Georgia Real Estate Reciprocity Exam
Questions & Answers with Rationales| Latest Update
1. The Georgia Real Estate Commission (GREC) is primarily responsible
for which of the following?
A. Setting local property tax rates
B. Administering and enforcing Georgia's real estate license law
C. Approving all real estate sales contracts
D. Setting commission splits between brokers and salespersons
Correct Answer: B. Administering and enforcing Georgia's real estate
license law
Rationale: GREC's core statutory role is to administer and enforce license law,
license and discipline licensees, and set education standards. It does not set tax
rates, approve contracts, or dictate commission splits, which are private business
matters.
2. How many members typically sit on the Georgia Real Estate
Commission?
A. Three
B. Five
C. Seven
D. Nine
Correct Answer: C. Seven
Rationale: The Commission is composed of seven members appointed by the
Governor, who oversee rule-making, licensing standards, and disciplinary matters
for the industry.
,3. A person who wants to become a Georgia real estate salesperson
must first complete which of the following?
A. A 60-hour broker prelicense course
B. A GREC-approved 75-hour salesperson prelicense course
C. A four-year college degree in business
D. Two years of experience working for a broker
Correct Answer: B. A GREC-approved 75-hour salesperson prelicense
course
Rationale: Georgia requires prospective salespersons to complete a
GREC-approved 75-hour prelicense course before sitting for the state licensing
exam; a degree or prior experience is not required for the salesperson license.
4. To qualify for a Georgia broker's license, an applicant must generally
have been licensed and active as a salesperson for at least how long
within the preceding period specified by GREC?
A. 6 months
B. 1 year
C. 3 years
D. 10 years
Correct Answer: C. 3 years
Rationale: Broker applicants must typically show at least three years of active,
meaningful real estate experience within a set look-back period, in addition to
completing the required 60-hour broker prelicense course.
5. A newly licensed Georgia salesperson may legally practice real
estate:
A. Independently, without any broker affiliation
B. Only under the active supervision and sponsorship of a licensed broker
C. Only after two years of unsupervised practice
D. Only if they also hold a broker's license
Correct Answer: B. Only under the active supervision and sponsorship
of a licensed broker
Rationale: A salesperson license is not independent; it must be affiliated with, and
supervised by, a licensed Georgia real estate broker at all times to legally engage
in licensed activity.
,6. Which of the following is required for a Georgia real estate license to
remain active?
A. The licensee must own real property in Georgia
B. The licensee must complete required continuing education and timely
renew the license
C. The licensee must work exclusively for one client
D. The licensee must pass the licensing exam every year
Correct Answer: B. The licensee must complete required continuing
education and timely renew the license
Rationale: Georgia licenses must be renewed periodically (on a set renewal cycle)
with completion of continuing education; the exam is only taken once for initial
licensure, and there is no requirement to own property.
7. Continuing education for Georgia licensees typically must include a
mandatory component in which subject?
A. Foreign language for business
B. Risk management
C. Home staging techniques
D. Landscaping and curb appeal
Correct Answer: B. Risk management
Rationale: GREC continuing education requirements include a mandatory risk
management component intended to reduce license law violations and consumer
harm.
8. If a Georgia salesperson fails to renew their license before it lapses,
what is the general consequence?
A. The license is automatically upgraded to broker status
B. The license becomes inactive and the person cannot legally perform
licensed activities until reinstated
C. Nothing changes; renewal is optional
D. The license transfers automatically to a new broker
Correct Answer: B. The license becomes inactive and the person
cannot legally perform licensed activities until reinstated
Rationale: An unrenewed license lapses into inactive status; the individual cannot
legally practice real estate for compensation until the license is properly reinstated
, or renewed with GREC.
9. A Georgia broker who wants to hire salespersons and open a real
estate firm must first:
A. Register the firm and obtain broker status/authorization from GREC
B. Obtain a separate contractor's license
C. File Articles of Incorporation with the IRS only
D. Wait five years after becoming a broker
Correct Answer: A. Register the firm and obtain broker
status/authorization from GREC
Rationale: To operate as the qualifying broker of a firm, a broker must register the
brokerage with GREC and meet GREC's requirements for supervising affiliated
licensees.
10. Which best describes the purpose of Georgia's real estate license
law?
A. To guarantee brokers a minimum commission on every sale
B. To protect the public by establishing minimum standards of competency
and conduct for licensees
C. To fix the price of real estate transactions
D. To eliminate competition between brokerages
Correct Answer: B. To protect the public by establishing minimum
standards of competency and conduct for licensees
Rationale: License law exists primarily to protect consumers by ensuring licensees
meet education, competency, and ethical standards, not to guarantee income or
restrict competition.
11. GREC has the authority to discipline a licensee for violations of
license law. Which of the following is a possible disciplinary action?
A. Suspension or revocation of the license
B. Automatic criminal imprisonment
C. Mandatory transfer of the license to another broker
D. Forced sale of the licensee's personal property
Correct Answer: A. Suspension or revocation of the license
Questions & Answers with Rationales| Latest Update
1. The Georgia Real Estate Commission (GREC) is primarily responsible
for which of the following?
