What is the exam-ready answer?
| Official syllabus topic | State Laws and Rules: Education, Research and Recovery Fund |
|---|---|
| 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.
Fund purpose
The fund combines education and research functions with a limited public recovery mechanism created by statute.
Claim prerequisites
A disappointed party does not receive payment merely by filing a GREC complaint. The statute requires a qualifying judgment and specified post-judgment steps.
Limits and exclusions
Recovery is capped and subject to exclusions and procedural requirements. It is not designed to reimburse every contract loss or market decline.
License consequence
A court-ordered payment from the fund can revoke the responsible license until the required repayment and other conditions are satisfied.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A buyer loses money after a licensee's fraud and files only a complaint with GREC, asking the fund for immediate reimbursement.
Reason it through. A disciplinary complaint and a recovery claim are different. The fund process requires the statutory judgment and collection steps before payment is considered.
Answer. The complaint alone is insufficient for Recovery Fund payment.
Common exam traps
- Treating the fund as insurance
- Skipping the court judgment
- Confusing discipline with compensation
- Ignoring license revocation and repayment after payment
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 buyer loses $18,000 because of a licensee's fraud and files a complaint with GREC. Can the buyer now collect from the Recovery Fund?
- A. Yes, because filing the complaint starts a fund payment
- B. No, a qualifying judgment and collection steps come first
- C. Yes, as soon as GREC finds that the licensee broke the law
- D. No, because the fund pays only losses above $25,000
Show answer and explanation →
Answer: B. No, a qualifying judgment and collection steps come first
A disciplinary complaint and a Recovery Fund claim are different processes. The claimant needs a qualifying court judgment and must complete the required collection, notice, and application steps before payment is considered. The GREC-finding answer looks plausible because discipline feels like proof, but the fund pays by court order.
Question 2A court orders the Recovery Fund to pay a claim caused by a licensee's violation. What happens to that licensee's license?
- A. It is placed on probation for one year
- B. Nothing, because the fund has already covered the loss
- C. It is suspended until the next renewal date arrives
- D. It is revoked until the fund is repaid with interest
Show answer and explanation →
Answer: D. It is revoked until the fund is repaid with interest
When the fund pays, the responsible licensee's license is automatically revoked, and no new license issues until the fund is repaid in full with interest. The payment does not end the licensee's obligation. The nothing-happens answer looks plausible because the victim is made whole, but the licensee now owes the fund.
Question 3What is the most the Recovery Fund will pay on claims arising from a single transaction?
- A. $25,000
- B. $100,000
- C. $1,000,000
- D. There is no cap
Show answer and explanation →
Answer: A. $25,000
Recovery is capped at $25,000 per transaction. The $1 million figure is the minimum balance the Commission keeps in the fund, not a payout limit. The no-cap answer can mislead people who see the fund as general transaction insurance, which it is not.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Georgia Real Estate Education, Research and Recovery Fund in one clear answer without notes.
- Separate Fund purpose from Claim prerequisites 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 Georgia Fair Housing Law and Federal Overlap. The Recovery Fund covers money lost to a licensee's violation, and the next lesson turns to a different harm, discrimination, where the same conduct can bring federal fair housing liability and GREC discipline at once.
Return to the State Laws and Rules hub for the complete official branch and the full lesson list for this Georgia group.