GA Real Estate Exam Flashcards

Q: What score do I need to pass the Georgia real estate salesperson exam?

Georgia requires 75% on each section separately: 75 of 100 national questions and 39 of 52 state questions. The two sections are scored independently, so passing one does not offset failing the other. If you fail only one section, you generally retake just that section rather than the entire 152-question exam.

Q: What is BRRETA and why is it heavily tested in Georgia?

BRRETA is the Brokerage Relationships in Real Estate Transactions Act (O.C.G.A. Section 10-6A), Georgia's agency statute. It defines client vs. customer relationships, requires a written brokerage engagement to create a client (agency) relationship, and authorizes dual agency and designated agency with written consent. The Georgia state portion devotes a large share of questions to BRRETA concepts.

Q: Is Georgia a caveat emptor state for seller disclosure?

Yes. Georgia follows caveat emptor (buyer beware), so a seller has no general statutory duty to complete a property disclosure form. However, a seller must answer direct buyer questions truthfully and cannot actively conceal defects or commit fraud. Licensees still must disclose known adverse material facts about the physical condition that a reasonable inspection would not reveal.

Q: What education is required before taking the Georgia exam?

Applicants must be at least 18 years old, hold a high school diploma or GED, and complete 75 hours of pre-license education from a GREC-approved school. After licensure, a new salesperson must complete a 25-hour post-license course within the first year or the license lapses. Renewal every 4 years requires 36 hours of continuing education, including 3 hours of Georgia License Law.

Q: Who regulates real estate licensees in Georgia?

The Georgia Real Estate Commission (GREC), operating under Title 43, Chapter 40 of the Georgia Code, licenses and regulates salespersons and brokers. GREC can issue, suspend, and revoke licenses, investigate complaints, audit trust accounts, and impose citations and fines for license law violations.

Question 1

GREC (Georgia Real Estate Commission)

Accepted Answer

The state agency that licenses and regulates Georgia real estate salespersons and brokers under Title 43, Chapter 40. It can issue, suspend, and revoke licenses, investigate complaints, audit brokers, and impose citations and fines for violations.

Question 2

Georgia pre-license education requirement

Accepted Answer

75 hours of approved pre-license education from a GREC-approved school is required before a salesperson applicant may sit for the exam. Applicants must also be at least 18 and hold a high school diploma or GED.

Question 3

Georgia exam structure (national vs. state)

Accepted Answer

The salesperson exam has 152 questions: 100 national and 52 Georgia state. Each section is scored separately at 75%; you need 75/100 national and 39/52 state. Failing one section generally means retaking only that section.

Question 4

Post-license course requirement (new Georgia salesperson)

Accepted Answer

A newly licensed salesperson must complete a 25-hour GREC post-license course within the first year of licensure. Failure to complete it causes the license to lapse.

Question 5

Georgia license renewal and continuing education

Accepted Answer

Licenses are renewed every 4 years and require 36 hours of continuing education, including 3 hours of Georgia License Law. Late renewal within 2 years requires lapsed fees; after 2 years the exam must be retaken.

Question 6

Salesperson vs. broker vs. associate broker (Georgia)

Accepted Answer

A salesperson must work under a supervising broker who is responsible for their activities. A broker may operate independently; an associate broker holds a broker license but chooses to work under another broker rather than independently.

Question 7

Broker supervision and vicarious liability (Georgia)

Accepted Answer

Brokers must maintain written supervision policies and are vicariously liable for the real estate conduct of their affiliated licensees. Failure to supervise is a common GREC disciplinary charge.

Question 8

GREC address-change notification rule

Accepted Answer

A Georgia licensee must notify GREC of a change of address (or change of broker affiliation) within 30 days. Failing to keep GREC informed is a license law violation.

Question 9

GREC discipline and citation limits

Accepted Answer

Violations can lead to citations, fines, suspension, or revocation. Citation fines run up to $1,000 per violation (with a higher aggregate cap for multiple violations). Serious cases entitle the licensee to a hearing before an Administrative Law Judge.

Question 10

BRRETA

Accepted Answer

The Brokerage Relationships in Real Estate Transactions Act (O.C.G.A. Section 10-6A) is Georgia's agency statute. It governs all brokerage relationships and recognizes client, customer, dual agency, and designated agency.

Question 11

Client vs. customer under BRRETA

Accepted Answer

A client has an agency relationship created by a written brokerage engagement and is owed full fiduciary-type duties. A customer receives honest dealing and disclosure of known adverse material facts but is not represented and is owed no agency duties.

Question 12

Written brokerage engagement requirement (Georgia)

Accepted Answer

Under BRRETA, a written brokerage engagement agreement is required to create a client (agency) relationship in Georgia. Without it, the party is treated as a customer, not a client.

