PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
A trust account is a separate, federally insured account in which a Georgia broker holds money belonging to others in connection with real estate activity, including earnest money when the broker receives it.
State Laws and Rules
Georgia trust funds
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Trust account mean?
A trust account is a separate, federally insured account in which a Georgia broker holds money belonging to others in connection with real estate activity, including earnest money when the broker receives it.
How do you separate the nearest exam answer?
Trust funds belong to others. Brokerage operating funds belong to the firm. Mixing the two is commingling, while unauthorized use is conversion.
What changes or stays the same in Georgia?
Georgia license law and Commission rules control account designation, deposits, records, reconciliation, and disbursement. The qualifying broker is responsible for compliance.
A broker receives a buyer's earnest-money check and places it in the firm's properly designated account for client funds rather than the operating account.
No loss is required for commingling. The improper mixing itself creates the violation.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
The bank charges a monthly service fee on a Georgia broker's designated trust account. The broker deposits $100 of the firm's own money into the trust account to cover those fees. Which statement is correct?
- A
This is commingling, because no firm money may ever sit in a trust account
- B
This is allowed, because a broker may keep a reasonable amount of firm money in trust to cover bank charges
- C
The broker should pay the fees from earnest money on hand, since the fees protect that money
- D
The broker must close the trust account and hold deposits in the operating account instead
GREC's trust account rule makes a narrow exception to the ban on commingling. A broker may keep a reasonable amount of the firm's own money in the account to cover service charges, a required minimum balance, and similar bank costs. Paying those fees out of client money would be the real violation, because that money belongs to others.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
State Laws and Rules complete lesson
https://www.passgeorgiarealestate.com/blog/grec-trust-account-earnest-money-rules
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672GREC's official portal to Title 43, Chapter 40 and related real estate laws.
https://grec.state.ga.us/information-research/license-law/Official Georgia Secretary of State publication of Commission rules governing licensure and brokerage.
https://rules.sos.ga.gov/gac/520-1