Free Georgia Real Estate Practice Test (2026) — LicenseIQ

Question 1

Which broker funds may properly be kept in a trust account?

Accepted Answer

Rule 520-1-.08(1)(e) permits only clearly identified broker funds for minimum balances and service charges. Anything else is commingling.

Question 2

Which task may an unlicensed assistant in a Georgia brokerage perform?

Accepted Answer

Rule 520-1-.07(6) allows support personnel to place ads as directed by the firm and prepare approved materials. Negotiating and advising require a license.

Question 3

A landlord intentionally and wrongfully withholds $600 of a deposit. The tenant may recover:

Accepted Answer

Section 44-7-35 provides three times the amount wrongfully withheld (3 x $600 = $1,800) plus attorney's fees, unless the landlord proves bona fide error.

Question 4

A contract clause stating that 'time is of the essence' means:

Accepted Answer

'Time is of the essence' makes performance by the stated dates essential; missing a deadline can be a breach.

Question 5

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 6

What is the intangible recording tax on a long-term note of $250,250?

Accepted Answer

$250,250 / $500 = 500.5, and any fraction counts as a full unit, so 501 units x $1.50 = $751.50. Simply multiplying by 0.003 gives $750.75, which ignores the rounding rule.

Question 7

A house with only one bathroom and very small closets in a market expecting more suffers from:

Accepted Answer

Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.

Question 8

An individual owner wants to use the single-family exemption under the Georgia Fair Housing Act. Which condition applies?

Accepted Answer

The exemption requires owning no more than three such homes, no broker or agent, and no discriminatory advertising.

Question 9

How many members serve on the Georgia Real Estate Commission?

Accepted Answer

O.C.G.A. §43-40-2 creates a six-member commission: five licensees with at least five years of experience and one consumer-oriented public member. Five is the number of industry seats, which is why it tempts test-takers.

Question 10

Which listing practice is prohibited by GREC rules?

Accepted Answer

Rule 520-1-.06(1)(c) prohibits net brokerage engagements and requires the broker's fee to be added so the client sees the gross price.

Question 11

Before a nonjudicial foreclosure sale, the creditor must send the debtor written notice at least:

Accepted Answer

Section 44-14-162.2 requires notice no later than 30 days before the sale, by registered or certified mail or statutory overnight delivery.

Question 12

The 'Mrs. Murphy' exemption under the federal Fair Housing Act applies to an owner who:

Accepted Answer

The exemption covers owner-occupied 1-4 unit buildings rented without a broker and never permits discriminatory advertising.

Question 13

Under the Code of Ethics, a REALTOR's primary obligation is to:

Accepted Answer

Article 1: REALTORS pledge to protect and promote the interests of their client while treating all parties honestly.

Question 14

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 15

A retail lease where rent is based partly on sales volume is a:

Accepted Answer

Percentage leases, common in retail, charge base rent plus a percentage of gross sales above a breakpoint.

Question 16

Which test is MOST important in determining whether an item is a fixture?

Accepted Answer

Intention, as shown by the method of attachment, adaptation and any agreement (the M.A.R.I.A. factors), is the controlling test. A written agreement in the sales contract that spells out what stays avoids disputes. Cost and size are irrelevant.

Question 17

A tenant who vacates because the landlord failed to keep the premises habitable may claim:

Accepted Answer

Constructive eviction is the tenant's remedy when the landlord's failures make the premises unlivable; actual eviction is the landlord's court-ordered removal of a tenant.

Question 18

A triangular lot has a base of 180 feet and a height of 120 feet. What is its area?

Accepted Answer

Triangle area = (base x height) / 2 = (180 x 120) / 2 = 10,800 sq ft.

Question 19

The standard statewide homestead exemption reduces:

Accepted Answer

The $2,000 statewide exemption is subtracted from the 40% assessed value, not from FMV or the bill.

Question 20

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 21

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 22

To qualify for the IRS Section 121 exclusion on the sale of a home, the seller generally must have owned and used it as a primary residence for at least:

Accepted Answer

The exclusion ($250,000 single / $500,000 married filing jointly) requires 2 years of ownership and use within the 5 years before sale, and can be used once every 2 years.

Question 23

What is the maximum the Recovery Fund will pay for any single transaction?

Accepted Answer

Section 43-40-22 caps payment at $25,000 per transaction regardless of the number of claimants. $75,000 is the per-licensee aggregate.

Question 24

A modest home located among larger, more expensive homes tends to increase in value due to the principle of:

Accepted Answer

Progression: a lower-value property benefits from surrounding higher-value properties. Regression is the opposite effect on the most expensive home.

Question 25

On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

Accepted Answer

ARM rate = index + margin, subject to periodic and lifetime caps. In a 5/1 ARM the rate is fixed 5 years, then adjusts every year.

Georgia real estate practice test

1. Which broker funds may properly be kept in a trust account?

2. Which task may an unlicensed assistant in a Georgia brokerage perform?

3. A landlord intentionally and wrongfully withholds $600 of a deposit. The tenant may recover:

4. A contract clause stating that 'time is of the essence' means:

5. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

6. What is the intangible recording tax on a long-term note of $250,250?

7. A house with only one bathroom and very small closets in a market expecting more suffers from:

8. An individual owner wants to use the single-family exemption under the Georgia Fair Housing Act. Which condition applies?

9. How many members serve on the Georgia Real Estate Commission?

10. Which listing practice is prohibited by GREC rules?

11. Before a nonjudicial foreclosure sale, the creditor must send the debtor written notice at least:

12. The 'Mrs. Murphy' exemption under the federal Fair Housing Act applies to an owner who:

13. Under the Code of Ethics, a REALTOR's primary obligation is to:

14. A licensee may manage property for an owner for a fee only if there is:

15. A retail lease where rent is based partly on sales volume is a:

16. Which test is MOST important in determining whether an item is a fixture?

17. A tenant who vacates because the landlord failed to keep the premises habitable may claim:

18. A triangular lot has a base of 180 feet and a height of 120 feet. What is its area?

19. The standard statewide homestead exemption reduces:

20. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

21. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

22. To qualify for the IRS Section 121 exclusion on the sale of a home, the seller generally must have owned and used it as a primary residence for at least:

23. What is the maximum the Recovery Fund will pay for any single transaction?

24. A modest home located among larger, more expensive homes tends to increase in value due to the principle of:

25. On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

Sources