Free Georgia Real Estate Practice Exam

Q1.Under the Brokerage Relationships in Real Estate Transactions Act (BRRETA), codified at O.C.G.A. § 10-6A-1 et seq., a licensee who has NOT entered into a written agency agreement with a buyer is operating in which capacity, and what is the licensee's primary duty to that buyer?

• A.As a buyer's agent, with full fiduciary duties including loyalty, confidentiality, and obedience owed exclusively to the buyer
• B.As a transaction broker, with a duty to provide equal services and disclose all material facts to both parties
• C.As a designated agent of the buyer, with the supervising broker serving as a dual agent
• D.As a non-agent or customer-level service provider, with duties limited to providing timely and accurate information and disclosing known adverse material facts about the property

Q2.Which type of loan typically offers the lowest down payment requirement for qualified first-time homebuyers?

• A.VA loan
• B.Conventional loan
• C.USDA loan
• D.Jumbo loan

Q3.A buyer in Georgia is obtaining a new mortgage loan of $200,000. Under O.C.G.A. § 48-6-61, which tax applies to the recording of the security deed, and who is customarily responsible for paying it?

• A.The real estate transfer tax, customarily paid by the seller
• B.The intangibles recording tax on long-term notes secured by real property, customarily paid by the borrower (buyer)
• C.The documentary stamp tax, shared equally between the buyer and seller
• D.The mortgage recording tax, customarily paid by the lender at origination

Q4.A Georgia salesperson license is on inactive status. Which of the following statements BEST describes the licensee's continuing education obligation under Georgia law?

• A.The licensee is completely exempt from continuing education requirements while on inactive status
• B.The licensee must complete continuing education requirements before the license can be reactivated, even though the CE deadline applies at renewal
• C.The licensee must complete continuing education on the same schedule as active licensees and pay the same renewal fee
• D.The licensee may reactivate the license at any time within four years without completing any continuing education

Q5.A Georgia broker has three affiliated salespersons and has just opened a branch office located 40 miles from the main office. Under Georgia license law and GREC regulations, which of the following statements BEST describes the broker's supervisory obligations with respect to the branch office?

• A.The broker may designate a licensed salesperson as branch manager, provided the salesperson has at least two years of active licensure, and that salesperson may independently supervise all branch activity without further broker oversight.
• B.The broker must designate a licensee holding an active broker or associate broker license to manage the branch office, and the qualifying broker retains ultimate supervisory responsibility and liability for all branch operations.
• C.Because Georgia does not require branch office licenses, the broker has no additional supervisory obligations beyond those that apply to the main office.
• D.The broker must physically be present at the branch office for a minimum of 20 hours per week to satisfy GREC's active supervision standard.

Q6.When drafting a lease agreement, which federal law requires property managers to disclose known lead-based paint hazards in residential properties built before 1978?

• A.Fair Housing Act
• B.Residential Lead-Based Paint Hazard Reduction Act
• C.Americans with Disabilities Act
• D.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)

Q7.In a government rectangular survey legal description, 'the NW 1/4 of the SE 1/4 of Section 23, Township 4 North, Range 7 West of the Third Principal Meridian' describes how many acres?

• A.160 acres
• B.80 acres
• C.10 acres
• D.40 acres

Q8.A Georgia listing broker represents the seller in a transaction where the buyer is also represented by a licensee from the same firm. The firm's written company policy authorizes designated agency. The broker properly designates one affiliated licensee as the seller's designated agent and a different affiliated licensee as the buyer's designated agent. Under Georgia's brokerage relationships statute (O.C.G.A. § 10-6A), which of the following duties does the qualifying broker owe to BOTH parties during this designated agency arrangement?

• A.Actively advocating for the highest possible sales price on behalf of the seller while simultaneously advocating for the lowest possible price on behalf of the buyer.
• B.Maintaining confidentiality of each party's material information and disclosing all known adverse material facts about the property to both parties.
• C.Timely disclosure of all offers and counteroffers, accounting for all funds, and performance of ministerial acts—while remaining neutral and not advocating for either party's negotiating position.
• D.Preparing a comparative market analysis for both the seller and the buyer so that neither party has an informational advantage in negotiations.

Q9.A consumer obtained a final court judgment against a Georgia-licensed broker for fraudulent misrepresentation in a real estate transaction and was unable to collect from the broker. The consumer applies to the Real Estate Education, Research and Recovery Fund. Under O.C.G.A. § 43-40-22, which of the following statements about the Recovery Fund claim is CORRECT?

• A.The Fund will pay the full amount of the unsatisfied judgment, including punitive damages and attorney's fees, with no per-transaction cap.
• B.Upon payment from the Recovery Fund on behalf of the broker, the broker's license is automatically suspended until the Fund is repaid in full with interest.
• C.The consumer must file the Recovery Fund claim within 90 days of the transaction closing to be eligible for payment.
• D.The Fund covers only losses arising from property management transactions and does not cover sales transaction fraud.

Q10.Under the Federal Fair Housing Act, which of the following is NOT a protected class?

• A.National origin
• B.Familial status
• C.Sexual orientation
• D.Religion

Q11.A candidate applying for a Georgia salesperson license discloses on the application that they were convicted of a felony five years ago. Under O.C.G.A. Title 43, Chapter 40, how will the Georgia Real Estate Commission most likely handle this disclosure?

• A.Automatically deny the application because any felony conviction results in permanent disqualification.
• B.Ignore the conviction entirely because it occurred more than three years before the application.
• C.Review the nature of the conviction and its relevance to the practice of real estate before making a licensing decision.
• D.Grant the license provisionally for one year, subject to periodic criminal background reviews.

Q12.Keisha's buyer discovers a large new water stain on the ceiling during the final walk-through two days before closing. What is the most appropriate next step?

• A.Proceed to closing — the contract is executed and the walk-through is not an inspection
• B.Cancel the contract immediately without contacting the listing agent
• C.Document the damage, contact the listing agent, and negotiate a repair, credit, or extension before closing
• D.Refuse to close and forfeit the earnest money

Q13.Under the Fair Housing Act, which statement about familial status discrimination is correct?

• A.Housing designated for seniors (62 and older) is exempt from familial status requirements
• B.Landlords can refuse to rent to families with children if the property has lead-based paint
• C.Pregnant women are not protected under familial status provisions
• D.Landlords can charge additional security deposits for families with children

Q14.A Georgia broker maintains a property management escrow account. At the end of the month, the broker performs a three-way reconciliation and discovers the bank balance is $200 higher than the total of all client ledger balances. Which of the following actions is most consistent with the broker's obligations under GREC rules and sound escrow management practices?

• A.Immediately investigate the discrepancy, document the finding, and resolve the overage before disbursing any funds, correcting the ledger if a posting error is found.
• B.Disburse the $200 overage to the brokerage operating account as unclaimed income since it exceeds no client's ledger balance.
• C.Leave the discrepancy in place and note it in the next month's reconciliation report.
• D.Transfer the $200 to a separate suspense account within the operating account until the source is identified.

Q15.Under Georgia law, a person who wishes to apply for a salesperson license must first complete a state-approved pre-license education course of how many hours?

• A.25 hours
• B.40 hours
• C.75 hours
• D.60 hours