Georgia Real Estate Broker Exam — All Questions

A seller tells a Georgia broker, “List it, get me $300,000, and whatever you sell it above that is your fee.” Under the GREC Rules, the broker must:

• a.Accept it, provided the seller’s instruction is confirmed in a writing signed at the engagement
• b.Accept it, provided the broker’s share of the excess is capped at a customary commission rate
• c.Accept it, provided the amount realized over $300,000 is reported to GREC after the closing
• d.Refuse it and add the broker’s fee to the seller’s figure, so the client sees a gross price✓

GREC Rule 520-1-.06(1)(c) states that “The Commission prohibits the acceptance by brokers of net brokerage engagements and hereby makes it obligatory upon the broker, when securing the brokerage engagement, to add the broker’s fee thereby notifying the client of the gross price of the property and the broker’s services.” A net listing is banned outright in Georgia, so no amount of paperwork rescues it: a signed instruction, a self-imposed cap on the broker’s share, and a report to GREC after the fact all leave the broker holding a prohibited engagement. The cure the rule prescribes is structural — quote a gross price with the fee stated on top of it, so the client can see both numbers before signing.

A Georgia listing expires without renewal and the licensee leaves the firm’s “For Sale” sign in the yard. The license law gives the licensee how long after expiration to remove it?

• a.Ten days after the listing expires✓
• b.Three business days after it expires
• c.Thirty days after the listing expires
• d.Sixty days after the listing expires

O.C.G.A. § 43-40-25(b)(11) makes it an unfair trade practice to place a sign on property offering it for sale or rent without the written consent of the owner or the owner’s authorized agent “and failing to remove such sign within ten days after the expiration of listing.” The statute fixes ten days, so three business days is shorter than the law requires and thirty and sixty days are past the point where the sign has become a violation. Note the two halves of the paragraph: written consent is needed to put the sign up, and the ten-day clock governs taking it down.

A Georgia licensee refers her buyer client to a home-warranty company and will be paid $150 by that company for the referral. What does the license law require?

• a.No disclosure, because the payment comes from the warranty company and not from the client
• b.No disclosure, because a referral fee of less than $500 is treated as nominal by the Code
• c.Oral disclosure to the principal at or before the closing, noted in the broker’s own file
• d.Written disclosure to the principal that she will receive value for referring the service✓

O.C.G.A. § 43-40-25(b)(6)(C) makes it an unfair trade practice to fail “to disclose in writing to a principal in a real estate transaction … the receipt of anything of value for the referral of any service or product in a real estate transaction to a principal.” The obligation turns on the licensee receiving value, not on who pays it, and the Code sets no dollar floor below which the duty disappears. Nor will a spoken disclosure do: the paragraph says in writing. GREC Rule 520-1-.10(6)(a) allows the disclosure to be made in advance on pre-established terms set out in the brokerage agreement, and Rule 520-1-.10(6)(c) adds that this duty is on top of, not instead of, federal requirements.

A Georgia licensee knows a homeowner has an exclusive right-to-sell listing with a competing firm, and negotiates a sale directly with that owner. Under O.C.G.A. § 43-40-25(b)(14) this is:

• a.An unfair trade practice, unless the licensee first gives the listing broker written notice of contact
• b.Permitted, because the owner rather than the licensee opened the conversation about a possible sale
• c.Permitted, because an exclusive right-to-sell listing binds only the owner and the listing broker
• d.An unfair trade practice, unless the listing says the listing broker will not negotiate for the client✓

Paragraph (b)(14) bars negotiating a sale, exchange or lease directly with an owner, lessor, purchaser or tenant when the licensee knows that person has a written outstanding exclusive listing or exclusive brokerage agreement with another broker, “unless the outstanding listing or brokerage agreement provides that the licensee holding such agreement will not provide negotiation services to the client.” That carve-out is the only one the statute writes. Notice to the other broker is not a substitute, the owner’s having started the conversation does not cure it, and the fact that the listing is a contract between owner and listing broker is exactly why the Code protects it. GREC Rule 520-1-.10(1) states the same limit from the offer side.

A Georgia broker has never held trust funds and so keeps no designated trust account. On Tuesday the broker accepts an earnest money check. O.C.G.A. § 43-40-20(a) requires the broker to open the designated trust or escrow account:

• a.Within one business day of receiving the trust funds✓
• b.Within three business days of receiving the trust funds
• c.Within ten calendar days of receiving the trust funds
• d.Within one month of receiving the trust funds

Subsection (a) excuses a broker who accepts no trust funds from maintaining an account, then closes the gap: “if a broker does not maintain such a trust or escrow account and later receives trust funds in a real estate brokerage transaction, such broker must open the designated trust or escrow account required by this subsection within one business day of the receipt of such trust funds.” One business day is the statutory figure. Do not confuse it with the separate deposit deadline behind GREC’s citation schedule, Rule 520-1-.14(3)(t), which fines a licensee whose deposit was made more than three business days after receipt unless the contract provides otherwise. Rule 520-1-.08(1)(a) then gives the broker one month to notify GREC of the new account.

