Georgia Real Estate Reciprocity Exam verified with correct answers
plus rationales 2026/2027 instant pdf
1. A real estate licensee from another state wants to obtain a Georgia real estate license through
reciprocity. What should the licensee do FIRST?
A. Begin practicing immediately
B. Determine whether Georgia recognizes the applicant's out-of-state license for reciprocal
licensing
C. Open a brokerage
D. Apply for a property tax exemption
Answer: B. Determine whether Georgia recognizes the applicant's out-of-state license for
reciprocal licensing
Rationale: Reciprocity depends on Georgia's licensing requirements and the status of the
applicant's current license. The applicant must satisfy the applicable Georgia requirements
before practicing.
2. What agency regulates real estate licensees in Georgia?
A. Georgia Real Estate Commission
B. Georgia Department of Transportation
C. Georgia Secretary of State—Corporations Division only
D. Georgia Department of Revenue
Answer: A. Georgia Real Estate Commission
Rationale: The Georgia Real Estate Commission (GREC) regulates Georgia real estate licensees
and administers the state's real estate licensing laws.
3. A reciprocal applicant's out-of-state license is currently inactive or expired. What is the most
important consideration?
A. The applicant can always practice immediately
B. The applicant must satisfy Georgia's requirements concerning the status of the license
C. The applicant automatically receives a broker license
D. The applicant is exempt from all licensing requirements
Answer: B. The applicant must satisfy Georgia's requirements concerning the status of the
license
,Rationale: Reciprocal licensing depends on the applicant meeting the applicable statutory and
regulatory requirements, including requirements concerning the originating license.
4. Which person generally performs real estate brokerage activities on behalf of a broker?
A. Salesperson/licensee
B. County tax assessor
C. Building inspector
D. Appraiser
Answer: A. Salesperson/licensee
Rationale: A real estate salesperson/licensee operates under the authority and supervision of a
qualifying broker as required by Georgia law.
5. What is the primary purpose of a real estate license law?
A. To guarantee profits for licensees
B. To protect the public
C. To eliminate competition
D. To establish property values
Answer: B. To protect the public
Rationale: Real estate licensing laws establish standards of competency and conduct designed
primarily to protect consumers.
6. A Georgia licensee advertises a property for sale. Which information is generally important
for compliant brokerage advertising?
A. The responsible brokerage must be properly identified
B. The licensee's personal nickname must be used
C. The seller's Social Security number must appear
D. No brokerage information is required
Answer: A. The responsible brokerage must be properly identified
Rationale: Real estate advertising must comply with Georgia requirements, including proper
identification of the brokerage and avoiding misleading representations.
,7. A licensee knowingly makes a false statement about a property's condition to induce a buyer
to purchase it. What type of conduct is this?
A. Misrepresentation
B. Puffing only
C. Due diligence
D. Novation
Answer: A. Misrepresentation
Rationale: Knowingly providing false information about a material fact can constitute
misrepresentation and may result in disciplinary or civil consequences.
8. A broker receives earnest money belonging to a client. Which principle is most important?
A. The funds must be handled according to applicable trust-account and transaction requirements
B. The broker may use the money for personal expenses
C. The broker may immediately deposit it into a personal account
D. The broker automatically owns the funds
Answer: A. The funds must be handled according to applicable trust-account and
transaction requirements
Rationale: Client funds must be properly safeguarded and handled in accordance with Georgia
law and applicable brokerage procedures.
9. Which term describes money deposited to demonstrate a buyer's seriousness about purchasing
property?
A. Earnest money
B. Commission
C. Property tax
D. Discount point
Answer: A. Earnest money
Rationale: Earnest money is typically deposited under a purchase agreement as evidence of the
buyer's good-faith intention to perform.
, 10. A buyer gives earnest money to a broker, but the transaction later fails. Who automatically
receives the earnest money?
A. The broker
B. The buyer in every circumstance
C. The seller in every circumstance
D. The party entitled under the contract and applicable law
Answer: D. The party entitled under the contract and applicable law
Rationale: Disposition of earnest money depends on the contract, the circumstances surrounding
termination, and applicable Georgia requirements.
11. A seller tells a licensee that the basement floods during heavy rain and asks the licensee not
to tell prospective buyers. What should the licensee do?
A. Conceal the information
B. Make a false statement if asked
C. Follow applicable disclosure and agency duties rather than knowingly conceal a material fact
D. Destroy the seller's disclosure documents
Answer: C. Follow applicable disclosure and agency duties rather than knowingly conceal
a material fact
Rationale: Licensees must comply with applicable duties concerning material facts and cannot
engage in fraudulent or deceptive conduct.
12. Which type of agency relationship gives a broker authority to represent a principal in a
particular transaction or limited set of transactions?
