License Law Violations & Unfair Trade Practices in Georgia

Unfair trade practices are those using deceptive, fraudulent, or unethical means to obtain business. Licensees should view Georgia Code 43-40-25 as an expected code of conduct to protect the public and licensees' professional reputation. Licensees should know the law and avoid any violations, which could result in license suspension or license revocation. 


License suspension is a temporary loss of license where it's made inactive as a penalty of a violation. 
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Revocation is an indefinite loss of license where it's stripped from the license holder to prevent that person from ever practicing real estate again. 

Licensees shall not engage in any of the following: 

• Discriminating in the sale, rental, or advertisement of housing or commercial space based on protected class status
  
• Deceptive advertising
  
• Commingling funds or improper or negligent handling of trust funds
  
• Receiving undisclosed compensation in the course of providing real estate services
  
• Demonstrating untrustworthiness or incompetency to act as a real estate broker or salesperson 
  
• Making substantial and willful misrepresentations 
  
• Working for or otherwise representing a non-affiliated broker
  
• Accepting commission from anyone other than the licensee’s broker without the broker’s consent
  
• Failing to disclose agency relationships at first substantive contact
  
• Undisclosed personal interest or conflict of interest in a transaction
  
• Guaranteeing profits
  
• Placing a sign on a property without the owner’s consent
  
• Leaving a sign up for more than 10 days following the expiration of the owner’s consent
  
• Offering a property for sale or lease without the owner’s consent, or on terms other than those consented to by the owner
  
• Contractual interference 
  
• Negotiating directly with the client of another broker (exceptions are made for limited service listings where consent for direct negotiation exists)
  
• Using the word “appraisal” when the licensee is not an appraiser or representing that a comparative market analysis is an appraisal
  
• Paying unlicensed individuals for referrals, or for any activity requiring a license
  
• Failing to include an expiration date on a listing agreement
  
• Failing to promptly provide all parties with copies of a completed offer or listing agreement
  
• Failing to timely ensure that the client or customer receives a copy of the closing statement
  
• Unauthorized dual agency (requires written consent)
  
• Dishonest or reckless actions that put the public at risk 
  
• Knowingly entering into a brokerage agreement when the client already has a brokerage agreement with another broker
  
• Failing to retain transactional records for at least three years
  
• Falsification of any documents relating to a real estate transaction
  
• Failure to obtain written agreement from all parties specifying the disposition of earned interest before depositing money into an interest-bearing escrow account
  
• Acting outside the scope of one’s license
  
• Failing to obtain a person’s written agreement to refer them to another licensee and to inform them of any compensation the licensee may receive
  
• Entering into a net brokerage agreement
  

This list is not all inclusive. There are many ways to violate real estate license law in Georgia. It is the responsibility of the licensee to know and adhere to the law. If there is ever a question, reach out to the broker team for clarification.