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Georgia Real Estate Reciprocity Exam |
Study Guide | Practice Questions & Answers |
Latest Update 2026
EXAM COVERAGE SUMMARY
This examination covers all major topics required for Georgia Real Estate Reciprocity, including:
Contract Law, Property Law, Securities & Guarantees, Secured Transactions, Law of Succession,
Business Organizations, Financial Consumer Protection, Anti-Money Laundering, Obligations,
Financial Institution Regulation, Legal Profession Regulation, Consumer & Trade Protection,
Tax Law Foundations, Crimes Against Property, Commercial Transactions, Individual and
Property Taxation, Provisional Remedies, State and Local Taxation, Tax Procedure, Civil Law
Foundations, Agency Law, Confidentiality & Privilege, Judicial Review, State Territory,
Conflicts of Interest, Private International Law, Criminal Law Foundations, Unjust Enrichment,
Georgia-specific real estate practices, licensing requirements, agency relationships, property
descriptions, financing, closing procedures, and federal disclosure requirements.
EXAMINATION QUESTIONS
1. In Georgia, a salesperson whose license has lapsed must reinstate within what timeframe
before being required to retake the examination?
A) 30 days
B) 6 months
C) 12 months
D) 24 months
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Correct Answer: B
Georgia allows a lapsed license to be reinstated within six months without re-examination; after
this period, the applicant must retake the licensing exam and meet all current requirements for
initial licensure.
2. A property manager signs a management agreement with an owner for a commercial
building. Which of the following would be considered a violation of the Georgia Real Estate
License Law regarding this agreement?
A) Setting the rental rates based on market analysis
B) Collecting security deposits and holding them in a trust account
C) Guaranteeing the owner a specific occupancy rate
D) Hiring maintenance staff to perform repairs
Correct Answer: C
Real estate licensees cannot guarantee investment returns or occupancy rates as this would
constitute a prohibited practice under Georgia law; property managers must provide honest
projections without guarantees.
3. When a broker in Georgia terminates the employment of a salesperson, what is the
broker's responsibility regarding the salesperson's license?
A) No action is required as the salesperson holds their own license
B) The broker must return the license to the salesperson immediately
C) The broker must notify the Commission in writing within 10 days
D) The broker must notify the Georgia Real Estate Commission within 30 days
Correct Answer: C
Under Georgia law, when a salesperson's affiliation with a broker ends, the broker must notify
the Georgia Real Estate Commission in writing within ten days of the termination date.
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4. Which of the following real estate interests in Georgia would be considered personal
property rather than real property?
A) A security deed
B) An easement appurtenant
C) A leasehold estate exceeding one year
D) Mineral rights
Correct Answer: C
Leasehold estates, even for long terms, are generally considered personal property (chattels
real) in Georgia, while security deeds, easements appurtenant, and mineral rights attach to the
land as real property interests.
5. A commercial tenant signs a five-year lease requiring monthly rent payments. The lease
contains no renewal option. What type of leasehold estate has been created?
A) Tenancy for years
B) Periodic tenancy
C) Tenancy at will
D) Tenancy at sufferance
Correct Answer: A
A tenancy for years is created when a lease has a definite beginning and ending date, as
specified in the scenario; it does not require notice to terminate and ends automatically on the
specified date.
6. Under Georgia's Intermediate Theory of mortgages, what happens to title when a
borrower executes a security deed?
A) The borrower retains both legal and equitable title
B) The lender receives both legal and equitable title
C) Legal title passes to the lender while equitable title remains with the borrower
D) Title passes to a third-party trustee
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Correct Answer: C
Georgia follows the Intermediate Theory, where the security deed passes legal title to the lender
(grantee) until the loan is fully paid, while the borrower retains equitable title and possession
rights.
7. A property owner in Georgia wishes to transfer ownership of real estate to her adult
children while reserving a life estate for herself. What is the proper instrument to
accomplish this transfer?
A) Quitclaim deed
B) Warranty deed with life estate reservation
C) Deed to secure debt
D) Executor's deed
Correct Answer: B
A warranty deed can be used to convey property while expressly reserving a life estate; the
grantor reserves the right to possession for life while granting the remainder interest to the
children.
8. Which of the following is NOT required for a deed to be valid in Georgia?
A) Grantor's signature
B) Delivery and acceptance
C) Recording in the county records
D) Identifiable grantee
Correct Answer: C
Recording is not required for deed validity in Georgia; a deed is valid between parties upon
proper execution, delivery, and acceptance. Recording provides constructive notice to third
parties but does not affect validity between the original parties.
