administrative Law and Procedure, § 50 et seq. 73 C.J.S., Public Administrative Law and Procedure, § 146 et seq. 81A C.J.S., States, § 120 et seq. 82 C.J.S., Statutes, §§ 203, 281.
ALR.
- Broker's right to commission as affected by his advising purchaser against the title, 1 A.L.R. 1636.
Right of real estate broker to commissions where he was unable to procure an offer of the owner's price from one whom he interested, and who subsequently, without his intervention, purchased at that price, 9 A.L.R. 1194.
Duration of real estate broker's contract which specifies no time, 24 A.L.R. 1537; 28 A.L.R. 893.
Right of vendor and purchaser respectively to possession pending performance, but before default, of executory contract for sale of real estate, 28 A.L.R. 1069.
Contract by which real-estate broker is to have all in excess of a stipulated sum, as a wagering contract, 30 A.L.R. 829.
Failure to procure occupational or business license or permit as affecting validity or enforceability of contract, 30 A.L.R. 834, 42 A.L.R. 1226, 118 A.L.R. 646.
Real estate broker's right to commission as affected by failure or refusal of customer to comply with valid contract, 51 A.L.R. 1390; 74 A.L.R.2d 437.
Who is real estate agent, salesman, or broker within meaning of statute, 56 A.L.R. 480; 167 A.L.R. 774.
Character and extent of liability on real estate broker's statutory bond, 75 A.L.R. 1130.
Right of owner to terminate real estate broker's employment pending negotiations with prospective purchaser, 88 A.L.R. 716.
Right of real estate broker against third person who prevented broker from earning commissions, or who received, or induced owner to pay to him or another, commission which the broker had earned, 97 A.L.R. 1273; 146 A.L.R. 1417.
What amounts to waiver of termination of real estate broker's contract, 140 A.L.R. 1019.
Real-estate broker's right to commissions as affected by owner's ignorance of fact that purchaser had been contacted by broker, 142 A.L.R. 275.
Income tax: deduction, in return on accrual basis, in respect of agents' or salesmen's commissions, 143 A.L.R. 1171.
Broker's right to compensation as affected by the fact that customer procured by him joined with another in the purchase of the property involved, 164 A.L.R. 949.
Rights and obligations of real-estate broker employed to sell property as affected by option to purchase for himself, 164 A.L.R. 1378.
Real estate broker's right to commission on sale, exchange, or lease of property listed without statement of price or other terms, 169 A.L.R. 380.
Real estate broker's right, as against his employer, to commission on sale by subagent, 3 A.L.R.2d 532.
Relative rights and liabilities of vendor and his broker to down payment or earnest money forfeited by vendee for default under real estate contract, 9 A.L.R.2d 495.
Payment to broker or agent authorized to sell real property, as payment to principal, 30 A.L.R.2d 805.
Power of real estate broker to execute contract of sale in behalf of principal, 43 A.L.R.2d 1014.
"Exclusive right to sell" and other terms in real estate broker's contract as excluding owner's right of sale, 88 A.L.R.2d 936.
Licensed real estate broker's right to compensation as affected by lack of license on the part of partners, coadventurers, employees, or other associates, 8 A.L.R.3d 523.
Right of real estate broker to commission where listing contract is for sale of property and it is subsequently leased to one with whom broker had negotiated, 42 A.L.R.3d 1430.
Validity, construction, and effect of real estate brokers' multiple-listing agreement, 45 A.L.R.3d 190.
Real estate broker's right to commission for procuring lessee, where lease terminates before contemplated term, 54 A.L.R.3d 1171.
Duty and liability of real estate agent or broker to purchaser with respect to procurement or transfer of insurance policy, 88 A.L.R.3d 1077.
Practices forbidden by state deceptive trade practice and consumer protection acts, 89 A.L.R.3d 449.
Modern view as to right of real estate broker to recover commission from seller-principal where buyer defaults under valid contract of sale, 12 A.L.R.4th 1083.
Right to private action under state statutes or regulations governing real-estate brokers or salesmen, 28 A.L.R.4th 199.
Real-estate broker's right to recover commission from seller where sale fails because of seller's failure to deliver good title - modern cases, 28 A.L.R.4th 1007.
Real-estate broker's rights and liabilities as affected by failure to disclose financial information concerning purchaser, 34 A.L.R.4th 191.
Transactions within public security or guaranty fund designed to compensate those suffering damage or loss on account of real-estate brokers' defalcations, 38 A.L.R.4th 792.
Real estate broker's liability to purchaser for misrepresentation or nondisclosure of physical defects in property, 46 A.L.R.4th 546.
Real-estate brokers: statute or regulation forbidding use of prizes, gifts, or premiums as inducement to secure customers, 62 A.L.R.4th 1044.
Broker's liability for fraud or misrepresentation concerning development or nondevelopment of nearby property, 71 A.L.R.4th 511.
What constitutes financial ability to perform within rule entitling broker to commission for producing ready, willing, and able purchaser of real property, 87 A.L.R.4th 11.
Liability of vendor or real-estate broker for failure to disclose information concerning off-site conditions affecting value of property, 41 A.L.R.5th 157.
