Georgia Real Estate Broker Exam — All Questions

A Georgia qualifying broker who holds earnest money must keep it in:

• a.The broker's personal savings account
• b.The firm's general operating account
• c.A designated trust or escrow account, separate from the broker's own funds✓
• d.Cash in the office until closing

Georgia requires client funds such as earnest money to be held in a designated trust/escrow account, kept separate from the broker's business and personal funds. Commingling or converting trust money is a serious violation of Georgia license law. The qualifying broker is responsible for the account's integrity and recordkeeping, and GREC audits can review it.

GREC holds the qualifying broker accountable for supervising affiliated licensees, which means the broker must:

• a.Personally handle every showing
• b.Establish and enforce reasonable procedures so affiliated licensees comply with Georgia license law✓
• c.Guarantee each licensee earns a commission
• d.File each licensee's personal taxes

The qualifying broker must have reasonable procedures in place to supervise affiliated licensees, review their transactions and advertising, and ensure trust funds and disclosures are handled correctly. GREC can discipline a broker for a failure to supervise even when a salesperson committed the underlying violation. This supervisory accountability is a core reason for the broker tier.

If a Georgia broker holds an earnest-money deposit and the buyer and seller later dispute who should receive it, the broker should:

• a.Release it to the seller as damages
• b.Refund it to the buyer to avoid a complaint
• c.Keep it as a service fee
• d.Retain it in the trust account until the parties agree in writing or a court resolves the dispute✓

A Georgia broker holding a disputed deposit is a neutral stakeholder and must not unilaterally decide the dispute. GREC rules allow the broker to hold the funds and, if needed, use interpleader to let a court determine entitlement. Retaining the money until written agreement or a court order protects the broker and the parties; releasing it on one side's demand risks liability.