Georgia Law

B-17. Any person who has taken the salesperson or broker licensing examination and successfully passed the examination must activate their license by making application within what period of time or must retake the examination? A. 12 months. B. 9 months. C. 6 months. D. 3 months.

A. 12 months.

B-13. In order to qualify for a Community Association Manager's license, an applicant must complete an approved course of study of at least: A. 25 hours. B. 60 hours. C. 75 hours. D. 90 hours.

A. 25 hours.

B-2. Fees authorized under the Georgia real estate license law are established and collected by the: A. Real Estate Commission. B. Real Estate Commissioner. C. active real estate brokers. D. office of the Secretary of State.

A. Real Estate Commission.

A-21. After closing a licensee wants to give the buyer a $50 gift. Is this action permitted under the Georgia license law? A. Yes, gifts to clients and customers are permitted with the approval of the licensee's broker. B. Yes, provided the buyer is a real estate licensee. C. No, licensee's cannot give gifts to unlicensed buyers in a real estate transaction. D. No, this would be considered a "kickback".

A. Yes, gifts to clients and customers are permitted with the approval of the licensee's broker.

C-18. A salesperson wishes to advertise property owned by the licensee and which is not listed with a broker. The salesperson's supervising broker has been notified in writing and has given his or her written consent. May the salesperson advertise the property? A. Yes, provided a disclosure is included that the "seller holds a real estate license". B. Yes, provided the property is listed with the supervising broker. C. No, because all advertising must be in the name of the broker who holds the salesperson's license. D. No, because this type of advertising would be considered a "blind ad".

A. Yes, provided a disclosure is included that the "seller holds a real estate license".

A-16. If the purchaser is paying a substantial amount of earnest money, and particularly if the closing is several months later, it would be practical to place the funds in an interest bearing account. It is permissible to do so as long: A. all parties having an interest in the fund agree to this procedure in writing. B. the interest is paid to the seller at closing. C. the funds do not exceed $10,000. D. the broker has given you written permission.

A. all parties having an interest in the fund agree to this procedure in writing.

C-10. When a salesperson or associate broker requests that a release form be signed, the releasing broker shall sign the release: A. immediately. B. within 10 days of the request. C. within 14 days of the request. D. within 30 days of the request.

A. immediately.

A.2. A broker was found guilty of commingling. The real estate Commission shall have the power to: A. impose a fine not to exceed $1,000. B. impose a fine not to exceed $5,000. C. imprison the licensee up to one year. D. imprison the licensee up to five years.

A. impose a fine not to exceed $1,000.

A-23. Any person who violates any provision of the License Law shall be guilty of a(n): A. misdemeanor. B. felony. C. injunctive action. D. criminal action.

A. misdemeanor.

A-30. A real estate salesperson moves to another residence. While in the process of changing the 43-40-11 address, one of the agent's current listings expires. In these circumstances, laws and rules would require the salesperson to: A. notify the Commission in writing within 30 days of the change in residence, and remove the for sale sign from the expired listing within 10 days. B. only notify the Commission in writing of the change of address within 30 days. C. only remove the for sale sign from the expired listing within 10 days. D. notify the Commission in writing within 10 days of the change in residence and remove the for sale sign from the expired listing within 30 days.

A. notify the Commission in writing within 30 days of the change in residence, and remove the for sale sign from the expired listing within 10 days.

C-22. Any firm using a trade name on for sale signs, business cards, contracts, or other documents relating to real estate transactions shall include: A. the firm's name as registered with the Commission. B. the firm's name and address. C. the firm's name, address and phone number. D. the firm's owner's name.

A. the firm's name as registered with the Commission.

A-13. Licensees must keep true and correct copies of all sales contracts, closing statements and other documents related to real estate closings for a period of: A. three years. B. three years and up to five years at the request of the Commission. C. five years. D. five years and up to 10 years at the request of the Commission.

A. three years.

B-21. During each renewal period a real estate licensee shall satisfactorily complete a continuing education course of at least: A. 3 hours on the topic of agency. B. 3 hours on the topic of license law. C. 6 hours on the topic of ethics. D. 6 hours on the topic of fair housing.

B. 3 hours on the topic of license law.

C-41. Any outdated information on a website that a licensee maintains must be updated or removed from the website within ___ days. A. 15 B. 30 C. 45 D. 60

B. 30

A-14. Upon termination of a management agreement by a community association or property owner, licensee shall provide all records, documents and funds within what period of time of the termination? A. 10 days. B. 30 days. C. 1 year. D. 3 years.

