8.0 State Laws & Rules (Georgia) Real Estate License Practice Quiz

• A. depositing client funds into the broker's personal or operating account
• B. representing both the buyer and seller in the same transaction
• C. advertising a property without including the brokerage firm's name
• D. sharing a client's confidential negotiating position with the opposing party

Commingling is the illegal practice of mixing funds held on behalf of clients with a licensee's or broker's personal or business funds; all client money must be held in a designated trust account.

• A. Georgia Real Estate Appraiser licensed under Title 43
• B. qualifying broker licensed in Georgia
• C. member of the National Association of REALTORS® in good standing
• D. Georgia Bar-licensed real estate attorney

Georgia law requires every salesperson to be affiliated with and work under a Georgia-licensed qualifying broker.

• A. legal if disclosed to the client at the time of closing
• B. a violation of license law prohibitions on undisclosed compensation
• C. permissible under a referral fee exception in Georgia license law
• D. legal provided the gift card value is under $25

Accepting undisclosed compensation from a third party for referrals violates Georgia license law and RESPA's anti-kickback provisions.

• A. automatically protected from legal liability for misrepresentations made prior to signing
• B. entitled to choose their own closing attorney at the seller's expense
• C. informed about which licensee represents whom in the transaction
• D. guaranteed a minimum inspection period before any contract becomes binding

The purpose of mandatory agency disclosure is to ensure that buyers and sellers know whose interests each licensee is representing before substantive negotiation begins.

• A. receive a written warning from GREC with a 90-day grace period to complete the course
• B. be required to retake the salesperson licensing examination before continuing to practice
• C. have the license placed on probationary status for six months
• D. have the license lapse at the end of that one-year period

Under Georgia law, a salesperson who fails to complete the 25-hour postlicense course within the first year of licensure has the license lapse automatically.

• A. only a civil lawsuit, with no license consequences if the buyer signed an as-is addendum
• B. no consequences because listing agents owe their duties to the seller, not the buyer
• C. potential license discipline by GREC and civil liability to the buyer
• D. reimbursement only through the Recovery Fund, with no separate license action

Knowingly making a false statement of material fact is grounds for license revocation or suspension under O.C.G.A. § 43-40-25 and also exposes the agent to a civil fraud claim.

• A. one year after the transaction closing
• B. ten years after the transaction closing
• C. six months after the transaction closing
• D. three years after the transaction closing

GREC regulations require qualifying brokers to maintain transaction records, including contracts and correspondence, for at least three years.

• A. practicing as a salesperson without a current Georgia license
• B. depositing a buyer's earnest money in the broker's personal savings account
• C. soliciting a listed property after the listing broker has requested the soliciting agent to cease contact
• D. accepting a commission in the amount specified in a written, signed listing agreement

Accepting the compensation agreed upon in a lawfully executed listing agreement is entirely proper and does not violate license law.