Exam Cheat Sheet · Quick Reference

Georgia Broker Supplement Examination

Georgia  ·  PSI Services Real Estate

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
48
Passing score
75%
Exam time
120 min
Administered by
PSI Services Real Estate
Format
Closed-book

Georgia State Portion 48 questions

State Laws and Rules 31 Q · 65%
Unfair PracticesTrust AccountsSubstantive RegulationsReal Estate Practice in GeorgiaQualifications and FeesFair Housing LawsReal Estate Education, Research and Recovery FundComplaints and Hearing Process and Attorney General's OpinionsCommission Organization and ProceduresRequired Licensure
Management 12 Q · 25%
License Law & SupervisionLicensee Oversight: Setting up systems to train, mentor, and supervise sales associates and associate brokers.Independent Contractor Agreements: Drafting clear agreements that define duties, compensation, and compliance expectations.Record Keeping: Maintaining accurate records for transactions, trust accounts, and rejected offersTrust Account & Financial ManagementEscrow / Trust Accounts: Implementing basic trust account procedures, handling earnest money, and navigating audits.Office Economics: Managing budgets, operational systems, and financial planning for the firm
Closing and Calculations 5 Q · 10%

Key Distinctions

Salesperson license age requirementvsBroker/associate broker license age requirement

An applicant for a salesperson's license must have attained age 18, while an applicant for a broker or associate broker's license must have attained age 21.

O.C.G.A. § 43-40-8(b)(1)
Active licensevsInactive license

A licensee on inactive status may not engage in the real estate brokerage business except in connection with property owned by the licensee, whereas an active license permits brokerage activity.

O.C.G.A. § 43-40-12(g)
License lapsed two years or lessvsLicense lapsed more than two but less than five years

Within two years of lapsing the license may be reinstated to active status by paying the required fees plus completing the continuing education requirements, but after two years (and before five) reinstatement also requires satisfactorily completing the appropriate prelicense course (e.g., the Salespersons Prelicense Course) taken within one year before application.

Rule 520-1-.05(4)(c)
Aggrieved person's claim on the Recovery FundvsLicensee acting as principal or agent in the transaction

The Fund compensates aggrieved persons who suffered actual losses from licensees' actions, but a licensee acting as a principal or agent in the real estate transaction has no claim against the fund.

O.C.G.A. § 43-40-22(b)(2)
Commission-maintained Recovery FundvsBroker-maintained recovery fund

The $1 million minimum balance applies to the Real Estate Education, Research, and Recovery Fund administered by the Georgia Real Estate Commission; individual brokers maintain no such fund and merely contribute fees (e.g., $20.00 at licensure).

O.C.G.A. § 43-40-22(b)
$25,000 per-person lifetime fund capvs$25,000 per-transaction limit / $75,000 aggregate licensee limit

No person establishing a proper claim may ever obtain more than $25,000 total from the fund, which is distinct from the $25,000 per-transaction limit and the $75,000 aggregate limit per licensee.

Georgia Code, § 43-40-22(b)(3)
Five licensee members of the CommissionvsSixth (consumer) member

Of the Commission's six members, five must be licensees who have been Georgia residents actively engaged in real estate for five years, while the sixth must have no connection with the real estate industry but a recognized interest in consumer affairs and consumer protection.

Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-2(a)
Trust funds before consummation or terminationvsTrust funds after consummation or termination

A broker is not entitled to any part of earnest money, security deposits, or other trust funds as commission or fee until the transaction has been consummated or terminated.

Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-20(e)
Net brokerage engagementvsPermitted brokerage engagement with added fee

Net brokerage engagements are prohibited; the broker must add the broker's fee when securing the engagement so the client is notified of the gross price of the property and the broker's services.

Rule 520-1-.06(1)(c)
Fidelity bond cancellation/nonrenewal noticevsCancellation for non-payment of premiums

The insurer must give 30 days prior written notice to the broker and community association before cancelling, substantially modifying, or refusing to renew, except that non-payment of premiums requires no less than 10 days prior written notice.

Rule 520-1-.06(3)(a)(5)
Three months to apply after passing the examvsTwelve months to activate the license

A person passing the salesperson's exam must apply for an active or inactive license within three months (or pay double the application fee), but anyone who fails to activate a salesperson's license within twelve months of the examination date must retake the exam.