A. Special agency
B. Universal agency
C. No agency
D. Implied ownership
Answer: A. Special agency
Rationale: A special agent is authorized to perform specific acts or represent a principal in a
specific transaction or limited scope.
plus rationales 2026/2027 instant pdf
1. A real estate licensee from another state wants to obtain a Georgia real estate license through
reciprocity. What should the licensee do FIRST?
A. Begin practicing immediately
B. Determine whether Georgia recognizes the applicant's out-of-state license for reciprocal
licensing
C. Open a brokerage
D. Apply for a property tax exemption
Answer: B. Determine whether Georgia recognizes the applicant's out-of-state license for
reciprocal licensing
Rationale: Reciprocity depends on Georgia's licensing requirements and the status of the
applicant's current license. The applicant must satisfy the applicable Georgia requirements
before practicing.
2. What agency regulates real estate licensees in Georgia?
A. Georgia Real Estate Commission
B. Georgia Department of Transportation
C. Georgia Secretary of State—Corporations Division only
D. Georgia Department of Revenue
Answer: A. Georgia Real Estate Commission
Rationale: The Georgia Real Estate Commission (GREC) regulates Georgia real estate licensees
and administers the state's real estate licensing laws.
3. A reciprocal applicant's out-of-state license is currently inactive or expired. What is the most
important consideration?
A. The applicant can always practice immediately
B. The applicant must satisfy Georgia's requirements concerning the status of the license
C. The applicant automatically receives a broker license
D. The applicant is exempt from all licensing requirements
Answer: B. The applicant must satisfy Georgia's requirements concerning the status of the
license
,Rationale: Reciprocal licensing depends on the applicant meeting the applicable statutory and
regulatory requirements, including requirements concerning the originating license.
4. Which person generally performs real estate brokerage activities on behalf of a broker?
A. Salesperson/licensee
B. County tax assessor
C. Building inspector
D. Appraiser
Answer: A. Salesperson/licensee
Rationale: A real estate salesperson/licensee operates under the authority and supervision of a
qualifying broker as required by Georgia law.
5. What is the primary purpose of a real estate license law?
A. To guarantee profits for licensees
B. To protect the public
C. To eliminate competition
D. To establish property values
Answer: B. To protect the public
Rationale: Real estate licensing laws establish standards of competency and conduct designed
primarily to protect consumers.
6. A Georgia licensee advertises a property for sale. Which information is generally important
for compliant brokerage advertising?
A. The responsible brokerage must be properly identified
B. The licensee's personal nickname must be used
C. The seller's Social Security number must appear
D. No brokerage information is required
Answer: A. The responsible brokerage must be properly identified
Rationale: Real estate advertising must comply with Georgia requirements, including proper
identification of the brokerage and avoiding misleading representations.
,7. A licensee knowingly makes a false statement about a property's condition to induce a buyer
to purchase it. What type of conduct is this?
A. Misrepresentation
B. Puffing only
C. Due diligence
D. Novation
Answer: A. Misrepresentation
Rationale: Knowingly providing false information about a material fact can constitute
misrepresentation and may result in disciplinary or civil consequences.
8. A broker receives earnest money belonging to a client. Which principle is most important?
A. The funds must be handled according to applicable trust-account and transaction requirements
B. The broker may use the money for personal expenses
C. The broker may immediately deposit it into a personal account
D. The broker automatically owns the funds
Answer: A. The funds must be handled according to applicable trust-account and
transaction requirements
Rationale: Client funds must be properly safeguarded and handled in accordance with Georgia
law and applicable brokerage procedures.
9. Which term describes money deposited to demonstrate a buyer's seriousness about purchasing
property?
A. Earnest money
B. Commission
C. Property tax
D. Discount point
Answer: A. Earnest money
Rationale: Earnest money is typically deposited under a purchase agreement as evidence of the
buyer's good-faith intention to perform.
, 10. A buyer gives earnest money to a broker, but the transaction later fails. Who automatically
receives the earnest money?
A. The broker
B. The buyer in every circumstance
C. The seller in every circumstance
D. The party entitled under the contract and applicable law
Answer: D. The party entitled under the contract and applicable law
Rationale: Disposition of earnest money depends on the contract, the circumstances surrounding
termination, and applicable Georgia requirements.
11. A seller tells a licensee that the basement floods during heavy rain and asks the licensee not
to tell prospective buyers. What should the licensee do?
A. Conceal the information
B. Make a false statement if asked
C. Follow applicable disclosure and agency duties rather than knowingly conceal a material fact
D. Destroy the seller's disclosure documents
Answer: C. Follow applicable disclosure and agency duties rather than knowingly conceal
a material fact
Rationale: Licensees must comply with applicable duties concerning material facts and cannot
engage in fraudulent or deceptive conduct.
12. Which type of agency relationship gives a broker authority to represent a principal in a
particular transaction or limited set of transactions?
A. Special agency
B. Universal agency
C. No agency
D. Implied ownership
Answer: A. Special agency
Rationale: A special agent is authorized to perform specific acts or represent a principal in a
specific transaction or limited scope.
