Given the active real estate market in Atlanta’s metropolitan area, more and more people are finding themselves involved in real estate transactions—sometimes even if they have never been involved in real estate deals before. And, of course, where there is a real estate transaction, there is a fee or commission.
Which brings us to the law governing real estate activities.
Real Estate Brokers Laws
If you are involved in a real estate transaction, it is important to understand the state laws governing broker’s fees.
In Georgia, anyone who, for a commission, fee or other “valuable consideration,” buys, sells, offers to buy or sell, acquire prospects to buy or sell, or who negotiates for the buying and selling of real estate, must have a valid real estate Broker’s license.
The law is broad in its application. Even the “promise to” engage in certain activities with regard to real estate for money (or other compensation) or the “expectation,” or even mere “intent” to receive compensation, can bring a person within the law’s requirements.
A number of activities come within the law’s purview. Among them are:
- Negotiating for the listing, sale, purchase, exchange, rent, lease or option for
- any real estate;
- Acting as referral agent; or
- Collecting rents, assessments, or other trust funds.
Georgia’s real estate broker laws are intended to prevent consumers from falling victim to harmful business practices. The Georgia Real Estate Commission is responsible for monitoring brokers and enforcing licensure requirements.
Anyone who engages in real estate transaction activities that require a license without one can be subject to penalties and can even be charged with a misdemeanor.
This means that if you have brought together a real estate buyer and seller, or a landlord and tenant, or have been involved in contract negotiations involving real estate, and expect to receive any form of compensation for it—regardless of whether you call it a “fee” or “commission” or something else—you must be a licensed realtor. If not, you may end up with either an unenforceable claim or agreement, or even criminal charges.
Don’t Take Chances. Get the Experienced Legal Assistance You Need.
Don’t go into a real estate transaction without first getting the advice and legal guidance you need. At the Law Offices of Mark Weinstein, P.C., we have dedicated ourselves to protecting property rights for nearly 20 years. We have offices in Cumming, and we serve clients in Atlanta, Gainesville, Gwinnett County, Bartow County, Hall County, Henry County, Cherokee County, Clayton County, Cobb County, and other counties throughout Georgia. To schedule your free phone consultation, call us at: 770-888-7707. Or you can e-mail us with inquiries at: firstname.lastname@example.org.