Georgia Real Estate License Laws and Rules
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 seller attempts to place restrictions on the parties to whom the property may be offered for sale because of race, color, and religion. A licensee should: A) refuse the listing and tell the seller he or she could be in violation of federal law B) refuse to accept the listing C) accept the listing but refuse to follow the restrictions D) accept the listing with restrictions
A) refuse the listing and tell the seller he or she could be in violation of federal law
The liability of the Education, Research, and Recovery fund is terminated upon the issuance of court orders authorizing payments in what amount in any single transaction, regardless of the number of people aggrieved? A) $25,000 B) $20,000 C) $75,000 D) no limit
A) $25,000
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
In order to qualify for a Community Association Manager's license, an applicant must complete an approved study course of at least: A) 25 hours B) 60 hours C) 75 hours D) 90 hours
A) 25 hours
Any person who violates any provision of the License Law shall be guilty of a(n). A) misdemeanor B) felont C) injunctive action D) criminal action
A) Misdemeanor
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
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.
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"
in Georgia, any person acting as a real estate licensee shall be guilty of: A) a misdemeanor B) a felony C) misrepresentation D) Fraud
A) a misdemeanor
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 consent.
A) all parties having an interest in the fund agree to this procedure in writing
The Georgia Real estate commission is authorized to: A) appoint the real estate commissioner B) appoint future members of the commission C) settle commission disputes between affiliated licensees and their brokers D) collect and retain fees authorized by the license law
A) appoint the real estate commissioner
A salesperson presents two offers to the seller. It would be legal for the salesperson to discriminate between the offerors on the basis of: A) financial status B) national origin C) religion C) sex
A) financial status
Which of the following is NOT true about the Real Estate Commissioner? A) he or she is a part-time employee of the commission B) he or she is the chief executive officer of the commission C) if licensed, he or she must place his or her license on inactive status D) the real estate commissioner is appointed by the commission
A) he or she is a part-time employee of the commission
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 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.
An unlicensed friend of a licensee is hosting open houses and passing out brochures with information on the houses to secure prospects for the licensee. This person would be guilty of: A) misdemeanor B) a misrepresentation C) commingling D) an undisclosed dual agency
A) misdemeanor
The payment of the intangibles taxes are: A) negotiable between the buyer and seller B) paid by the seller only C) paid by the buyer only D) based on the sales price
A) negotiable between the buyer and seller
in georgia, a corporation licensed as as a salesperson can have how many licensees? A) one B) two C) three D) no limit
A) one
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
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
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 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
Upon termination of a management agreement by a community association or property owner, licensee shall provide all record, 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
A property owner hires an agent for a fee. Which of the following activities would NOT require the agent to have a real estate license? A) auction the owner's real property for sale B) Appraise the owner's real property C) perform property management or community manager services D) Procure prospects to purchase the owner's real property
B) Appraise the owner's real property
A licensee has been given verbal permission to place a "For Sale" sign on the property by the seller, Could the licensee legally place a "For Sale" sign on the property with this permission? A) yes, as long as the seller has given permission B) No, permission must be in writing C) Yes, permission is not required for "For Sale" signs D) No, permission to place "For Sale" signs on any property must be obtained from the county
B) No, permission must be in writing
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.
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.