B. 30 days.

C-36. A licensee must notify the Commission in writing of a change of address, of the opening or closing of a designated trust account or transferring to a new company within: A. 10 days. B. 30 days. C. 90 days. D. 180 days.

B. 30 days.

A-24. Which of the following would best describe a dual agency? A. A broker representing two properties for a seller. B. A broker representing both the buyer and seller in the same transaction. C. A broker purchasing two properties for his personal use. D. Two brokers working for the listing broker.

B. A broker representing both the buyer and seller in the same transaction.

C-14. Which of the following must a licensee ALWAYS do when advertising their own property for sale? A. Notify the Georgia Real Estate Commission of the specific property to be advertised. B. Include the legend "Seller holds a real estate license". C. Advertise in the name of a broker. D. Have a broker's written consent to advertise the property.

B. Include the legend "Seller holds a real estate license".

A-11. A real estate licensee pays a $50 referral fee to an unlicensed person for securing potential buyers. Is this action permissible under the license law? A. Yes, referral fees can be paid by real estate licensees to unlicensed persons. B. No, this action is a violation of the license law. C. Yes, provided the fee does not exceed $25. D. No, licensees cannot pay referral fees.

B. No, this action is a violation of the license law.

C-43. 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 Commissioner must sign the transfer application. D. The signature of the transferring licensee is all that is required.

B. The licensee's broker or an associate broker may sign the application, if the associate broker is authorized in writing by the broker.

A-5. A salesperson negotiated the sale of a house for a builder. Because the house had been on the market for a long time, the builder offered to give the salesperson a television as a bonus. Which of the following is true about this situation? A. The salesperson can accept the bonus only if he notifies the purchaser. B. The salesperson can accept the bonus only with the knowledge and consent of the broker holding the license. C. Because the value of the bonus is nominal, the salesperson can accept it without notifying anyone. D. The salesperson cannot accept the bonus under any circumstances because that would be an unfair trade practice.

B. The salesperson can accept the bonus only with the knowledge and consent of the broker holding the license.

A-12. On Monday evening, after the brokerage office has closed, a salesperson receives an offer to purchase and an earnest money deposit in the form of a personal check. On Wednesday, she obtains the final acceptance on the offer. The earnest money check would MOST LIKELY be turned over to her broker: A. Monday. B. Tuesday. C. Wednesday. D. Thursday.

B. Tuesday.

C-19. Exclusive listing contracts in Georgia are required to have: A. earnest money. B. a definite expiration date. C. a safety clause. D. an advertising provision.

B. a definite expiration date.

A-15 A licensee induces a seller to break an existing contract for the purpose of accepting a subsequent offer with terms more favorable to the seller. The licensee's action was: A. correct and the second offer would be considered a back-up offer. B. a violation of the license law. C. correct, as it is the licensee's duty to obtain the best terms for the seller. D. correct and enabled the seller to obtain better terms in the sale of his or her house.

B. a violation of the license law.

B-3. Before an applicant can take the broker's real estate examination they must provide evidence of completion of 60 instructional hours in a broker's course of study and have been: A. licensed at least 3 years. B. actively licensed at least 3 of the 5 years immediately preceding such examination. C. a resident of Georgia at least 2 years. D. a resident of Georgia at least 3 years.

B. actively licensed at least 3 of the 5 years immediately preceding such examination.

A.4. In Georgia, a broker must deposit the earnest money in a separate trust or escrow account established for that purpose, unless: A. the amount is less than $500. B. all parties involved have agreed otherwise in writing. C. the broker has established a policy for holding the earnest money. D. the seller has requested that the money be deposited in his or her account.

B. all parties involved have agreed otherwise in writing.

A-28. A licensee must give all earnest money received (cash, checks or items of value) to his/her broker: A. within 3 days of receipt. B. as soon as practically possible. C. when the offer is accepted. D. at closing.

B. as soon as practically possible.

C-13. Exclusive brokerage engagements in Georgia must: A. be for more than 90 days. B. be in writing and have a definite expiration date. C. be signed by the broker. D. not contain an advance fee or fixed fee.

