GEORGIA REAL ESTATE LICENSE LAW & RULES QUESTIONS & ANSWERS 2026-2027 | UPD…
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
Georgia Real Estate License
Law & Rules Questions &
Answers 2026-2027 |
Updated Certification
Review (Rationales)
Verified Answers Exam Ready With Rationales 88 QUESTIONS
DOCUMENT OVERVIEW
This resource provides 88 Georgia Real Estate License Law & Rules questions, each
accompanied by the correct answer and detailed rationales. It covers essential aspects of
real estate compliance and practice. This document is suitable for certification review,
study, and comprehensive preparation for the Georgia Real Estate License Law and Rules
exam.
TOPICS
Licensee Conduct & Responsibilities Q1–Q46
Licensing Requirements & Status Q47–Q61
Real Estate Commission & Funds Q62–Q83
Closing & Financial Aspects Q84–Q88
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 88
is failure to put a street address in a legal description a violation of the Georgia license law?
CORRECT ANSWER
no
RATIONALE
A street address is not a legally sufficient description for real property; therefore, its omission from
a legal description does not violate Georgia license law, which mandates accurate legal
descriptions to identify property boundaries. The key concept tested is the distinction between a
street address and a legally valid property description.
Q2 QUESTION 2 OF 88
a broker was found guilty of commingling. the real estate Commission shall have the power
to do what>
CORRECT ANSWER
impose a fine not to exceed $1000
RATIONALE
Commingling funds violates fiduciary duties, and state real estate commissions are empowered to
levy fines as a disciplinary measure for such breaches. This penalty addresses the financial
misconduct inherent in mixing client and personal funds.
Q3 QUESTION 3 OF 88
In Georgia can a broker deposti earnest money in a seperate account that is not established
for earnest money?
CORRECT ANSWER
yes, if all parties involved have agreed in writing
Page 2
, RATIONALE
Earnest money deposits can be held in a separate account other than one specifically designated
for earnest money, provided all parties provide written consent. This stipulation ensures
transparency and adherence to contractual agreements regarding funds handling.
Q4 QUESTION 4 OF 88
in the marketing of a condo unit, the real estate licensee tells the prospective buyer that
because of the demand for these units the price will double in five years. is this statement a
violation of the license law?
CORRECT ANSWER
yes
RATIONALE
Making a guarantee about future appreciation of real estate constitutes an unlawful promise of
future profits, as licensees cannot predict or guarantee market fluctuations. This misrepresentation
violates ethical conduct by making unsubstantiated claims to induce a sale.
Q5 QUESTION 5 OF 88
a broker lears that a neighbor might be selling their house and proceeds to secure proerntial
buyers without the knowledge and consent of the owner. would the brokers action be in
violation of the license law?
CORRECT ANSWER
yes, this would be considered an unauthorized listing
RATIONALE
Brokers must have the owner's express consent to market a property, as soliciting a listing without
authorization violates agency principles and constitutes an unauthorized practice. This
demonstrates the importance of fiduciary duties and proper agency agreements in real estate
transactions.
Page 3
, Q6 QUESTION 6 OF 88
a salesperson is holding an open house. a married couple looks at the house and tells her
thehouse is just what they have been looking for but they had signed a contract to purchase
a house down the street the day before. the salesperson tells them that they can sign a
contract with her to purchase the house and simply not complete the purchase that they had
contracted to buy the day before. is this permissable?
CORRECT ANSWER
no, the salesperson committed and unfair practice
RATIONALE
Encouraging a party to breach a valid contract constitutes an unfair or deceptive trade practice, as
it interferes with existing contractual obligations. This principle protects the integrity of
contractual agreements and promotes fair dealing in the marketplace.
Q7 QUESTION 7 OF 88
a real estate licensee pays a $50 referral fee to an unlicensed person for securing potential
buyers. is this action permissable under the license law?
CORRECT ANSWER
no. this action is a violation of the license law
RATIONALE
License law prohibits paying referral fees or commissions to unlicensed individuals for services
that require a real estate license, such as procuring prospects. This action constitutes an illegal
brokerage activity because the unlicensed person is performing acts for which a license is
mandated.
Q8 QUESTION 8 OF 88
on monday evening, after hte brokerage office has closed, a salesperson revieces an offer to
purchase and an earnest money deposit in the form of a personal check. on wednesday, she
obtains a final acceptance on the offer. when shoulld the earnest money be handed over?
