Georgia Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. Which of the following best describes the purpose of the Georgia Real
Estate Commission?
A. To set property tax rates
B. To regulate and license real estate professionals
C. To appraise all real estate in Georgia
D. To finance real estate transactions
B. To regulate and license real estate professionals
Rationale: The Georgia Real Estate Commission (GREC) is responsible for enforcing
license law, issuing and renewing real estate licenses, and ensuring compliance
with state regulations. It does not set taxes, appraise property, or finance
transactions, but instead focuses on professional standards and legal compliance
within real estate practice.
2. A real estate salesperson in Georgia must be affiliated with:
A. A mortgage lender
B. A title company
C. A licensed real estate broker
D. A property appraiser
,C. A licensed real estate broker
Rationale: In Georgia, salespersons cannot operate independently. They must work
under the supervision of a licensed broker who is responsible for their actions. This
structure ensures accountability and adherence to real estate laws and ethical
practices.
3. Which contract element refers to something of legal value exchanged
between parties?
A. Offer
B. Acceptance
C. Consideration
D. Competency
C. Consideration
Rationale: Consideration is the value exchanged in a contract, such as money,
services, or promises. It is essential for a valid contract. Without consideration, a
contract is generally not legally enforceable.
4. Which type of property ownership includes the right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Severalty ownership
D. Community tenancy
B. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning when one
owner dies, their interest automatically passes to surviving co-owners. This
distinguishes it from tenancy in common, where ownership shares pass to heirs.
5. A broker who represents both buyer and seller in the same transaction is
practicing:
, A. Single agency
B. Dual agency
C. Designated agency
D. Transaction brokerage only
B. Dual agency
Rationale: Dual agency occurs when a broker represents both parties in a
transaction. This requires full disclosure and informed consent because it limits the
broker’s ability to fully advocate for either party.
6. What is the primary purpose of a deed?
A. To finance a property
B. To transfer ownership of real property
C. To appraise property value
D. To record mortgage terms
B. To transfer ownership of real property
Rationale: A deed is a legal document used to transfer title from one party to
another. It must include essential elements such as grantor, grantee, legal
description, and delivery.
7. Which mortgage type has payments that remain the same over the life of
the loan?
A. Adjustable-rate mortgage
B. Balloon mortgage
C. Fixed-rate mortgage
D. Interest-only mortgage
C. Fixed-rate mortgage
Rationale: A fixed-rate mortgage maintains a constant interest rate and monthly
payment throughout the loan term, providing stability and predictability for
borrowers.
, 8. What is required for a valid real estate contract?
A. Oral agreement only
B. Written agreement only in all cases
C. Offer, acceptance, and consideration
D. Broker approval
C. Offer, acceptance, and consideration
Rationale: A valid contract requires mutual agreement (offer and acceptance),
consideration, and competent parties. Real estate contracts are generally required
to be in writing under the Statute of Frauds.
9. Which of the following is an example of personal property?
A. A built-in kitchen cabinet
B. Land
C. A detached refrigerator
D. A house foundation
C. A detached refrigerator
Rationale: Personal property includes movable items not permanently attached to
real estate. A detached refrigerator is not affixed and can be removed without
damage.
10.The term “encumbrance” refers to:
A. A type of ownership
B. A restriction or claim on property
C. A property tax exemption
D. A mortgage payoff
B. A restriction or claim on property
Rationale: Encumbrances include liens, easements, and restrictions that affect
ownership rights. They do not prevent transfer but may impact value or use.
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following best describes the purpose of the Georgia Real
Estate Commission?
A. To set property tax rates
B. To regulate and license real estate professionals
C. To appraise all real estate in Georgia
D. To finance real estate transactions
B. To regulate and license real estate professionals
Rationale: The Georgia Real Estate Commission (GREC) is responsible for enforcing
license law, issuing and renewing real estate licenses, and ensuring compliance
with state regulations. It does not set taxes, appraise property, or finance
transactions, but instead focuses on professional standards and legal compliance
within real estate practice.
2. A real estate salesperson in Georgia must be affiliated with:
A. A mortgage lender
B. A title company
C. A licensed real estate broker
D. A property appraiser
,C. A licensed real estate broker
Rationale: In Georgia, salespersons cannot operate independently. They must work
under the supervision of a licensed broker who is responsible for their actions. This
structure ensures accountability and adherence to real estate laws and ethical
practices.
3. Which contract element refers to something of legal value exchanged
between parties?
A. Offer
B. Acceptance
C. Consideration
D. Competency
C. Consideration
Rationale: Consideration is the value exchanged in a contract, such as money,
services, or promises. It is essential for a valid contract. Without consideration, a
contract is generally not legally enforceable.
4. Which type of property ownership includes the right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Severalty ownership
D. Community tenancy
B. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning when one
owner dies, their interest automatically passes to surviving co-owners. This
distinguishes it from tenancy in common, where ownership shares pass to heirs.
5. A broker who represents both buyer and seller in the same transaction is
practicing:
, A. Single agency
B. Dual agency
C. Designated agency
D. Transaction brokerage only
B. Dual agency
Rationale: Dual agency occurs when a broker represents both parties in a
transaction. This requires full disclosure and informed consent because it limits the
broker’s ability to fully advocate for either party.
6. What is the primary purpose of a deed?
A. To finance a property
B. To transfer ownership of real property
C. To appraise property value
D. To record mortgage terms
B. To transfer ownership of real property
Rationale: A deed is a legal document used to transfer title from one party to
another. It must include essential elements such as grantor, grantee, legal
description, and delivery.
7. Which mortgage type has payments that remain the same over the life of
the loan?
A. Adjustable-rate mortgage
B. Balloon mortgage
C. Fixed-rate mortgage
D. Interest-only mortgage
C. Fixed-rate mortgage
Rationale: A fixed-rate mortgage maintains a constant interest rate and monthly
payment throughout the loan term, providing stability and predictability for
borrowers.
, 8. What is required for a valid real estate contract?
A. Oral agreement only
B. Written agreement only in all cases
C. Offer, acceptance, and consideration
D. Broker approval
C. Offer, acceptance, and consideration
Rationale: A valid contract requires mutual agreement (offer and acceptance),
consideration, and competent parties. Real estate contracts are generally required
to be in writing under the Statute of Frauds.
9. Which of the following is an example of personal property?
A. A built-in kitchen cabinet
B. Land
C. A detached refrigerator
D. A house foundation
C. A detached refrigerator
Rationale: Personal property includes movable items not permanently attached to
real estate. A detached refrigerator is not affixed and can be removed without
damage.
10.The term “encumbrance” refers to:
A. A type of ownership
B. A restriction or claim on property
C. A property tax exemption
D. A mortgage payoff
B. A restriction or claim on property
Rationale: Encumbrances include liens, easements, and restrictions that affect
ownership rights. They do not prevent transfer but may impact value or use.