B. be in writing and have a definite expiration date.

A-9. A salesperson is holding an open house. A married couple looks at the house and tells her the house is just what they have been looking for but they had signed a contract to purchase a house down the street the day before. The salesperson tells them that they can sign a contract with her to purchase this house and simply not complete the purchase of the house that they had contracted to buy the day before. In this situation the salesperson has: A. properly represented her principal and therefore acted correctly. B. committed an unfair practice by inducing a party to break a contract. C. acted properly as long as she notifies her broker of her intentions. D. acted properly because she did not initiate the discussion.

B. committed an unfair practice by inducing a party to break a contract.

B-15. An original applicant for a salesperson's license, or a licensee seeking to renew a license, who has been convicted of a crime must: A. appear before the Georgia Real Estate Commission. B. disclose this conviction to the Georgia Real Estate Commission. C. submit recommendations from other licensees. D. pay a fine of $1,000 before being considered an eligible candidate for licensing.

B. disclose this conviction to the Georgia Real Estate Commission.

C-11. A licensee has a 90-day exclusive right to sell listing which is about to expire. The licensee wants to re-list the property and offers to purchase the property as a condition to extend the listing. The licensee must: A. purchase the property at the listed price by the expiration date of the listing if the property has not been sold. B. enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase price at the time of entering into the extension of the existing listing. C. not enter into this agreement as it is considered an undisclosed "dual agency" arrangement. D. enter into a purchase agreement with the seller after the new listing expires which expresses the terms and conditions of the sale.

B. enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase price at the time of entering into the extension of the existing listing.

C-31. Whenever a licensee offers to purchase a property as a condition to obtaining a brokerage engagement to sell or on which the licensee is extending the expiration date of an existing engagement, the licensee must: A. Purchase the property at the listed price by the expiration date of the listing if the property has not been sold. B. enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase prior to or at the time of entering into the proposed brokerage engagement or into the extension of the existing brokerage engagement. C. not enter into this agreement as it is considered an undisclosed "dual agency" arrangement. D. enter into a purchase agreement with the seller after the new listing expires which expresses the terms and conditions of the sale.

B. enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase prior to or at the time of entering into the proposed brokerage engagement or into the extension of the existing brokerage engagement.

C-32. 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.

B. handle all aspects of marketing in the sale of his/her own property.

A-25. A licensee may pay compensation to a person who performs the acts of a licensee only if such person: A. is paid only referral fees. B. holds a real estate license. C. is related to the licensee. D. is paid only an advanced fee or retainer fee.

B. holds a real estate license.

A-26. In Georgia, a real estate licensee is showing a listed residential property to a prospective buyer. The buyer inquires if the seller has ever had AIDS. In this situation the licensee should: A. answer truthfully to the best of the agent's knowledge. B. state that he/she is unable to answer suck as inquiry as doing so would violate the Federal Fair Housing Act. C. refuse to answer the question because it would be a violation of the anti-trust laws. D. state that this does not have to be disclosed under the Georgia Stigmatized Property Law.

B. state that he/she is unable to answer suck as inquiry as doing so would violate the Federal Fair Housing Act.

A-7. "For Sale" signs must be moved from the property no later than: A. the day of the expiration of the listing. B. ten days after the expiration of the listing. C. thirty days after the expiration of the listing. D. a reasonable time after the expiration of the listing.

B. ten days after the expiration of the listing.

C-47. If a salesperson does not renew a real estate license within the time period required by law: A. the license will lapse may not be reinstated until the salesperson passes another examination. B. the lapsed license may be reinstated within two years by paying all renewal fees, late charges, and a reinstatement fee. C. the lapsed license may be reinstated within five years by paying all renewal fees, late charges, and a reinstatement fee. D. the lapsed license may be reinstated by paying double renewal fees, and completing an additional 12 hours of continuing education.

B. the lapsed license may be reinstated within two years by paying all renewal fees, late charges, and a reinstatement fee.

C-17. 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.

B. the time that any party first makes an offer.

C-30. Every licensee shall notify the Commission, in writing, of the final disposition of any administrative and/or criminal action filed in any court of competent jurisdiction. Such notice shall be given to the Commission: A. immediately. B. within 10 days of the conclusion of the proceeding. C. within 30 days of the conclusion of the proceeding. D. Upon request.

B. within 10 days of the conclusion of the proceeding.

C-5. Every licensee shall notify the Commission, in writing, of the final disposition of any administrative and/or criminal action filed in any court of competent jurisdiction. Such notice shall be given to the Commission: A. within 45 days of the conclusion of the prceeding. B. within 10 days of the conclusion of the proceeding. C. within 30 days of the conclusion of the proceeding. D. upon request.