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
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 the 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 the seller in the same transaction
The Georgia real estate commission is: A) A private corporation regulated by the state B) a budget unit of Georgia assigned to the office of Secretary of State C) a brokerage company D) a regulated real estate commissioner
B) a budget unit of Georgia assigned to the office of Secretary of State
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
Under the Georgia real estate license law, the real estate commissioner is: A) a member of the georgia real estate commission B) a full-time employee of the georgia real estate commission C) an active licensed real estate broker D) appointed by the governor
B) a full-time employee of the georgia real estate commission
Any licensee who has exhausted all administrative remedies available within the license law, and who is aggrieved by a final decision in a contested case is entitled to: A) a refund of the unused portion of their fees B) a judicial review in accordance with the Georgia administrative procedures act C) a hearing before the georgia real estate commission D) appeal the case to the real estate commissioner
B) a judicial review in accordance with the Georgia administrative procedures act
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
Which of the following costs is usually credit on the estimated purchaser's cost worksheet? A) purchase price B) accrued interest on loan assumed C) survey D) hazard insurance escrow
B) accrued interest on loan assumed
Before an appplicant can take the broker's real estate examination they must provide evidence of completion of 60 instructional hours in a brokers 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
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
Persons are exempt from the license requirement when they contract primarily to promote the sale of real estate through listing in a publication issued for that purpose and their compensation is only in the form of: A) an advance fee other than an advertising fee B) an advertising fee C) a referral fee D) a listing fee
B) an advertising fee
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
An owner hired a real estate broker for a fee. Which of the following activites for the owner would require the broker to have a real estate license? A) selling stock securities in the owner's business B) auctioning the owner's real property C) appraising the owner's real property D) Completing a CMA
B) auctioning the owner's real property
Exclusive brokerage engagements in Georgia must: A) be for more than 90 days B) be in writing and have a definite expiration C) be signed by the broker D) not contain an advance fee or fixed fee
B) be in writing and have a definite expiration
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 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 therefor 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.
In the investigation and hearing process which of the following would BEST describe the sequence of events? A) investigation - hearing - complaint - final decision B) complaint - investigation - hearing - final decision C) hearing - final decision - proposed decision - complaint D) complaint - investigation - findings of fact - hearing
B) complaint - investigation - hearing - final decision
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
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.
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
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 licensee may pay compensatoin 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
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 the broker D) have the broker's written consent to advertise the property
B) include the legend "seller holds a real estate license"
Hazard insurance is: A) effective the day after you take it out: B) prepaid in advance C) usually paid for six months D) prorated by 360 days
B) prepaid in advance
Whenever the commission revokes or suspends a license, the commission may: A) fine the licensee up to $10,000 B) publish the name of such licensee on its' official website C) refund any unused portion of the licensee's fees D) allow the licensee to keep their "pocket card".
B) publish the name of such licensee on its' official website
The georgia real estate commission is NOT authorized to: A) pass rules and regulations consistent with the real estate license laws B) set real estate commission rates charged by brokers C) appoint the real estate commissioner D) charge and collect fees authorized by the license law
B) set real estate commission rates charged by brokers
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 such an inquiry as doing so would be in violation of 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 such an inquiry as doing so would be in violation of the Federal fair housing act
"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
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 commission 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
The georgia real estate commission must investigate the actions of a licensee when: A) they receive phone complaints about any licensee's real estate activities B) the receive a sworn written request for investigation of a licensee concerning acts that occurred within the last three years C) they receive a sworn written request for investigation of a licensee concerning acts that occurred within the last five years D) disputes occur between licensees and their broker
B) the receive a sworn written request for investigation of a licensee concerning acts that occurred within the last three years
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
Which of the following is a function of the georgia real estate commission? A) to interpret particular laws and rules concerning real estate licensees B) to ensure professional competency among real estate licensees C) to establish reasonable fee structure that licensees can charge the public for real estate services D) to settle legal disputes between real estate licensees
B) to ensure professional competency among real estate licensees
On a closing statement which of the following items would MOST LIKELY be a debit to the seller: A) insurance policy refund B) transfer tax C) sale of personal property D) property sale price
B) transfer tax
Every licensee shall notify the Commission, in writing, of the final deposition 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 proceeding 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
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
A licensee refuses to accept a listing because of the owner's minority status. Is this a violation of the Georgia real estate license law? A) no, licensee's can refuse any listing B) yes, this could be considered a direct violation C) no, minority status is not covered by the license law D) yes, if the action is reported to the commission
B) yes, this could be considered a direct violation
The georgia real estate commission may impose a necessary fine, but for a single violation that fine must not exceed: A) $100 B) $500 C) $1,000 D) $5,000
C) $1,000
The liability of the real estate education, research, and recovery fund for the acts of a licensee is terminated upon the payments from the fund in aggregate amounts of: A) $5,000 B) $25,000 C) $75,000 D) $1,000,000
C) $75,000
A $25.00 fee shall be charged to a licensee (active or inactive) for failure to notify the Commission, in writing, a change of address within: A) 7 days B) 10 days C) 30 days D) 60 days
C) 30 days
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
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.
