Georgia License Types and Broker Supervision

Georgia recognizes several types of real estate licenses, each with specific requirements and authorities.

License Types

Individual Licenses

Salesperson

A salesperson is licensed to perform real estate activities but must work under a licensed broker. Salespersons cannot:

• Operate independently
• Collect commissions directly from clients
• Supervise other licensees

Associate Broker

An associate broker holds a broker license but chooses to work under another broker. They have the same supervision requirements as salespersons while working in this capacity.

Broker

A broker can operate independently and supervise salespersons and associate brokers. Brokers may:

• Operate their own real estate company
• Supervise affiliated licensees
• Collect and distribute commissions
• Operate branch offices

Community Association Manager (CAM)

Georgia requires a separate CAM license for managing homeowner associations, condominium associations, and similar communities. CAM licensees are also regulated by GREC.

Broker Supervision Requirements

Georgia law places significant responsibility on brokers to supervise their affiliated licensees.

Written Policies

Brokers must establish and maintain written policies covering:

• Supervision of licensees
• Trust fund handling procedures
• Advertising guidelines
• Transaction review processes
• Record retention (minimum 3 years)

Broker Liability

The broker is vicariously liable for the conduct of affiliated licensees acting within the scope of their license. This means the broker can be disciplined for:

• Salesperson violations occurring due to inadequate supervision
• Trust fund mishandling
• Misrepresentation by affiliated licensees
• Failure to disclose material facts

Exam Tip: Even if a broker was unaware of a salesperson's misconduct, the broker can still be held responsible if the conduct resulted from inadequate supervision.

Business Entity Licensing

Georgia permits real estate brokerage through various business structures:

Corporation or LLC

• Must have a designated broker who holds individual broker license
• The entity itself must be registered with GREC
• Designated broker is responsible for supervision and compliance

Partnership

• At least one partner must be a licensed broker
• The broker partner is responsible for supervision

Branch Offices

Brokers operating from multiple locations must:

1. Notify GREC in writing of each branch office location
2. Ensure adequate supervision at each location
3. Maintain records at either the main office or branch

Branch offices can be supervised by:

• The broker personally
• A designated associate broker or salesperson with supervisory authority

License Display

Georgia requires proper license documentation:

Transferring Between Brokers

When a salesperson or associate broker changes sponsoring brokers:

1. Terminating broker must notify GREC in writing
2. New broker must submit transfer paperwork
3. Licensee cannot practice between termination and transfer completion
4. Background check may not be required if transfer is within a reasonable time

The transfer process should be completed promptly to avoid gaps in licensure.