B. within 10 days of the conclusion of the proceeding.

A-27. The Georgia Real Estate Commission may impose a necessary fine, but for a single violation that a fine must not exceed: A. $100 B. $500 C. $1,000 D. $5,000

C. $1,000

C-3. A $25.00 fee shall be charged to a licensee (active or inactive) for failure to notify the Commission, in writing, of a change of address within: A. 7 days. B. 10 days. C. 30 days. D. 60 days.

C. 30 days.

C-21. Whenever the qualifying broker of a real estate firm dies the firm must secure a new qualifying broker within: A. 10 days. B. 30 days. C. 60 days. D. 180 days.

C. 60 days.

C-6. Which of the following statements is NOT true? A. A salesperson may be licensed under only one Georgia broker. B. Newly licensed salespersons may commence work in real estate only after their brokers have received their licenses. C. A salesperson may be licensed under a second broker if the salesperson pays the proper fees. D. A salesperson must have a written agreement with their broker concerning their financial arrangements.

C. A salesperson may be licensed under a second broker if the salesperson pays the proper fees.

B-16. The Georgia Real Estate Commission may establish reasonable fees for licensees. Which of the following statements concerning these fees is correct? A. The fees charged to non-resident licensees are twice those charged to resident licensees. B. The unused portion of any fees will be refunded. C. All fees collected shall be deposited by the Commission into the state treasury. D. The broker is responsible for paying the fees of licensees who are licensed under him.

C. All fees collected shall be deposited by the Commission into the state treasury.

C-7. A broker, three (3) salespersons and an administrative assistant are going to form a real estate corporation. Which of the following would need to be licensed? A. Broker only. B. Broker and one salesperson. C. Broker and three salespersons. D. Broker, three salespersons and administrative assistant.

C. Broker and three salespersons.

C-9. Which of the following statements best describes "blind advertising"? A. Failure to give the property's address. B. Failure to give the owner's name. C. Failure to state the advertiser as a real estate licensee. D. Failure to disclose defects in the property.

C. Failure to state the advertiser is a real estate licensee.

C-35. In Georgia, is a broker allowed to place a sign on the property offered for sale or rent if there is a verbal agreement between the broker and owner? A. Yes, only the consent of the owner is required. B. Yes, providing the sign contains the name and phone number of the broker. C. No, a written agreement is required. D. No, to place a "For Sale" sign requires approval of the Georgia Real Estate Commission.

C. No, a written agreement is required.

C-29. In Georgia, a real estate salesperson has a dispute with their broker concerning the sharing of a commission. Can the Commission resolve this dispute? A. Yes, the license law permits the Commission to intervene in disputes between licensees. B. Yes, only after the licensees have resorted to arbitration. C. No, the Commission is not permitted to resolve disputes between licensees. D. No, only the courts can resolve real estate commission disputes.

C. No, the Commission is not permitted to resolve disputes between licensees.

C-2. A builder gives a real estate broker verbal permission to find buyers for his new homes. Can the broker advertise the properties? A. Yes, only the consent of the owner is required. B. Yes, provided the builder's trade name is included in the advertisement. C. No, the broker must have written permission of the owner and said permission has a definite date of expiration. D. No, new home sales can only be advertised by the builder.

C. No, the broker must have written permission of the owner and said permission has a definite date of expiration.

A-10. The real estate licensee does a competitive market analysis for a seller to recommend a listing price for the real estate. Upon completion of the estimate, the agent meets with the prospective seller and refers to the estimate as an appraisal and suggests the property be listed at the appraised value. In this situation, was the licensee's actions correct? A. Yes, a market analysis should be given to the seller before listing the property. B. Yes, the appraisal will help the seller know the value of the property. C. No, the licensee should not have referred to the estimate as an appraisal. D. No, licensees cannot give opinions regarding the pricing of property.

C. No, the licensee should not have referred to the estimate as an appraisal.

A-20. An unlicensed person is referring prospective buyers to a licensee. Can the licensee pay a fee or give a gift to the unlicensed person for their service? A. Yes, providing they have the broker's consent. B. Yes, if the value does not exceed $25. C. No, you cannot pay referral fees to an unlicensed person. D. No, referral fees are prohibited by the Georgia Real Estate Commission.

