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GA RE Broker practice questions

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Question 1Real Estate Brokerage and License Law

Under Georgia real estate license law, which activity requires a real estate license?

  1. Renting a single-family home as its owner
  2. Preparing a property tax return for a neighbor
  3. Negotiating the sale of a commercial warehouse for a commission Correct answer.
  4. Appraising farmland for a bank under federal appraisal rules

Explanation

Georgia licenses persons who, for compensation, list, sell, buy, exchange, rent, or negotiate real estate on behalf of another. Negotiating a commercial sale for a commission sits squarely within the licensed activity of brokerage. The other activities fall under separate regulatory schemes or the owner's own property.

Question 2Real Estate Brokerage and License Law

A Georgia salesperson changes brokerage affiliation. Which statement describes the required handling of the license?

  1. The salesperson must wait twelve months before affiliating with any new broker
  2. The salesperson may work for the new broker immediately without notifying the Commission
  3. The salesperson files a transfer request and the license moves to the new broker once the Commission processes it Correct answer.
  4. The salesperson keeps a paper license and simply tells the old broker verbally

Explanation

A Georgia salesperson's license is held in the employ of a licensed broker, so a change of affiliation must be reported and processed by the Commission before the salesperson acts for the new broker. A salesperson cannot practice while unaffiliated or while the transfer is pending.

Question 3Real Estate Brokerage and License Law

Which body administers licensing and discipline for real estate brokers and salespersons in Georgia?

  1. The Georgia Board of Realtors
  2. The local superior court clerk
  3. The Georgia Department of Banking and Finance
  4. The Georgia Real Estate Commission Correct answer.

Explanation

The Georgia Real Estate Commission is the state regulatory body that issues and renews licenses and imposes discipline. It operates with the Real Estate Commissioner as its chief executive. Private trade associations and other agencies do not license brokers.

Question 4Real Estate Brokerage and License Law

In Georgia, a broker's trust account may be interest-bearing when the funds belong to others, provided the broker does what?

  1. Obtains written authorization from the parties and accounts for the interest as they direct Correct answer.
  2. Deposits the interest in the broker's operating account
  3. Uses the interest to pay office expenses
  4. Keeps the interest as additional commission

Explanation

Georgia rules permit a broker to place trust funds in an interest-bearing account only with the written authorization of the parties, and the interest must be paid or credited as those parties direct. The broker may never convert trust interest to personal or business use.

Question 5Real Estate Brokerage and License Law

A Georgia broker receives a $5,000 earnest money check on a resale contract that says nothing about who holds the deposit. What is the broker's most appropriate action?

  1. Deposit it into the broker's trust account and hold it until closing or a written disbursement agreement Correct answer.
  2. Return the check to the buyer until the parties decide in writing
  3. Cash the check and hold the currency in the office safe
  4. Apply the deposit toward the broker's commission at closing without consulting the parties

Explanation

When a broker receives trust funds such as an earnest money deposit, the funds must be placed in a trust account and held until the transaction closes or the parties give written direction on disbursement. The broker has no authority to apply the money unilaterally.

Question 6Real Estate Brokerage and License Law

A Georgia broker wants to advertise another company's listing. What is required for the advertisement to comply with license law?

  1. Use only the listing firm's name so the public is not confused
  2. Obtain the listing broker's consent and identify the advertising broker's firm name Correct answer.
  3. Identify the property owner rather than any brokerage
  4. Place the ad without any firm name as long as a phone number appears

Explanation

Georgia advertising rules require that a licensee obtain permission before advertising another broker's listing and that the advertisement identify the name of the firm the licensee represents. Advertising another's listing without consent or without firm identification violates those rules.

Question 7Real Estate Brokerage and License Law

Which action by a Georgia licensee constitutes a prohibited commingling of funds?

