Georgia Real Estate Laws and Rules

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

• Falsifying a document used in a real estate transaction.

• Failing to advise your broker in writing when buying or selling property for yourself.

• Failure to give a copy of a signed offer to the purchaser.

• 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 $1000

• impose a fine not to exceed $5000

• imprison the licensee up to one year

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

• The seller states a unreasonable list price for the property.

• The property is not in the firm's geographical service area.

• 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:

• the amount is less than $500

• all parties involved have agreed otherwise in writing.

• the broker has established a policy for holding the earnest money.

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 if he notifies the purchaser.

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

• Because the value of the bonus is nominal, the salesperson can accept it without notifying anyone.

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:

• an acceptable practice in the marketing of residential condominium units.

• an example of a dual agency and need not be disclosed.

• a violation of the license law.

"For Sale" signs must be moved from the property no later than:

• the day of the expiration of the listing.

• ten days after the expiration of the listing

• a reasonable time after the expiration of the listing.

• thirty 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?

• No, this would be considered an open brokerage agreement.

• No, but he could not advertise the property.

• Yes, the broker is acting in dual capacity.

• Yes, this would be considered an unauthorized offering.

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?

• Yes, referral fees can be paid by real estate licensees to unlicensed persons.

• No, this action is a violation of the license law.

• Yes, provided the fee does not exceed $25

• No, licensees cannot pay referral fees.

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

• three years and up to five years at the request of the Commission.

• five years