Key Takeaways
- Violations of Georgia license law can result in citations, fines, suspension, or revocation
- Citations can include fines up to $1,000 per violation ($5,000 maximum for multiple violations)
- Common violations include trust account mishandling, failure to supervise, and misrepresentation
- GREC investigates complaints and conducts audits of brokerage operations
- Licensees have the right to a hearing before an Administrative Law Judge for serious violations
Last updated: January 2026
Georgia License Law Violations and Discipline
GREC has authority to discipline licensees for violations of the Real Estate License Law and Commission rules.
Types of Violations
Common Violations
| Category | Examples |
|---|---|
| Trust Account | Failure to deposit timely, commingling, conversion |
| Supervision | Inadequate oversight of salespersons |
| Disclosure | Failure to disclose material facts |
| Misrepresentation | False statements about property or transaction |
| Advertising | Misleading ads, failure to identify broker |
| Unlicensed Activity | Practicing without valid license |
| Incompetence | Failure to provide competent service |
Specific Prohibited Acts
Under O.C.G.A. § 43-40-25, violations include:
- Fraud or misrepresentation in obtaining a license
- Dishonest or fraudulent dealings
- False advertising or misleading statements
- Failure to account for funds or documents
- Commingling of client and personal funds
- Splitting fees with unlicensed persons
- Failure to disclose interest in property
- Violating fair housing laws
- Conviction of crime involving moral turpitude
- Practicing while impaired by drugs or alcohol
Disciplinary Process
Investigation
GREC initiates investigations based on:
- Consumer complaints
- Routine audits
- Referrals from other agencies
- Self-reporting by licensees
Resolution Options
| Severity | GREC Action |
|---|---|
| Minor/Technical | Letter of Finding (warning) |
| Moderate | Citation with fine |
| Serious | Formal hearing and sanctions |
| Severe | License suspension or revocation |
Citations and Fines
GREC can issue citations for violations without a formal hearing:
Fine Schedule
| Violation | Typical Fine |
|---|---|
| Trust account violation (minor) | $600 |
| Failure to reconcile monthly | $600 (in balance) / $900 (out of balance) |
| Failure to deliver contract copies promptly | $600 |
| Operating under unregistered name | $600 |
| Record keeping violations | $500 |
Maximum Fines
| Scope | Maximum |
|---|---|
| Per violation | $1,000 |
| Multiple violations (one citation) | $5,000 |
Formal Sanctions
For serious violations, GREC may impose:
| Sanction | Description |
|---|---|
| Probation | License remains active with conditions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Denial | Refusal to issue or renew license |
| Education | Required completion of courses |
| Audit | Required periodic trust account audits |
Hearing Rights
Licensees facing formal sanctions have the right to:
- Written notice of charges
- Hearing before Administrative Law Judge
- Present evidence and witnesses
- Legal representation
- Appeal adverse decisions
Recovery Fund
The Real Estate Education, Research, and Recovery Fund provides compensation to victims of licensee misconduct:
| Feature | Detail |
|---|---|
| Maximum per transaction | $15,000 |
| Maximum per licensee | $45,000 |
| Source of funds | Licensee fees |
| Condition | Licensee must be unable to pay judgment |
Note: If the Recovery Fund pays a claim, the licensee's license is automatically suspended until the fund is reimbursed plus interest.
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Test Your Knowledge
What is the maximum fine GREC can impose per violation through a citation?
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Test Your Knowledge
What happens if the Real Estate Recovery Fund pays a claim against a licensee?
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D