  1. Depositing a client's security deposit into the broker's general business account Correct answer.
  2. Recording each trust deposit in a ledger showing the transaction date
  3. Reconciling the trust account monthly against individual ledgers
  4. Opening a separate trust account designated for tenant security deposits

Explanation

Commingling occurs when trust funds belonging to clients are mixed with the broker's own business or personal funds. A separate trust account, transaction ledger, and monthly reconciliation are the practices Georgia requires to avoid commingling.

Question 8Real Estate Brokerage and License Law

A Georgia salesperson licensed under Broker A wants to receive compensation directly from a buyer. What does Georgia law permit?

  1. The salesperson may collect the fee and remit a share to the broker later
  2. The salesperson may split the fee with the buyer's attorney
  3. The salesperson may be paid only by the affiliated broker, not directly by the buyer Correct answer.
  4. The salesperson may accept payment directly if the buyer signs a receipt

Explanation

A Georgia salesperson must be compensated through the broker with whom the license is affiliated. Direct payment from a client to a salesperson is prohibited because the salesperson does not contract in the salesperson's own name.

Question 9Real Estate Brokerage and License Law

A Georgia broker's license is revoked. What effect does the revocation have on the licenses of salespersons affiliated with that broker?

  1. Their licenses are unaffected but they may not be paid
  2. Their licenses remain fully valid and they may continue practicing independently
  3. Their licenses automatically convert to broker licenses
  4. Their licenses are affected because the affiliation ends, and they must address their status with the Commission Correct answer.

Explanation

Because a salesperson's license depends on affiliation with a licensed broker, loss of the broker's license terminates that affiliation and the salesperson must promptly address licensure status with the Commission. Salespersons cannot continue practicing without a qualified broker.

Question 10Real Estate Brokerage and License Law

How long must a Georgia broker retain trust account records and transaction documents?

  1. At least six months after closing
  2. Until the client requests the documents back
  3. At least three years from the date of the transaction Correct answer.
  4. Only until the next license renewal

Explanation

Georgia rules require brokers to keep trust account records and related transaction documents for a minimum of three years. The records must remain available for inspection by the Commission during that period.

Question 11Real Estate Brokerage and License Law

A Georgia broker is convicted of a felony involving moral turpitude. What is the most accurate statement about the licensing consequence?

  1. The conviction may be grounds for disciplinary action, including suspension or revocation, by the Commission Correct answer.
  2. The license is automatically restored after one year
  3. The broker must simply disclose the conviction at the next renewal
  4. The license is unaffected because the conviction is a criminal matter only

Explanation

A conviction for a felony or a crime involving moral turpitude is grounds for discipline by the Georgia Real Estate Commission, which may suspend or revoke the license. Criminal proceedings and licensing discipline are separate tracks, so the license is not automatically safe.

Question 12Real Estate Brokerage and License Law

A Georgia broker is holding a buyer's earnest money when the parties dispute entitlement. Which course best complies with the law?

  1. Divide the deposit equally between buyer and seller
  2. Hold the funds in trust and follow a written agreement or a court order to disburse Correct answer.
  3. Give the money to the seller because the seller signed the contract
  4. Give the money to the buyer to avoid conflict

Explanation

When entitlement to trust funds is disputed, the broker must keep the funds in trust until the parties agree in writing or a court orders disbursement. Choosing a side exposes the broker to liability and discipline.

Question 13Real Estate Brokerage and License Law

What is the minimum age to be eligible for a Georgia real estate license?

  1. 18 years Correct answer.
  2. 16 years
  3. 21 years
  4. 19 years

Explanation

Georgia requires an applicant to be at least 18 years old, along with meeting education and examination requirements. A younger applicant is ineligible regardless of other qualifications.

Question 14Real Estate Brokerage and License Law

A Georgia salesperson wants to move from salesperson to broker status. Which requirement applies?

