State laws and rules is section I of the Georgia Supplement: 16 of the 52 state items. It covers the license law, O.C.G.A. Title 43, Chapter 40, and the Commission’s rules in Chapter 520-1: what licensees may not do, how they advertise and handle money, and what happens after a complaint.
Updated Oct 24, 2026 · Not affiliated with any state commission or test provider.
16items on the exam
52Georgia Supplement items
8subtopics
15questions on this page
What the section covers
PSI’s outline for section I:
Unfair practices
Substantive regulations
Qualifications and fees
Fair housing laws
Real Estate Education, Research and Recovery Fund
Investigation and hearing process
Commission organization and procedures
Required licensure
Advertising: the firm comes first
Rule 520-1-.09 puts every ad by a salesperson under the broker’s direct supervision and in the firm’s name. In any ad for specific property:
the firm’s registered name and phone number appear, and the firm name is equal or greater in size, prominence and frequency than any agent’s or team’s name;
the firm’s phone number must reach a broker or manager without going through the agent;
online, the firm name and phone are on every viewable web page, and outdated listing information comes down within 30 days;
you need the owner’s written permission to advertise, and a listing held by another firm says so.
Selling your own property is the exception: it needs written notice to your broker, the broker’s written consent to the ad, and a disclosure that you are licensed.
15 license law questions
0 of 15 answered · 0 correct
Question 1 of 15 · Georgia license law · 16 items
A Georgia salesperson owns a rental condominium in her own name and wants to sell it herself, without a listing agreement. She plans to place a for-sale advertisement online. What must happen before it is published?
Answer and explanations
Incorrect: Verbal notice falls short: the rule requires written notice and the broker's written approval of the specific ad.
Incorrect: A licensee selling her own property is still bound by the advertising rule, including disclosing that she is licensed.
Incorrect: The legend concerns her own license status or number; the numbers of every licensee in the firm are not required, and written notice is still missing.
Correct: Rule 520-1-.09(8) lets a licensee advertise her own unlisted property only after written notice to her broker, the broker's written consent and approval of the ad, and a legend that the seller holds a license (or her license number).
Incorrect: Leaving out the license legend is what the rule forbids; the public must be able to tell the seller is a licensee.
Question 2 of 15 · Georgia license law · 16 items
Broker Clark receives a $1,200 payment from a mortgage lender for referring buyer clients to the lender. Clark does not disclose this arrangement to the clients. Which classification BEST describes this conduct under Georgia law?
Answer and explanations
Incorrect: Written disclosure would satisfy the Georgia rule, but it cannot make a referral fee from a lender lawful under RESPA.
Incorrect: The violation does not depend on whether Clark also earns a commission; the undisclosed referral payment is enough.
Correct: O.C.G.A. 43-40-25(b)(6)(C) requires written disclosure of anything of value received for a referral, and RESPA Section 8 separately bars fees for referring settlement-service business such as a mortgage loan.
Incorrect: That exception needs an ownership affiliation and a disclosure, and it never allows a payment per referral.
Incorrect: The statute covers anything of value received for a referral, whoever pays it.
Question 3 of 15 · Georgia license law · 16 items
A Georgia licensee has a judgment against them, and the court orders payment from the Real Estate Education, Research, and Recovery Fund. What is the immediate consequence for the licensee's real estate license under Georgia law?
Answer and explanations
Incorrect: A repayment plan does not stop the revocation; repaying in full only makes the person eligible for a new license.
Incorrect: The statute leaves no discretion: revocation is automatic once the court authorizes payment.
Correct: O.C.G.A. 43-40-22(d)(6): the license is automatically revoked when the court orders payment from the Fund, and no new license issues until the amount is repaid in full with interest.
Incorrect: Paying interest does not save the license; revocation follows automatically from the payment order.
Incorrect: Probation is a sanction the Commission can choose in other cases; a Fund payment triggers revocation by statute.
Question 4 of 15 · Georgia license law · 16 items
A Georgia broker puts a clause in a listing agreement for a single-family home stating that the broker shall have a lien on the property for any unpaid commission. No Georgia statute gives brokers such a lien on a home. Under O.C.G.A. 43-40-25, what should the broker do to avoid an unfair trade practice?
Answer and explanations
Incorrect: The Commission does not approve contract clauses, and its approval could not create a lien the law does not provide.
Incorrect: O.C.G.A. 43-40-25(b)(24) names filing a listing contract to cloud title, with no valid claim behind it, as an unfair trade practice.
Correct: With no lien statute behind it the clause claims a right the broker does not have; the broker's remedy for an unpaid fee is a claim under the contract.
Incorrect: A clause the broker knows is unenforceable still misleads the seller about the broker's rights.
Incorrect: Custom cannot make a misleading term lawful or create a lien.
Question 5 of 15 · Georgia license law · 16 items
A real estate licensee co-owns an investment property with an unrelated investor. When they find a buyer, the buyer writes a down payment check payable to the licensee personally. How must the licensee handle this check?
Answer and explanations
Incorrect: Even a brief stop in a personal account is commingling under O.C.G.A. 43-40-25(b)(4).