C. No, you cannot pay referral fees to an unlicensed person.

C-40. Any firm using a trade name on for sale signs, business cards, contracts or other documents relating to a real estate transaction must include: A. the firm's name and address. B. the firm's name, address and phone number. C. The firm's name as it is registered with the Commission. D. The firm's owner's name.

C. The firm's name as it is registered with the Commission.

C-27. 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 the terms under which the licensee shall be compensated by the former broker.

C. The new broker agrees in writing to assume full responsibility for the licensee's activities in the stated transactions.

C-24. Several brokers have been retained by a developer to market properties in a new residential subdivision. Can each broker put their FOR SALE signs on the property? A. No, only one sign is permitted. B. No, this would be considered a dual agency. C. Yes, if each broker has written permission of the developer. D. Yes, if each broker has notified the Real Estate Commission in writing.

C. Yes, if each broker has written permission of the developer.

C-23. Three real estate licensed salespersons and an associate broker want to form a new real estate company. Can the associate broker serve as the qualifying broker for the new firm and as an associate broker for their present firm? A. No, an associate broker can only work for one firm. B. No, an associate broker cannot become a qualifying broker. C. Yes, provided the associate broker notifies their current broker of the intended service. D. Yes, if the company has less than ten licensees.

C. Yes, provided the associate broker notifies their current broker of the intended service.

B-6. A salesperson has enrolled in a 25-hour approved course two weeks prior to the one year issuance of their original license. Due to a medical emergency the licensee is unable to complete the course within the one year required time period and their license lapses. Can the licensee reinstate the lapsed license? A. No, the licensee would have to start as an original applicant. B. No, the 25 hours must be completed within the first year of licensure. C. Yes, they may reinstate the license by completing the course within six months of the lapsing of the license. D. Yes, by passing a new state licensing examination and completing the 25 hours of instruction approved by the Commission.

C. Yes, they may reinstate the license by completing the course within six months of the lapsing of the license.

C-34. May a real estate licensee pay a fee or commission to a licensee representing another party in the transaction? A. No, licensees can only pay fees to licensees representing the client. B. No, paying fees to other licensees would establish an undisclosed dual agency relationship. C. Yes, with the full knowledge and written consent of all parties. D. Yes, if both licensees have agreed in writing.

C. Yes, with the full knowledge and written consent of all parties.

A-6. In the marketing of a condominium unit, the real estate licensee tells the prospective buyer "that because of the demand for these units the price will double in five years." This statement bythe licensee is: A. an acceptable practice in the marketing of residential condominium units. B. an example of a dual agency and need not be disclosed. C. a violation of the license law. D. required to be in writing and made part of the real estate sales contract.

C. a violation of the license law.

C-49. "Blind Ads" are prohibited by the Commission because they: A. violate fair housing laws related to discrimination. B. mislead the public about the true price and terms of the marketed property for sale. C. fail to disclose that the advertiser of the property holds a real estate license. D. fail to disclose an accurate location for the marketed property for sale.

C. fail to disclose that the advertiser of the property holds a real estate license.

C-33. A broker is paid a commission at closing by the principal and refuses to pay the salesperson their portion of the commission as agreed upon in their written affiliation agreement. If the salesperson does not believe the broker is meeting the terms of the agreement, his/her recourse is to: A. file a complaint with the Georgia Real Estate Commission to collect the agreed upon fee. B. file an action with the Education, Research and Recovery Fund. C. go to the courts or other arbitrating bodies. D. file a suit against the principal for portion of the commission due the salesperson.

C. go to the courts or other arbitrating bodies.

C. SUBSTANTIVE REGULATIONS (State Exam - 4 Questions) C-1. A broker is paid a commission at closing by the principal and refuses to pay the salesperson their portion of the commission as agreed upon in their written affiliation agreement. If the salesperson licensee does not believe that the broker is meeting the terms of the agreement his or her recourse is to: A. file a complaint with the Georgia Real Estate Commission to collect the agreed upon fee. B. file an action with the Education Research and Recovery Fund. C. go to the courts or other arbitrating bodies. D. file suit against the principal for the portion of the commission due the salesperson.

C. go to the courts or other arbitrating bodies.

B. LICENSING QUALIFICATIONS AND FEES (State Exam - 2 Questions) B-1. Fees collected by the Real Estate Commission are held: A. by the Real Estate Commission members. B. in the Commissioner's personal checking account. C. in the General Fund of the state treasury. D. in an interest bearing trust account.

