What is the exam-ready answer?
| 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
Georgia questions reward the Georgia rule. A national rule that sounds right can still be the wrong answer when the question names a Georgia statute, document, role or procedure.
Written broker notice
Before acting as principal in the listed capacities, an affiliated licensee must advise the broker in writing, including when acting through an entity in which the licensee has an interest.
Transaction disclosure
A licensee selling or leasing owned property must clearly disclose the principal role and insert the required clause in the contract.
Advertising legend
Principal advertising must disclose that the party holds a real estate license or display the Georgia real estate license number in the permitted form.
Inactive licensees
Inactive status does not erase licensed status for principal-advertising disclosure and does not authorize brokerage for others.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. An inactive salesperson advertises a personally owned rental as a private landlord and omits any license disclosure.
Reason it through. Inactive status stops brokerage activity for others but does not erase the license disclosure required in principal advertising.
Answer. The advertisement must include the required license legend or Georgia license number.
Common exam traps
- Assuming inactive means unlicensed
- Disclosing only after contract acceptance
- Ignoring entity ownership
- Advertising as a private party without the required legend
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 affiliated salesperson plans to buy a rental house as a personal investment. What must happen before the salesperson acts?
- A. Nothing, because personal deals fall outside the license law
- B. The seller must hire a separate broker for the sale
- C. The salesperson must advise the broker in writing
- D. GREC must approve the purchase in advance
Show answer and explanation →
Answer: C. The salesperson must advise the broker in writing
A licensee buying, selling, leasing, or optioning property as a principal must first advise the broker in writing, including when acting through an entity in which the licensee has an interest. The license follows the person into personal deals. The outside-the-law answer is the trap, since licensed status is a material fact even when no client is involved.
Question 2An inactive salesperson advertises a personally owned rental as a private landlord, with no mention of the license. What does the rule require?
- A. Nothing, because inactive status ends the license duties
- B. The ad must note the license or show the license number
- C. The ad must name a sponsoring broker as the listing firm
- D. Nothing, as long as the owner leases the unit directly
Show answer and explanation →
Answer: B. The ad must note the license or show the license number
Inactive status stops brokerage for others but does not erase licensed status for principal advertising. The ad must carry the required license legend or the Georgia license number. The first answer looks plausible because inactive licensees cannot practice, but the disclosure rule still applies.
Question 3A licensee sells a lot the licensee owns to an unrepresented buyer. How must the licensed status be handled in the transaction?
- A. Disclosed clearly, with the required contract clause
- B. Disclosed only if the buyer asks whether the seller is licensed
- C. Kept private, since licensed status does not affect price
- D. Mentioned verbally at closing, after the contract is signed
Show answer and explanation →
Answer: A. Disclosed clearly, with the required contract clause
A licensee selling or leasing owned property must clearly disclose the principal role and include the required clause in the contract. Licensed status is a material fact the buyer should know before agreeing. The only-if-asked answer confuses this rule with situations where a truthful answer is owed only on a direct question.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Georgia Licensees Acting as Principals in one clear answer without notes.
- Separate Written broker notice from Transaction disclosure using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Maintaining, Renewing, Reinstating, and Changing a Georgia License. Principal deals come up throughout a career, and the next lesson covers keeping the license itself in order: birth-month renewal in the fourth year, CE, the lapse windows, and the ten-day and one-month notice deadlines.
Return to the State Laws and Rules hub for the complete official branch and the full lesson list for this Georgia group.