What is the exam-ready answer?
| Official syllabus topic | State Laws and Rules: 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.
Misrepresentation
A false statement or concealment of a material fact can be a disciplinary ground. Actual-knowledge language matters when the governing provision includes it.
Money and records
Failure to account, remit, safeguard, document, or lawfully disburse funds threatens public protection and can support discipline.
Interests and compensation
A licensee's ownership, agency role, compensation source, rebate, or referral interest may require timely written disclosure.
Competence and cooperation
Repeated negligence, practice beyond competence, failure to supervise, or refusal to cooperate with lawful investigation can trigger regulatory action.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A licensee knowingly advertises a house as having a new roof after the seller says the roof is 18 years old.
Reason it through. The advertisement contains a material false statement and the licensee has actual knowledge of the truth. Broker approval would not cure it.
Answer. The conduct supports discipline for misleading advertising and misrepresentation.
Common exam traps
- Replacing elements with moral intuition
- Assuming broker approval cures a violation
- Confusing trade-association discipline with GREC discipline
- Ignoring actual-knowledge wording
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 salesperson's ad says a listing has a new roof. The seller had told the salesperson the roof is 18 years old, and the broker approved the ad before it ran. How is GREC likely to view the ad?
- A. It is acceptable because the broker approved it before it ran.
- B. It is a matter for the local REALTOR association, not GREC.
- C. It can support discipline for misleading advertising.
- D. It is a violation only if a buyer relies on it and loses money.
Show answer and explanation →
Answer: C. It can support discipline for misleading advertising.
Knowingly making a material false statement, including in an advertisement, is a ground for discipline in Georgia. The salesperson knew the roof was 18 years old, so the ad is a knowing misrepresentation. Broker approval does not cure a false ad, which is the trap in the first choice.
Question 2A broker puts a tenant's security deposit into the firm's operating account to cover payroll and plans to replace it next month. No one has lost money yet. Can GREC discipline the broker?
- A. Yes, because mishandling trust funds is a ground even before any loss.
- B. No, because GREC acts only after a consumer suffers an actual loss.
- C. No, because the broker plans to replace the full amount next month.
- D. Only after the tenant sues the broker and wins a court judgment.
Show answer and explanation →
Answer: A. Yes, because mishandling trust funds is a ground even before any loss.
Failing to safeguard, deposit, or account for money belonging to others is a disciplinary ground on its own. Moving the deposit into the operating account is the violation, whatever the plan to repay it. The completed-loss answer looks plausible, but license law protects the public before harm happens.
Question 3A salesperson recommends a repair company to a buyer client without mentioning that the salesperson's spouse owns the company and will profit from the job. What is the main problem?
- A. Licensees are not allowed to recommend any repair companies.
- B. Only a broker, not a salesperson, may recommend a vendor.
- C. There is a problem only if the repair work turns out poorly.
- D. The salesperson failed to disclose a personal interest.
Show answer and explanation →
Answer: D. The salesperson failed to disclose a personal interest.
Georgia can discipline a licensee who hides an interest in a deal or a source of compensation, because the client cannot weigh the advice without knowing who benefits. Recommending vendors is allowed, so the first two choices are wrong. The poor-work answer confuses a disclosure violation with a quality complaint.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Georgia Unfair Practices and Grounds for Discipline in one clear answer without notes.
- Separate Misrepresentation from Money and records 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 Real Estate Education, Research and Recovery Fund. The Recovery Fund lesson shows what can follow when misconduct like this costs a consumer money: a claimant with a final judgment and a failed collection effort may be paid, and the responsible licensee faces revocation and repayment.
Return to the State Laws and Rules hub for the complete official branch and the full lesson list for this Georgia group.