Georgia Final Real Estate Exam Review exam
2026 questions and rationales answers
1. Which agency regulates real estate licensees in Georgia?
A. Georgia Department of Revenue
B. Georgia Real Estate Commission
C. Georgia Secretary of State
D. Georgia Department of Banking
Answer: B. Georgia Real Estate Commission
Rationale: The Georgia Real Estate Commission (GREC) regulates real estate brokerage activity
and licensees in Georgia.
2. A salesperson in Georgia generally performs brokerage activity under the supervision of a:
A. Closing attorney
B. County assessor
C. Broker
D. Mortgage lender
Answer: C. Broker
Rationale: A salesperson is affiliated with and operates under the supervision of a licensed
broker.
3. BRRETA primarily governs:
A. Property taxation
B. Brokerage relationships and agency duties
C. Mortgage underwriting
D. Property appraisal licensing
Answer: B. Brokerage relationships and agency duties
Rationale: BRRETA establishes Georgia's rules concerning brokerage relationships, agency,
disclosure, and duties.
,4. Which duty is generally owed by a broker to a client?
A. Loyalty
B. Guarantee of profit
C. Guarantee of financing
D. Guarantee of appreciation
Answer: A. Loyalty
Rationale: Fiduciary duties include loyalty and other duties designed to protect the client's
interests.
5. A broker receives earnest money belonging to others. The funds should generally be:
A. Deposited into the broker's operating account
B. Kept in the broker's personal account
C. Placed into an appropriate trust account
D. Given to the salesperson
Answer: C. Placed into an appropriate trust account
Rationale: Trust funds must be maintained separately from the broker's personal or operating
funds. GREC identifies earnest money and other funds belonging to others as trust funds.
6. Commingling occurs when a broker:
A. Deposits trust funds into a proper trust account
B. Mixes client funds with personal or business funds
C. Keeps separate records
D. Transfers funds pursuant to a contract
Answer: B. Mixes client funds with personal or business funds
Rationale: Commingling improperly combines funds belonging to others with the broker's own
funds.
7. A Georgia firm that receives trust funds but does not already maintain a designated trust
account must generally open one within:
A. One business day
B. Five business days
, C. Ten calendar days
D. Thirty days
Answer: A. One business day
Rationale: GREC's trust-account guidance states that a firm receiving trust funds must open a
trust account within one business day.
8. Which of the following is normally considered a trust fund?
A. Broker's commission already earned
B. Office rent paid by the broker
C. Earnest money deposit
D. Broker's personal savings
Answer: C. Earnest money deposit
Rationale: Earnest money received in a brokerage transaction is money in which another party
has an interest and must be handled as trust funds.
9. A Georgia licensee who is acting as a principal in a transaction must:
A. Hide their license status
B. Disclose that they are a licensee
C. Refuse to negotiate
D. Use another person's name
Answer: B. Disclose that they are a licensee
Rationale: Georgia requires disclosure when a licensee acts as a principal in a transaction.
10. A licensee acting as an undisclosed principal is:
A. Proper if the seller agrees
B. Required in competitive markets
C. Prohibited
D. Required by BRRETA
Answer: C. Prohibited
Rationale: A licensee may not act in the dual capacity of agent and undisclosed principal.
2026 questions and rationales answers
1. Which agency regulates real estate licensees in Georgia?
A. Georgia Department of Revenue
B. Georgia Real Estate Commission
C. Georgia Secretary of State
D. Georgia Department of Banking
Answer: B. Georgia Real Estate Commission
Rationale: The Georgia Real Estate Commission (GREC) regulates real estate brokerage activity
and licensees in Georgia.
2. A salesperson in Georgia generally performs brokerage activity under the supervision of a:
A. Closing attorney
B. County assessor
C. Broker
D. Mortgage lender
Answer: C. Broker
Rationale: A salesperson is affiliated with and operates under the supervision of a licensed
broker.
3. BRRETA primarily governs:
A. Property taxation
B. Brokerage relationships and agency duties
C. Mortgage underwriting
D. Property appraisal licensing
Answer: B. Brokerage relationships and agency duties
Rationale: BRRETA establishes Georgia's rules concerning brokerage relationships, agency,
disclosure, and duties.
,4. Which duty is generally owed by a broker to a client?
A. Loyalty
B. Guarantee of profit
C. Guarantee of financing
D. Guarantee of appreciation
Answer: A. Loyalty
Rationale: Fiduciary duties include loyalty and other duties designed to protect the client's
interests.
5. A broker receives earnest money belonging to others. The funds should generally be:
A. Deposited into the broker's operating account
B. Kept in the broker's personal account
C. Placed into an appropriate trust account
D. Given to the salesperson
Answer: C. Placed into an appropriate trust account
Rationale: Trust funds must be maintained separately from the broker's personal or operating
funds. GREC identifies earnest money and other funds belonging to others as trust funds.
6. Commingling occurs when a broker:
A. Deposits trust funds into a proper trust account
B. Mixes client funds with personal or business funds
C. Keeps separate records
D. Transfers funds pursuant to a contract
Answer: B. Mixes client funds with personal or business funds
Rationale: Commingling improperly combines funds belonging to others with the broker's own
funds.
7. A Georgia firm that receives trust funds but does not already maintain a designated trust
account must generally open one within:
A. One business day
B. Five business days
, C. Ten calendar days
D. Thirty days
Answer: A. One business day
Rationale: GREC's trust-account guidance states that a firm receiving trust funds must open a
trust account within one business day.
8. Which of the following is normally considered a trust fund?
A. Broker's commission already earned
B. Office rent paid by the broker
C. Earnest money deposit
D. Broker's personal savings
Answer: C. Earnest money deposit
Rationale: Earnest money received in a brokerage transaction is money in which another party
has an interest and must be handled as trust funds.
9. A Georgia licensee who is acting as a principal in a transaction must:
A. Hide their license status
B. Disclose that they are a licensee
C. Refuse to negotiate
D. Use another person's name
Answer: B. Disclose that they are a licensee
Rationale: Georgia requires disclosure when a licensee acts as a principal in a transaction.
10. A licensee acting as an undisclosed principal is:
A. Proper if the seller agrees
B. Required in competitive markets
C. Prohibited
D. Required by BRRETA
Answer: C. Prohibited
Rationale: A licensee may not act in the dual capacity of agent and undisclosed principal.