Question 13

Timing of agency disclosure in Georgia

Accepted Answer

A broker must disclose the agency relationship at the first substantive contact with a party, and before any confidential information is exchanged. The 'Exhibit A' agency disclosure is the standard Georgia form for this.

Question 14

Dual agency in Georgia

Accepted Answer

Dual agency is when one broker represents both buyer and seller in the same transaction. Georgia permits it only with the written, informed consent of both parties, and the brokerage must have a written office policy on dual agency.

Question 15

Designated agency in Georgia

Accepted Answer

The broker assigns different licensees to represent the buyer and the seller exclusively, so each designated agent can fully advocate for their assigned client. The broker cannot personally serve as one of the designated agents.

Question 16

Ministerial acts (Georgia agency)

Accepted Answer

Ministerial acts are informational or clerical tasks (showing property, providing forms, identifying lenders) performed for a customer that do not, by themselves, create an agency relationship under BRRETA.

Question 17

Salesperson compensation rule (Georgia)

Accepted Answer

A salesperson may be paid only through their sponsoring broker, never directly by a client or another party. Commission rates are fully negotiable; there are no state-fixed rates.

Question 18

Referral fees to unlicensed persons (Georgia)

Accepted Answer

Paying a real estate referral fee or commission to an unlicensed person is generally prohibited. Brokers may, however, share commissions with properly licensed cooperating or out-of-state brokers.

Question 19

GAR Purchase and Sale Agreement

Accepted Answer

The Georgia Association of REALTORS (GAR) Purchase and Sale Agreement is the standard residential contract used in Georgia. It contains the due diligence, financing, and inspection provisions tested on the state portion.

Question 20

Georgia due diligence period

Accepted Answer

A negotiated period during which the buyer may terminate the contract for any reason. It is a buyer's unilateral right to inspect and walk away, distinct from a contingency that must be satisfied.

Question 21

Due diligence fee vs. earnest money (Georgia)

Accepted Answer

The due diligence fee is paid directly to the seller (not into escrow) and is generally non-refundable, compensating the seller for the off-market time. Earnest money is held in the broker's trust account and is typically refundable if the buyer terminates within the due diligence period.

Question 22

'Time is of the essence' in Georgia contracts

Accepted Answer

This standard clause makes contract deadlines strictly enforceable—missing a date can be a material breach. Georgia practitioners must track due diligence, financing, and closing dates precisely.

Question 23

Earnest money deposit timing (GAR contract)

Accepted Answer

Under the GAR contract, earnest money is generally to be deposited within 5 banking days after the binding agreement date. GREC trust account rules require the broker to deposit received funds promptly per regulation.

Question 24

Attorney-conducted closings in Georgia

Accepted Answer

Georgia is an 'attorney closing' state—a licensed attorney typically performs the title examination and conducts the closing, rather than an escrow or title company alone.

Question 25

Caveat emptor and seller disclosure in Georgia

Accepted Answer

Georgia is a buyer-beware state: a seller has no general duty to complete a disclosure form but must answer direct questions honestly and cannot conceal defects. Agents must still disclose known adverse material physical-condition facts.

Question 26

Federal lead-based paint disclosure

Accepted Answer

For housing built before 1978, federal law requires the seller/landlord to disclose known lead-based paint hazards, provide the EPA pamphlet, and give buyers a 10-day inspection opportunity. This applies in Georgia regardless of caveat emptor.

Question 27

Stigmatized property disclosure (Georgia)

Accepted Answer

Georgia law generally does not require disclosure of psychological stigmas such as a death, suicide, or felony on the property, or that an occupant had a disease not transmitted by occupancy. Material physical defects still must be disclosed.

Question 28

Adverse material fact (Georgia agent duty)

Accepted Answer

An adverse material fact is information about the property's physical condition that a reasonable inspection would not reveal and that affects value or desirability. Georgia licensees must disclose known adverse material facts even though the state follows caveat emptor.

Question 29

Georgia trust/escrow account institution rule

Accepted Answer

Broker trust (escrow) accounts must be held in a federally insured financial institution located in Georgia. Client funds must be kept separate from the broker's operating funds.

Question 30

Commingling vs. conversion

Accepted Answer

Commingling is mixing client trust funds with the broker's personal or business funds and is prohibited (minimal service-charge balances aside). Conversion is using client funds for the broker's own purposes—a more serious violation and grounds for revocation.

Question 31

Georgia trust account reconciliation and records

Accepted Answer

Trust accounts must be reconciled at least monthly, and transaction and trust records must be retained for at least 3 years. GREC may audit these records at any time.

Question 32

Broker's claim to trust funds

Accepted Answer

A broker is not entitled to any portion of trust funds (such as commission) until the transaction is consummated or properly terminated. Disputed earnest money may require an interpleader action rather than the broker deciding.

Question 33

Georgia property assessment ratio

Accepted Answer

Georgia assesses real property at 40% of fair market value. Annual tax equals the 40% assessed value (minus exemptions) multiplied by the local millage rate.