C. in the General Fund of the state treasury.

B-19. In Georgia, an inactive license is valid: A. for a period of 4 years. B. for 2 years provided the continuing education requirement has been met. C. indefinitely, provided renewal fees are paid. D. a maximum of ten years.

C. indefinitely, provided renewal fees are paid.

B-18. The license of any salesperson who fails to satisfactorily complete a postlicense course in a timely manner will: A. be revoked. B. be suspended. C. lapse. D. remain active until the course is completed.

C. lapse.

B-14. An applicant for licensure with a criminal conviction shall be required to disclose the conviction to the Georgia Real Estate Commission when: A. making application for enrollment in a prelicensing course. B. making application to sit for the state licensing examination. C. making application for licensure. D. making application to change license status from active to inactive.

C. making application for licensure.

C-42. Regarding internet advertising, if a licensee has a website they must disclose the: A. address of the licensee's firm on every page of the website. B. name of the licensee's firm on every page of the website. C. name and phone number of the licensee's firm on every page of the website. D. name, phone number, and address of the licensee's firm on every page of the website.

C. name and phone number of the licensee's firm on every page of the website.

C-38. A salesperson is faxing listings to potential buyers. The faxes must contain the: A. address of the listed properties. B. list price of each property. C. name and phone number of the listing firm. D. expiration date of each listing.

C. name and phone number of the listing firm.

C-15. A broker receives more than one offer on the same property. The broker must: A. present only the highest offer. B. return the lowest offer. C. present all signed offers. D. accept the highest offer and reject all the other offers.

C. present all signed offers.

C-28. Upon revocation of a broker license, the broker shall forward to the Commission all other affiliated licensees' wall certificates of licensure and pocket cards in the broker's possession. Any missing wall certificates of licensure of licensees affiliated with the broker is the responsibility of: A. the licensee whose license is missing. B. the Georgia Real Estate Commission who issued the license. C. the broker with whom the licensee was affiliated. D. the Education, Research and Recovery fund

C. the broker with whom the licensee was affiliated.

A-29. In Georgia, when a salesperson receives an offer and an earnest money deposit from a prospective buyer, the law requires the salesperson to: A. turn over the earnest money to the listing broker within three days. B. place the earnest money in a federally insured account. C. turn over the earnest money to the broker holding the salesperson's license as soon after receipt as practically possible. D. put the earnest money in the custody of the seller.

C. turn over the earnest money to the broker holding the salesperson's license as soon after receipt as practically possible.

C-20. A broker should NOT disburse trust funds from a designated trust account under the following circumstances: A. upon rejection of an offer to buy the real estate. B. upon the withdrawal of an offer to buy real estate. C. upon written consent of the buyer only to pay for a termite inspection. D. at the closing of the real estate transaction.

C. upon written consent of the buyer only to pay for a termite inspection.

C-25. Any broker who provides community association management services must be covered by a fidelity bond or insurance policy if the funds they collect, maintain or control exceeds: A. $15,000. B. $25,000. C. $45,000. D. $60,000.

D. $60,000.

A-17. All "For Sale" signs must be removed from the property within how many days after termination of the listing agreement? A. 14 days. B. 30 days. C. 90 days. D. 10 days.

D. 10 days.

B-20. Except those licensees actively licensed on or before January 1, 1980, effective July 1, 2015 each applicant for the renewal of an active real estate license must furnish to the Commission before renewing a license evidence of satisfactorily completing a course or courses approved by the Commission. The length of the course or courses taken to meet this requirement must total at least: A. 12 hours B. 18 hours C. 24 hours D. 36 hours

D. 36 hours

B-12. 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.

D. 36 hours prior to activating.

B-7. Upon being issued an original salesperson's license, each salesperson shall be required to furnish to the Commission, within one year of the issuance of a license, evidence of satisfactory completion of a course of study approved by the Commission. Which of the following courses would meet this requirement? A. A 6-hour course. B. A 12-hour course. C. A 24-hour course. D. A 30-hour course.

D. A 30-hour course.

C-37. A salesperson purchased a property listed with their broker. The contract did not include a clause disclosing the salesperson's license status to the seller. Which of the following statements is correct? A. The contract is void because of the misrepresentation. B. The license status disclosure is not required because the property was listed with the salesperson's company. C. Only the salesperson could be subject to disciplinary action by the Commission. D. Both the salesperson and broker are subject to disciplinary action by the Commission.

