PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Trust funds are money or property a Georgia broker receives on behalf of another person in a real estate matter, including earnest money, rents, security deposits, and other client or customer funds when held by the broker.
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 funds mean?
Trust funds are money or property a Georgia broker receives on behalf of another person in a real estate matter, including earnest money, rents, security deposits, and other client or customer funds when held by the broker.
How do you separate the nearest exam answer?
Trust funds describe whose money it is. A trust account is the separate account used to hold qualifying trust funds.
What changes or stays the same in Georgia?
Georgia law requires covered funds to be accounted for, safeguarded, deposited, recorded, reconciled, and disbursed according to the agreement and Commission rules.
A property manager collects tenant rent and deposits it into the proper trust account before making authorized owner disbursements.
Compensation expected by the broker does not become brokerage money until it is earned and properly disbursed.
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.
A property manager collects $2,400 in rent for an owner. The management agreement lets the firm take a $240 fee from each month's rent. Before any disbursement, how should the full $2,400 be treated?
- A
As brokerage income, since the fee comes out of it
- B
As $2,160 of trust funds plus $240 of firm money
- C
As owner money the firm may hold in its operating account
- D
As trust funds for the owner until properly disbursed
Rent collected for an owner is trust money until it is disbursed as the agreement allows. The expected fee does not become the firm's money until it is earned and properly paid out of the trust account. Splitting the deposit on receipt is the tempting mistake.
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