GREC Comes Down Hard on “Falsification” of Contracts
Who has $200 to $1,000 to spare these days? The Georgia Real Estate Commission is cracking down on a variety of “falsifications”, and you could receive a fine of thousands of dollars for committing only ONE of the following:
- Fill in your company and the amount of earnest money in Par. 4, but don’t actually collect the personal check, money order or certified funds from the buyer yet. Did the buyer fax you a copy of the check he intends to mail to you? Sorry, but that won’t be accepted for deposit by the bank. Oh, and be ready to pony up the amount of the earnest money, too, just in case the buyer doesn’t provide it to you later.
- Check “IS representing the Buyer” in Par. 13.A.3 but don’t get the Buyer to actually sign an Exclusive Buyer Brokerage Agreement first. Hey, they’re your friend and been riding in your car; that’s enough to establish an agency relationship, isn’t it?
- Don’t bother filling in that you hold a Georgia Real Estate License in Par. 13.C when you are buying or selling a property for yourself. Didn’t you mention that to the other parties at some point? And they saw your name badge at least once or twice, surely.
- Don’t bother to mention that the buyer or seller is related to you by blood or marriage in Par. 13.C or that the buyer or seller is a business partner with you in some other venture. Why would that be anybody’s business anyway?
- Go ahead and sign as the Listing or Selling Broker using the brokerage name and Broker Code of the brokerage you are planning to transfer your license to before the closing. Surely your broker will understand that you would like to take that deal with you, right? Be prepared to repay the commission owed to the former broker, too.
- Since you’re planning ahead, go ahead and do that offer on a GAR form with the new brokerage’s logo on it; surely no one will mind.
- Go ahead and white out that typo or mistake you discovered later. No sense letting everyone see your error, right?
- Fill in the name of a Board of Realtors® at the bottom of the contract, even though you haven’t renewed your expired membership yet. You’ll get around to it eventually, right?
- Did you forget to fill in one of the blanks on the contract and the parties have already signed it? Go ahead and fill it in; it’s so much easier than preparing and circulating an Amendment.
- Did the buyer or seller miss initialing an item? Be nice and do it for them; they meant to initial that part didn’t they?
- If the buyer or seller is too busy and tells you it’s OK, go ahead and sign for them. NOTE: THIS IS NOT ONLY A FALSIFICATION BUT IS CONSIDERED A CRIMINAL ACTION. THIS ONE COULD COST YOU YOUR LICENSE, EVEN WITH AN EMAIL OR NOTE SAYING IT’S OK. EVEN IF THE PARTY WHOSE NAME YOU SIGNED VOUCHES FOR YOU (Use the $600 to pay for food while starting your next career).
If you have money to spare, feel free to commit any of these “falsifications” on your next contract. Fines for falsification can go to thousands of dollars for each incident, so choose carefully.
By Ann Bone