D. Both the salesperson and broker are subject to disciplinary action by the Commission.

B-8. Which of the following is NOT a requirement of an applicant for a salesperson's license? A. Be at least 18 years old. B. Be a high school graduate or hold a certificate of equivalency. C. Pass an examination approved by the Georgia Real Estate Commission. D. Complete a 60-hour prelicense course of study.

D. Complete a 60-hour prelicense course of study.

C-46. Which of the following statements regarding brokerage agreements is false? A. Each exclusive brokerage agreement must fully set forth its terms and have a definite expiration date. B. At the time of securing a brokerage engagement, the licensee securing such engagement must furnish each person signing it a true copy thereof. C. The Commission prohibits the acceptance by brokers of net brokerage engagements. D. Each exclusive brokerage engagement must include the street address of the property.

D. Each exclusive brokerage engagement must include the street address of the property.

LAWS, RULES AND REGULATIONS UNFAIR PRACTICES (State Exam - 4 Questions) A.1. Which of the following would NOT be a violation of the Georgia license law? A. Falsifying a document used in a real estate transaction. B. Failing to advise your broker in writing when buying or selling property for yourself. C. Failure to give a copy of a signed offer to the purchaser. D. Failure to put a street address in a legal description.

D. Failure to put a street address in a legal description.

C-26. A salesperson is holding an open house on a seller's house. When should the salesperson make a written agency disclosure to an interested buyer? A. At closing. B. When the offer is accepted by the seller. C. In a timely manner, but no later than the closing date. D. In a timely manner, but not later than the time either party makes a written offer.

D. In a timely manner, but not later than the time either party makes a written offer.

B-5. What is the maximum period 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.

D. Indefinitely, as long as renewal fees are paid.

A-18. A builder tells a real estate broker that they may put a sign on the property, hold an open house and distribute flyers. If the broker is successful in selling the house, the builder will list other properties with her. Which of the following is TRUE? A. Following such instructions may be unethical, but not illegal. B. These are legal instructions of a client and must be obeyed. C. Such instructions should be in writing but writing is not required. D. Permission to advertise must be in writing.

D. Permission to advertise must be in writing.

A.3. Which of the following is NOT a legitimate reason for a broker or sales associate to refuse a listing? A. The seller states an unreasonable list price for the property. B. The property is not in the firm's geographical service area. C. The property type is not handled by the firm. D. The owner's minority status would make the property difficult to sell.

D. The owner's minority status would make the property difficult to sell.

C-39. In Georgia, if a broker's license is revoked, what is the status of the affiliated sales associates licenses? A. They are revoked. B. They are returned to the individual sales associates. C. They are forwarded to the Commission and the sales associates must apply for a new license. D. They are forwarded to the Commission and the licensees shall then transfer the license to another broker or apply to place the license on inactive status within one month of the Commission receiving it.

D. They are forwarded to the Commission and the licensees shall then transfer the license to another broker or apply to place the license on inactive status within one month of the Commission receiving it.

C-8. A broker may refuse to release a salesperson's license under which of the following circumstances: A. When the salesperson owes the broker money. B. When the salesperson refuses to turn over a broker's keys, listings, or other property. C. When the salesperson is in the process of negotiating a sales contract. D. Under no circumstances.

D. Under no circumstances.

C-4. Can a broker deposit earnest money and security deposits into an interest bearing trust account? A. No, the law requires that it be deposited into a non-interest bearing trust account. B. No, earnest money must be held by the seller or builder. C. Yes, providing the broker notifies the Georgia Real Estate Commission of the location and name of the account. D. Yes, providing all parties to each transaction specifically agree in writing who is to receive any interest earned prior to depositing the funds.

D. Yes, providing all parties to each transaction specifically agree in writing who is to receive any interest earned prior to depositing the funds.

A-8. A broker learns that a neighbor might be selling their house and proceeds to secure potential buyers without the knowledge and consent of the owner. Would the broker's action be in violation of the license law? A. No, this would be considered an open brokerage agreement. B. No, but he could not advertise the property. C. Yes, the broker is acting in dual capacity. D. Yes, this would be considered an unauthorized offering.

