Where this fits on the exam
| Official syllabus topic | Real Estate Practice in Georgia: Real Estate Practice; Listings and Agency |
|---|---|
| Official PSI group | Real Estate Practice in Georgia |
| Published group count | 21 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
Broker channel
A salesperson, CAM, or associate broker cannot receive brokerage compensation from a client, closing attorney, or another person without the holding broker's consent. Payment through the broker is the ordinary route. Broker consent addresses this payment restriction, not every disclosure or federal-law requirement.
Referrals
Broker-to-broker referral compensation can be lawful with the required knowledge and written disclosure to the principal at the prescribed time.
Rebates
A licensee may rebate compensation to a principal if the rebate is shown on the closing statement and does not mislead a lender, title provider, government agency, or other participant.
Unlicensed persons
An unlicensed person may be paid for lawful nonbrokerage work but not for negotiating, procuring prospects, or other acts requiring a license.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A salesperson promises a buyer part of the commission as a closing credit but keeps it off the closing statement so the lender will not see it.
Reason it through. A rebate may be permitted, but hiding it defeats the disclosure condition and can mislead the lender about the buyer's funds.
Answer. The undisclosed rebate is not compliant; route it through the broker and disclose it properly.
Common exam traps
- Paying an affiliated licensee directly without the holding broker's consent
- Assuming every referral fee is lawful
- Hiding a rebate
- Paying an unlicensed person for negotiation
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 promises a buyer a $3,000 closing credit from the commission but asks that it be left off the closing statement so the lender will not see it. Is the rebate proper under GREC rules?
- A. Yes, because the money comes from the salesperson's own share.
- B. No, because Georgia prohibits any rebate to a buyer or seller.
- C. Yes, if the buyer agrees in writing to keep the credit private.
- D. No, because a rebate must be shown on the closing statement.
Show answer and explanation →
Answer: D. No, because a rebate must be shown on the closing statement.
Rule 520-1-.10 allows a rebate to a principal only when it appears on the closing statement and does not mislead the lender or other participants. Hiding it from the lender defeats that condition. The second choice overcorrects: Georgia does allow properly disclosed rebates.
- A. Incorrect. The source of the rebate does not excuse the closing-statement disclosure.
- B. Incorrect. Georgia permits compliant rebates to a principal; it does not impose a blanket prohibition.
- C. Incorrect. Private agreement cannot authorize a hidden rebate intended to mislead the lender.
- D. Correct. The rebate must appear on the closing statement and must not mislead the transaction participants.
Question 2A delighted seller wants to hand the listing salesperson a $1,000 bonus at closing. The holding broker has not consented to outside compensation. How may the salesperson lawfully receive it?
- A. Through the broker who holds the salesperson's license.
- B. Directly from the seller, since it is a gift, not a commission.
- C. From the closing attorney, as a line item paid to the salesperson.
- D. Directly, as long as the salesperson reports it as income.
Show answer and explanation →
Answer: A. Through the broker who holds the salesperson's license.
A bonus tied to brokerage work is compensation, whatever the seller calls it. O.C.G.A. 43-40-25(b)(8) bars outside compensation without the holding broker's consent. Because the broker has not consented here, the bonus must pass through that broker. Calling it a gift does not avoid the restriction.
- A. Correct. Without consent to outside compensation, the transaction bonus must pass through the holding broker.
- B. Incorrect. A gift label does not change compensation earned for brokerage work.
- C. Incorrect. Routing money through the attorney directly to the salesperson still bypasses the holding broker.
- D. Incorrect. Income reporting does not cure a license-law violation in the payment route.
Question 3A broker wants to pay an unlicensed neighbor for several kinds of help. Which payment would violate Georgia license law?
- A. An hourly wage for filing and data entry in the office.
- B. A flat fee for photographing the broker's new listings.
- C. A fee for each buyer the neighbor finds and talks into buying.
- D. Payment for repairing a listed home before it goes on the market.
Show answer and explanation →
Answer: C. A fee for each buyer the neighbor finds and talks into buying.
An unlicensed person may be paid for lawful work that needs no license, but not for procuring prospects or negotiating. Finding buyers and persuading them to buy is brokerage activity. The photography fee can look risky because it involves listings, but it is nonbrokerage work.
- A. Incorrect. Routine filing and data entry are unlicensed support work, assuming no brokerage duties are added.
- B. Incorrect. Photographing a listing is a separate service that does not itself procure or negotiate with buyers.
- C. Correct. Finding and persuading buyers for a fee is compensated brokerage activity requiring a license.
- D. Incorrect. Repair work is not brokerage merely because the house will be listed.
Question 4A seller offers a salesperson a transaction bonus. Before payment, the broker holding the salesperson's license expressly consents to the seller paying it directly. All other required disclosures and applicable laws are satisfied. What does O.C.G.A. 43-40-25(b)(8) say about this payment route?
- A. It is prohibited even with the holding broker's consent.
- B. It is permitted by this provision because the holding broker consented.
- C. It is permitted only if the seller calls it a personal gift.
- D. The buyer's consent, rather than the broker's, is required.
Show answer and explanation →
Answer: B. It is permitted by this provision because the holding broker consented.
The statute prohibits receiving brokerage compensation from someone other than the holding broker without that broker's consent. Changing that fact changes the answer: with the broker's consent and the other stated requirements satisfied, this provision does not prohibit direct payment. Consent does not waive other rules or federal law.
- A. Incorrect. This turns the rule into an absolute ban and ignores its express broker-consent qualification.
- B. Correct. The holding broker's consent satisfies this provision's condition for outside compensation.
- C. Incorrect. Calling transaction compensation a gift does not change the rule; the relevant fact is the holding broker's consent.
- D. Incorrect. A transaction participant's consent is not a substitute for the consent of the broker holding the license.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Identify when outside compensation requires the holding broker's consent.
- Identify the required knowledge and disclosure for a broker referral.
- Distinguish a properly disclosed principal rebate from payment for unlicensed brokerage work.
- Answer the practice questions without looking back, then explain why the other choices fail.
- Explain the worked example in your own words and identify the fact that decides the answer.
- Retest this topic on another day in a mixed question set.
Recommended next lesson
Continue with Security Deed Versus Mortgage in Georgia. The security deed article moves from who gets paid at closing to how the buyer's loan is secured, explaining why Georgia lenders take a deed to secure debt and hold title until the loan is paid off.
Return to the Real Estate Practice in Georgia hub for the complete official branch and the full lesson list for this Georgia group.