CORRECT ANSWER
tuesday
Page 4
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
Georgia Real Estate License
Law & Rules Questions &
Answers 2026-2027 |
Updated Certification
Review (Rationales)
Verified Answers Exam Ready With Rationales 88 QUESTIONS
DOCUMENT OVERVIEW
This resource provides 88 Georgia Real Estate License Law & Rules questions, each
accompanied by the correct answer and detailed rationales. It covers essential aspects of
real estate compliance and practice. This document is suitable for certification review,
study, and comprehensive preparation for the Georgia Real Estate License Law and Rules
exam.
TOPICS
Licensee Conduct & Responsibilities Q1–Q46
Licensing Requirements & Status Q47–Q61
Real Estate Commission & Funds Q62–Q83
Closing & Financial Aspects Q84–Q88
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 88
is failure to put a street address in a legal description a violation of the Georgia license law?
CORRECT ANSWER
no
RATIONALE
A street address is not a legally sufficient description for real property; therefore, its omission from
a legal description does not violate Georgia license law, which mandates accurate legal
descriptions to identify property boundaries. The key concept tested is the distinction between a
street address and a legally valid property description.
Q2 QUESTION 2 OF 88
a broker was found guilty of commingling. the real estate Commission shall have the power
to do what>
CORRECT ANSWER
impose a fine not to exceed $1000
RATIONALE
Commingling funds violates fiduciary duties, and state real estate commissions are empowered to
levy fines as a disciplinary measure for such breaches. This penalty addresses the financial
misconduct inherent in mixing client and personal funds.
Q3 QUESTION 3 OF 88
In Georgia can a broker deposti earnest money in a seperate account that is not established
for earnest money?
CORRECT ANSWER
yes, if all parties involved have agreed in writing
Page 2
, RATIONALE
Earnest money deposits can be held in a separate account other than one specifically designated
for earnest money, provided all parties provide written consent. This stipulation ensures
transparency and adherence to contractual agreements regarding funds handling.
Q4 QUESTION 4 OF 88
in the marketing of a condo unit, the real estate licensee tells the prospective buyer that
because of the demand for these units the price will double in five years. is this statement a
violation of the license law?
CORRECT ANSWER
yes
RATIONALE
Making a guarantee about future appreciation of real estate constitutes an unlawful promise of
future profits, as licensees cannot predict or guarantee market fluctuations. This misrepresentation
violates ethical conduct by making unsubstantiated claims to induce a sale.
Q5 QUESTION 5 OF 88
a broker lears that a neighbor might be selling their house and proceeds to secure proerntial
buyers without the knowledge and consent of the owner. would the brokers action be in
violation of the license law?
CORRECT ANSWER
yes, this would be considered an unauthorized listing
RATIONALE
Brokers must have the owner's express consent to market a property, as soliciting a listing without
authorization violates agency principles and constitutes an unauthorized practice. This
demonstrates the importance of fiduciary duties and proper agency agreements in real estate
transactions.
Page 3
, Q6 QUESTION 6 OF 88
a salesperson is holding an open house. a married couple looks at the house and tells her
thehouse is just what they have been looking for but they had signed a contract to purchase
a house down the street the day before. the salesperson tells them that they can sign a
contract with her to purchase the house and simply not complete the purchase that they had
contracted to buy the day before. is this permissable?
CORRECT ANSWER
no, the salesperson committed and unfair practice
RATIONALE
Encouraging a party to breach a valid contract constitutes an unfair or deceptive trade practice, as
it interferes with existing contractual obligations. This principle protects the integrity of
contractual agreements and promotes fair dealing in the marketplace.
Q7 QUESTION 7 OF 88
a real estate licensee pays a $50 referral fee to an unlicensed person for securing potential
buyers. is this action permissable under the license law?
CORRECT ANSWER
no. this action is a violation of the license law
RATIONALE
License law prohibits paying referral fees or commissions to unlicensed individuals for services
that require a real estate license, such as procuring prospects. This action constitutes an illegal
brokerage activity because the unlicensed person is performing acts for which a license is
mandated.
Q8 QUESTION 8 OF 88
on monday evening, after hte brokerage office has closed, a salesperson revieces an offer to
purchase and an earnest money deposit in the form of a personal check. on wednesday, she
obtains a final acceptance on the offer. when shoulld the earnest money be handed over?
CORRECT ANSWER
tuesday
Page 4
