GEORGIA REAL ESTATE RECIPROCITY EXAM
QUESTIONS WITH WELL ELABORATED
ANSWERS AND RATIONALES (100%
CORRECT VERIFIED SOLUTIONS)
Question 1
A real estate broker, whose license is on inactive status, is permitted to:
A) take listings for an active broker but not close the sales
B) handle all aspects of marketing in the sale of his/her own property
C) receive a nominal fee for referring calls to an active broker
D) receive a salary for showing listed properties on behalf of an active broker as long
as no sales negotiations take place
Correct Answer
B) handle all aspects of marketing in the sale of his/her own property
Question 2
In order to enforce a commission claim in georgia, the first thing the broker must
prove to the court is:
A) they were efficient and procuring cause of sale
B)they had the authority to negotiate the sale and the seller promised to pay a
commission
C) the broker and any sales associates involved in the transaction held valid real
estate licenses at the time they earned the commission
D) there was a closing and the seller actually conveyed title to the buyer.
Correct Answer
C) the broker and any sales associates involved in the transaction held valid real
estate licenses at the time they earned the commission
Page 1 of 67
,Question 3
In Georgia, a licensee transferring to a new broker may continue to act as a licensee
for the former broker with regard to transactions begun prior to the transfer. Which
of the following statements is NOT a requirement to meet this provision of the law?
A) Both brokers agree in writing to the licensee's action on behalf of the former
broker.
B) the transactions on which the licensee will act on behalf of the former broker are
stated in the written agreement
C) the new broker agrees in writing to assume full responsibility for the licensee's
activities in the stated transactions
D) the written agreement states that the terms under which the licensee shall be
compensated by the former broker
Correct Answer
C) the new broker agrees in writing to assume full responsibility for the licensee's
activities in the stated transactions
Question 4
A licensee transferring to a new broker may continue to act as a licensee for the
former broker with regard to transactions begun prior to the transfer. Which of the
following statements is incorrect concerning this situation?A) both brokers must
agree in writingB) the transactions on which the licensee will act must be specifiedC)
the new broker agrees in writing to assume responsibility for the licensee's actionsD)
the agreement must express the terms under which the licensee will be compensated
by the former broker.
Correct Answer
C) the new broker agrees in writing to assume responsibility for the licensee's
actions
Page 2 of 67
,Question 5
a licensee who seeks to activate a license which has been on inactive status for a
period of 3 & 1/2 years shall be required to complete Commission approved courses
of at least:
A) 6 hours prior to activating
B) 12 hours prior to activating
C) 18 hours prior to activating
D) 36 hours prior to activating
Correct Answer
D) 36 hours prior to activating
Question 6
Which of the following parties would be exempt from the real estate license
requirements?A) an auctioneer selling property at an auction for another party for
compensationB) a forester selling a parcel of timberland for another party for
compensationC) a person promoting the sale of real estate through listing in a
publication and recieving a listing feeD) an attorney in fact under duly executed
power of an attorney to convey real estate from an owner or lessor.
Correct Answer
D) an attorney in fact under duly executed power of an attorney to convey real
estate from an owner or lessor.
Question 7
What is the maximum amount of time a licensee can put their license on inactive
status?
A) Two years
B) three years
C) four years
D) indefinitely, as long as renewal fees are paid
Correct Answer
D) indefinitely, as long as renewal fees are paid
Page 3 of 67
, Question 8
A licensee is transferring to another brokerage company. Which of the following
statements is correct concerning the application for transfer?
A) only the licensee's broker may sign the application
B) the licensee's broker or an associate broker may sign the application, if the
associate broker is authorized in writing by the broker
C) the real estate commission must sign the transfer application
D) the signature of the transferring licensee is all that is required
Correct Answer
B) the licensee's broker or an associate broker may sign the application, if the
associate broker is authorized in writing by the broker
Question 9
Exclusive brokerage engagements in Georgia must:
A) be for more than 90 days
B) be in writing and have a definite expiration
C) be signed by the broker
D) not contain an advance fee or fixed fee
Correct Answer
B) be in writing and have a definite expiration
Question 10
A licensee shall make a written disclosure to both the buyer and seller revealing the
party or parties for whom that licensee's firm is acting as an agent and from whom
that licensee's firm will receive any valuable consideration for its effort in the
transaction. This disclosure must be made no later than:
A) the time that any party is shown the property
B) the time that any party first makes an offer
C) 10 days after acceptance of an offer
D) the agreed upon closing date in the transaction
Correct Answer
B) the time that any party first makes an offer
Page 4 of 67
QUESTIONS WITH WELL ELABORATED
ANSWERS AND RATIONALES (100%
CORRECT VERIFIED SOLUTIONS)
Question 1
A real estate broker, whose license is on inactive status, is permitted to:
A) take listings for an active broker but not close the sales
B) handle all aspects of marketing in the sale of his/her own property
C) receive a nominal fee for referring calls to an active broker
D) receive a salary for showing listed properties on behalf of an active broker as long
as no sales negotiations take place
Correct Answer
B) handle all aspects of marketing in the sale of his/her own property
Question 2
In order to enforce a commission claim in georgia, the first thing the broker must
prove to the court is:
A) they were efficient and procuring cause of sale
B)they had the authority to negotiate the sale and the seller promised to pay a
commission
C) the broker and any sales associates involved in the transaction held valid real
estate licenses at the time they earned the commission
D) there was a closing and the seller actually conveyed title to the buyer.