GREC Rule 520-1-.08(6) requires a Georgia broker who maintains a trust account to:

• a.Prepare a written statement at least monthly comparing trust liability with the reconciled bank balance✓
• b.Obtain an annual audit of the account by a certified public accountant, whose report is kept five years
• c.Prepare a written reconciliation at each license renewal, a copy of which is filed with the Commission
• d.Prepare a quarterly reconciliation that the firm’s qualifying broker reviews and files with the Commission

The rule requires a broker to “cause to be made, at least monthly, a written reconciliation statement comparing the broker’s total trust liability with the reconciled financial institution balance(s) of the broker’s trust account(s),” and paragraph (6)(a) directs that “the broker shall review the monthly reconciliation statement and maintain copies in the broker’s files for a period of three years.” The statement stays in the broker’s files; it is not routinely filed with GREC. A CPA report is an alternative the Commission may accept in lieu of its own examination under Rule 520-1-.08(5)(b), not an annual audit requirement, and reconciliation is monthly rather than quarterly or once a renewal period.

A buyer and seller are in dispute over earnest money. The Georgia broker disburses it to the seller on a reasonable interpretation of the contract, one of the grounds GREC recognizes. Rule 520-1-.08(3)(c) then requires the broker to:

• a.Immediately obtain the Commission’s written approval of the disbursal
• b.Immediately file an interpleader action so a court can confirm the disbursal
• c.Immediately deliver the firm’s trust account reconciliation to both parties
• d.Immediately notify all parties to the contract in writing of the disbursal✓

Rule 520-1-.08(3)(b) lists the circumstances in which a broker is deemed to have properly accounted for trust funds, including a written agreement signed by all parties, an interpleader action, a court order, and “upon a reasonable interpretation of the contract which directed the broker to deposit the funds.” Subparagraph (c) attaches the condition: “When a broker makes a disbursal to which all parties to the contract do not expressly agree, the broker must immediately notify all parties in writing of the disbursal.” GREC does not pre-approve disbursals. Interpleader is one of the alternative grounds in (b), not a step that must follow a disbursal already made on another ground, and the reconciliation statement is an internal record under paragraph (6).

A Georgia sales contract goes to a binding agreement and the broker is holding $8,000 in earnest money. When may the broker take the firm’s commission out of that money?

• a.Once the contract becomes binding, because the firm has by then earned the commission it quoted
• b.Once the buyer’s financing contingency and inspection period have both expired without a demand
• c.Once the transaction is consummated or terminated, or on a separate written agreement of all parties✓
• d.Once the appraisal supports the contract price and the lender has issued its written commitment

O.C.G.A. § 43-40-20(e) provides that a broker “shall not be entitled to any part of the earnest money, security deposit, or other trust funds paid to the broker in connection with any real estate transaction as part or all of the broker’s commission or fee until the transaction has been consummated or terminated.” GREC Rule 520-1-.08(3)(d) spells out when the Commission treats that test as met: in a sale, the closing has occurred or the contract’s closing date and any extensions have passed; in a lease, possession has been delivered; or the broker holds a written agreement, separate from the sales contract, signed by all parties with an interest. A binding agreement, an expired contingency and a clean appraisal are all milestones short of consummation or termination.

A Georgia agent buys a billboard advertising one of her firm’s listings, showing her own name and mobile number in large type and the firm’s name in small type at the bottom. Under GREC Rule 520-1-.09(7) the advertisement is:

• a.Non-compliant, because the firm’s name and number must be at least as prominent as the licensee’s✓
• b.Non-compliant, because an affiliated licensee’s own name and mobile number may not appear at all
• c.Compliant, because the firm’s registered name is disclosed somewhere in the advertisement’s body
• d.Compliant, because outdoor signage is exempt from the firm identification requirements of the rule

Rule 520-1-.09(7) requires firms advertising specific real estate to include the firm name as registered with the Commission and a telephone number for the firm, and then imposes the comparison test twice: “the name of the firm … shall appear in equal or greater size, prominence, and frequency than the name or names of any affiliated licensees” and “the firm’s telephone number shall appear in equal or greater size, prominence, and frequency than the telephone number of any affiliated licensee.” The firm number must also be one “at which the public can reach a broker or a manager of the firm without going through the affiliated licensee(s) listed in the advertisement.” The licensee’s own name is not banned, merely subordinated, and mere presence of the firm name at the bottom is what the rule exists to stop. The only exception in (7)(a) is for lawful restrictions such as covenants or ordinances that forbid the firm name on a particular type of sign.

