Georgia Real Estate Exam Diagnostic Test

Answer 15 questions before choosing your first study topic. You will see at least one question from every published salesperson content area, then an explanation and a lesson for each answer. A miss or a guess tells you what to investigate next. One short score cannot tell you whether you will pass.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

15 questions, all freeNo sign-upExplanations and repair links

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Without permission or an easement, a neighbor's fence extends two feet across the boundary onto the adjoining owner's lot. This is:

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34% of the real exam is Georgia law. 52 of 152 questions.

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All 15 questions and explanations

Studying instead of taking a test? Open any question to read its choices, the answer, and the reason each option is right or wrong. The numbering matches the public set above.

For a useful score, finish the test above before opening these answers. These are original practice questions based on published topics and sources.

1. Without permission or an easement, a neighbor's fence extends two feet across the boundary onto the adjoining owner's lot. This is:Property Ownership. Open choices and explanation.

A.An easement
B.An encroachment
C.A license
D.A deed restriction

Answer B: An encroachment

An encroachment is an unauthorized physical intrusion of a structure onto another parcel. An easement is a right to use someone else's land, a license is revocable permission, and a deed restriction is a recorded limit on use. Encroachments often surface on a survey and can affect marketability.

Why each choice works or fails

A. An easement is a right to use land. A fence built over the line without any right is not one.
B. Correct. A structure crossing onto another lot is an encroachment.
C. A license is revocable permission, and no permission was given here.
D. A deed restriction limits use by recorded covenant, not by a physical intrusion.

Rule to remember: Physical intrusion is an encroachment. A right to use is an easement.

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2. A broker represents both buyer and seller in one transaction. In Georgia this is lawful only when:Agency. Open choices and explanation.

A.Each client is told about it orally before an offer
B.The broker is paid by only one of the two parties
C.Each party hires a separate closing attorney
D.All clients give written informed consent

Answer D: All clients give written informed consent

Georgia permits dual agency, but every client must consent in writing, and the written consent must contain the disclosures the law requires. Oral notice, however early, does not satisfy the rule, and neither do attorneys or payment arrangements.

Why each choice works or fails

A. Timing does not cure the problem. Oral disclosure is not written consent.
B. Candidates think dual agency is about double pay. How the broker is paid does not make the dual role lawful.
C. Separate attorneys do not replace the clients' written consent to the broker's dual role.
D. Correct. Every client must sign a written consent containing the required disclosures.

Rule to remember: Dual agency needs written informed consent from every client.

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3. A property in a designated flood zone MOST directly affects a buyer through:Property Disclosures. Open choices and explanation.

A.Whether any lender may finance the purchase
B.The zoning classification of the parcel
C.The seller's duty to elevate before closing
D.Flood insurance requirements and premiums

Answer D: Flood insurance requirements and premiums

When a property lies in a special flood hazard area and the loan is federally backed or regulated, the lender must require flood insurance. The premium can be large enough to change what a buyer can afford.

Why each choice works or fails

A. Candidates think a flood zone blocks financing, but lenders can lend there; they require flood insurance.
B. Zoning governs use and is set separately from flood hazard mapping.
C. Flood zone status does not by itself require a seller to elevate before selling.
D. Correct. Insurance requirements and premiums follow the designation.

Rule to remember: A flood zone designation drives lender flood insurance requirements and premiums.

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4. A real estate licensee may properly prepare a comparative market analysis:Valuation and Market Analysis. Open choices and explanation.

A.And label it an appraisal if the client agrees
B.As the appraisal a lender requires to originate the loan
C.For a client or prospect in the course of brokerage
D.And sign it as a certified appraisal for a court

Answer C: For a client or prospect in the course of brokerage

A CMA supports pricing advice in the ordinary course of brokerage. Georgia lets a licensee give a CMA or broker price opinion to a buyer, seller, landlord, tenant, or third party, but it can never be presented as an appraisal, and it cannot substitute for an appraisal a lender or law requires.

Why each choice works or fails

A. A CMA or broker price opinion may never be called an appraisal, even with consent.
B. When a lender requires an appraisal, only a licensed or certified appraiser can supply it.
C. Correct. Pricing advice to a client or prospect is the core permitted use of a CMA.
D. Only an appraiser can sign a certified appraisal, whoever the audience is.

Rule to remember: A CMA or broker price opinion is pricing advice. It is never an appraisal and cannot replace one a lender or law requires.

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5. An architectural review requirement in a community association means an owner must:Land Use Controls and Regulations. Open choices and explanation.