Incorrect: Sending the money to an owner's own account mixes trust funds with personal funds.
Incorrect: A broker-approved account in the licensee's own name is allowed only for property she owns outright; this one is co-owned.
Correct: Rule 520-1-.08(9): a licensee who owns less than 100 percent of a property must put trust funds received on it into the trust account of a licensed firm; endorsing the check to the broker gets it there.
Incorrect: Trust money belongs in a federally insured trust account, not in a safe as cash.
Question 6 of 15 · Georgia license law · 16 items
A salesperson drafts a property flyer that includes all required disclosures and is factually accurate. The salesperson posts the flyer on social media without showing it to the broker. Which statement is correct regarding this conduct?
Answer and explanations
Correct: Rule 520-1-.09(2.1): all advertising by salespersons must be under their broker's direct supervision and in the firm's name; posting without the broker's involvement skips that.
Incorrect: Social media is expressly listed among the media the advertising rule covers.
Incorrect: A license number does not substitute for broker supervision.
Incorrect: Mentioning the broker is not supervision; the broker has to direct the advertising.
Incorrect: Accurate content is necessary but not enough; supervision is a separate requirement.
Question 7 of 15 · Georgia license law · 16 items
A consent order is proposed to settle a Georgia Real Estate Commission disciplinary case against a broker. Which statement correctly distinguishes the finality and appeal rights of a consent order from a final order after a full hearing?
Answer and explanations
Incorrect: Neither is an emergency action; summary suspension is a separate tool for imminent harm to the public.
Incorrect: Judicial review is for a party aggrieved by a final decision in a contested case; a licensee who agreed to the order gave that up.
Correct: A consent order is a negotiated settlement: by agreeing to it the licensee gives up the contested hearing and the judicial review that follows a final decision (O.C.G.A. 43-40-26(c)).
Incorrect: This reverses the rule: the decision after a hearing is the one open to judicial review in superior court.
Incorrect: Settling by consent avoids the hearing, so it is normally the faster route.
Question 8 of 15 · Georgia license law · 16 items
A consumer files a sworn written request for investigation with GREC, alleging that a licensee mishandled trust funds last month. What does Georgia law require of the Commission?
Answer and explanations
Correct: O.C.G.A. 43-40-27(a): the Commission may investigate on its own motion and shall investigate upon the sworn written request of any person; conduct from last month is well inside the three-year limit.
Incorrect: A complaint alone does not suspend a license; that takes a hearing or an emergency finding of imminent harm.
Incorrect: The license law sets no mediation step before an investigation.
Incorrect: Investigation comes first; a notice of hearing follows only if the evidence supports charges.
Incorrect: A lawsuit is a step toward a Recovery Fund claim, not a precondition for a Commission investigation.
Question 9 of 15 · Georgia license law · 16 items
Broker Taylor rebates $3,000 of her commission to buyer Chen at closing. The settlement statement lists the rebate as "Seller Credit to Buyer" without disclosing it originates from Taylor's commission. Under Georgia unfair practice rules, which outcome is most likely?
Answer and explanations
Incorrect: The rule does regulate rebates: shown on the closing statement, without misleading anyone about the source.
Incorrect: Appearing on the statement is only half the rule; the entry also must not misstate where the money came from.
Correct: Rule 520-1-.10(6)(e) allows a rebate only if it is disclosed on the closing statement and does not mislead a lender, title company or anyone else about the source of funds; calling it a seller credit does exactly that.
Incorrect: The closing statement is what the lender relies on, so the label is not internal at all.
Incorrect: The buyer's acknowledgment does not fix a closing statement that misleads the lender.
Question 10 of 15 · Georgia license law · 16 items
GREC sends licensee Jordan a written request for trust account records on March 5 with a 15-day response deadline. Jordan provides partial records on March 25 and complete records on April 10. Which statement about Jordan's exposure is correct?
Answer and explanations
Correct: O.C.G.A. 43-40-25(b)(27) makes failing to produce transaction and trust records at the Commission's reasonable request an unfair trade practice in itself, and 43-40-25(a) sanctions include suspension.
Incorrect: Avoiding a subpoena does not excuse the late production; the delay is the violation.
Incorrect: Failing to produce records is a listed unfair practice of its own, not a side issue.
Incorrect: Partial records after the deadline are not compliance; the request was for the complete records.
Incorrect: Good faith can affect the size of a penalty, but it does not erase the violation.
Question 11 of 15 · Georgia license law · 16 items
GREC finds a broker violated agency disclosure rules and issues a reprimand. A client injured by the same conduct files a civil lawsuit. Which statement correctly describes the relationship between these proceedings?
Answer and explanations
Correct: A GREC reprimand is a sanction on the license; the client's damages claim is a separate civil case, and each goes forward on its own.
Incorrect: Nothing requires the civil suit to wait for the administrative case.
Incorrect: The Commission's finding does not decide civil liability as a matter of law; the court tries the damages claim itself.
Incorrect: The Commission has no jurisdiction over a client's damages and cannot award them at all.
Incorrect: Double jeopardy applies to criminal prosecutions, not to a license sanction followed by a civil suit.