  1. Obtain a sponsor's written waiver of the broker exam
  2. Complete the required broker prelicense course, meet experience requirements, and pass the broker examination Correct answer.
  3. Pass the broker examination only, since salesperson experience substitutes for education
  4. Wait until the salesperson license has been active for ten years

Explanation

Broker licensure in Georgia requires completion of the broker prelicense education, satisfaction of the experience requirement, and passage of the broker examination. Prior salesperson licensure does not substitute for the education or exam.

Question 15Real Estate Brokerage and License Law

A Georgia licensee is acting as agent for the seller in a residential sale. A buyer asks the licensee whether the roof leaks. Which response best reflects the licensee's duty?

  1. State that the roof is in good condition to protect the seller's position
  2. Disclose known material adverse facts about the property honestly to the buyer Correct answer.
  3. Refuse to answer because the licensee represents only the seller
  4. Refer the buyer to the seller and decline any comment

Explanation

Georgia licensees owe honesty and fair dealing to all parties, which includes disclosing known material defects in the property even when representing the seller. Misrepresenting the condition to protect a client violates license law.

Question 16Real Estate Brokerage and License Law

Under Georgia license law, when must a licensee disclose in writing to a prospective buyer that the licensee represents the seller?

  1. Only if the buyer asks directly
  2. At the time the licensee begins to provide services or as soon as practicable in the relationship Correct answer.
  3. After the buyer makes a written offer
  4. Only at the closing table

Explanation

Georgia requires that agency relationships and the nature of representation be disclosed in writing at the outset of the relationship, or as promptly as practicable. Waiting until closing or until the buyer asks defeats the purpose of informed consent.

Question 17Real Estate Brokerage and License Law

A Georgia broker learns that a seller client wants to refuse to sell to buyers based on their national origin. What must the broker do?

  1. Decline to participate in the discriminatory conduct and inform the client that the refusal violates fair housing law Correct answer.
  2. List the property but quietly steer buyers elsewhere
  3. Follow the client's instruction because the broker owes undivided loyalty
  4. Ask the seller to put the instruction in writing before complying

Explanation

Fair housing law prohibits discrimination based on protected characteristics including national origin, and a licensee may not participate in or facilitate such conduct even at a client's direction. Loyalty to a client never justifies unlawful discrimination.

Question 18Real Estate Brokerage and License Law

Which of these is an example of an improper dual agency situation in Georgia?

  1. A broker representing the seller while a different firm represents the buyer
  2. A broker representing both buyer and seller without the informed written consent of both parties Correct answer.
  3. A broker acting as a transaction broker with written consent of both parties
  4. A broker disclosing the broker's agency status in writing at first contact

Explanation

Georgia permits designated or dual agency only with the informed written consent of the parties involved. Proceeding to represent both sides without that consent is an unauthorized dual agency and a breach of the disclosure rules.

Question 19Real Estate Brokerage and License Law

A Georgia broker accepts a listing but never presents an offer to the seller because the broker considers it too low. Which violation has occurred?

  1. Failure to disclose an agency relationship
  2. Failure to supervise a salesperson
  3. Failure to maintain a trust account
  4. Failure to promptly present all offers to the client Correct answer.

Explanation

A broker owes the client the duty to present all offers promptly and objectively, regardless of the broker's opinion of the price. Withholding an offer deprives the seller of the ability to decide.

Question 20Real Estate Brokerage and License Law

What is the purpose of the Georgia Real Estate Education, Research, and Recovery Fund?

  1. To fund the Commission's office rent and staff salaries
  2. To reimburse consumers who obtain judgments against licensees for certain wrongful acts where collection is impossible Correct answer.
  3. To pay commissions owed to salespersons by insolvent brokers
  4. To provide loans to new brokers starting their own firms

Explanation

The Recovery Fund exists to compensate members of the public who suffer specified losses from licensed conduct and cannot collect a judgment from the licensee. It is funded through licensee fees and has statutory limits on payment.