GREC Rule 520-1-.10(2) requires that a licensee preparing or signing a brokerage engagement or an offer to purchase, sell, lease or exchange real property include:

• a.The six-digit license number of the licensee who actually prepared or signed the document
• b.The six-digit license number of the listing firm and of that firm’s qualifying broker only
• c.The six-digit license number of every licensee and of each unlicensed assistant involved
• d.The six-digit license number of each firm and of each licensee participating in the transaction✓

The rule reads: “A licensee preparing or signing a brokerage engagement or an offer to purchase, sell, lease, or exchange real property shall include the license number issued by the Commission of each firm and of each licensee participating in the transaction. The licensee shall include the six digit license number issued by the Commission.” Both firms and both licensees are covered, so limiting it to the drafter or to the listing side falls short. Buyers, sellers and unlicensed support personnel hold no Commission license number, so there is nothing for them to disclose — support personnel are governed instead by the task guidelines in Rule 520-1-.07(6).

How does the Brokerage Relationships in Real Estate Transactions Act, O.C.G.A. § 10-6A-1 et seq., treat a Georgia broker’s relationship with a client?

• a.The broker owes only the duties this chapter sets out and is not deemed a fiduciary to any party✓
• b.The broker owes the full common-law fiduciary duties, which this chapter restates and codifies
• c.The broker owes fiduciary duties to clients and to customers alike in a residential transaction
• d.The broker owes no duty at all unless the brokerage engagement expressly creates one in writing

O.C.G.A. § 10-6A-4(a) is explicit: “A broker who performs brokerage services for a client or customer shall owe the client or customer only the duties and obligations set forth in this chapter, unless the parties expressly agree otherwise in a writing signed by the parties. A broker shall not be deemed to have a fiduciary relationship with any party or fiduciary obligations to any party but shall only be responsible for exercising reasonable care in the discharge of its specified duties.” Section 10-6A-2(a) explains why: the General Assembly found that applying the common law of agency to brokerage had produced “misunderstandings and consequences … contrary to the best interests of the public.” So BRRETA displaces common-law fiduciary analysis rather than codifying it, and it is not limited to residential transactions. Duties do exist by default — §§ 10-6A-5 through 10-6A-8 list them for sellers, landlords, buyers and tenants.

Which statement must appear in the written consent a Georgia broker obtains before acting as a dual agent?

• a.A statement that the dual agent will keep every adverse material fact confidential from both clients
• b.A statement that the Georgia Real Estate Commission has reviewed and approved the dual agency
• c.A statement that the client does not have to consent to the dual agency✓
• d.A statement that either client may rescind the sales contract within three days of signing it

O.C.G.A. § 10-6A-12(a) lists six items the written consent must contain, and paragraph (5) is “a statement that the client does not have to consent to the dual agency.” The consent must also describe the transactions covered, say that the broker represents two clients whose interests could be adverse, promise disclosure of the nature of any material relationship with the other client, and record that consent was voluntary and the engagement read and understood. Paragraph (3) runs the opposite way from the first distractor: the dual agent will disclose all adverse material facts actually known, withholding only what a client made confidential. GREC approves no individual dual agency, and BRRETA creates no three-day rescission right. Once such a consent is signed, subsection (b) makes the consent “conclusively … given and informed.”

A Georgia broker assigns one affiliated licensee to represent the seller and a second to represent the buyer in the same transaction, under a company policy meeting O.C.G.A. § 10-6A-13(a). The result is that:

• a.The broker is a dual agent and must obtain the dual-agency consent required by § 10-6A-12
• b.Neither the broker, the affiliated licensees nor the firm is deemed to be a dual agent✓
• c.The broker is a dual agent unless the two licensees work from different branch offices
• d.The arrangement is prohibited, because one firm may represent only one client per transaction

Section 10-6A-13(a) lets a broker assign “different licensees affiliated with the broker as designated agents to exclusively represent different clients in the same transaction,” directly or through company policy, and each designated agent owes his or her own client the duties in §§ 10-6A-5 through 10-6A-8. Subsection (b) supplies the consequence: “If a broker appoints different designated agents in accordance with subsection (a) … neither the broker, the broker’s licensees, nor the real estate brokerage firm shall be deemed to be dual agents.” That is what separates designated agency from dual agency, so the § 10-6A-12 consent is not triggered and branch geography is irrelevant. Subsection (c) adds that there is no imputation of knowledge among the broker, the designated agents and the clients.

