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Georgia curriculum lesson · State Laws and Rules

Purpose, Scope, and Structure of Georgia Real Estate License Law

Georgia real estate license law protects the public by controlling who may perform brokerage, how licensees and firms are supervised, and what conduct can lead to discipline. O.C.G.A. Chapter 43-40 supplies the statute. GREC Chapter 520-1 supplies the implementing rules. PSI tests both within the 16-item State Laws and Rules group.

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

What is the exam-ready answer?

Georgia real estate license law protects the public by controlling who may perform brokerage, how licensees and firms are supervised, and what conduct can lead to discipline. O.C.G.A. Chapter 43-40 supplies the statute. GREC Chapter 520-1 supplies the implementing rules. PSI tests both within the 16-item State Laws and Rules group.
Official syllabus mapping for Purpose, Scope, and Structure of Georgia Real Estate License Law
Official syllabus topicState Laws and Rules: Required Licensure; Commission Organization and Procedures; Substantive Regulations
Official PSI groupState Laws and Rules
Published group count16 of the 52 Georgia questions
Exam portionGeorgia salesperson supplement
Source editionPSI 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.

Statute and rule

The General Assembly enacts Chapter 43-40. GREC adopts rules within delegated authority. A rule explains administration but cannot replace the statute.

People and firms

The framework covers brokers, associate brokers, salespersons, community association managers, licensed firms, schools, and instructors in different ways.

Public protection

Qualification, supervision, trust accounting, advertising, records, investigation, and discipline all serve the same goal: protecting people in real estate transactions.

Exam hierarchy

Start with the actor and activity, then find the governing statute, rule, contract, or BRRETA duty. Do not treat general ethics as a substitute for law.

Decision rule

Identify the actor, the real estate activity, the source of authority, and the public-protection risk before choosing an answer.

Georgia rule and national contrast

This lesson is entirely Georgia-specific. National principles explain brokerage, but only Georgia law decides Georgia license categories, exemptions, Commission power, and sanctions.

Worked Georgia example

Scenario. A firm policy permits a salesperson to advertise under a personal brand without displaying the licensed firm's name.

Reason it through. Firm policy cannot override GREC advertising rules. The statute authorizes regulation, and Rule 520-1-.09 controls the advertisement.

Answer. The advertisement must comply with the GREC rule even if the firm approved the noncompliant policy.

Common exam traps

  • Treating a trade association form as law
  • Letting office policy override a Commission rule
  • Confusing PSI with the regulator
  • Using an ethical preference instead of the governing provision

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 1

Who enacts Georgia's real estate license law, and who adopts the rules that carry it out?

  1. A. GREC enacts the law; PSI adopts the rules
  2. B. The General Assembly enacts it; GREC adopts the rules
  3. C. The General Assembly enacts it; PSI adopts the rules
  4. D. GREC enacts the law; the Governor adopts the rules
Show answer and explanation →

Answer: B. The General Assembly enacts it; GREC adopts the rules

The General Assembly enacts Chapter 43-40, and GREC adopts rules within the authority the statute delegates. PSI tests candidates but makes no law. Picking GREC as the lawmaker confuses rulemaking with the statute itself.

Question 2

A firm policy, approved by the broker, lets a salesperson advertise under a personal brand without showing the licensed firm's name. Is that advertising allowed?

  1. A. Yes, because the broker approved the policy in writing
  2. B. Yes, because a personal brand is not a property ad
  3. C. Only if the salesperson's license number appears
  4. D. No, because firm policy cannot override GREC rules
Show answer and explanation →

Answer: D. No, because firm policy cannot override GREC rules

GREC's advertising rule governs the ad, and a firm policy cannot relax a rule the Commission adopted. The advertisement must show the licensed firm's name even though the firm approved the policy. The broker-approval answer can mislead, but a broker cannot authorize what the rules forbid.

Question 3

What is the main purpose of Georgia's real estate license law?

  1. A. To protect the public in real estate transactions
  2. B. To limit competition among licensed brokerages
  3. C. To set the commission rates brokers may charge
  4. D. To raise state revenue through license fees
Show answer and explanation →

Answer: A. To protect the public in real estate transactions

Qualification, supervision, trust accounting, advertising, and discipline all serve one goal: protecting people who deal with licensees. The license law does not set commission rates. The revenue answer looks plausible because licensees pay fees, but fees fund the program rather than define its purpose.

Ready to move on?

You are ready for the next lesson when all of these are true.

  • Explain Purpose, Scope, and Structure of Georgia Real Estate License Law in one clear answer without notes.
  • Separate Statute and rule from People and firms 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 Activities Requiring a Georgia Real Estate License. With the purpose of the law in place, the next lesson asks the first practical question: which acts, done for another and for a fee or the expectation of one, require a Georgia license.

Return to the State Laws and Rules hub for the complete official branch and the full lesson list for this Georgia group.

Purpose, Scope, and Structure of Georgia Real Estate License Law questions

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

Is Purpose, Scope, and Structure of Georgia Real Estate License Law on the Georgia real estate exam?

Yes. It maps to PSI's State Laws and Rules group, which has 16 of the 52 Georgia questions. PSI does not publish a guaranteed question count for this individual lesson.

What is the main Georgia rule for Purpose, Scope, and Structure of Georgia Real Estate License Law?

Identify the actor, the real estate activity, the source of authority, and the public-protection risk before choosing an answer.

How is this different from a national real estate rule?

This lesson is entirely Georgia-specific. National principles explain brokerage, but only Georgia law decides Georgia license categories, exemptions, Commission power, and sanctions.