Question 21Real Estate Brokerage and License Law

A Georgia licensee is found to have forged a signature on a listing agreement. Which statement best describes the likely disciplinary outcome?

  1. The Commission may require the licensee to retake the prelicense course only
  2. The Commission may impose sanctions including license revocation and a fine Correct answer.
  3. The Commission must refer the matter solely to criminal authorities and take no action
  4. The Commission may only issue a warning for a first offense

Explanation

Forgery in connection with a real estate transaction is a serious violation that supports severe discipline, including revocation and monetary penalties. The Commission's authority is independent of any criminal prosecution.

Question 22Real Estate Brokerage and License Law

A Georgia broker maintains a trust account. Which practice satisfies the required recordkeeping?

  1. Relying on the bank's monthly statement as the only record
  2. Keeping a separate ledger for each client and reconciling it to the trust account balance monthly Correct answer.
  3. Recording only the total account balance in a single notebook
  4. Keeping receipts in a shoebox until the year ends

Explanation

Georgia requires individual ledgers for each trust transaction reconciled against the trust account balance, typically monthly. Aggregate balances or bank statements alone do not show whose money is in the account.

Question 23Real Estate Brokerage and License Law

A Georgia salesperson advertises a property on social media without mentioning any brokerage. Which rule is most directly implicated?

  1. Advertising may never occur on social media
  2. Advertising must include the salesperson's home address
  3. Advertising must include the name of the licensed firm the salesperson represents Correct answer.
  4. Advertising requires prior approval from the Commission

Explanation

Georgia advertising rules require that licensees identify the firm with which they are affiliated in advertisements, including online. An ad that omits the firm name fails to disclose who is responsible for the licensed activity.

Question 24Real Estate Brokerage and License Law

A Georgia broker is asked to manage rental property and collect rents for the owner. Which statement about the collected rents is correct?

  1. Rents may be deposited into the broker's operating account if the owner is told later
  2. Rents may be used to pay the broker's office expenses before remitting the balance
  3. Rents belong to the broker until the management agreement ends
  4. Rents collected for the owner are trust funds and must be deposited into the broker's trust account Correct answer.

Explanation

Money collected on behalf of a property owner, including rents, is held in trust and must go into the broker's trust account. The broker may not use those funds for business expenses or delay deposit.

Question 25Real Estate Brokerage and License Law

A Georgia licensee's license lapses for nonrenewal while the licensee continues to list and sell property. What is the licensee's status?

  1. The licensee may practice if the broker signs the listings
  2. The licensee is lawfully practicing during a grace period
  3. The licensee is practicing without a license and is subject to discipline Correct answer.
  4. The licensee holds an inactive license that still permits brokerage

Explanation

Once a license lapses, the person is no longer authorized to perform licensed acts, and continuing to do so constitutes unlicensed practice subject to penalties. A broker's signature does not cure the salesperson's lapsed license.

Question 26Real Estate Brokerage and License Law

Under Georgia license law, which entity holds the authority to grant, suspend, and revoke real estate licenses?

  1. The Georgia Real Estate Commission Correct answer.
  2. The Secretary of State's Elections Division
  3. The local superior court of the licensee's county
  4. The Georgia Association of REALTORS®

Explanation

The Georgia Real Estate Commission is the state regulatory body created by statute to license and discipline real estate brokers and salespersons. It operates through the Commission and its Director, who administers examinations, licensing, and enforcement. Professional associations and courts do not issue or revoke real estate licenses.

Question 27Real Estate Brokerage and License Law

A person applies for a Georgia real estate salesperson license. Which requirement must be satisfied before the license is issued?

  1. Ownership of a principal place of business in Georgia
  2. Completion of a prelicense course and passage of the state examination Correct answer.
  3. Membership in a local board of REALTORS®
  4. Sponsorship by two currently licensed brokers

Explanation

Georgia requires salesperson applicants to complete the Commission-approved prelicense course, pass the licensing examination, and submit a fingerprint-based background check. A single sponsoring broker is then needed to activate the license, but dual sponsorship and association membership are not conditions of licensure.