A Georgia broker is paid by the seller but has entered into no client relationship with either party. Under BRRETA this transaction broker:

• a.Performs ministerial acts only and owes the parties no accounting or disclosure obligation at all
• b.Becomes the seller’s agent automatically, because payment of compensation fixes the relationship
• c.May not be paid by either party at all, because payment would create a brokerage engagement
• d.Performs ministerial acts only, yet must present all offers, account for funds and disclose defects✓

O.C.G.A. § 10-6A-3(14) defines a transaction broker as one “who has not entered into a client relationship with any of the parties … and who performs only ministerial acts on behalf of one or more of the parties, but who is paid valuable consideration.” Section 10-6A-14(b) then imposes affirmative duties: timely present all offers, timely account for all money and property received, and timely disclose to buyers and tenants adverse material facts about the physical condition of the property and adverse physical conditions in the immediate neighborhood within one mile. Section 10-6A-11 disposes of the compensation theory — “The payment or promise of payment of compensation to a broker … shall not determine whether a brokerage relationship has been created.” Subsection 10-6A-14(a) lists the ministerial acts: identifying property, supplying statistics, providing and filling in preprinted forms, locating other professionals.

A Georgia seller instructs her broker to keep confidential that the roof leaks. A prospective buyer, a customer of the firm, asks the broker directly about the roof. Under § 10-6A-9(c) the broker must:

• a.Keep the seller’s confidence, because a client’s express instruction outranks a duty to a customer
• b.Not give the customer false information, because that duty prevails over the client’s confidence✓
• c.Keep the seller’s confidence and withdraw from the transaction before answering the buyer’s question
• d.Refer the question to the qualifying broker, who alone may waive the seller’s confidentiality here

Subsection (c) resolves the conflict by rule rather than by judgment: “in the event a conflict arises between a broker’s duty to keep the confidence of a client and the duty not to give customers false information, the broker’s duty not to give false information to customers shall prevail and shall govern the broker’s actions. No cause of action shall arise on behalf of any person against a broker or the broker’s affiliated licensees for revealing information in compliance with this subsection.” The statute both directs the answer and immunizes the broker who gives it, so there is nothing to withdraw from and no waiver for the qualifying broker to grant. Section 10-6A-5(b)(1) points the same way: a seller’s broker must timely disclose known adverse material facts about the physical condition of the property that a reasonably diligent inspection would not reveal.

A Georgia seller’s broker actually knows of an adverse physical condition near the listing that a buyer could not find by diligent inspection. O.C.G.A. § 10-6A-5(b)(2) sets the disclosure radius at conditions in the immediate neighborhood within:

• a.Conditions within one-half mile of it
• b.Conditions within the same subdivision plat
• c.Conditions on any parcel that adjoins it
• d.Conditions within one mile of the property✓

Paragraph (b)(2) requires a seller’s broker to disclose “all material facts pertaining to existing adverse physical conditions in the immediate neighborhood within one mile of the property which are actually known to the broker and which could not be discovered by the buyer upon a diligent inspection of the neighborhood or through the review of reasonably available governmental regulations, documents, records, maps, and statistics.” The same one-mile figure appears for landlords’ brokers in § 10-6A-6(b)(2) and for transaction brokers in § 10-6A-14(b)(3)(B). Subdivision or parcel boundaries do not set the radius. The paragraph also limits the duty: “Nothing in this subsection shall be deemed to create any duty on the part of a broker to discover or seek to discover” such conditions, and it lists land use maps, zoning ordinances, plats, flood plain maps and school district maps as records the buyer is expected to review.

A company asks Georgia homeowners to sign a long-term exclusive right to list their homes in exchange for cash today, and records the agreement in the deed records as a lien. Under O.C.G.A. § 10-6A-10(b) as amended in 2023, that recorded instrument is:

• a.Valid, provided the homeowner’s signature was witnessed and notarized
• b.Valid, provided the instrument was recorded within 90 days of signing
• c.Void and unenforceable, and no release or voiding of it is required✓
• d.Enforceable, though the homeowner may sue the company for damages

Senate Bill 90 (2023, effective January 1, 2024) rewrote § 10-6A-10 and added § 10-6A-3(12.1), defining an “option to enter into a brokerage engagement.” Subsection (b)(3) now says a brokerage engagement or an option to enter into one shall not “purport to create a recordable lien, encumbrance, or other real property security interest. Any such lien, encumbrance, or other real property security interest, if recorded, shall be void and unenforceable and no release or voiding of such lien, encumbrance, or other real property security interest shall be required.” Notarization and prompt recording cannot validate an instrument the statute voids. The same Act added paragraph (35) to the Fair Business Practices Act at § 10-1-393(b), making failure to comply with § 10-6A-9 or § 10-6A-10 an unfair or deceptive practice, and § 10-6A-9(a)(2)(C) caps an engagement with no stated expiration at one year. Commercial real estate lien rights under § 44-14-602 are expressly preserved.

What experience and education must a candidate show to activate a Georgia broker’s or associate broker’s license?

