GA Real Estate Exam Practice Questions
EXAM 2025 AND PRACTICE QUESTIONS
|ACCURATE ANSWERS| VERIFIED FOR
GUARANTEED PASS |GRADED A |NEW
VERSION
1. Under which circumstance may a licensee legally receive items of value from a real estate
settlement service provider?
A. When the client agrees to it
B. When it's under $25 in value
C. When disclosed to all parties
D. When actual services are performed ✅
Rationale: Under RESPA, items of value are only allowed when actual services are performed—
not simply for referrals.
2. Which of these actions related to pricing is permissible?
A. Agreeing to fix prices with competitors
B. Charging all clients the same fixed rate
C. Offering a range of commission fees to clients ✅
D. Quoting different prices based on race or gender
Rationale: A firm may decide to offer a commission range (e.g., 2%-2.5%) as long as it’s not
price fixing with competitors.
3. When clients have legal questions, what should you do to avoid risking the unauthorized
practice of law?
A. Look up the law and explain it
B. Advise based on your experience
C. Encourage clients to speak with a legal professional ✅
D. Tell them to read their contract
Rationale: Only a licensed attorney may give legal advice; refer clients accordingly.
,4. Determine which of the following statements regarding trust fund handling is true.
A. You can mix client and personal funds
B. Keep separate books for each trust account ✅
C. You only need one account for all funds
D. Use your business account for convenience
Rationale: Trust account handling laws require separate records and accounts to protect client
funds.
5. What’s a property issue that would negatively impact the property’s value or pose an
unreasonable risk?
A. Zoning change
B. Material adverse fact ✅
C. Age of the property
D. Proximity to highway
Rationale: A material adverse fact is anything that significantly affects value or safety.
6. Which tactic may reduce liability risk related to material fact disclosure?
A. Encourage clients to avoid discussing defects
B. Educate sellers on legal consequences of withholding facts ✅
C. Let buyers inspect without comment
D. Say nothing unless asked directly
Rationale: Full disclosure is legally required; sellers must understand this responsibility.
7. What’s a state considered where the burden to determine the property’s condition rests on
the buyer?
A. Laissez-faire
B. Caveat emptor ✅
C. Fiduciary state
D. Legal seller
Rationale: “Caveat emptor” means “let the buyer beware.”
8. Where must trust accounts be secured?
A. Private investment firm
B. Federally insured financial institution ✅
C. Personal savings account
, D. Broker’s retirement fund
Rationale: Trust accounts must be maintained in federally insured institutions for client
protection.
9. The second step of risk management involves analyzing risks. Which task is part of this
step?
A. Eliminate the risk
B. Estimate the likelihood of each risk ✅
C. File a lawsuit
D. Assign blame
Rationale: Risk analysis requires assessing how likely each risk is to occur.
10. What should you understand and meet to manage risk effectively?
A. Price minimums
B. Client expectations
C. Standard-of-care requirements ✅
D. Local property values
Rationale: Meeting the professional standard of care helps avoid liability and improve client
service.
11. What may help offset legal costs for claims against a licensee?
A. Homeowner’s insurance
B. Errors and omissions insurance ✅
C. Office rental insurance
D. Professional dues
Rationale: E&O insurance covers liability for mistakes and omissions in professional services.
12. Why is real estate considered a balancing act?
A. Because of limited listings
B. Due to balancing risk and reward ✅
C. Because of uncertain commission
D. Because clients are demanding
Rationale: The business requires managing risk while aiming for financial rewards.
EXAM 2025 AND PRACTICE QUESTIONS
|ACCURATE ANSWERS| VERIFIED FOR
GUARANTEED PASS |GRADED A |NEW
VERSION
1. Under which circumstance may a licensee legally receive items of value from a real estate
settlement service provider?
A. When the client agrees to it
B. When it's under $25 in value
C. When disclosed to all parties
D. When actual services are performed ✅
Rationale: Under RESPA, items of value are only allowed when actual services are performed—
not simply for referrals.
2. Which of these actions related to pricing is permissible?
A. Agreeing to fix prices with competitors
B. Charging all clients the same fixed rate
C. Offering a range of commission fees to clients ✅
D. Quoting different prices based on race or gender
Rationale: A firm may decide to offer a commission range (e.g., 2%-2.5%) as long as it’s not
price fixing with competitors.
3. When clients have legal questions, what should you do to avoid risking the unauthorized
practice of law?
A. Look up the law and explain it
B. Advise based on your experience
C. Encourage clients to speak with a legal professional ✅
D. Tell them to read their contract
Rationale: Only a licensed attorney may give legal advice; refer clients accordingly.
,4. Determine which of the following statements regarding trust fund handling is true.
A. You can mix client and personal funds
B. Keep separate books for each trust account ✅
C. You only need one account for all funds
D. Use your business account for convenience
Rationale: Trust account handling laws require separate records and accounts to protect client
funds.
5. What’s a property issue that would negatively impact the property’s value or pose an
unreasonable risk?
A. Zoning change
B. Material adverse fact ✅
C. Age of the property
D. Proximity to highway
Rationale: A material adverse fact is anything that significantly affects value or safety.
6. Which tactic may reduce liability risk related to material fact disclosure?
A. Encourage clients to avoid discussing defects
B. Educate sellers on legal consequences of withholding facts ✅
C. Let buyers inspect without comment
D. Say nothing unless asked directly
Rationale: Full disclosure is legally required; sellers must understand this responsibility.
7. What’s a state considered where the burden to determine the property’s condition rests on
the buyer?
A. Laissez-faire
B. Caveat emptor ✅
C. Fiduciary state
D. Legal seller
Rationale: “Caveat emptor” means “let the buyer beware.”
8. Where must trust accounts be secured?
A. Private investment firm
B. Federally insured financial institution ✅
C. Personal savings account
, D. Broker’s retirement fund
Rationale: Trust accounts must be maintained in federally insured institutions for client
protection.
9. The second step of risk management involves analyzing risks. Which task is part of this
step?
A. Eliminate the risk
B. Estimate the likelihood of each risk ✅
C. File a lawsuit
D. Assign blame
Rationale: Risk analysis requires assessing how likely each risk is to occur.
10. What should you understand and meet to manage risk effectively?
A. Price minimums
B. Client expectations
C. Standard-of-care requirements ✅
D. Local property values
Rationale: Meeting the professional standard of care helps avoid liability and improve client
service.
11. What may help offset legal costs for claims against a licensee?
A. Homeowner’s insurance
B. Errors and omissions insurance ✅
C. Office rental insurance
D. Professional dues
Rationale: E&O insurance covers liability for mistakes and omissions in professional services.
12. Why is real estate considered a balancing act?
A. Because of limited listings
B. Due to balancing risk and reward ✅
C. Because of uncertain commission
D. Because clients are demanding
Rationale: The business requires managing risk while aiming for financial rewards.
