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Real estate glossaryGeorgia-specific rule

Firm license

A firm license is the Georgia license issued to a business entity conducting brokerage activity through a qualifying broker.

Exam area: State Laws and Rules

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What does “firm license” mean in real estate?

A firm license is the Georgia license issued to a business entity conducting brokerage activity through a qualifying broker. It is distinct from the individual licenses held by the people affiliated with the firm.

How is “firm license” different from the closest wrong answer?

The firm is licensed as an entity, while the qualifying broker and affiliated licensees hold individual licenses with separate duties and statuses.

What is the Georgia-specific rule?

A business entity cannot avoid firm-licensing and qualifying-broker requirements merely because its owners or employees hold individual real estate licenses.

Worked exam example

Scenario

An LLC offers brokerage services under its business name, holds the required firm license, and identifies the broker responsible to GREC.

What is the most common exam trap?

Trap correction

An active individual broker license does not automatically license every corporation or LLC the broker owns.

Original exam check

Apply the definition

Jo holds an active Georgia broker license and forms Jo Homes LLC to take listings under the LLC's name. What does the LLC need before doing brokerage business?

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