What is the exam-ready answer?
| Roadmap lesson | 135 of 500 |
|---|---|
| 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 |
| Law checked through | August 2, 2026 |
| Last verified | August 2, 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.
Complete lesson
Read these concepts as one Georgia decision system. A plausible national rule can still be the wrong answer when the stem supplies a Georgia statute, instrument, 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 1Which statement best states the Georgia rule for Georgia Licensees Acting as Principals?
- A. Inactive licensees never disclose licensed status when selling their own property.
- B. Oral notice to the broker satisfies every principal-transaction requirement.
- C. Ownership through an LLC eliminates the licensee's disclosure duties.
- D. Identify the licensee's ownership or entity interest, active or inactive status, broker affiliation, advertisement, written notices, consents, and contract disclosure.
Show answer and explanation →
Answer: D. Identify the licensee's ownership or entity interest, active or inactive status, broker affiliation, advertisement, written notices, consents, and contract disclosure.
The correct choice states the controlling rule. The other choices either remove a required element, replace Georgia authority with a generic assumption, or expand an exception beyond the cited source.
Question 2An inactive salesperson advertises a personally owned rental as a private landlord and omits any license disclosure.
- A. The advertisement must include the required license legend or Georgia license number.
- B. Ignore the Georgia-specific fact because good intentions control.
- C. Apply the nearest national rule without checking Georgia authority.
- D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →
Answer: A. The advertisement must include the required license legend or Georgia license number.
Inactive status stops brokerage activity for others but does not erase the license disclosure required in principal advertising. The correct option follows that reasoning. The distractors ignore the controlling Georgia source, substitute intent for procedure, or give decision-making authority to the wrong person.
Question 3When solving Georgia Licensees Acting as Principals, what should a candidate identify first?
- A. The answer choice that sounds most ethical, without classifying the actor or document.
- B. Treat licensed status as a material fact: disclose it to the broker, in the advertisement, and in the transaction wherever the rule requires.
- C. One familiar deadline, applied to every Georgia transaction regardless of the source.
- D. A national default, even when the stem identifies a Georgia statute or GREC rule.
Show answer and explanation →
Answer: B. Treat licensed status as a material fact: disclose it to the broker, in the advertisement, and in the transaction wherever the rule requires.
The decision rule identifies the facts that control this topic. The other choices reward tone, a memorized number, or a national default while skipping the Georgia actor, document, authority, or procedure.
Mastery tracking
Mark this Georgia lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain all four concepts and identify the controlling Georgia source.
- Solve the worked example after changing one important fact.
- Reject every listed trap and explain what makes it tempting.
- Answer all three original questions correctly and explain every distractor.
- Repeat this topic in mixed Georgia practice on a later day.
Recommended next lesson
Continue with Maintaining, Renewing, Reinstating, and Changing a Georgia License. Continue through the roadmap from lesson 135.
Return to the State Laws and Rules hub for the complete official branch and every canonical lesson in this Georgia group.