Rule 520-1-.04(5)(a)
Sole proprietorship firm ownershipvsLimited partnership firm with a corporate general partner

A firm operating as a sole proprietorship must be owned entirely by a licensed broker (no non-broker co-owner), whereas if a limited partnership's general partner is a corporation, the qualifying broker must be one of that corporation's officers whose actions bind both the corporation and the general partner.

Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-18(e)
LTV based on the lower of sale price or appraised valuevsLTV based on sale price only

Lenders apply the maximum LTV to the LOWER of sale price or appraised value, so using the sale price when the appraisal is lower overstates the loan and understates the required down payment.

Taxes paid in advancevsTaxes paid in arrears

When taxes are prepaid for the full calendar year, the credit to the buyer from the seller at closing equals the daily rate × the days from the closing day through year end (buyer owns the closing day); when taxes are paid in arrears, the seller owes the prorated share from January 1 through the day before closing.

Key Terms

Real Estate Education, Research, and Recovery Fund O.C.G.A. § 43-40-22(b)
A fund administered by the Georgia Real Estate Commission, which must maintain a minimum balance of $1 million, to compensate aggrieved persons who suffered actual losses due to the actions of licensed real estate professionals; the Commission may assess additional licensee fees when the balance falls below that threshold.
Georgia Real Estate Commission Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-2(a)
A body composed of six members appointed by the Governor and confirmed by the Senate for five-year terms—five licensees who have been Georgia residents actively engaged in real estate for five years and one member with no industry connection but a recognized interest in consumer affairs—which must meet at least once a month or as often as necessary.
Conflict of interest recusal (Commission member) Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-2(c)
A Commission member must recuse himself or herself from voting on matters in which the member has a conflict of interest.
Real estate commissioner Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-4(b)
The Commission's chief officer who shall hold no interest in any real estate business or related business while serving (no exception for indirect interests or absence of conflict), and whose real estate license—like that of other licensed commission employees—is on inactive status during employment with no fee required to keep it inactive.
Pocket card Georgia Code, § 43-40-11
The document the Commission prepares and delivers to each licensee certifying that the person whose name appears on it is a licensee.
Community association Georgia Code, § 43-40-1(4.1)
An owner organization of a residential or mixed-use common interest realty association in which membership is mandatory as an incident of ownership within the development.
Community association management services O.C.G.A. § 43-40-1(2)(H) and § 43-40-1(4.2)
Providing management or administrative services for valuable consideration, expressly included within the statutory definition of broker activities.
Fidelity bond requirement (community association management) Rule 520-1-.06(3)
A broker who collects, maintains, controls, has access to, or disburses community association funds must be covered by a fidelity bond or fidelity insurance policy unless the broker at no time handles community association funds totaling more than $60,000.00.
Inactive status O.C.G.A. § 43-40-12(g)
A license status under which the licensee shall not engage in the real estate brokerage business except in connection with property owned by the licensee.
Qualifying broker Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-10
The broker whose license is subject to sanction for violations of the license law or rules by a firm licensed as a broker, and who must review for compliance all listing contracts, leases, sales contracts, and management agreements within 30 days of the date of the offer or contract.
Designated trust or escrow account Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-20(a)
An account designated and registered with the Commission for trust funds, which is not subject to attachment or garnishment; a broker not maintaining one must open it within one business day of receiving trust funds, and must notify the Commission of the financial institution and each account's name or number within one month of opening the account.
Net brokerage engagement Rule 520-1-.06(1)(c)
A brokerage engagement the Commission prohibits brokers from accepting; the broker must instead add the broker's fee so the client is notified of the gross price of the property and the broker's services.
Continuing education requirement Rule 520-1-.05(1)(d)
Effective July 1, 2015, licensees must satisfactorily complete 36 instructional hours of approved continuing education during each four-year renewal period to renew an active license, including at least 3 hours on license law; individuals actively licensed on January 1, 1980 are exempt, and armed forces members on active duty and General Assembly members may choose not to meet CE requirements during service.
Activation fee for original licensure Rule 520-1-.04(1)(a)1
A $45.00 fee for original licensure as an individual broker, associate broker, salesperson, or community association manager, which includes $20.00 for the Real Estate Education, Research, and Recovery Fund.
Disabled veteran examination credit Rule 520-1-.04(3)(d)
A candidate for licensure who is a disabled veteran who served on active duty during wartime with a disability rated at 10 percent or above is entitled to a credit of ten points on the qualifying examination.
Fair housing conviction as ground for license refusal O.C.G.A. § 43-40-15(c)
Where an applicant or licensee has been found guilty of violating the federal fair housing law (or Article 4 of Chapter 3 of Title 8) by an administrative law judge or court of competent jurisdiction, that conviction may in itself be sufficient ground for refusing a license or imposing any sanction permitted by the chapter.
Record retention periods Rule 520-1-.03(2)(a)
Investigative files in which the Commission imposes discipline or makes a Recovery Fund payment are kept 40 years; license histories can be certified for up to five years preceding certification; and a Georgia broker must keep a copy of a written agreement with an out-of-state licensed broker at least three years after its expiration date.
Salesperson affiliation requirement O.C.G.A. § 43-40-19(d) and § 43-40-1(7)
A salesperson or community association manager shall not act as a licensee for any broker other than the broker holding the license except under the statute's written-agreement provisions requiring both brokers to agree in writing, so salespersons must be affiliated with a broker for all real estate activities, including property management.
Change of business address notice Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-19(a)
A broker who changes the address of the broker's place of business must notify the Commission in writing within 30 days of the change.
Contracted trust account investigators Georgia O.C.G.A. Title 43, Ch. 40, § 43-40-14
Outside parties the Commission may contract with to assist in trust account investigations only when special expertise or extraordinary circumstances exist; they work under Commission supervision and may not determine the disposition of any investigation or examination or make any discretionary decision the Commission is authorized to make.
Property management agreement statements Rule 520-1-.06(2)(a)(3)
Periodic written statements of property income and expenses that must be submitted to the owner on at least an annual basis.