Question 28Real Estate Brokerage and License Law

A Georgia salesperson's license is issued and held in the name of the sponsoring broker. What term describes this arrangement?

  1. An active license held under a sponsoring broker Correct answer.
  2. A broker-of-record designation
  3. A reciprocal license
  4. An independent contractor license

Explanation

Georgia salespersons must work under a sponsoring broker, and the license is issued to and held by that broker until the salesperson transfers sponsorship. The salesperson may be paid as an independent contractor, but that tax status is separate from the licensing structure. Broker-of-record and reciprocity describe different concepts.

Question 29Real Estate Brokerage and License Law

Which activity requires a Georgia real estate license?

  1. Providing a homeowner with a free opinion of value for personal planning
  2. Negotiating the sale of a business for a commission on behalf of another Correct answer.
  3. Managing a personal portfolio of rental homes owned by the actor
  4. Appraising a single-family home for a federally regulated lender

Explanation

Georgia license law covers brokering real estate and businesses for others for compensation, including negotiating business sales. Appraisal for compensation is regulated under a separate appraiser licensing statute, and dealing with one's own property or giving uncompensated advice does not require a real estate license.

Question 30Real Estate Brokerage and License Law

A Georgia broker wants to open a branch office in another county. What is required?

  1. The Commission must be notified and the branch office must be under the supervision of a licensed broker Correct answer.
  2. Only a sign and a telephone listing are needed at the branch
  3. A salesperson may serve as the person in charge of the branch
  4. No action is needed because the main office license covers all locations

Explanation

Each additional Georgia brokerage office must be reported to the Commission and placed under the supervision of a licensed broker responsible for that location. A salesperson cannot serve as the broker in charge of a branch office. Simply posting a sign does not satisfy the licensing requirement.

Question 31Real Estate Brokerage and License Law

A Georgia broker is the qualifying broker for a firm and then leaves to start a new company. What must happen regarding the firm she left?

  1. The firm must designate another qualifying broker to keep its license active Correct answer.
  2. The salespersons may continue operating without any broker supervision
  3. The firm's license automatically terminates permanently
  4. The former broker's license remains attached to the old firm indefinitely

Explanation

A Georgia brokerage license must have a designated qualifying broker at all times. When the qualifying broker departs, the firm must promptly designate a replacement; otherwise the license cannot remain active. Salespersons may not operate without broker supervision.

Question 32Real Estate Brokerage and License Law

A Georgia licensee changes her business address and fails to notify the Commission. Which consequence is most consistent with license law?

  1. The licensee must surrender her license permanently
  2. Nothing happens because address changes are handled by the post office
  3. The license may be disciplined for failing to keep Commission records current Correct answer.
  4. The license is automatically upgraded to broker status

Explanation

Georgia licensees must keep the Commission informed of current business and residence addresses, and failure to do so can result in disciplinary action. The Commission relies on accurate records for service of process and notices. The license is neither upgraded nor permanently surrendered for an address change.

Question 33Real Estate Brokerage and License Law

Which statement correctly describes continuing education for an actively licensed Georgia salesperson?

  1. Continuing education is satisfied by renewing online without coursework
  2. Continuing education is voluntary for licensees with more than ten years of experience
  3. Continuing education is required only for brokers
  4. A set number of hours of Commission-approved continuing education must be completed before each renewal Correct answer.

Explanation

Georgia requires licensees to complete Commission-approved continuing education hours during each renewal period, with specific mandated topics included. The requirement applies to salespersons as well as brokers and is not waived for experienced licensees. Online renewal alone does not substitute for the coursework.

Question 34Real Estate Brokerage and License Law

A Georgia broker wants to use a team name in advertising that differs from the firm's licensed name. Which practice complies with license law?

