Yikes! It’s a Random Audit!Staying Compliant with GREC

The purpose of the Georgia Real Estate Commission is to safeguard the public interest in real estate. This is accomplished by ensuring compliance with the Georgia Real Estate License Laws, Rules, and Regulations.

GREC ensures compliance by routinely conducting random audits of the records of real estate brokerage firms. If violations of the License Law or Rules and Regulations are found, then the licenses of both the broker and the firm may be disciplined by the Commission.

We are required to maintain records for 3 (three) years. That includes paper, film, electronic, or other media. This is where Paperless Pipeline works for us.  Without including the financial documentation, we have to keep all brokerage and sales agreements (closed or not), settlement statements,  dual Agency consents, advertising, Independent Contractor Agreements, communications between the Broker and licensees and records of training provided by the Broker.

Failure by the Broker to review offers and contracts within 30 days of the date of the offer or contract is a violation of the license law. When we review agreements, and ask for additional information or clarification, it’s because we don’t want a random audit exposing either you or the brokerage to a violation. 

We also have to approve all advertising in writing. “Advertising” is very broad.  It includes any media, (printed, photographed, broadcast, and digital) in  newspapers, magazines, flyers, posters, business cards, billboards, radio, television, signs, newsletters, and the Internet. 

And, yes, there are rules. Advertisements must state the name of the brokerage company as it is licensed with the Commission and its main phone number.  The brokerage company name must be of equal or larger size print than the name of any licensee.  No licensee name can be stated more frequently or more prominently than the brokerage company name. The brokerage company phone number must be of equal or larger size print than the phone number of any licensee The Broker must have established procedures for management level review of all advertising and specifically for advertising by agents that own property.  An agent acting as principal must notify the Broker in writing of specific property being advertised and get the Broker’s written permission for the advertising. Any advertisement by an agent/principal must state the agent holds a real estate license or a legend with the agent’s license number.  And no, this is not a complete list of the rules.

Help us to help you.  Please submit your advertising for review and please, please submit all required documentation to Paperless Pipeline.  Until next week!