A. Setting local property tax rates
B. Administering and enforcing Georgia's real estate license law
C. Approving all real estate sales contracts
D. Setting commission splits between brokers and salespersons
Correct Answer: B. Administering and enforcing Georgia's real estate
license law
Rationale: GREC's core statutory role is to administer and enforce license law,
license and discipline licensees, and set education standards. It does not set tax
rates, approve contracts, or dictate commission splits, which are private business
matters.
2. How many members typically sit on the Georgia Real Estate
Commission?
A. Three
B. Five
C. Seven
D. Nine
Correct Answer: C. Seven
Rationale: The Commission is composed of seven members appointed by the
Governor, who oversee rule-making, licensing standards, and disciplinary matters
for the industry.
,3. A person who wants to become a Georgia real estate salesperson
must first complete which of the following?
A. A 60-hour broker prelicense course
B. A GREC-approved 75-hour salesperson prelicense course
C. A four-year college degree in business
D. Two years of experience working for a broker
Correct Answer: B. A GREC-approved 75-hour salesperson prelicense
course
Rationale: Georgia requires prospective salespersons to complete a
GREC-approved 75-hour prelicense course before sitting for the state licensing
exam; a degree or prior experience is not required for the salesperson license.
4. To qualify for a Georgia broker's license, an applicant must generally
have been licensed and active as a salesperson for at least how long
within the preceding period specified by GREC?
A. 6 months
B. 1 year
C. 3 years
D. 10 years
Correct Answer: C. 3 years
Rationale: Broker applicants must typically show at least three years of active,
meaningful real estate experience within a set look-back period, in addition to
completing the required 60-hour broker prelicense course.
5. A newly licensed Georgia salesperson may legally practice real
estate:
A. Independently, without any broker affiliation
B. Only under the active supervision and sponsorship of a licensed broker
C. Only after two years of unsupervised practice
D. Only if they also hold a broker's license
Correct Answer: B. Only under the active supervision and sponsorship
of a licensed broker
Rationale: A salesperson license is not independent; it must be affiliated with, and
supervised by, a licensed Georgia real estate broker at all times to legally engage
in licensed activity.
,6. Which of the following is required for a Georgia real estate license to
remain active?
A. The licensee must own real property in Georgia
B. The licensee must complete required continuing education and timely
renew the license
C. The licensee must work exclusively for one client
D. The licensee must pass the licensing exam every year
Correct Answer: B. The licensee must complete required continuing
education and timely renew the license
Rationale: Georgia licenses must be renewed periodically (on a set renewal cycle)
with completion of continuing education; the exam is only taken once for initial
licensure, and there is no requirement to own property.
7. Continuing education for Georgia licensees typically must include a
mandatory component in which subject?
A. Foreign language for business
B. Risk management
C. Home staging techniques
D. Landscaping and curb appeal
Correct Answer: B. Risk management
Rationale: GREC continuing education requirements include a mandatory risk
management component intended to reduce license law violations and consumer
harm.
8. If a Georgia salesperson fails to renew their license before it lapses,
what is the general consequence?
A. The license is automatically upgraded to broker status
B. The license becomes inactive and the person cannot legally perform
licensed activities until reinstated
C. Nothing changes; renewal is optional
D. The license transfers automatically to a new broker
Correct Answer: B. The license becomes inactive and the person
cannot legally perform licensed activities until reinstated
Rationale: An unrenewed license lapses into inactive status; the individual cannot
legally practice real estate for compensation until the license is properly reinstated
, or renewed with GREC.
9. A Georgia broker who wants to hire salespersons and open a real
estate firm must first:
A. Register the firm and obtain broker status/authorization from GREC
B. Obtain a separate contractor's license
C. File Articles of Incorporation with the IRS only
D. Wait five years after becoming a broker
Correct Answer: A. Register the firm and obtain broker
status/authorization from GREC
Rationale: To operate as the qualifying broker of a firm, a broker must register the
brokerage with GREC and meet GREC's requirements for supervising affiliated
licensees.
10. Which best describes the purpose of Georgia's real estate license
law?
A. To guarantee brokers a minimum commission on every sale
B. To protect the public by establishing minimum standards of competency
and conduct for licensees
C. To fix the price of real estate transactions
D. To eliminate competition between brokerages
Correct Answer: B. To protect the public by establishing minimum
standards of competency and conduct for licensees
Rationale: License law exists primarily to protect consumers by ensuring licensees
meet education, competency, and ethical standards, not to guarantee income or
restrict competition.
11. GREC has the authority to discipline a licensee for violations of
license law. Which of the following is a possible disciplinary action?
A. Suspension or revocation of the license
B. Automatic criminal imprisonment
C. Mandatory transfer of the license to another broker
D. Forced sale of the licensee's personal property
Correct Answer: A. Suspension or revocation of the license