  1. Advertising the team name together with the licensed brokerage name so the affiliation is clear Correct answer.
  2. Using the team name only on social media to avoid the advertising rules
  3. Registering the team name as a separate brokerage without a license
  4. Advertising only the team name without any brokerage identification

Explanation

Georgia advertising rules require that the licensed brokerage name appear so the public knows which firm is responsible for the advertisement. A team name may be used if the affiliation with the licensed firm is disclosed clearly. Omitting the brokerage name, regardless of the medium, violates the advertising requirements.

Question 35Real Estate Brokerage and License Law

A Georgia salesperson affiliated with Broker X wants to perform a residential closing on behalf of a title company. Which statement is accurate?

  1. The salesperson may conduct closings because a real estate license covers all settlement services
  2. The salesperson may conduct closings only if the broker approves in writing
  3. The salesperson may not conduct closings unless separately licensed or authorized to do so Correct answer.
  4. The salesperson may conduct closings if no attorney is involved

Explanation

A Georgia real estate license authorizes brokerage activity, not the business of a closing attorney or title agent. Performing closings requires separate licensure or authorization under the applicable statutes. Broker approval cannot expand the scope of a real estate license.

Question 36Real Estate Brokerage and License Law

A Georgia broker signs an exclusive-right-to-sell listing but the seller later revokes it orally before expiration. What is the broker's best position regarding a commission?

  1. The broker forfeits all rights because listings cannot be exclusive
  2. The broker has no claim because oral revocation always cancels a written listing
  3. The broker may collect only if a sale closes within thirty days
  4. The broker may pursue the commission under the written listing contract if the revocation breaches its terms Correct answer.

Explanation

A written exclusive-right-to-sell agreement defines the parties' commission rights, and an oral revocation that breaches the contract does not automatically extinguish the broker's claim. Exclusive listings are lawful in Georgia. Whether a commission is owed depends on the contract language and the circumstances of the revocation.

Question 37Real Estate Brokerage and License Law

A Georgia broker receives a commission check that includes a share owed to a cooperating broker. What is the compliant handling of the cooperating broker's share?

  1. Pay the cooperating broker only after the buyer's loan is fully repaid
  2. Pay the cooperating broker's share promptly as agreed, keeping clear records of the disbursement Correct answer.
  3. Deposit the entire check into the broker's personal account until the other broker asks
  4. Hold the other broker's share indefinitely in the trust account to earn interest

Explanation

Commission funds owed to a cooperating broker must be disbursed according to the agreement, and the transaction must be documented accurately. Commissions are business funds, not trust funds, and must not be commingled with personal money. Delaying or withholding another broker's agreed share without justification can lead to discipline or civil liability.

Question 38Real Estate Brokerage and License Law

A Georgia licensee is asked by a client to prepare a comparative market analysis for pricing a home. Which statement is most accurate?

  1. A licensee may not prepare any opinion of value under any circumstances
  2. A licensee must refer all pricing questions to the Commission
  3. A CMA prepared by a licensee is legally identical to a certified appraisal
  4. A licensee may prepare a CMA as part of brokerage services, but must not represent it as a certified appraisal Correct answer.

Explanation

Georgia licensees commonly prepare comparative market analyses to help clients set listing prices, but the analysis must not be presented as an appraisal, which requires separate certification. The distinction lies in the purpose, scope, and representations made. The Commission does not prepare pricing opinions for clients.

Question 39Real Estate Brokerage and License Law

A Georgia broker discovers that a salesperson affiliated with the firm has been depositing client earnest money into the salesperson's personal account. What is the broker's responsibility?

  1. The broker must address the violation and may face discipline for failing to supervise the affiliated licensee Correct answer.
  2. The broker has no responsibility because the salesperson acted alone
  3. The broker may ignore the conduct if the client is later refunded
  4. The broker should wait until the Commission investigates before acting

Explanation

Georgia brokers are responsible for supervising licensees affiliated with their firms, and a failure to supervise can itself be grounds for discipline. The broker should take immediate corrective action and ensure client funds are properly handled. Waiting for the Commission or ignoring the conduct does not discharge that duty.