A.Pay the association a fee for every repair undertaken
B.Match the exact appearance of every neighboring home
C.Obtain approval before making a covered exterior change
D.Use only contractors the association itself employs

Answer C: Obtain approval before making a covered exterior change

Architectural review means the owner must get the association's approval before making changes the governing documents cover, typically exterior alterations. Owners who build first and ask later can be required to undo the work.

Why each choice works or fails

A. Architectural review controls changes; it does not charge a fee on every repair.
B. Candidates think review demands identical homes, but approval standards rarely require exact matching.
C. Correct. Prior approval is required for covered exterior changes.
D. Owners generally choose their own contractors; review covers the change, not who performs it.

Rule to remember: Architectural review means getting association approval before making covered exterior changes.

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6. Which deed offers the grantee the greatest protection?Transfer of Title. Open choices and explanation.

A.Quitclaim deed
B.Special warranty deed
C.General warranty deed
D.Bargain and sale deed

Answer C: General warranty deed

A general warranty deed warrants title against all defects for the entire history of the property. A special warranty covers only the grantor's own period of ownership.

Why each choice works or fails

A. Candidates confuse simplicity with safety, but a quitclaim deed carries no warranties at all.
B. A special warranty deed covers only defects arising during the grantor's ownership.
C. Correct. A general warranty deed warrants title against defects from any period.
D. A bargain and sale deed implies the grantor holds title but gives few or no warranties.

Rule to remember: General warranty covers all of history. Special warranty covers only the grantor's time.

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7. A buyer purchases a $225,000 home with a $180,000 loan. What does one discount point cost?Financing. Open choices and explanation.

A.$180
B.$18,000
C.$2,250
D.$1,800

Answer D: $1,800

A discount point is 1 percent of the loan amount, paid at closing to lower the interest rate. The price is a distractor: 1 percent of the $180,000 loan is $1,800.

Why each choice works or fails

A. $180 treats a point as 0.1 percent of the loan.
B. $18,000 treats a point as 10 percent.
C. $2,250 is 1 percent of the price, not the loan.
D. Correct. 1% of the $180,000 loan is $1,800.

Work it through

One point = 1% of the loan
$180,000 x 0.01 = $1,800

Rule to remember: A point is 1% of the loan, never 1% of the price.

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8. Ruben Salas, a buyer's agent, gets an email from the closing attorney's address changing the wire instructions the day before closing. Ruben should:Contracts. Open choices and explanation.

A.Verify by phone using a previously known number
B.Follow the new instructions since the address matches
C.Forward it to the buyer to handle personally
D.Reply to the email asking for confirmation

Answer A: Verify by phone using a previously known number

Sender addresses are trivially spoofed and email accounts are frequently compromised, so the display address proves nothing. Calling a number obtained earlier from an independent source breaks the attacker's control of the channel. Replying does not, because the reply goes to the attacker.

Why each choice works or fails

A. Correct. Out-of-band verification defeats a compromised email channel.
B. A matching address is exactly what a spoofed message shows.
C. Handing a suspected fraud to the buyer unverified leaves the risk in place.
D. A reply travels the same compromised channel to the attacker.

Rule to remember: Verify any change to wire instructions by calling a phone number you already had, never one in the email.

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9. A seller prepaid a $1,200 annual insurance premium and closing falls exactly at the midpoint of the policy year. The buyer assumes the policy. The adjustment is:Real Estate Calculations. Open choices and explanation.

A.A $600 credit to the seller for the unused portion
B.A $1,200 credit to the seller for the full premium
C.A $600 credit to the buyer for the used portion
D.No adjustment, since insurance is not prorated

Answer A: A $600 credit to the seller for the unused portion

The seller paid for coverage she will not use, so the buyer reimburses her for the remaining half: $600 credit to the seller, debit to the buyer. Prepaid items credit the seller; items paid in arrears credit the buyer.

Why each choice works or fails

A. Correct. The unused half of a prepaid premium is reimbursed to the seller.
B. Wrong. $1,200 would repay coverage the seller already used.
C. Wrong. A buyer credit applies to an item the seller has not yet paid.
D. Wrong. A prepaid item the buyer takes over is routinely prorated.

Work it through

$1,200 / 2 = $600 unused
Seller prepaid, so credit seller $600 and debit buyer $600

Rule to remember: Prepaid items credit the seller for the unused portion; items paid in arrears credit the buyer.

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10. Which event does NOT terminate an offer?Contracts. Open choices and explanation.

