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Real estate glossaryGeorgia-specific rule

Unfair practice

An unfair practice is conduct prohibited by Georgia real estate license law or Commission rules because it is dishonest, misleading, incompetent, unsafe, or inconsistent with the duties of a licensee.

Exam area: State Laws and Rules

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What does “unfair practice” mean in real estate?

An unfair practice is conduct prohibited by Georgia real estate license law or Commission rules because it is dishonest, misleading, incompetent, unsafe, or inconsistent with the duties of a licensee.

How is “unfair practice” different from the closest wrong answer?

An unfair practice is a licensing-law category that can support discipline. A private contract dispute does not automatically become a license violation, though the same conduct may create both.

What is the Georgia-specific rule?

Georgia law identifies grounds for sanction, including misrepresentation, trust-fund violations, undisclosed interests, improper compensation, and failure to supervise or account.

Worked exam example

Scenario

A licensee knowingly advertises false property facts to induce a buyer and conceals the falsity after a complaint.

What is the most common exam trap?

Trap correction

No completed sale or consumer loss is always required. The prohibited conduct itself may support discipline.

Original exam check

Apply the definition

A licensee knowingly advertises a home as having a new roof when the roof is 18 years old. A buyer spots the problem before making an offer, and no sale happens. Can the conduct still support license discipline?

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Puffing

Puffing is an exaggerated statement of opinion or sales enthusiasm that a reasonable person would not understand as a verifiable fact, such as calling a view the finest in town.

Material fact

A material fact is information a reasonable party would consider important when deciding whether or on what terms to enter a real estate transaction.

Conversion

Conversion is the unauthorized taking, use, transfer, or exercise of control over money or property belonging to another person, including trust funds held in a real estate transaction.

Real Estate Education, Research and Recovery Fund

Georgia's Real Estate Education, Research and Recovery Fund supports authorized education and research purposes and may compensate an eligible person who cannot collect a qualifying final judgment against a licensee, subject to statutory conditions and limits.

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