Correct Answer
C) the broker and any sales associates involved in the transaction held valid real
estate licenses at the time they earned the commission
Page 1 of 67
,Question 3
In Georgia, a licensee transferring to a new broker may continue to act as a licensee
for the former broker with regard to transactions begun prior to the transfer. Which
of the following statements is NOT a requirement to meet this provision of the law?
A) Both brokers agree in writing to the licensee's action on behalf of the former
broker.
B) the transactions on which the licensee will act on behalf of the former broker are
stated in the written agreement
C) the new broker agrees in writing to assume full responsibility for the licensee's
activities in the stated transactions
D) the written agreement states that the terms under which the licensee shall be
compensated by the former broker
Correct Answer
C) the new broker agrees in writing to assume full responsibility for the licensee's
activities in the stated transactions
Question 4
A licensee transferring to a new broker may continue to act as a licensee for the
former broker with regard to transactions begun prior to the transfer. Which of the
following statements is incorrect concerning this situation?A) both brokers must
agree in writingB) the transactions on which the licensee will act must be specifiedC)
the new broker agrees in writing to assume responsibility for the licensee's actionsD)
the agreement must express the terms under which the licensee will be compensated
by the former broker.
Correct Answer
C) the new broker agrees in writing to assume responsibility for the licensee's
actions
Page 2 of 67
,Question 5
a licensee who seeks to activate a license which has been on inactive status for a
period of 3 & 1/2 years shall be required to complete Commission approved courses
of at least:
A) 6 hours prior to activating
B) 12 hours prior to activating
C) 18 hours prior to activating
D) 36 hours prior to activating
Correct Answer
D) 36 hours prior to activating
Question 6
Which of the following parties would be exempt from the real estate license
requirements?A) an auctioneer selling property at an auction for another party for
compensationB) a forester selling a parcel of timberland for another party for
compensationC) a person promoting the sale of real estate through listing in a
publication and recieving a listing feeD) an attorney in fact under duly executed
power of an attorney to convey real estate from an owner or lessor.
Correct Answer
D) an attorney in fact under duly executed power of an attorney to convey real
estate from an owner or lessor.
Question 7
What is the maximum amount of time a licensee can put their license on inactive
status?
A) Two years
B) three years
C) four years
D) indefinitely, as long as renewal fees are paid
Correct Answer
D) indefinitely, as long as renewal fees are paid
Page 3 of 67
, Question 8
A licensee is transferring to another brokerage company. Which of the following
statements is correct concerning the application for transfer?
A) only the licensee's broker may sign the application
B) the licensee's broker or an associate broker may sign the application, if the
associate broker is authorized in writing by the broker
C) the real estate commission must sign the transfer application
D) the signature of the transferring licensee is all that is required
Correct Answer
B) the licensee's broker or an associate broker may sign the application, if the
associate broker is authorized in writing by the broker
Question 9
Exclusive brokerage engagements in Georgia must:
A) be for more than 90 days
B) be in writing and have a definite expiration
C) be signed by the broker
D) not contain an advance fee or fixed fee
Correct Answer
B) be in writing and have a definite expiration
Question 10
A licensee shall make a written disclosure to both the buyer and seller revealing the
party or parties for whom that licensee's firm is acting as an agent and from whom
that licensee's firm will receive any valuable consideration for its effort in the
transaction. This disclosure must be made no later than:
A) the time that any party is shown the property
B) the time that any party first makes an offer
C) 10 days after acceptance of an offer
D) the agreed upon closing date in the transaction
Correct Answer
B) the time that any party first makes an offer
Page 4 of 67
