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Georgia curriculum lesson 129 · State Laws and Rules

Georgia Unfair Practices and Grounds for Discipline

Georgia may discipline licensees for statutory grounds that include material misrepresentation, false promises, dishonest dealing, incompetence, failure to account for money, improper trust-fund handling, misleading advertising, undisclosed interests or compensation, prohibited conduct, and failure to comply with Commission rules or lawful orders. The exam asks whether the stated facts match a ground, not whether the conduct merely feels unprofessional.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Georgia may discipline licensees for statutory grounds that include material misrepresentation, false promises, dishonest dealing, incompetence, failure to account for money, improper trust-fund handling, misleading advertising, undisclosed interests or compensation, prohibited conduct, and failure to comply with Commission rules or lawful orders. The exam asks whether the stated facts match a ground, not whether the conduct merely feels unprofessional.
Official syllabus mapping for Georgia Unfair Practices and Grounds for Discipline
Roadmap lesson129 of 500
Official syllabus topicState Laws and Rules: Unfair Practices
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
Law checked throughAugust 2, 2026
Last verifiedAugust 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.

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

Translate the story into a precise violation label and check every element before selecting the sanction or ground.

Georgia rule and national contrast

Georgia's enumerated unfair practices and sanctions control. A REALTOR ethics rule may overlap, but it is not the source of GREC's statutory discipline power.

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 1

Which statement best states the Georgia rule for Georgia Unfair Practices and Grounds for Discipline?

  1. A. Only conduct causing a completed financial loss can be disciplined.
  2. B. Identify the act, required mental state if any, harmed duty, money or disclosure involved, and the matching statutory or rule provision.
  3. C. Broker approval makes a misleading advertisement lawful.
  4. D. GREC enforces only voluntary professional ethics codes.
Show answer and explanation →

Answer: B. Identify the act, required mental state if any, harmed duty, money or disclosure involved, and the matching statutory or rule provision.

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 2

A licensee knowingly advertises a house as having a new roof after the seller says the roof is 18 years old.

  1. A. Ignore the Georgia-specific fact because good intentions control.
  2. B. Apply the nearest national rule without checking Georgia authority.
  3. C. The conduct supports discipline for misleading advertising and misrepresentation.
  4. D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →

Answer: C. The conduct supports discipline for misleading advertising and misrepresentation.

The advertisement contains a material false statement and the licensee has actual knowledge of the truth. Broker approval would not cure it. 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 3

When solving Georgia Unfair Practices and Grounds for Discipline, what should a candidate identify first?

  1. A. The answer choice that sounds most ethical, without classifying the actor or document.
  2. B. One familiar deadline, applied to every Georgia transaction regardless of the source.
  3. C. A national default, even when the stem identifies a Georgia statute or GREC rule.
  4. D. Translate the story into a precise violation label and check every element before selecting the sanction or ground.
Show answer and explanation →

Answer: D. Translate the story into a precise violation label and check every element before selecting the sanction or ground.

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 Georgia Real Estate Education, Research and Recovery Fund. Continue through the roadmap from lesson 129.

Return to the State Laws and Rules hub for the complete official branch and every canonical lesson in this Georgia group.

Georgia Unfair Practices and Grounds for Discipline questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Georgia Unfair Practices and Grounds for Discipline 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 Georgia Unfair Practices and Grounds for Discipline?

Translate the story into a precise violation label and check every element before selecting the sanction or ground.

How is this different from a national real estate rule?

Georgia's enumerated unfair practices and sanctions control. A REALTOR ethics rule may overlap, but it is not the source of GREC's statutory discipline power.

How do I know I have mastered this Georgia lesson?

State the rule and source without notes, solve the scenario after changing a controlling fact, explain every distractor, and maintain accuracy when this topic is mixed with the other Georgia supplement groups.