GA Real Estate Practice Exam 1 ACCURATE TESTED VERSIONS OF THE EXAM FROM 2025 TO 2026 | ACCURATE AND VERIFIED ANSWERS | NEXT GEN FORMAT | GUARANTEED PASS

1. What agency is charged with insuring the balance of the Real Estate Education, Research, and Recovery Fund remains at $1 million or higher? A. HUD B. Georgia Department of Revenue C. GREC D. Georgia Housing Authority Correct Answer: C. GREC Rationale: The Georgia Real Estate Commission (GREC) is responsible for ensuring the Recovery Fund maintains a minimum balance of $1 million. 2. GREC will investigate a complaint if the event occurred within how many years? A. 1 B. 2 C. 3 D. 5 Correct Answer: C. 3 Rationale: GREC will only investigate complaints that occurred within the past three years. 3. Who is the mortgagor in a mortgage? A. Lender B. Title company C. Borrower D. Trustee Correct Answer: C. Borrower Rationale: The mortgagor is the borrower who gives the mortgage to the lender as security for the loan. 4. The termination agreement _______. A. Lists the commission due to the broker B. States what happens when the agent separates from the firm C. Sets the expiration of the license D. Grants continuing education exemptions Correct Answer: B. States what happens when the agent separates from the firm Rationale: The termination agreement outlines responsibilities and procedures upon the agent’s separation from the firm. 5. What is required of a licensee who receives trust funds from a client? A. Deposit the funds into a personal account B. Use the funds for commission C. Turn over the funds to their broker as soon as practically possible D. Hold funds until the transaction closes Correct Answer: C. Turn over the funds to their broker as soon as practically possible Rationale: Trust funds must be promptly handed over to the broker to ensure proper handling in accordance with Georgia law. 6. What is a major disadvantage of a non-exclusive buyer brokerage agreement? A. The broker cannot advertise the buyer B. Clients are obligated to only one broker C. Agents may prioritize exclusive clients over non-exclusive clients D. Buyers must pay for property showings Correct Answer: C. Agents may prioritize exclusive clients over non-exclusive clients Rationale: Non-exclusive agreements may result in lower priority from agents compared to exclusive agreement clients. 7. Buyer duties outlined in the Exclusive Buyer Brokerage Engagement Agreement include _______. A. Paying a commission up front B. Submitting to a background check C. Being available during the agent's regular hours to visit properties D. Signing a dual agency disclosure Correct Answer: C. Being available during the agent's regular hours to visit properties Rationale: Buyers are expected to be available to view properties as scheduled by their agent. 8. Which of the following is NOT typically attached to an independent contractor agreement? A. Marketing policies B. Commission schedules C. Employee agreement D. Office policy manual Correct Answer: C. Employee agreement Rationale: Independent contractor agreements do not include employee agreements because the licensee is not an employee. 9. With a security deed in Georgia, how may a lender release the deed when the loan is paid off? A. Filing a lien B. Destroying the deed C. Signing and re-recording the security deed verifying release D. Mailing a notice to the borrower Correct Answer: C. Signing and re-recording the security deed verifying release Rationale: The lender must sign and re-record the security deed to officially release the lien. 10. Which of the following is true about the sales contract form in Georgia? A. There is only one state-mandated standard form B. The GAR form must be used C. No standard form is required D. The broker must create a custom form Correct Answer: C. No standard form is required Rationale: Georgia does not mandate a specific standard sales contract form. 11. When completing a sales contract, licensees may only alter standard language with ________ review. A. Broker’s B. Client’s C. Attorney’s D. Lender’s Correct Answer: C. Attorney’s Rationale: Only an attorney is authorized to revise or approve changes to legal language in contracts. 12. How is the GA intangible tax calculated? A. Flat $500 fee B. $1.50 per $500 of loan amount, max $25,000 C. Based on property value D. 2% of assessed value Correct Answer: B. $1.50 per $500 of loan amount, max $25,000 Rationale: Georgia intangible tax is charged on the loan amount at $1.50 per $500, capped at $25,000. 