In Georgia, a real estate salesperson has a dispute with their broker concerning the sharing of a commission. Can the commission resolve the dispute? A) yes, the license law permits the commission to intervene in disputed 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
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 pay referral fees.
C) No, the licensee should not have referred to the estimate as an appraisal.
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
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
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 licenses.
C) Yes, provided the associate broker notifies their current broker of the intended service
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 6 months of lapsing 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 6 months of lapsing the license.
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.
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 by the licensee is: A) an acceptable practice in the marketing of residential condominium units. B) an example of 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
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
All members of the Georgia real estate commission: A) must place their license on inactive status while serving B) must have been actively licensed for at least five years C) are appointed for a term of five years D) must have been residents of georgia at least three years
C) are appointed for a term of five years
A broker, three salespersons and an administative assistant are going to form a real estate corportation. 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
Which of the following statement's is best described as "blind advertising A) Failure to give the property's address B) failure to give the owner's name C) failure to state the advertiser is a real estate licensee. D) failure to disclose the defects in the property
C) failure to state the advertiser is a real estate licensee.
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 courts or other arbitrating bodies D) file a suit against the principal for the portion of the commission due to the salesperson
C) go to courts or other arbitrating bodies
A broker is paid 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
Which of the following would be a requirement of a claimant in order to collect damages from the education, research, and recovery fund? A) he or she is a licensee B) he or she is the spouse of a licensee C) he or she received a valid judgement from a court of competent jurisdiction D) he or she started the action for judgement within three years of the violation
C) he or she received a valid judgement from a court of competent jurisdiction
Fees collected by the Real estate commission are held: A) by the real estate commission members B) in the commissioners 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
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 met D) a maximum of 10 years
C) indefinitely, provided renewal fees are met
The license of any salesperson who fails to satisfactorily complete a post-license course in a timely manner will: A) be revoked B) be suspended C) lapse D) remain active until the course is completed
C) lapse
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 the pre licensing course B) making application to sit for the state licensing exam C) making application for licensure D) making application to change license status from active to inactive
C) making application for licensure
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
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
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 state commission
C) no, a written agreement is required
A seller who is selling their property "For sale by owner" is paying an advertising fee to a real estate magazine company to advertise their property for sale. Would the company be required to have a real estate license? A) yes, the company is securing buyers for a fee B) yes, advertising fees for real estate can only be paid to licensees C) no, companies advertising real estate for sale and collecting only an advertising fee are exempt from the real estate license law. D) no, providing the advertising fee does not exceed $100.
C) no, companies advertising real estate for sale and collecting only an advertising fee are exempt from the real estate license law.
The real estate education, research, and recovery fund has paid an aggregate amount of $75,000 on behalf of a licensee. Would the fund be liable for future acts of that licensee? A) yes, after a 3 year period B) yes, after a five year period C) no, the liability of the fund is terminated after $75,000 has been paid D) no, unless the licensee pays the money back to the fund
C) no, the liability of the fund is terminated after $75,000 has been paid
Does the residential owner of real property need a real estate license to sell, rent, or manage the property? A) yes, this would be considered practicing real estate B) yes, if the owner owned more than one property C) no, the license law would not apply D) No, residential real estate is exempt from the real estate license law.