Question 40Real Estate Brokerage and License Law

A Georgia salesperson wants to place her license on inactive status while she takes a leave of absence. What is true about an inactive license?

  1. The inactive license is automatically revoked after thirty days
  2. The licensee may not engage in licensed brokerage activity while inactive Correct answer.
  3. The licensee may continue to receive referral fees for brokerage activity
  4. The licensee may continue to write listings for her sponsoring broker

Explanation

An inactive Georgia license permits the holder to retain the license but not to perform licensed brokerage activity. Continuing to list or sell property while inactive constitutes unlicensed practice. Inactive status is not an automatic revocation, though renewal and continuing education obligations continue.

Question 41Real Estate Brokerage and License Law

Which situation most clearly demonstrates an unlawful net listing arrangement under Georgia practice?

  1. The broker's commission is paid by the seller at closing as disclosed in the settlement statement
  2. The broker's commission is set as everything above a price the seller states, without the seller understanding the arrangement Correct answer.
  3. The broker receives a flat fee stated in the listing agreement
  4. The broker and seller agree in writing to a percentage commission on the gross sale price

Explanation

A net listing sets the broker's compensation as any amount received above a seller-specified net price, which can obscure the true commission and create a conflict of interest. Georgia practice disfavors such arrangements because the seller may not understand the broker's actual compensation. Percentage, flat fee, and disclosed seller-paid commissions are ordinary and lawful.

Question 42Real Estate Brokerage and License Law

A Georgia broker is asked to hold a tenant's security deposit for a managed rental. Which statement best describes the broker's obligation?

  1. The broker may keep the deposit if the tenant gives proper notice
  2. The broker may spend the deposit as working capital until the tenant moves out
  3. The deposit must be handled according to the management agreement and applicable law, with accurate records maintained Correct answer.
  4. The broker may deposit the funds into the firm's operating account without records

Explanation

Security deposits collected in property management are entrusted funds and must be handled consistent with the management agreement and Georgia law, including accurate recordkeeping. Using deposits as working capital or commingling them with operating funds is improper. A tenant's proper notice does not entitle the broker to keep the deposit.

Question 43Real Estate Brokerage and License Law

A Georgia licensee is disciplined for violating license law. Which statement about the Commission's disciplinary powers is accurate?

  1. The Commission may only issue warnings and cannot suspend a license
  2. The Commission may discipline only brokers, never salespersons
  3. The Commission may impose sanctions such as reprimand, probation, suspension, or revocation, and may impose fines Correct answer.
  4. The Commission may sentence a licensee to jail time for a license violation

Explanation

The Georgia Real Estate Commission has broad disciplinary authority over both brokers and salespersons, including reprimands, probation, suspension, revocation, and monetary fines. It is an administrative body and cannot impose criminal penalties such as incarceration. Criminal charges are handled by prosecutors and courts.

Question 44Real Estate Brokerage and License Law

A Georgia licensee is asked to represent both the buyer and the seller in the same transaction with their informed written consent. Which statement best reflects Georgia's approach?

  1. Dual agency is a criminal offense in every circumstance
  2. Designated agency allows the firm to appoint different licensees to represent each client, with required disclosures Correct answer.
  3. Dual agency is always permitted without any disclosure
  4. The broker may keep the consent secret from the parties

Explanation

Georgia recognizes designated agency, under which a brokerage firm may represent both parties by assigning different affiliated licensees to each side, provided the required disclosures and consents are obtained. The arrangement is not automatic, and concealment from the parties is impermissible. It is not a criminal offense when properly handled.

Question 45Real Estate Brokerage and License Law

A Georgia licensee wants to know whether a particular activity is exempt from licensing. Which source of authority governs the answer?