• a.An active license in five of the seven years just before applying, plus a 75-hour broker course
• b.An active license in three of the five years just before applying, plus the 60-hour broker course✓
• c.An active license in two of the three years just before applying, plus a 45-hour broker course
• d.An active license held at any time in the past, plus the 25-hour salesperson postlicense course

GREC Rule 520-1-.04(5)(b) requires that “an applicant must show proof of having held a license in active status for at least three years of the five years immediately preceding the filing of an application to become a broker or an associate broker,” and O.C.G.A. § 43-40-8(c)(5) requires “evidence of completion of 60 instructional hours in a broker’s course of study approved by the commission.” Rule 520-2-.04(4) sets the course content, which must cover conducting loan closings, real estate office management, personnel policies, trust account record keeping and discharging a broker’s responsibility for associate licensees. The 75-hour course is the salesperson prelicense requirement and the 25-hour course is the salesperson postlicense requirement, neither of which qualifies a broker. The same rule gives a broker candidate 12 months from passing the examination to activate the license before the examination must be retaken.

A Georgia licensee lets an active license lapse for nonpayment of the renewal fee and applies 14 months later. Under GREC Rule 520-1-.05(4) the license may be reinstated to active status by:

• a.Paying the fees and retaking the state portion of the broker qualifying examination
• b.Paying the fees and completing the 60-hour Brokers Prelicense Course a second time
• c.Paying the fees and showing the continuing education that active status would have required✓
• d.Applying again as an original applicant, since any lapse ends the licensee’s eligibility

Rule 520-1-.05(4)(c) allows a licensee who let an active license lapse for nonpayment to reinstate to active status “within two years of the date of lapsing by paying the fees cited in Rule, provided the licensee has satisfactorily completed the continuing education requirements which would have been required if such licensee had been on active status.” The prelicense course reappears only for a lapse longer than two years but less than five, under (4)(f); re-examination is the route in (4)(g) for a licensee who does not use (4)(c) through (4)(f); and requalifying as an original applicant is reserved by (4)(h) for a lapse longer than five years. Rule 520-1-.04(1)(a)3 adds the reinstatement fee: $100.00 within four months of lapsing, and more after that.

If the renewal fee is not paid, when does an active Georgia individual real estate license lapse?

• a.At the end of December in the second calendar year after the license was activated
• b.At the end of June in each odd-numbered year, whatever the date of activation was
• c.At the end of the month in which the Commission issued the wall certificate, yearly
• d.At the end of the licensee’s birth month in the fourth calendar year after activation✓

GREC Rule 520-1-.05(3) provides that unless renewal fees are paid, licenses lapse “in the case of an individual license, on the last day of the month of the birthday of the individual licensee and … in the case of a firm licensed as a broker on the last day of the month of the fourth anniversary of its original licensure.” Rule 520-1-.04(1) confirms the four-year cycle: an individual’s activation and renewal fees “shall cover all fees due the Commission until the applicant’s month of birth in the fourth calendar year following the calendar year in which the license was activated.” Georgia therefore uses a rolling four-year period keyed to the licensee, not a common statewide expiration date and not an annual or triennial cycle.

A Georgia licensee tells homeowners that schools serving their neighborhood will decline because of a change in the area’s racial composition, hoping to pick up listings. Under GREC Rule 520-1-.13(1) this is:

• a.Prohibited, because the rule names a decline in the quality of the area’s schools as forbidden✓
• b.Prohibited only where the licensee cannot support the statement with published school test data
• c.Permitted, because the homeowners raised the subject of the neighborhood before the licensee did
• d.Permitted under the GREC rules, though the statement may still violate the federal Fair Housing Act

Rule 520-1-.13(1) forbids a licensee from representing, explicitly or implicitly, for the purpose of inducing or discouraging a purchase, sale, rental or listing, that a change has occurred or may occur in the composition of a block, neighborhood or area based on race, color, religion, sex, handicap, familial status or national origin, or that the presence of persons of a particular protected class will or may result in “a lowering of property values,” “an increase in criminal or antisocial behavior,” or “a decline in the quality of the schools serving the area.” The rule bars the representation itself, so supporting data does not rescue it, and it makes no difference who raised the topic. This is a Georgia licensing violation in its own right — O.C.G.A. § 43-40-25(b)(1)(E) lists the same conduct as an unfair trade practice, exposing the licensee to GREC sanction quite apart from any federal claim.

An owner of two single-family rental houses in Georgia claims the Fair Housing Act exemption at O.C.G.A. § 8-3-202(b) while listing one of them with a brokerage firm. The exemption:

• a.Applies, because the owner holds no more than three single-family dwellings at any one time
• b.Applies, because a listing firm acts for the owner and the owner’s own status is what controls
• c.Applies, but only where the owner has claimed no other such sale within the past 24 months
• d.Does not apply, because the dwelling was rented through the services of a licensed brokerage✓

The exemption in § 8-3-202(b)(1)(A), as revised by House Bill 969 (2020, effective January 1, 2021), requires all of its conditions at once: the private individual owner may not own more than three such single-family dwellings at a time, and the dwelling must be sold or rented “without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman.” Bringing in a licensee ends the exemption whichever way the three-dwelling count comes out, and the 24-month limit in (b)(2) is an additional restriction on non-resident owners rather than a route back in. Note also the opening words of subsection (b): the exemption never reaches paragraph (3) of subsection (a), so the ban on discriminatory advertising applies to everyone.