C) no, the license law would not apply
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 others
C) present all signed offers
The Georgia real estate commission is composed of: A) six members each of whom is appointed by the secretary of state, with the governor, and confirmed by the senate for a term of four years B) five members each of whom is appointed by the governor and confirmed by the senate for a term of six years C) six members each of whom is appointed by the governor and approved by the senate for a term of five years D) five members each of whom is appointed by the secretary of state and confirmed by the governor for a term of six years
C) six members each of whom is appointed by the governor and approved by the senate for a term of five years
In order to enforce a commission claim in georgia, the first thing the broker must prove to the court is: A) they were efficient and procuring cause of sale B)they had the authority to negotiate the sale and the seller promised to pay a commission C) the broker and any sales associates involved in the transaction held valid real estate licenses at the time they earned the commission D) there was a closing and the seller actually conveyed title to the buyer.
C) the broker and any sales associates involved in the transaction held valid real estate licenses at the time they earned the commission
Upon revocation of a broker license, the broker shall forward to the Commission all other affiliated licensee's 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
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 owners name
C) the firm's name as it is registered with the commission
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 that 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
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 incorrect concerning this situation? A) both brokers must agree in writing B) the transactions on which the licensee will act must be specified C) the new broker agrees in writing to assume responsibility for the licensee's actions D) the agreement must express the terms under which the licensee will be compensated by the former broker.
C) the new broker agrees in writing to assume responsibility for the licensee's actions
The license of each affiliated licensee shall be delivered or mailed to: A) the Georgia real estate commission B) the georgia association of REALTORS C) the real estate broker for whom the licensee is acting D) the affiliated licensee at their broker's address
C) the real estate broker for whom the licensee is acting
When a member of the Georgia real estate commission vacated before the full term is served, the member is succeeded by a properly appointed person who shall serve for: A) a period of time determined solely by a vote of the Georgia Real Estate commission that is based upon when vacancy occurred B) less than the unexpired term of the member creating the vacancy C) the unexpired term of the member creating the vacancy. D) five years, because all successors are appointed for this term.
C) the unexpired term of the member creating the vacancy.
In Georgia, when a sales person 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.
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 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
A licensee has an assistant and has delegated activities such as prospecting, holding open houses, and other duties not directly involved in drafting a sales contract. Does this assistant have to have a real estate license? A) no, as long as the assistant does not draft listings or contracts B) no, only the person for whom the assistant is working needs to be licensed C) yes, conducting such activities would require a license. D) yes, every person working for a licensee must be licensed
C) yes, conducting such activities would require a license.
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
Before the commission shall censure a licensee or before revoking or suspending a license, it shall: A) impose a fine not to exceed $5,000 B) refund any fees paid by the licensee C) submit a report to the attorney general D) provide for a hearing for the license holder
D) provide for a hearing for the license holder
Which of the following would be the BEST response for a licensee to make to a seller who stipulated that their house is NOT to be shown to minority prospects? A) "I will try to do my best, but I will have to show it to someone if they request it." B) "Don't worry, I can show them other listed minority properties." C) "Under these conditions, I will have to charge a higher fee." D) "Licensee must comply with the license laws. I cannot accept the listing under these circumstances."
D) "Licensee must comply with the license laws. I cannot accept the listing under these circumstances."
To insure that a minimum balance of $1 million is maintained in the real estate education, research, and recovery fund the Commission, in addition to the license fees, may assess each licensee an amount not to exceed: A) $100 per year, to be paid each year B) $100 per year, to be paid upon renewal of license C) $30 per year, to be paid each year D) $30 per year, to be paid upon renewal of license
D) $30 per year, to be paid upon renewal of license
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
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
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 the Commission before renewing a license evidence of satisfactorily completing a course or courses approved by the Commission. The length of 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
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
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 the 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
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 adress in a legal description
D) Failure to put a street adress in a legal description
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 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 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.
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.
Which of the following persons would the Georgia real estate license law apply to? A) an attorney in fact under a duly executed power of attorney to convey real estate from the owner or lessor B) a licensed practicing attorney acting solely as an incident to the practice of law C) any person acting as a trustee in a bankruptcy D) a real estate licensee employed on a full time basis by the owner of the property for the purpose of leasing such property
D) a real estate licensee employed on a full time basis by the owner of the property for the purpose of leasing such property
Which of the following parties would be exempt from the real estate license requirements? A) an auctioneer selling property at an auction for another party for compensation B) a forester selling a parcel of timberland for another party for compensation C) a person promoting the sale of real estate through listing in a publication and recieving a listing fee D) an attorney in fact under duly executed power of an attorney to convey real estate from an owner or lessor.
