Georgia Real Estate Salesperson Exam

UNFAIR PRACTICES

Which of the following would NOT be a violation of the Georgia license law?

Failure to put a street address in a legal description

A broker was found guilty of commingling. The real estate Commission shall have the power to

impose a fine not to exceed $1,000

Which of the following is NOT a legitimate reason for a broker or sales associate to refuse a listing?

The owner’s minority status would make the property difficult to sell

In Georgia, a broker must deposit the earnest money in a separate trust or escrow account established for that purpose, unless:

all parties involved have agreed otherwise in writing

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?

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

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 violation of the license law

“For Sale” signs must be moved from the property no later than

ten days after the expiration of the listing

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?

Yes, this would be considered an unauthorized offering

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:

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

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?

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

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

No, this action is a violation of the license law

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:

Tuesday

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

three years

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?

30 days

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 violation of the license law

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:

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

All “For Sale” signs must be removed from the property within how many days after termination of the listing agreement?

10 days.

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?

Permission to advertise must be in writing

Before attempting to show a property listed in the multiple listing service by another company, a salesperson should:

call the listing company

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?

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

After closing a licensee wants to give the buyer a $50 gift. Is this action permitted under the Georgia license law?

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

The Georgia Real Estate Commission may suspend or revoke a broker’s license if the broker has been found guilty of:

falsification of a real estate sales contract

Any person who violates any provision of the License Law shall be guilty of a

misdemeanor

Which of the following would best describe a dual agency

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

A licensee may pay compensation to a person who performs the acts of a licensee only if such person:

holds a real estate license

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

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

The Georgia Real Estate Commission may impose a necessary fine, but for a single violation that fine must not exceed:

$1,000

A licensee must give all earnest money received (cash, checks or items of value) to his/her broker:

as soon as practically possible

In Georgia, when a salesperson receives an offer and an earnest money deposit from a prospective buyer, the law requires the salesperson to

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

A real estate salesperson moves to another residence. While in the process of changing the address, one of the agent’s current listings expires. In these circumstances, laws and rules would require the salesperson to:

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

Fees collected by the Real Estate Commission are held

in the General Fund of the state treasury

Fees authorized under the Georgia real estate license law are established and collected by the:

Real Estate Commission

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:

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

An applicant for a salesperson's license in Georgia must

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

What is the maximum period of time a licensee can put their license on inactive status

Indefinitely, as long as renewal fees are paid.

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?

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

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 30-hour course

Which of the following is NOT a requirement of an applicant for a salesperson’s license?

Complete a 60-hour prelicense course of study

In order to qualify for a broker or associate broker’s license, an applicant must

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

The original license of a salesperson shall be delivered or mailed to

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

Unless renewal fees are paid before the renewal date, a licensee’s individual license will expire on:

on the last day of the month of the licensee’s birthday

A licensee who seeks to activate a license which has been on inactive status for a period of 3½ years shall be required to complete Commission approved courses of at least

36 hours prior to activating

In order to qualify for a Community Association Manager’s license, an applicant must complete an approved course of study of at least

25 hours

An applicant for licensure with a criminal conviction shall be required to disclose the conviction to the Georgia Real Estate Commission when:

making application for licensure

An original applicant for a salesperson’s license, or a licensee seeking to renew a license, who has been convicted of a crime must:

disclose this conviction to the Georgia Real Estate Commission

The Georgia Real Estate Commission may establish reasonable fees for licensees. Which of the following statements concerning these fees is correct?

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

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?

12 months

The license of any salesperson who fails to satisfactorily complete a postlicense course in a timely manner will:

24 hours

In Georgia, an inactive license is valid

indefinitely, provided renewal fees are paid

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:

36 hours

During each renewal period a real estate licensee shall satisfactorily complete a continuing education course of at least:

3 hours on the topic of license law.

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:

go to the courts or other arbitrating bodies

A builder gives a real estate broker verbal permission to find buyers for his new homes. Can the broker advertise the properties?

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

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:

30 days.

Can a broker deposit earnest money and security deposits into an interest bearing trust account?

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

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:

within 10 days of the conclusion of the proceeding

Which of the following statements is NOT true?

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

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?

Broker and three salespersons

A broker may refuse to release a salesperson's license under which of the following circumstances:

Under no circumstances.

Which of the following statements best describes "blind advertising"?

Failure to state the advertiser is a real estate licensee

When a salesperson or associate broker requests that a release form be signed, the releasing broker shall sign the release:

immediately.

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:

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.

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:

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

Exclusive brokerage engagements in Georgia must:

be in writing and have a definite expiration date

Which of the following must a licensee ALWAYS do when advertising their own property for sale?

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

A broker receives more than one offer on the same property. The broker must

present all signed offers.

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?

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

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:

the time that any party first makes an offer

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?

Yes, provided a disclosure is included that the “seller holds a real estate license”.

Exclusive listing contracts in Georgia are required to have:

a definite expiration date

A broker should NOT disburse trust funds from a designated trust account under the following circumstances:

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

Whenever the qualifying broker of a real estate firm dies the firm must secure a new qualifying broker within:

60 days

Any firm using a trade name on for sale signs, business cards, contracts, or other documents relating to real estate transactions shall include:

the firm’s name as registered with the Commission

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?

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

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?

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

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:

$60,000

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?

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

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?

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

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:

the broker with whom the licensee was affiliated

In Georgia, a real estate salesperson has a dispute with their broker concerning the sharing of a commission. Can the Commission resolve this dispute?

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

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:

within 10 days of the conclusion of the proceeding

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:

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

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

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:

go to the courts or other arbitrating bodies

May a real estate licensee pay a fee or commission to a licensee representing another party in the transaction?

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

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?

No, a written agreement is required.

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

30 days

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?

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

A salesperson is faxing listings to potential buyers. The faxes must contain the

name and phone number of the listing firm.

In Georgia, if a broker’s license is revoked, what is the status of the affiliated sales associates licenses

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.

Any firm using a trade name on for sale signs, business cards, contracts or other documents relating to a real estate transaction must include:

The firm’s name as it is registered with the Commission

Any outdated information on a website that a licensee maintains must be updated or removed from the website within ___ days

30

Regarding internet advertising, if a licensee has a website they must disclose the

name and phone number of the licensee’s firm on every page of the website

A licensee is transferring to another brokerage company. Which of the following statements is correct concerning the application for transfer?

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

In advertising a specific property or properties for sale or rent, all real estate forms must include in the advertisement

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

If a Georgia real estate broker is required to maintain a trust account or escrow account, they must provide the Commission with:

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

Which of the following statements regarding brokerage agreements is false?

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

If a salesperson does not renew a real estate license within the time period required by law:

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

A homeowner who is a real estate licensee in Georgia advertises his/her property for sale. The licensee must always

indicate in the ad that “seller holds a real estate license.”

“Blind Ads” are prohibited by the Commission because they:

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