A Georgia buyer wins an unsatisfied $60,000 judgment against a licensee for conduct violating the license law and applies to the real estate education, research, and recovery fund. The most the fund can pay on this transaction is:

• a.$10,000, and the fund’s total exposure for that licensee’s acts is $50,000
• b.$50,000, and the fund’s total exposure for that licensee’s acts is $150,000
• c.$25,000, and the fund’s total exposure for that licensee’s acts is $75,000✓
• d.$60,000, limited only by the balance the fund is holding at the time of the order

O.C.G.A. § 43-40-22(b) obligates the fund for actual or compensatory damages but provides “that nothing shall be construed to obligate the fund for more than $25,000.00 per transaction regardless of the number of persons aggrieved or parcels of real estate involved in such transaction.” Paragraph (b)(1) adds that the fund’s liability for a licensee’s acts ends once court orders authorizing payment reach “an aggregate amount of $75,000.00 on behalf of such licensee,” and (b)(3) bars any claimant from ever obtaining more than $25,000. Interest and costs are excluded, a licensee acting as principal or agent has no claim, and the same subsection requires a minimum fund balance of $1 million. Under (d)(1) the underlying action must be started within two years of the accrual of the cause of action.

The court orders a payment from the Georgia real estate education, research, and recovery fund on account of a licensee’s conduct. What happens to that licensee’s license?

• a.Suspended for one year, after which the licensee may apply to the Commission for restoration
• b.Revoked automatically on the order, with no new license until the fund is repaid with interest✓
• c.Unaffected unless the Commission separately votes to impose a disciplinary sanction on the licensee
• d.Revoked automatically, though the repayment obligation is erased by a discharge in bankruptcy

O.C.G.A. § 43-40-22(d)(6) provides that if the Commission pays from the fund in settlement of a claim or toward satisfaction of a judgment, “the license of such licensee shall be automatically revoked upon the issuance of a court order authorizing payment,” and if the license is a firm’s, the qualifying broker’s license is automatically revoked as well. No licensee “shall be eligible to receive a new license until such licensee has repaid in full, plus interest at the judgment rate in accordance with Code Section 7-4-12, the amount paid from the … fund on such licensee’s account.” The same paragraph closes the bankruptcy route: “A discharge in bankruptcy shall not relieve a person from the penalties and disabilities provided in this subsection.” Revocation is automatic, so it needs no separate vote, and it is revocation rather than a fixed suspension. Subsection (h) subrogates the Commission to the judgment creditor’s rights.

GREC issues a citation to a Georgia licensee in lieu of initiating a disciplinary proceeding. Under O.C.G.A. § 43-40-25.2(b)(2) the citation may impose a fine of:

• a.Up to $1,000 for each violation, with fines for multiple violations limited to $5,000 in any one citation✓
• b.Up to $500 for each violation, with fines for multiple violations limited to $2,500 in any one citation
• c.Up to $1,000 for each violation, with no aggregate limit on any one citation
• d.Up to $2,000 for each violation, with fines for multiple violations limited to $10,000 in any one citation

Section 43-40-25.2(b)(2) authorizes a citation ordering completion of a course of study, periodic accountant’s reports on the trust account, “or to pay a fine not to exceed $1,000.00 for each violation of this chapter or its rules and regulations, with fines for multiple violations limited to $5,000.00 in any one citation, or a combination of the above.” GREC Rule 520-1-.14(1) repeats those figures, and the same caps appear at § 43-40-25(a)(7) for a full disciplinary proceeding. Timing matters as much as the amount: if the licensee does not request a hearing within 30 days of service, the order in the citation becomes final, and Rule 520-1-.14(5) then gives the licensee 30 days from that effective date to comply. Subsection (a) says a citation is not itself a disciplinary sanction, and Rule 520-1-.14(9) bars the Commission from considering prior citations the licensee has fully complied with.

