Georgia Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. A broker’s fiduciary duty to a client primarily requires:
A. Advertising properties broadly
B. Loyalty, obedience, and full disclosure
C. Guaranteeing property value
D. Acting as a dual agent in all transactions
Rationale: Fiduciary duty in real estate requires agents to act in the best
interests of their clients. This includes loyalty, obedience to lawful instructions,
disclosure of material facts, confidentiality, accounting, and reasonable care. It
does NOT include guaranteeing property value or automatically acting as a dual
agent. Loyalty and full disclosure are core legal obligations under Georgia
agency law.
2. A valid contract for the sale of real estate must include:
A. Offer, acceptance, consideration, and legal purpose
B. Only a written offer
C. A licensed broker signature
D. A recorded deed
Rationale: A valid real estate contract requires the essential elements of
contract law: offer, acceptance, consideration, legal purpose, and competent
,parties. A written form is required under the Statute of Frauds, but a broker
signature or recorded deed is not required for validity.
3. The primary purpose of the Georgia Fair Housing Act is to:
A. Regulate mortgage interest rates
B. Control property taxes
C. Prevent discrimination in housing transactions
D. Set commission rates for brokers
Rationale: The Georgia Fair Housing Act prohibits discrimination based on
protected classes such as race, color, religion, sex, disability, familial status, or
national origin. It ensures equal housing opportunities and does not regulate
financial terms or commissions.
4. Which of the following best describes “consideration” in a contract?
A. A verbal agreement
B. A notarized signature
C. A property appraisal
D. Something of legal value exchanged between parties
Rationale: Consideration is anything of value exchanged between parties in a
contract, such as money, services, or promises. It is a necessary element for
enforceability and distinguishes a contract from a gift.
5. A listing agreement is most accurately described as:
A. A contract between seller and broker authorizing representation
B. A contract between buyer and seller only
C. A mortgage agreement
D. A deed of trust
, Rationale: A listing agreement is a contractual relationship between a property
owner (seller) and a real estate broker authorizing the broker to market and sell
the property. It defines duties, compensation, and duration of representation.
6. Under Georgia law, a salesperson must work under:
A. Any licensed agent
B. A licensed broker
C. A mortgage lender
D. A title company officer
Rationale: Georgia law requires all real estate salespersons to be affiliated with
and supervised by a licensed broker. Salespersons cannot operate independently
or maintain their own escrow accounts or listings without broker oversight.
7. The purpose of earnest money is to:
A. Pay broker commissions
B. Demonstrate buyer’s good faith in a transaction
C. Replace the down payment
D. Cover closing costs automatically
Rationale: Earnest money is a deposit made by the buyer to show serious intent
to purchase. It is held in escrow and applied toward the purchase price or closing
costs, depending on contract terms. It is not a commission or required down
payment substitute.
8. Which of the following is a physical characteristic of land?
A. Scarcity
B. Location
C. Indestructibility
D. Immobility
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A broker’s fiduciary duty to a client primarily requires:
A. Advertising properties broadly
B. Loyalty, obedience, and full disclosure
C. Guaranteeing property value
D. Acting as a dual agent in all transactions
Rationale: Fiduciary duty in real estate requires agents to act in the best
interests of their clients. This includes loyalty, obedience to lawful instructions,
disclosure of material facts, confidentiality, accounting, and reasonable care. It
does NOT include guaranteeing property value or automatically acting as a dual
agent. Loyalty and full disclosure are core legal obligations under Georgia
agency law.
2. A valid contract for the sale of real estate must include:
A. Offer, acceptance, consideration, and legal purpose
B. Only a written offer
C. A licensed broker signature
D. A recorded deed
Rationale: A valid real estate contract requires the essential elements of
contract law: offer, acceptance, consideration, legal purpose, and competent
,parties. A written form is required under the Statute of Frauds, but a broker
signature or recorded deed is not required for validity.
3. The primary purpose of the Georgia Fair Housing Act is to:
A. Regulate mortgage interest rates
B. Control property taxes
C. Prevent discrimination in housing transactions
D. Set commission rates for brokers
Rationale: The Georgia Fair Housing Act prohibits discrimination based on
protected classes such as race, color, religion, sex, disability, familial status, or
national origin. It ensures equal housing opportunities and does not regulate
financial terms or commissions.
4. Which of the following best describes “consideration” in a contract?
A. A verbal agreement
B. A notarized signature
C. A property appraisal
D. Something of legal value exchanged between parties
Rationale: Consideration is anything of value exchanged between parties in a
contract, such as money, services, or promises. It is a necessary element for
enforceability and distinguishes a contract from a gift.
5. A listing agreement is most accurately described as:
A. A contract between seller and broker authorizing representation
B. A contract between buyer and seller only
C. A mortgage agreement
D. A deed of trust
, Rationale: A listing agreement is a contractual relationship between a property
owner (seller) and a real estate broker authorizing the broker to market and sell
the property. It defines duties, compensation, and duration of representation.
6. Under Georgia law, a salesperson must work under:
A. Any licensed agent
B. A licensed broker
C. A mortgage lender
D. A title company officer
Rationale: Georgia law requires all real estate salespersons to be affiliated with
and supervised by a licensed broker. Salespersons cannot operate independently
or maintain their own escrow accounts or listings without broker oversight.
7. The purpose of earnest money is to:
A. Pay broker commissions
B. Demonstrate buyer’s good faith in a transaction
C. Replace the down payment
D. Cover closing costs automatically
Rationale: Earnest money is a deposit made by the buyer to show serious intent
to purchase. It is held in escrow and applied toward the purchase price or closing
costs, depending on contract terms. It is not a commission or required down
payment substitute.
8. Which of the following is a physical characteristic of land?
A. Scarcity
B. Location
C. Indestructibility
D. Immobility
