Where this fits on the exam
| Official syllabus topic | State Laws and Rules: Required Licensure |
|---|---|
| Official PSI group | State Laws and Rules |
| Published group count | 16 of the 52 Georgia questions |
| Exam portion | Georgia salesperson supplement |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes 16, 21, and 15 items for the three Georgia groups. It does not publish a guaranteed subtopic count. The statute, current GREC rule, contract, or other cited primary authority controls each lesson.
The lesson
For another
A person dealing only with property they own may fall outside the ordinary broker definition, but licensed persons and entity ownership create separate rules.
Compensation expectation
The test is not limited to a commission already paid. An expectation of a fee or other valuable consideration can satisfy the compensation element.
Covered acts
Negotiating sales or leases, procuring prospects, auctioning, collecting rents as management, and community association management can be brokerage activity.
Titles do not control
Calling the work consulting, marketing, administration, or referrals does not avoid licensure when the substance of the work meets the statutory definition.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. An unlicensed consultant markets rental homes for several owners, negotiates lease terms, and receives a monthly fee.
Reason it through. The label consultant does not matter. The person acts for others, negotiates leases, performs property management, and expects compensation.
Answer. The activity requires an appropriate active Georgia real estate license unless a specific exemption applies.
Common exam traps
- Focusing on the job title
- Requiring a completed closing before licensure matters
- Ignoring noncash valuable consideration
- Applying an owner exemption to work for unrelated owners
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or a live examination. Choose an answer before opening the explanation.
Question 1An unlicensed consultant markets rental homes for several owners, negotiates lease terms, and collects a monthly fee. The contract calls the work marketing support. Is a Georgia license required?
- A. No, because the contract labels the work marketing support
- B. No, because leasing falls outside the brokerage definition
- C. Only if the consultant also collects rent for the owners
- D. Yes, unless a specific statutory exemption fits the facts
Show answer and explanation →
Answer: D. Yes, unless a specific statutory exemption fits the facts
A license is required when a person performs brokerage acts for others for a fee or the expectation of one, and negotiating leases and managing rentals qualify. The label on the contract does not change what the person actually does. The marketing-support answer looks plausible because it sounds like a service outside real estate, but the substance of the work decides.
- A. Incorrect. The contract label cannot exempt lease negotiation performed for other owners for pay.
- B. Incorrect. Negotiating leases for others is included in Georgia brokerage activity.
- C. Incorrect. Lease negotiation already triggers the rule; rent collection is not a necessary extra fact.
- D. Correct. The conduct meets the for-another and compensation elements, subject to a statutory exemption.
Question 2An unlicensed neighbor steers buyers to a friend's home for sale and is promised $1,000 if a sale closes. Nothing has been paid yet. Which statement is correct?
- A. No license is needed because nothing has been paid yet
- B. No license is needed because the neighbor negotiates nothing
- C. The promised fee meets the compensation element of brokerage
- D. No license is needed for a single sale between friends
Show answer and explanation →
Answer: C. The promised fee meets the compensation element of brokerage
The compensation element is met by the expectation of a fee, not only by money already paid. Procuring prospects for another in exchange for a promised fee is brokerage activity. The nothing-paid-yet answer looks plausible, but Georgia's definition reaches valuable consideration and the expectation of it.
- A. Incorrect. An expected fee counts even before any money changes hands.
- B. Incorrect. Procuring prospects is itself a covered act; negotiating is not required as well.
- C. Correct. The promised $1,000 satisfies the compensation element, and finding buyers for another is brokerage activity.
- D. Incorrect. A single paid transaction between friends does not create a licensing exemption.
Question 3Which paid activity, performed for others, does Georgia's definition of brokerage expressly include, even though many national outlines leave it out?
- A. Appraising homes for mortgage lenders
- B. Community association management
- C. Home inspections for buyers
- D. Surveying lot lines for owners
Show answer and explanation →
Answer: B. Community association management
Georgia's definition expressly covers property management and community association management, and Georgia has a separate CAM license category for it. Appraisal, inspection, and surveying are separate fields outside the brokerage definition. The appraisal answer looks plausible because it involves real estate value, but valuing property is not brokerage.
- A. Incorrect. Appraisal is a separate regulated profession, not the CAM activity identified in the brokerage definition.
- B. Correct. Georgia expressly includes community association management in its brokerage definition.
- C. Incorrect. A home inspection does not become brokerage merely because it concerns real estate.
- D. Incorrect. Surveying establishes boundaries and falls under separate professional requirements.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Identify whether the person acts for another and expects compensation.
- Recognize negotiating, procuring prospects, and managing rents as activities that can require a license.
- Explain why calling brokerage work consulting does not change its legal nature.
- Answer the practice questions without looking back, then explain why the other choices fail.
- Explain the worked example in your own words and identify the fact that decides the answer.
- Retest this topic on another day in a mixed question set.
Recommended next lesson
Continue with Georgia Real Estate License Exemptions. Once you can spot activity that needs a license, the next lesson covers the narrow statutory exceptions, including the 2025 change that added an owner's family members and LLC officers, and why a licensee cannot use any of them.
Return to the State Laws and Rules hub for the complete official branch and the full lesson list for this Georgia group.