A Georgia brokerage asks GREC for a declaratory ruling on whether a rule applies to a marketing program it is planning. Under GREC Rule 520-1-.01(6) the Commission:

• a.Responds within 60 days of the written request, unless it seeks the Attorney General’s opinion✓
• b.Responds within 30 days of the written request and may not consult the Attorney General at all
• c.Responds only after the requesting firm has been named a respondent in a contested case
• d.Refers the question to the Attorney General, who then issues the ruling in the Commission’s name

Rule 520-1-.01(6) provides that “The Commission shall supply declaratory rulings as to the applicability of any statutory provision or of any of its rules. Requests for declaratory rulings must be in writing and the signature of the petitioner notarized. The Commission shall respond to a request for a declaratory ruling within sixty (60) days of its receipt of said request except when the Commission feels it would be in the best interest of the Commission to seek the opinion of the Attorney General.” The ruling issues from the Commission, not from the Attorney General, and nothing about it depends on a pending case — indeed the same paragraph bars rulings on matters related to investigative hearings then pending. The 30-day figure belongs to a different paragraph: under Rule 520-1-.01(5) the Commission has 30 days to deny a rulemaking petition or begin rulemaking.

A sworn written request asks GREC to investigate a licensee’s conduct from five years ago. It does not allege fraud or mishandling of fiduciary funds and has not been litigated. Under O.C.G.A. § 43-40-27(a) the Commission:

• a.May not investigate, because the acts occurred more than two years before it would begin
• b.May investigate, because a complaint filed under oath carries no time limitation at all
• c.May not investigate, because the acts occurred more than three years before it would begin✓
• d.May investigate, because the three-year limit reaches only own-motion investigations

Subsection (a) requires GREC to investigate on a sworn written request and permits it to investigate on its own motion, then adds the limit: “Except for investigations of applicants for licensure, investigations of allegations of fraudulent conduct or of mishandling of funds held in a fiduciary capacity, or investigations of possible violations of this chapter which have been litigated in the courts or arise from litigation in the courts, the commission shall not initiate an investigation on its own motion or investigate a licensee’s activity as the result of a sworn written request for investigation unless the act or acts which may constitute a violation of this chapter occurred within three years of the initiation of the investigation.” Three years is the figure, the limit reaches sworn requests and own-motion investigations alike, and the listed exceptions — none of them present here — are the only ways past it.

How is the Georgia Real Estate Commission composed under O.C.G.A. § 43-40-2?

• a.Nine members appointed by the Governor for four-year terms, with five constituting a quorum
• b.Six members appointed by the Governor for five-year terms, with four constituting a quorum✓
• c.Seven members elected by Georgia licensees for three-year terms, with a majority as a quorum
• d.Five members appointed by the Secretary of State for six-year terms, with three as a quorum

Subsection (a) creates the Commission “composed of six members, each of whom shall be appointed by the Governor and confirmed by the Senate for a term of five years. Five of the members shall be licensees who shall have been residents of this state and actively engaged in the real estate business for five years. The sixth member … shall have no connection with the real estate industry whatsoever but shall have a recognized interest in consumer affairs and in consumer protection concerns.” Subsection (b) adds that “four members shall constitute a quorum” and that the Commission meets at least monthly. Members are appointed, not elected by licensees, and subsection (h) assigns the Commission to the Secretary of State’s office for administrative purposes only — the Secretary of State does not appoint it.

House Bill 399 (Act 315), effective July 1, 2025, revised the list of persons exempt from the Georgia license law at O.C.G.A. § 43-40-29(a)(1). Which person did it add?

• a.A full-time employee of a licensed brokerage firm who manages that firm’s own listings
• b.Any person who manages residential rental property under a written agreement with the owner
• c.A family member of an owner, as that term is defined in rules promulgated by the Commission✓
• d.Any person who holds a current real estate license issued by another state or territory

Section 3 of House Bill 399 rewrote § 43-40-29(a) so that paragraph (1) now exempts a person acting “as owner, as the spouse of an owner, as the family member of an owner, as that term is defined in rules promulgated by the Commission, as general partner of a limited partnership as an officer of a limited liability company, as lessor, or as prospective purchaser or their regular employees” when acting on property owned, leased or to be acquired by that owner. The other options describe things the chapter handles elsewhere and not as new exemptions: a brokerage’s own licensees are licensed, managing another owner’s rental property for compensation is brokerage under § 43-40-1(2)(H), and out-of-state licensees are dealt with by the nonresident provisions of § 43-40-9. The Office of Legislative Counsel records the Act as amending §§ 36-74-30 and 43-40-29 and enacting § 44-7-25, effective July 1, 2025.

A Georgia broker holds a written management agreement he procured from the owner and employs an unlicensed assistant under § 43-40-29(a)(10). Which task may that assistant perform?