D) an attorney in fact under duly executed power of an attorney to convey real estate from an owner or lessor.
An applicant for a salesperson 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
At its regularly scheduled first monthly meeting of the calendar year, the commission shall select from its members by secret ballot: A) a real estate commissioner B) a chief investigator C) a deputy real estate commissioner D) both a chairperson and a vice-chairperson
D) both a chairperson and a vice-chairperson
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 sales person 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
Before attempting to show a propety listen 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
In Georgia, a person holding only a real estate license could legally do which of the following? A) appraise real property B) sell securities in a real estate company C) auction real estate D) complete a CMA or BPO for a seller or buyer
D) complete a CMA or BPO for a seller or buyer
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 therof 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
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 another state C) removing a "for sale" sign within 10 days of the listing expiration D) falsification of a real estate contract.
D) falsification of a real estate contract.
In order to qualify for a broker or associate's broker license, an applicant must: A) be a U.S. citizen B) be a resident of the State of Georiga 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 preceeding application
D) have attained the age of 21 years and have served actively for at least three years of the five years immediately preceeding application
A buyer sued a real estate salesperson for fraud in a real estate transaction and received a judgment amount of $15,000. The salesperson owns a cabin in Georgia valued at $10,000 free and clear. For the buyer to file a claim against the real estate education, research, and recovery fund he must: A) inform the real estate commission about the property the salesperson owns so the commission may take legal action B) file a lien on the property in the amount of $10,000 C) present the judgment to the real estate commission for $15,000 D) have the property levied upon, sold, and file a claim against the real estate education, research, and recovery fund for the balance remaining to satisfy the judgment
D) have the property levied upon, sold, and file a claim against the real estate education, research, and recovery fund for the balance remaining to satisfy the judgment
Licensees Baird and Carr decide to form a corporation for the purpose of providing real estate brokerage services. Which of the following statements is correct concerning this situation? A) Baird and Carr must hold equal interest in the corporation B) Baird and Carr can be jointly named as qualifying brokers for the corporation C) if either baird or carr is licensed as a broker, no additional license is required D) if neither baird or carr are licensed as brokers, a qualifying broker must be hired and named as an officer of the corporation
D) if neither baird or carr are licensed as brokers, a qualifying broker must be hired and named as an officer of the corporation
if a licensee is convicted of a felony offense the commission must be notified: A) within 30 days B) within 60 days C) within 90 days D) immediately
D) immediately
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 no later than the time either party makes a written offer
D) in a timely manner, but no later than the time either party makes a written offer
What is the maximum amount 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
When showing a buyer residential properties, a licensee could take into consideration the buyer's: A) race B) national origin C) religion D) martial status
D) martial status
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
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 the 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.
Which of the following statements about the Georgia Real estate commission is correct? A) all of the members are appointed for a term of 6 years B) the real estate commissioner is appointed by the governor and confirmed by the Senate for a term of 5 years C) all of the members are actively engaged in the real estate business D) the commission is authorized to pass rules and regulations relating to the administration of the license law.
D) the commission is authorized to pass rules and regulations relating to the administration of the license law.
which of the following statements about the Georgia Real Estate Commission is INCORRECT? A) it shall be composed of six members, each appointed by the governor and confirmed by the senate B) one member shall have no connection with the real estate industry C) five of the members shall be real estate licensees D) the commission is composed of six real estate licensees plus the real estate commissioner.
D) the commission is composed of six real estate licensees plus the real estate commissioner.
In advertising 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 firm's 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
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.
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.
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 associated 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.
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 contracts D) under no circumstances
D) under no circumstances