Formulas to Know

Commission split down to the agentTotal commission = Sale Price × Commission Rate; Brokerage share = Total commission × brokerage split %; Agent's earnings = Brokerage share × agent's split % (always apply the agent's split to the brokerage's share, not the total commission).
Sale price needed for a target net or a target agent commissionFor seller net: Sale Price = (Desired Net + Closing Costs) ÷ (1 − Commission Rate). For an agent's target: Agent's effective rate = commission rate × broker split × agent split; Sale Price = Target earnings ÷ Agent's effective rate.
Seller's net proceedsNet Proceeds = Sale Price − Commission (Sale Price × rate) − Closing Costs − Prorated taxes owed − Mortgage payoff balance.
Simple interest on a note (360-day year)Interest = Principal × Annual Rate × (Days ÷ 360); e.g., $6,500 × 0.08 × (90/360) = $130.
Tax and rent prorationsDaily rate = Annual amount ÷ 365 (or ÷ 360 with 30-day months; monthly rent ÷ 30); Seller's share = days from Jan 1 (or month start) through the day before closing × daily rate; Buyer's share/credit = days from closing day through period end × daily rate (buyer owns the closing day).
Loan-to-value ratio and minimum down paymentLoan amount = LTV % × the LOWER of sale price or appraised value; Down Payment = Sale Price − Maximum Loan. To find LTV: LTV = (Purchase Price − Down Payment) ÷ Purchase Price.
Discount points and origination feeBoth are percentages of the LOAN amount: Points = Loan × point %; Origination fee = Loan × fee %; Total = sum of the two.
Land area, acreage, and land valueRectangle area = length × width; Triangle area = ½ × base × height; Acres = sq ft ÷ 43,560; a section = 640 acres (each quarter divides by 4, so NW¼ of SE¼ = 40 acres); Value = acres × price per acre, or front feet × price per front foot (use road frontage only).
Profit, loss, appreciation, and equitySale at a % profit: Sale Price = Cost × (1 + rate), so Cost = Sale Price ÷ (1 + rate); Sale at a % loss: Sale Price = Cost × (1 − rate); Appreciated value = Value × (1 + rate) and appreciation/profit = Value × rate; Equity = current (appreciated) value − mortgage balance.
Monthly principal and interest from an amortization factorMonthly P&I = (Loan ÷ $1,000) × factor per $1,000; e.g., 185 × $6.65 = $1,230.25 (monthly interest only would be Loan × rate ÷ 12).
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