• a.Negotiate the monthly rent with a prospect who thinks the asking figure is high
• b.Sign a listing agreement for a house the same owner is putting up for sale
• c.Cold-call owners nearby to solicit additional property management accounts
• d.Show a rental unit under the broker’s direct instructions and execute the lease✓

Paragraph (a)(10) exempts an individual employed by a broker to assist in property management services on property under a written management agreement the broker procured from and negotiated with the owner, provided the activities are explicitly authorized in a written agreement between broker and employee and are limited to a listed set. Subparagraph (C) is “showing a rental unit to any person, provided that the employee is acting under the direct instructions of the broker, and executing leases or rental agreements.” Negotiating terms, listing property for sale and prospecting for new business are all outside the list; GREC Rule 520-1-.07(6)(f) separately bars support personnel from making cold calls, discussing terms with owners, and negotiating fees. The paragraph closes by fixing responsibility: “Any broker utilizing the services of such an employee shall be held responsible under this chapter for the activities of that individual.”

An unlicensed person negotiates a single Georgia sale for a promised fee, is not paid, and sues the seller for it. Under the license law the suit:

• a.Fails, because no action for compensation lies without alleging and proving licensure at the time✓
• b.Succeeds, because a single transaction does not amount to acting as a broker for a fee
• c.Succeeds in quantum meruit for the reasonable value of the services actually rendered
• d.Succeeds, because the seller knew of the missing license and agreed to the fee anyway

O.C.G.A. § 43-40-24(a) provides that “no person shall bring or maintain any action in the courts of this state for the collection of compensation for the performance of any of the acts mentioned in this chapter without alleging and proving that he was a licensed broker in Georgia at the time the alleged cause of action arose.” Section 43-40-30(a) forecloses the single-transaction argument: anyone who performs “any single act defined in paragraph (2) of Code Section 43-40-1, whether as a part of a transaction or as an entire transaction, shall be deemed a licensee,” and doing so unlicensed violates the chapter. The bar is on maintaining the action at all, so recasting the claim as quantum meruit or pointing to the seller’s knowledge does not revive it. Section 43-40-31 makes unlicensed practice a misdemeanor, and § 43-40-30(c) lets GREC issue a cease and desist order that becomes final ten days after issuance unless a hearing is requested.

Effective July 1, 2025, how many of a Georgia broker's 36 continuing education hours must be Broker-specific courses?

• a.Eighteen hours, one half the renewal requirement✓
• b.Thirty-six hours, the entire renewal requirement
• c.Twenty-four hours, as salespersons must complete
• d.Nine hours, one quarter of the renewal requirement

GREC's amendment to Rule 520-1-.05 took effect July 1, 2025 and requires a minimum of 18 CE hours on Broker-specific topics. The total did not increase: it is still 36 hours per 4-year renewal period, of which 18 must be Broker CE. Cite: GREC, 2025 Broker Continuing Education Rule Changes; Rule 520-1-.05.

How do a Georgia broker's 36 renewal CE hours break down after the 2025 rule change?

• a.18 Broker CE, 18 License Law, no free electives
• b.12 Broker CE, 12 License Law, 12 free electives
• c.18 Broker CE, 3 License Law, 15 any approved✓
• d.24 Broker CE, 3 License Law, 9 any approved

GREC's own FAQ states the split: 18 hours approved for Broker CE, 3 hours approved for License Law, and the remaining 15 hours on any approved CE topic. Cite: GREC, 2025 Broker Continuing Education Rule Changes.

Under amended Rule 520-2-.04, which subject matter qualifies a Georgia course as Broker CE?

• a.Appraisal methodology and residential valuation practice
• b.Fair housing law and brokerage advertising compliance done
• c.Closing statement mathematics, prorations and loan payoffs
• d.Training licensees, brokerage agreements, firm management✓

Rule 520-2-.04 requires a Broker CE course to run a minimum of three credit hours and to cover one or more of: training Licensees, supervising Licensees, reviewing Brokerage Agreements, or managing a Firm. Cite: GREC Rule 520-2-.04, effective 7/1/2025.

A Georgia broker took a course in 2024 that GREC later approved for Broker CE credit. May it count toward the 18-hour Broker CE requirement?

• a.Yes, the approval reaches back to the first offering
• b.No, it must have been approved when it was taken✓
• c.Yes, if the school issues an amended certificate
• d.Only if the broker sits the final examination again

GREC states that credit cannot be received for courses that were not approved for Broker CE credit at the time they were taken. Approval is not retroactive, which is why licensees are told to confirm approval with the school before purchasing. Cite: GREC, 2025 Broker Continuing Education Rule Changes.

Which Georgia licensees remain exempt from continuing education after the 2025 Broker CE rule change?

• a.A broker who has turned sixty-five before renewal
• b.A broker who renews the license on inactive status
• c.Pre-1980 licensees with fewer than six digits✓
• d.Non-resident brokers licensed in another state

The grandfather exemption is unchanged: a licensee who obtained the license prior to 1980 and holds a less-than-six-digit license number remains exempt from CE. A non-resident broker is not exempt but may satisfy Georgia CE by proving active licensure in the resident state with a later expiration date. Cite: GREC, 2025 Broker Continuing Education Rule Changes.