13. What does GAFLA require regarding late fees? A. They are optional B. They must be approved by a judge C. They must be clearly specified in loan documents D. They are capped at $50 Correct Answer: C. They must be clearly specified in loan documents Rationale: The Georgia Fair Lending Act (GAFLA) requires that all late fees be clearly disclosed in loan documents. 14. After Francine moves out of her Georgia rental and returns the keys, how long does the property manager have to return her security deposit? A. 15 days B. 30 days C. 60 days D. 90 days Correct Answer: B. 30 days Rationale: Georgia law requires landlords to return security deposits within one month (30 days) after the tenant moves out. 15. Which section of the sales contract states that certain obligations continue even after closing? A. Attorney review B. Contingency clause C. Survival of the agreement D. Termination clause Correct Answer: C. Survival of the agreement Rationale: The survival clause ensures that specific obligations persist beyond closing. 16. Is Paula legally liable if she provided a disclosure form with false info she didn’t know was false? A. Yes, always B. Only if she wrote the disclosure herself C. No, if she didn’t know it was false D. Yes, because she hosted the open house Correct Answer: C. No, if she didn’t know it was false Rationale: Licensees are not liable for unknowingly passing along false information provided by a client. 17. What is a buyer broker’s responsibility under BRRETA? A. Negotiate commissions B. Finance the buyer’s down payment C. Disclose adverse facts about the buyer’s ability to meet contract terms D. Approve the property price Correct Answer: C. Disclose adverse facts about the buyer’s ability to meet contract terms Rationale: BRRETA requires brokers to disclose material facts that could affect the transaction. 18. Why is a fiduciary relationship between Georgia brokers and clients not required? A. It’s too expensive B. It could delay sales C. It protects brokers from unreasonable legal standards D. It violates federal law Correct Answer: C. It protects brokers from unreasonable legal standards Rationale: Georgia law limits broker liability by not requiring full fiduciary duties. 19. In Georgia, what can a broker do for a buyer customer (not a client)? A. Provide financial advice B. Perform appraisals C. Only ministerial tasks D. Represent them in court Correct Answer: C. Only ministerial tasks Rationale: Without an agency relationship, a broker may only perform administrative duties for a customer. 20. One difference between judicial and non-judicial foreclosure is that non-judicial foreclosure _______. A. Requires court approval B. Includes the right of redemption C. Does not include the statutory right of redemption D. Is illegal in Georgia Correct Answer: C. Does not include the statutory right of redemption Rationale: Georgia’s non-judicial foreclosures do not allow the borrower to redeem the property after the sale. 21. What is the key difference between a mortgage, deed of trust, and Georgia's security deed? A. Interest rate B. Foreclosure process C. Down payment D. Loan term Correct Answer: B. Foreclosure process Rationale: The primary distinction lies in the foreclosure process associated with each instrument. 22. Under a judicial foreclosure, what right might Regina use to regain her property after a sheriff’s sale? A. Homestead right B. Eminent domain C. Statutory right of redemption D. Bankruptcy protection Correct Answer: C. Statutory right of redemption Rationale: In judicial foreclosures, the borrower may repurchase the property post-sale under the right of redemption. 23. If internet advertising information becomes outdated, how long does the licensee have to update or remove the ad? A. 10 days B. 20 days C. 30 days D. 45 days Correct Answer: C. 30 days Rationale: Georgia law requires internet advertisements to be updated or removed within 30 days of becoming inaccurate. 24. To whom does Georgia's Real Estate Commissioner report? A. The Governor B. The Senate C. GREC D. The public Correct Answer: C. GREC Rationale: The Commissioner reports directly to the Georgia Real Estate Commission (GREC). 25. Which service providers are exempt from GAFLA provisions? A. Mortgage lenders B. Title companies C. Insurance providers D. Real estate agents Correct Answer: C. Insurance providers Rationale: Insurance providers are not governed by the Georgia Fair Lending Act.