A.The offeree asking whether the price is negotiable
B.A counteroffer made by the offeree
C.The lapse of the time stated in the offer
D.The death of the offeror before acceptance

Answer A: The offeree asking whether the price is negotiable

A mere inquiry about terms is not a rejection, so the offer stays open. A counteroffer rejects the original offer, an offer ends when its stated time lapses, and the death of either party before acceptance ends it. Asking "would you take less?" keeps the offer alive; saying "I will pay less" kills it and substitutes a counteroffer.

Why each choice works or fails

A. Correct. An inquiry is not a rejection, so the offer survives it.
B. A counteroffer rejects the original offer and ends it.
C. An offer expires when its stated time runs out.
D. Death of either party before acceptance terminates the offer.

Rule to remember: An inquiry about terms leaves an offer open; a counteroffer, lapse, or death before acceptance ends it.

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11. A Georgia salesperson asks a seller to pay the salesperson's share of the commission directly, without telling the salesperson's broker. Accepting that payment is:Real Estate Practice in Georgia. Open choices and explanation.

A.Permitted, because the sale has already closed
B.Permitted, if the salesperson reports it as taxable income
C.A violation, because the broker has not consented to it
D.A violation only if it exceeds the agreed commission split

Answer C: A violation, because the broker has not consented to it

Georgia license law makes it an unfair practice for a licensee to accept a commission or other valuable consideration from anyone other than the broker holding the license, without that broker's consent. Closing, the split amount, and tax reporting do not change who may pay the licensee.

Why each choice works or fails

A. Misconception: closing ends the rules. Closing does not change who may pay a licensee.
B. Misconception: tax compliance equals license compliance. Reporting income does not supply the broker's consent.
C. Correct. A licensee may accept compensation from someone other than the broker only with that broker's consent.
D. Misconception: only overpayment matters. Any payment outside the broker without consent is the violation, whatever the amount.

Rule to remember: A licensee may accept compensation only from the broker holding the license, unless that broker consents.

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12. A landlord may properly deduct from a security deposit the cost of:Property Management. Open choices and explanation.

A.Repainting walls faded by normal daily living
B.Servicing the heating system on its annual schedule
C.Repairing a door the tenant broke during the lease
D.Replacing carpet worn evenly over eight years

Answer C: Repairing a door the tenant broke during the lease

The line is wear and tear against damage. A carpet worn thin over years is the landlord's cost of doing business; a carpet burned or stained beyond cleaning is the tenant's. Move-in condition records are what make that argument winnable.

Why each choice works or fails

A. Fading from normal use is wear and tear.
B. Routine maintenance is the landlord's own expense.
C. Correct. Tenant-caused damage beyond ordinary wear and tear is deductible.
D. Even wear over years is expected deterioration.

Rule to remember: Deposits may cover damage beyond normal wear and tear, never routine upkeep or ordinary aging.

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13. An agent describes a property as having the finest views in the county. This is best described as:Practice of Real Estate. Open choices and explanation.

A.Negligent misrepresentation
B.Puffing
C.Fraud
D.An express warranty

Answer B: Puffing

Puffing is exaggerated opinion that a reasonable buyer would not rely on as fact. "Finest views in the county" cannot be measured or proven, so it is sales talk. A statement becomes misrepresentation when it asserts a fact that turns out to be false.

Why each choice works or fails

A. Negligent misrepresentation needs a false statement of fact made carelessly. A subjective boast is not a statement of fact.
B. Correct. Exaggerated, unmeasurable opinion is puffing.
C. Fraud needs an intentional false statement of material fact, not an opinion.
D. Candidates think confident claims create guarantees, but a sales opinion from an agent is not a warranty.

Rule to remember: Opinion is puffing. A false statement of fact is misrepresentation.

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14. A Georgia deed transfers for $410,050 in taxable consideration. What is the real estate transfer tax?Finance and Closing. Open choices and explanation.

A.$410.00
B.$410.05
C.$410.10
D.$411.00

Answer C: $410.10

After the first $1,000, $409,050 remains. Divide by $100 and round 4,090.5 up to 4,091 units. Add $1 to $409.10.

Why each choice works or fails

A. Wrong. Drops the fractional $100 unit.
B. Wrong. Applies $1 per $1,000 to the exact price.
C. Correct. $1 + 4,091 x $0.10 = $410.10.
D. Wrong. Rounds the price up to the next $1,000.