Question 12 of 15 · Georgia license law · 16 items
Under GREC rules, which documents must show the six-digit license numbers of each firm and each licensee participating in the transaction?
Answer and explanations
Incorrect: The rule requires the numbers on the documents themselves.
Incorrect: Closing statements are not where the rule puts the license numbers; engagements and offers are.
Incorrect: The rule names brokerage engagements and offers, not each page of every document.
Correct: Rule 520-1-.10(2): a licensee preparing or signing a brokerage engagement or an offer must include the six-digit license number of each firm and each licensee participating.
Incorrect: Advertising rules require the firm's name and phone number, not the license numbers of every participant.
Question 13 of 15 · Georgia license law · 16 items
A Georgia real estate broker receives notice from GREC that a complaint has been filed alleging trust account mismanagement. The broker disputes the allegations and requests a formal hearing. Under Georgia administrative procedure, which timeline and procedural step applies FIRST after the broker's hearing request?
Answer and explanations
Incorrect: A citation is an alternative to a hearing, not the step that follows a licensee's request for one.
Correct: Discipline follows the contested-case procedure of the Georgia APA (O.C.G.A. 43-40-25(a), 43-40-26): a written notice of hearing, then a hearing before a hearing officer or administrative law judge.
Incorrect: The Commission decides license discipline itself; it does not hand the case to a civil court.
Incorrect: Superior court comes only afterward, for judicial review of a final decision.
Incorrect: Asking for a hearing does not trigger a suspension; a license is suspended after the hearing opportunity or on an emergency finding.
Question 14 of 15 · Georgia license law · 16 items
The Georgia Real Estate Education, Research, and Recovery Fund falls below its $1 million statutory minimum after claim payouts. What does Georgia law authorize the Commission to do?
Answer and explanations
Incorrect: The original-license Fund fee is set by the Commission; the statute does not tie the minimum balance to doubling it.
Correct: O.C.G.A. 43-40-22(k) lets the Commission, to keep the $1 million minimum, assess each licensee only upon renewal an amount not over $30 per year.
Incorrect: The statute provides no claim freeze; court-ordered claims the Fund can't cover yet are paid later in filing order with interest.
Incorrect: The statute gives a mandatory renewal assessment as the tool, not a request for donations.
Incorrect: The statute allows the extra charge only upon renewal, not as an immediate assessment.
Question 15 of 15 · Georgia license law · 16 items
An investigation shows a licensee's apparent rule violation did no harm to any third party or to the public. The Commission issues a letter of findings instead of a sanction. Which statement about the letter is correct?
Answer and explanations
Incorrect: The statute shields a letter of findings from subpoena in civil actions.
Incorrect: A letter of findings imposes no suspension; it is the mildest response the statute offers.
Incorrect: The statute says a letter of findings is not a disciplinary sanction and is not a public record.
Correct: O.C.G.A. 43-40-25.2(b)(3): a letter of findings, used when the violation appears to have harmed no one, is confidential, is not a public record and does not appear on the licensee's history.
Incorrect: Fines come with a citation or a sanction order; a letter of findings only gives notice of the violation.
Answer every question to see your score
Money and records
Anything of value a salesperson receives in a brokerage capacity goes to the broker holding the license as soon as practicably possible, under rule 520-1-.08; the rule gives no day count, so a deadline in a question comes from the contract. Brokers tell the Commission about each trust account within one month of opening it.
Rule 520-1-.10 adds the paperwork: the six-digit license number of each firm and licensee on every brokerage engagement and offer, a copy of every signed document to each signer, and transaction records kept for three years. A rebate to a buyer is legal when it is disclosed on the closing statement and misleads no one about the source of funds.
Who releases disputed money
Rule 520-1-.08 lists the ways a broker may release disputed trust funds: an agreement signed by everyone with an interest in them, an interpleader action in court, a reasonable reading of the contract, among others. A complaint to the Commission is not on that list. The Commission disciplines licensees; options where it hands the money back are worth a second look.
Fees, fair housing and who needs a license
Recovery Fund:$20 of the $45 activation fee goes to it, per rule 520-1-.04.
Fair housing: rule 520-1-.13 bans representations that a neighborhood’s makeup is changing, or that a protected group’s presence will lower values, raise crime or hurt schools. Federal fair housing law itself is a national topic: disclosures and fair housing.
Required licensure: a business broker needs a license when the sale transfers any interest in real property (520-1-.12), and an inactive licensee may deal only in property they own solely (520-1-.05).
How many questions on the Georgia exam are on license law?
16 of the 52 items in the Georgia Supplement are in section I, State Laws and Rules.
Can a Georgia salesperson advertise under their own name?
No. All advertising by a salesperson is under the broker’s supervision and in the firm’s name, and the firm name must be at least as prominent as the agent’s. Even an ad for property the salesperson owns needs the broker’s written consent.
Where is the Georgia real estate license law?
In O.C.G.A. Title 43, Chapter 40, with the Commission’s rules in Chapter 520-1 of the Georgia rules and regulations. The Commission’s website links both.