  1. The local chamber of commerce bylaws
  2. The federal Fair Housing Act alone
  3. The Multiple Listing Service rules alone
  4. The Georgia Real Estate License Law and the Commission's rules Correct answer.

Explanation

Exemptions from Georgia licensing requirements are set out in the real estate license statute and interpreted through Commission rules. MLS rules and local business organizations do not create statutory exemptions. Fair Housing law governs discrimination, not licensing scope.

Question 46Real Estate Brokerage and License Law

A Georgia broker is asked to provide a written opinion about the boundaries of a client's property based on a survey. Which response is most appropriate?

  1. The broker should record the boundary opinion with the county
  2. The broker should advise the client to consult a licensed surveyor for a definitive boundary determination Correct answer.
  3. The broker should tell the client that licensees routinely certify boundaries
  4. The broker should certify the boundary lines herself

Explanation

Boundary determination is the province of licensed surveyors, and a real estate licensee should not certify property lines. The broker may share available survey information but should direct the client to a qualified professional for a definitive determination. Recording a licensee's boundary opinion is not appropriate.

Question 47Real Estate Brokerage and License Law

A Georgia salesperson is convicted of a misdemeanor involving theft by shoplifting. Which statement best describes the likely licensing consequence?

  1. The Commission has no authority over criminal conduct
  2. A misdemeanor conviction can never affect a real estate license
  3. The Commission may investigate and impose discipline, since certain criminal convictions bear on licensure Correct answer.
  4. The salesperson's license is automatically restored without review

Explanation

Georgia law allows the Commission to consider criminal convictions that bear on honesty, trustworthiness, or fitness to practice, and discipline may follow depending on the circumstances. Not every conviction results in automatic action, but the Commission retains authority to investigate. Automatic restoration without review is not accurate.

Question 48Real Estate Brokerage and License Law

A Georgia broker wishes to pay a referral fee to an unlicensed person who referred a buyer. Which statement is correct?

  1. The broker may pay the referral fee if the amount is under one hundred dollars
  2. The broker may not share compensation with an unlicensed person for brokerage activity Correct answer.
  3. The broker may pay the fee if the buyer consents in writing
  4. The broker may pay the fee if the unlicensed person signs a confidentiality agreement

Explanation

Georgia law prohibits paying compensation for brokerage activity to persons who are not licensed, because doing so encourages unlicensed practice. The prohibition is not avoided by a small-dollar threshold, confidentiality agreement, or client consent. Referral activity that constitutes brokerage requires a license.

Question 49Real Estate Brokerage and License Law

A Georgia licensee is moving to another state and wants to obtain a license there. Which concept describes a Georgia license being recognized in another jurisdiction?

  1. Designated agency
  2. Commingling
  3. Reciprocity or a cooperative arrangement between the states Correct answer.
  4. Sponsorship transfer

Explanation

Reciprocity or cooperative licensing arrangements allow a licensee from one state to obtain a license in another under agreed conditions. Designated agency describes representation within a firm, commingling concerns trust funds, and sponsorship transfer concerns moving between Georgia brokers. Each of these is unrelated to interstate licensing recognition.

Question 50Real Estate Brokerage and License Law

A Georgia broker is reviewing a proposed advertisement that includes a testimonial and a claim of being the top producer in the county. Which action best complies with license law?

  1. Publish the claim because testimonials are always exempt
  2. Publish the claim if the broker believes it is probably true
  3. Publish the claim with a small disclaimer that no one reads
  4. Verify the claim and ensure the advertisement is truthful and not misleading Correct answer.

Explanation

Georgia advertising must be truthful and not misleading, and superlative claims such as top producer should be substantiated. Testimonials do not exempt an advertisement from the accuracy requirement. Belief that a claim is probably true, or an inconspicuous disclaimer, does not satisfy the duty of truthfulness.