D. Yes, this would be considered an unauthorized offering.

C-16. After an offer is accepted the buyer's $5,000 earnest money check is deposited into the broker's designated trust account. The buyer needs $250 of the deposited funds to pay for the termite inspection. Can the broker pay for the termite inspection from the deposited funds? A. No, the trust funds can only be applied towards the purchase price. B. No, funds in a designated trust account can only be disbursed at closing. C. Yes, upon securing a written agreement signed by the buyer. D. Yes, upon securing a written agreement signed by all parties having an interest in the trust funds.

D. Yes, upon securing a written agreement signed by all parties having an interest in the trust funds.

B-4. An applicant for a salesperson's license in Georgia must: A. have attained the age of 21 years. B. furnish evidence of completion of 60 hours of instruction in a course approved by the Commission. C. be a citizen of the United States. D. be a high school graduate or the holder of a certificate of equivalency.

D. be a high school graduate or the holder of a certificate of equivalency.

C-45.If a Georgia real estate broker is required to maintain a trust account or escrow account, they must provide the Commission with: A. only the name of the bank in which the trust account is held. B. only the account number or name of the account. C. both the name of the bank and the number or name of the account within 10 days of opening the account. D. both the name of the bank and the number or name of the account within one month of opening the account.

D. both the name of the bank and the number or name of the account within one month of opening the account.

A-19. Before attempting to show a property listed in the multiple listing service by another company, a salesperson should: A. notify the Georgia Real Estate Commission. B. call the seller and request permission. C. call the multiple listing service. D. call the listing company.

D. call the listing company.

A-22. The Georgia Real Estate Commission may suspend or revoke a broker's license if the broker has been found guilty of: A. practicing real estate without a license. B. sharing a commission with a licensed broker in a another state. C. removing a "for sale" sign within 10 days of the listing expiration. D. falsification of a real estate sales contract.

D. falsification of a real estate sales contract.

B-9. In order to qualify for a broker or associate broker's license, an applicant must: A. be a U.S. citizen. B. be a resident of the State of Georgia. C. have attained the age of 21 years and have served actively for two years as a licensee. D. have attained the age of 21 years and have served actively for at least three years of the five years immediately preceding application.

D. have attained the age of 21 years and have served actively for at least three years of the five years immediately preceding application.

C-48. A homeowner who is a real estate licensee in Georgia advertises his/her property for sale. The licensee must always: A. advertise in the name of a broker. B. have a broker's written consent to advertise the property. C. notify the real estate commission of this dual capacity status. D. indicate in the ad that "seller holds a real estate license."

D. indicate in the ad that "seller holds a real estate license."

B-11. Unless renewal fees are paid before the renewal date, a licensee's individual license will expire on: A. January 1 of the next year. B. the licensee's birthday. C. the issue date of the license. D. on the last day of the month of the licensee's birthday.

D. on the last day of the month of the licensee's birthday.

C-50. Salesperson Boyd, a licensed salesperson currently on inactive status, plans to purchase a parcel of land. Before presenting the offer to the seller the salesperson must: A. state in the offer the purpose for which the property is being purchased. B. provide the Georgia Real Estate Commission with a copy of the contract when the offer is accepted by the seller. C. provide his broker with written notice of his intent to purchase the property. D. state in the offer that he is a licensed real estate salesperson.

D. state in the offer that he is a licensed real estate salesperson.

C-12. A licensed salesperson wishes to perform real estate brokerage services as a full time employee of an unlicensed developer. In order to provide brokerage services to such an unlicensed party, the licensee must: A. put their license on inactive status. B. notify their broker in writing as to their intent and obtain written approval from their broker. C. work through a listing agreement established between the salesperson and unlicensed developer. D. surrender their license entirely before beginning work for the unlicensed party under an exception of the license law.

D. surrender their license entirely before beginning work for the unlicensed party under an exception of the license law.

C-44. In advertising a specific property or properties for sale or rent, all real estate forms must include in the advertisement: A. only the name of the firm that is registered with the Commission. B. the name of the firm that is registered with the Commission and the firm's address. C. the name of the firm that is registered with the Commission and the firms license number. D. the name of the firm that is registered with the Commission and a telephone number for the firm.

D. the name of the firm that is registered with the Commission and a telephone number for the firm.

B-10. The original license of a salesperson shall be delivered or mailed to: A. the Real Estate Education Research and Recovery Fund. B. the salesperson to hold. C. the salesperson's broker for delivery to the salesperson. D. the real estate broker for whom the licensee is acting and shall be kept in the custody of such broker.

D. the real estate broker for whom the licensee is acting and shall be kept in the custody of such broker.