A broker who maintains trust funds shall either keep a separate trust account or Quizlet

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Failure to follow requirements may result in a brokerage firm being fined, having its license suspended or revoked, and referral to criminal court.

Only an independent broker or employing broker may have a trust account.

Brokerage firm must set up the account and may not use a savings and loans or credit union for this purpose.

All of the following rules apply:
- The account must be labled a trust account, have the employing broker name and state the purpose of the account.
Example: XYZ Brokerage, Joe Shmo, Broker, Trust Account
- Accounts typically do not bear interest. IF they do, the interest must be donated to an approved housing nonprofit
- Account must be in the name of the corporation and the designated principal broker.
- The broker may use a third party to hold the funds for the broker. Many brokers use a title company as the depository. The check for earnest money is made to the title company and the funds are then held there until closing or a return of funds are made.

The employing broker must be able to withdrawal funds from the trust account without any other signature or authorization from any other party.

The account is reconciled every month to protect the integrity of the account.

The Commission also recommends to brokers consider outside audits, separation of duties, and Real Estate Commission Assistance.

The employing broker may not commingle funds.

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-If a person becomes a licensed real estate salesperson, associate broker or broker, he can no longer "act" as an unlicensed person in dealing with any real estate transactions - even the sale, rental, purchase, or lease of his own property!
-The Code of Georgia states that all real estate licensees whether active or inactive - must disclose on ALL contracts that they are licensed in real estate. This is for the protection of the general public. In a case such as this, the licensee's real estate knowledge and experience could put the other party at a disadvantage, if that other party was unaware of the licensee's true status.
-This rule also applies to those licensees who advertise regarding their own property. They must disclose their licensed status.

Licensee as Principal

-If a Georgia licensee wishes to sell or lease his property, he must do one of the following:
1. List the property with the broker. In this case, any trust deposits made will go into the broker's account.
2. List the property with a different broker - after first obtaining his own broker's permission to do so. In this case, any trust deposits would go into that other broker's account.
3. Handle the transaction himself. This will necessitate the licensee opening a personal trust account, which must be registered with the Georgia Real Estate Commission and set up under the supervision of the licensee's broker.
-Because an active licensee's broker is considered accountable for all the licensee's transactions - including personal ones - the broker must be informed in writing and must approve the procedure and any advertising the licensee wishes to do. This is true even with option #2 above, in which the licensee can choose to utilize another firm's services.
-Whenever a licensee offers to purchase a property as a condition to obtaining a new or extending an existing brokerage engagement, he or she must write a contract expressing all the terms and conditions of the purchase prior to or at the time of entering into or extending the brokerage engagement.
-Whenever a licensee offers to purchase a property in order to enable a party to purchase, sell, lease, or exchange another property, he or she must write a contract expressing all the terms and conditions of the purchase prior to or at the time of the other party's entering into a contract for the new property.