Georgia Real Estate Reciprocity Exam |
Study Guide | Practice Questions & Answers |
Latest Update 2026
EXAM COVERAGE SUMMARY
This examination covers all major topics required for Georgia Real Estate Reciprocity, including:
Contract Law, Property Law, Securities & Guarantees, Secured Transactions, Law of Succession,
Business Organizations, Financial Consumer Protection, Anti-Money Laundering, Obligations,
Financial Institution Regulation, Legal Profession Regulation, Consumer & Trade Protection,
Tax Law Foundations, Crimes Against Property, Commercial Transactions, Individual and
Property Taxation, Provisional Remedies, State and Local Taxation, Tax Procedure, Civil Law
Foundations, Agency Law, Confidentiality & Privilege, Judicial Review, State Territory,
Conflicts of Interest, Private International Law, Criminal Law Foundations, Unjust Enrichment,
Georgia-specific real estate practices, licensing requirements, agency relationships, property
descriptions, financing, closing procedures, and federal disclosure requirements.
EXAMINATION QUESTIONS
1. In Georgia, a salesperson whose license has lapsed must reinstate within what timeframe
before being required to retake the examination?
A) 30 days
B) 6 months
C) 12 months
D) 24 months
, Page |2
Correct Answer: B
Georgia allows a lapsed license to be reinstated within six months without re-examination; after
this period, the applicant must retake the licensing exam and meet all current requirements for
initial licensure.
2. A property manager signs a management agreement with an owner for a commercial
building. Which of the following would be considered a violation of the Georgia Real Estate
License Law regarding this agreement?
A) Setting the rental rates based on market analysis
B) Collecting security deposits and holding them in a trust account
C) Guaranteeing the owner a specific occupancy rate
D) Hiring maintenance staff to perform repairs
Correct Answer: C
Real estate licensees cannot guarantee investment returns or occupancy rates as this would
constitute a prohibited practice under Georgia law; property managers must provide honest
projections without guarantees.
3. When a broker in Georgia terminates the employment of a salesperson, what is the
broker's responsibility regarding the salesperson's license?
A) No action is required as the salesperson holds their own license
B) The broker must return the license to the salesperson immediately
C) The broker must notify the Commission in writing within 10 days
D) The broker must notify the Georgia Real Estate Commission within 30 days
Correct Answer: C
Under Georgia law, when a salesperson's affiliation with a broker ends, the broker must notify
the Georgia Real Estate Commission in writing within ten days of the termination date.
, Page |3
4. Which of the following real estate interests in Georgia would be considered personal
property rather than real property?
A) A security deed
B) An easement appurtenant
C) A leasehold estate exceeding one year
D) Mineral rights
Correct Answer: C
Leasehold estates, even for long terms, are generally considered personal property (chattels
real) in Georgia, while security deeds, easements appurtenant, and mineral rights attach to the
land as real property interests.
5. A commercial tenant signs a five-year lease requiring monthly rent payments. The lease
contains no renewal option. What type of leasehold estate has been created?
A) Tenancy for years
B) Periodic tenancy
C) Tenancy at will
D) Tenancy at sufferance
Correct Answer: A
A tenancy for years is created when a lease has a definite beginning and ending date, as
specified in the scenario; it does not require notice to terminate and ends automatically on the
specified date.
6. Under Georgia's Intermediate Theory of mortgages, what happens to title when a
borrower executes a security deed?
A) The borrower retains both legal and equitable title
B) The lender receives both legal and equitable title
C) Legal title passes to the lender while equitable title remains with the borrower
D) Title passes to a third-party trustee
, Page |4
Correct Answer: C
Georgia follows the Intermediate Theory, where the security deed passes legal title to the lender
(grantee) until the loan is fully paid, while the borrower retains equitable title and possession
rights.
7. A property owner in Georgia wishes to transfer ownership of real estate to her adult
children while reserving a life estate for herself. What is the proper instrument to
accomplish this transfer?
A) Quitclaim deed
B) Warranty deed with life estate reservation
C) Deed to secure debt
D) Executor's deed
Correct Answer: B
A warranty deed can be used to convey property while expressly reserving a life estate; the
grantor reserves the right to possession for life while granting the remainder interest to the
children.
8. Which of the following is NOT required for a deed to be valid in Georgia?
A) Grantor's signature
B) Delivery and acceptance
C) Recording in the county records
D) Identifiable grantee
Correct Answer: C
Recording is not required for deed validity in Georgia; a deed is valid between parties upon
proper execution, delivery, and acceptance. Recording provides constructive notice to third
parties but does not affect validity between the original parties.