Work it through

$410,050 - $1,000 = $409,050
$409,050 / $100 = 4,090.5, rounded up to 4,091
$1 + 4,091 x $0.10 = $410.10

Rule to remember: Transfer tax uses taxable consideration and counts each fractional statutory unit.

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15. The Georgia Real Estate Education, Research and Recovery Fund primarily exists to:State Laws and Rules. Open choices and explanation.

A.Pay the Commission's day-to-day operating costs
B.Insure brokers against errors and omissions claims
C.Pay the fines the Commission imposes on licensees
D.Compensate consumers harmed by licensee violations

Answer D: Compensate consumers harmed by licensee violations

The fund reimburses members of the public who win a court judgment against a licensee for a violation and cannot collect it. It is not insurance for the licensee: payment from the fund leads to revocation of the license, and the licensee must repay the fund.

Why each choice works or fails

A. Misconception: fund money runs the agency. Operating costs are not the fund's purpose.
B. Misconception: the fund is licensee insurance. A payout leads to revocation and the licensee must repay the fund.
C. Misconception: the fund covers discipline. Fines are the licensee's own obligation.
D. Correct. The fund protects the public when a judgment against a licensee cannot be collected.

Rule to remember: The Recovery Fund protects the public, not the licensee.

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What does this assessment cover?

There is one question from each of the 11 national areas and each of the three Georgia groups, plus a second Contracts question. Contracts has the largest national weight. This short check gives every area a turn; it does not reproduce the exam's topic proportions. One or two answers per area cannot establish mastery.

Question coverage in this assessment
Official content area	Published weight	Questions here	Complete lesson
Property Ownership	10% of the national portion	1	Study Property Ownership
Agency	13% of the national portion	1	Study Agency
Property Disclosures	7% of the national portion	1	Study Disclosures
Valuation and Market Analysis	8% of the national portion	1	Study Valuation
Land Use Controls and Regulations	5% of the national portion	1	Study Land Use
Transfer of Title	6% of the national portion	1	Study Transfer of Title
Financing	10% of the national portion	1	Study Financing
Contracts	19% of the national portion	2	Study Contracts
Real Estate Calculations	7% of the national portion	1	Study Calculations
Real Estate Practice in Georgia	21 of the 52 Georgia questions	1	Study Real Estate Practice in Georgia
Property Management	3% of the national portion	1	Study Property Management
Practice of Real Estate	12% of the national portion	1	Study Practice of Real Estate
Finance and Closing	15 of the 52 Georgia questions	1	Study Finance and Closing
State Laws and Rules	16 of the 52 Georgia questions	1	Study State Laws and Rules

The Georgia-specific distinction

A national-only diagnostic leaves 52 of the 152 scored questions unmeasured. This one keeps Georgia laws and rules, Georgia practice, and Georgia finance and closing visible as separate results.

Worked result example

You answer 12 of 15 correctly but miss the Georgia Finance and Closing question. Review its explanation and owning lesson, then try more questions in that area. One miss is a reason to check the topic, not proof that you have found your weakest subject.

Common exam traps

A short sample is directional, not a pass forecast.
A high average can hide a concentrated weak area.
A correct guess belongs in the review list.
Repeated questions measure memory of the key.

Ready to move on?

Finish all 15 questions before opening notes.
Mark every answer you guessed.
Explain the rule behind each miss and guess, then open its linked lesson.
Try more questions in those areas before deciding where you need the most work.
Use fresh scenarios on another day to check whether the rule has stuck.

Recommended next lesson

Build a study plan from the result. Use the result above to choose the first lesson or drill rather than following a generic order.

Assessment integrity

The questions are original and mapped to the current PSI outline. This is a complete free practice set. Pass Georgia adds a larger question bank, saved progress, and continued review. PSI says practice exams help candidates become familiar with general question types, but they do not replace education and a good practice score does not guarantee an examination outcome. This page reports evidence, not a pass probability.

About this practice set

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

Are these actual PSI exam questions?

No. Every item is original, written from the current published outline and primary sources. No question is copied, recalled, reconstructed, or represented as a live PSI item.

Does this score predict whether I will pass?

No. One practice result is evidence about this question sample. Use the area breakdown, review guesses as well as misses, and confirm improvement with fresh questions on another day.

What should I do after the result?

Open the explanation for every miss and guess, restate the rule, use the linked repair lesson, then continue with the next lesson: Build a study plan from the result.

Is the assessment free?

Yes. It has no email gate, account requirement, or card. Pass Georgia is the next step for the complete bank, saved mastery, spaced review, and adaptive recommendations.