Where this fits on the exam
| Official syllabus topic | State Laws and Rules: Substantive Regulations; Unfair Practices |
|---|---|
| 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
Instruction duty
Rule 520-1-.07 requires brokers and qualifying brokers to instruct affiliated licensees on Georgia license law and rules.
Affiliation agreements
A broker must use written agreements covering compensation and unfinished work when licensees affiliate with the firm.
Support personnel
Both firm and affiliated licensee are responsible for support personnel, whose permitted tasks must remain ministerial and be documented in writing.
Delegation limit
An associate broker, office manager, accountant, or assistant may perform assigned work, but the qualifying broker remains responsible for the firm's compliance structure.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A qualifying broker lets a team leader approve all advertising without training or review, and the team repeatedly omits the firm name.
Reason it through. Delegating review does not erase the qualifying broker's duty to instruct and manage compliance. The repeated omission shows a supervision failure as well as advertising violations.
Answer. Both the advertising conduct and the broker's supervision can support regulatory action.
Common exam traps
- Confusing tax independence with regulatory independence
- Assuming delegation ends responsibility
- Ignoring support-personnel agreements
- Treating the firm name as optional branding
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 1A qualifying broker lets a team leader approve all advertising with no training or review, and the team keeps leaving out the firm name. Who can face discipline?
- A. Only the team leader, who approved the ads
- B. The team and the broker, for failing to supervise
- C. Only the licensee whose name appears in each of the ads
- D. No one, because the omissions were not intentional
Show answer and explanation →
Answer: B. The team and the broker, for failing to supervise
Delegating review does not erase a qualifying broker's duty to instruct affiliated licensees and manage compliance. The repeated omissions show a supervision failure on top of the advertising violations. The team-leader-only answer looks plausible because that person made the calls, but delegation does not transfer responsibility.
- A. Incorrect. The team leader may be responsible, but the broker also retains the duty to instruct and supervise.
- B. Correct. The licensees can face advertising discipline, and the broker can face discipline for the supervision failure.
- C. Incorrect. Responsibility can extend beyond the named licensee to those who approved the ads and the supervising broker.
- D. Incorrect. A pattern of noncompliant advertising can support discipline without proof that the omissions were intentional.
Question 2A broker brings on a new affiliated licensee. What must the written affiliation agreement cover?
- A. The licensee's federal tax filing status
- B. Office hours and a dress code for the firm
- C. A clause releasing the broker from liability
- D. Compensation and handling of unfinished work
Show answer and explanation →
Answer: D. Compensation and handling of unfinished work
Georgia rules require a written agreement with each affiliated licensee covering compensation and what happens to work still in progress when the licensee leaves. Independent-contractor tax status does not reduce license-law supervision. The liability-release clause can mislead brokers, but a contract cannot remove responsibility the rules assign.
- A. Incorrect. Tax status is separate from the compensation and unfinished-work terms required by the rule.
- B. Incorrect. Office policies may be included, but they do not replace the required affiliation terms.
- C. Incorrect. An agreement cannot release the broker from responsibilities imposed by license law.
- D. Correct. The agreement must address compensation and how unfinished transactions will be handled when affiliation ends.
Question 3An unlicensed assistant at a brokerage wants to help with transactions. Which task fits the assistant's role?
- A. Scheduling appointments and sending routine mailings
- B. Negotiating the price with a buyer's agent
- C. Hosting an open house and discussing terms with visitors
- D. Explaining contract terms to buyers at signing
Show answer and explanation →
Answer: A. Scheduling appointments and sending routine mailings
Support personnel may perform only ministerial tasks, documented in writing, and both the firm and the affiliated licensee answer for their conduct. Negotiating, discussing terms, and explaining contracts are licensed activities. The open-house answer looks plausible because it looks like hosting, but discussing terms with prospects crosses into brokerage.
- A. Correct. Routine scheduling and mailings are ministerial support tasks when properly authorized and supervised.
- B. Incorrect. Negotiating price requires a license and is beyond an unlicensed assistant's role.
- C. Incorrect. An unlicensed assistant may not host an open house or discuss transaction terms with prospects.
- D. Incorrect. Explaining the legal meaning of contract terms is not routine administrative support.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain why delegating a task does not remove the qualifying broker's responsibility.
- Identify what the written affiliation agreement must address.
- Separate permitted ministerial support tasks from work requiring a license.
- 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 Advertising Rules. Advertising is where supervision failures show up first, and the next lesson sets out what every ad needs: written owner permission, the firm's full registered name and phone number at equal or greater prominence, and updating or removing expired listings on a licensee's website within 30 days.
Return to the State Laws and Rules hub for the complete official branch and the full lesson list for this Georgia group.