Broker Taylor's trust account is overdrawn by $500 due to a bank error. The bank corrects the error the next day. Must Taylor report this to GREC?
Correct Answer
C) Yes, any trust account shortage must be reported within 10 days
GREC Rule 520-1-.09 requires reporting any trust account shortage to GREC within 10 days, regardless of cause or amount. A and B incorrectly assume exceptions for timing or cause. D incorrectly suggests a monetary threshold that doesn't exist in the rules.
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More Grec Rules Disciplinary Questions
Agent Mike Roberts was found guilty of practicing real estate without a valid license after his license expired 8 months ago and he failed to renew it. He completed three transactions during this period. What penalty can GREC impose?
Broker Steve Johnson's license was suspended for 18 months due to escrow violations. During his suspension period, he was caught providing real estate services and collecting commissions through an unlicensed entity he created. What additional penalty can GREC impose?
A licensed agent with no prior disciplinary history forges a client's signature on a purchase agreement. Which of the following penalties is the GREC authorized to impose for this conduct?
Broker Sarah Johnson was found guilty of commingling client funds with her personal account and failing to maintain proper trust account records. The GREC has determined this is her second offense within five years. What is the maximum civil penalty the GREC can impose for each violation?
Which statement correctly describes a Georgia broker's supervisory obligations under GREC rules?
- → A Georgia real estate licensee's license has been revoked by the GREC for fraudulent activities. Under Georgia law, what is the minimum waiting period before this individual may submit a new application for licensure?
- → A consumer files a complaint with the Georgia Real Estate Commission against a licensee. During the investigation, GREC requests that the licensee produce transaction records. How does the Commission typically view a licensee's cooperation—or lack thereof—during the complaint process?
- → Broker Mike receives a complaint letter from GREC regarding allegations that he failed to properly supervise his affiliated licensees. How many days does Mike have to respond to GREC's complaint?
- → A consumer files a GREC complaint demanding that the Commission order the broker to return the earnest money deposit. What is the most accurate statement about the Commission's role when handling this type of complaint?
- → GREC's investigation of broker James Park reveals potential violations requiring a formal hearing. James receives a notice to appear. What happens if James fails to appear at the scheduled hearing without proper notice or excuse?
- → A licensee distributes printed flyers advertising a residential listing. The flyers include property photos, price, and features but do not display the licensee's name or the brokerage firm's name anywhere on the material. Which GREC advertising requirement has been violated?
- → Agent David Kim is preparing for his GREC hearing on alleged disclosure violations. His attorney advises him on hearing procedures. Which advice would be INCORRECT?
- → After investigating a complaint against Broker Jones for inadequate supervision, GREC staff recommends disciplinary action. Broker Jones disagrees with the recommendation. What is the next step in the process?
- → Broker Davis discovers that $2,000 in earnest money was mistakenly deposited into his operating account instead of his trust account. What must he do immediately?
- → A licensed real estate salesperson places the following advertisement in a local newspaper: 'Beautiful 3BR/2BA home, great location, $250,000. Call Sarah at 404-555-1234.' No other identifying information is included. Which GREC advertising requirement does this advertisement violate?
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