Question 34

Millage rate

Accepted Answer

A millage rate expresses property tax as dollars per $1,000 of assessed value (1 mill = $1 per $1,000). In Georgia it is applied to the 40% assessed value after exemptions.

Question 35

Georgia homestead exemption

Accepted Answer

Owner-occupants of a primary residence may claim a homestead exemption that reduces the taxable assessed value. The standard statewide exemption is modest, and many counties and cities add larger local exemptions.

Question 36

Property tax proration in Georgia

Accepted Answer

Georgia property taxes are paid in arrears, so at closing the seller typically credits the buyer for the portion of the tax year the seller owned the property. The proration is calculated as of the closing date.

Question 37

Georgia Fair Housing Act

Accepted Answer

O.C.G.A. Section 8-3-200 mirrors the federal Fair Housing Act and protects 7 classes: race, color, religion, sex, national origin, disability, and familial status. The Georgia Commission on Equal Opportunity (GCEO) enforces it.

Question 38

Fair housing complaint filing deadline (Georgia)

Accepted Answer

A discriminatory housing complaint must generally be filed with GCEO (or HUD) within 1 year of the alleged discriminatory act. Remedies include actual damages, civil penalties, and injunctive relief.

Question 39

Steering, blockbusting, and redlining

Accepted Answer

Steering directs buyers toward or away from areas based on protected class; blockbusting induces panic selling by suggesting protected-class change; redlining is denying loans or insurance by area demographics. All are prohibited under federal and Georgia fair housing law.

Question 40

Estate in fee simple absolute

Accepted Answer

The most complete form of ownership: indefinite duration, fully inheritable and transferable, with the largest bundle of rights. Most Georgia residential property is conveyed in fee simple absolute.

Question 41

Joint tenancy vs. tenancy in common (Georgia)

Accepted Answer

Joint tenancy carries the right of survivorship and in Georgia must be expressly stated to be created. Tenancy in common has no survivorship—each owner's share passes through their estate. Georgia is an equitable-distribution (not community property) state.

Question 42

Easement vs. encroachment

Accepted Answer

An easement is a legal right to use another's land for a specific purpose (e.g., utility access). An encroachment is an unauthorized physical intrusion onto a neighbor's land; it is a title defect, not a granted right.

Question 43

General warranty deed vs. quitclaim deed

Accepted Answer

A general warranty deed gives the broadest covenants and warrants title against all defects, even before the grantor owned it. A quitclaim deed transfers only whatever interest the grantor has, with no warranties—often used to clear clouds on title.

Question 44

Georgia security instrument (deed to secure debt)

Accepted Answer

Georgia primarily uses a security deed (deed to secure debt) rather than a mortgage. Legal title passes to the lender until the debt is repaid, which enables Georgia's non-judicial foreclosure power of sale.

Question 45

Non-judicial foreclosure in Georgia

Accepted Answer

Georgia generally uses non-judicial foreclosure under the power of sale in the security deed, with public advertising and a courthouse-steps sale. Georgia has no statutory post-sale right of redemption for the borrower.

Question 46

Conventional vs. FHA vs. VA loans

Accepted Answer

Conventional loans are not government-insured and often need PMI below 20% down. FHA loans are federally insured with low down payments and mortgage insurance premiums. VA loans are federally guaranteed for eligible veterans, often with no down payment.

Question 47

Loan-to-value (LTV) ratio

Accepted Answer

LTV = loan amount divided by the lesser of sale price or appraised value. A higher LTV means more lender risk; conventional loans above 80% LTV typically require private mortgage insurance.

Question 48

Comparative market analysis vs. appraisal

Accepted Answer

A CMA is an agent's pricing opinion based on comparable sales used to advise a seller or buyer. An appraisal is an independent licensed appraiser's formal opinion of value, typically required by the lender to support the loan.

Question 49

Sales comparison approach to value

Accepted Answer

Estimates value by adjusting recent comparable sales for differences in features, location, and condition. It is the primary approach for residential property and underlies a salesperson's CMA.

Question 50

Georgia Real Estate Education, Research, and Recovery Fund

Accepted Answer

A state fund that may pay limited monetary judgments to consumers harmed by a licensee's fraud or violation when the judgment cannot be collected from the licensee. Payment from the fund can result in suspension of the responsible licensee.

Free GA Real Estate Exam Flashcards

Filter by Topic

Jump to Card

About These GA Real Estate Flashcards

Topics Covered

Frequently Asked Questions

Georgia Real Estate Salesperson

Explore More Real Estate Salesperson

Real Estate Salesperson

Texas Real Estate Salesperson

Florida Real Estate Salesperson

Tennessee Real Estate Salesperson

New York Real Estate Salesperson

California Real Estate Salesperson

More From This Family