What is the exam-ready answer?
| Official syllabus topic | Real Estate Practice in Georgia: Sales Contracts; Real Estate Practice |
|---|---|
| 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
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.
Receipt and deposit
Cash, checks, and other items of value move promptly into the broker-controlled process and designated trust account unless a valid written agreement directs otherwise.
Accounting
Records identify the parties, property, amount and date of deposit, and every payee, check amount, and disbursement date.
Seven disbursement grounds
Rule 520-1-.08 provides more than court order or mutual release. A reasonable contract interpretation is included, with immediate written notice when all parties do not agree.
Cleared funds
The broker needs reasonable assurance that the financial institution credited the funds before making a disbursement.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A buyer withdraws an unaccepted offer and the earnest-money check has cleared the broker's trust account.
Reason it through. Withdrawal before acceptance is one of the express disbursement circumstances. The broker still documents the ledger and refund by check or closing credit as applicable.
Answer. The broker may return the funds under Rule 520-1-.08 rather than waiting for a court order.
Common exam traps
- Saying only a judge may authorize disbursement
- Disbursing uncleared funds
- Ignoring the contract
- Using the operating account
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 withdraws an offer before the seller accepts it. The $5,000 earnest-money check has cleared the broker's trust account. What may the broker do?
- A. Hold the money until both parties sign a mutual release.
- B. Hold the money until a court orders it to be released.
- C. Refund it to the buyer under the rule's listed grounds.
- D. Pay it to the seller, who lost time on the offer.
Show answer and explanation →
Answer: C. Refund it to the buyer under the rule's listed grounds.
GREC Rule 520-1-.08 lists the grounds on which a broker may disburse earnest money, and withdrawal of an offer before acceptance is one of them. The funds have cleared, so the broker may refund the buyer and record it. The court-order answer reflects the myth that only a judge can release earnest money.
Question 2A seller rejects a buyer's offer the day after the broker deposits the earnest-money check. The buyer demands an immediate refund, but the bank has not yet credited the funds. What should the broker do?
- A. Refund it at once, because rejection is a listed ground.
- B. Wait for reasonable assurance the funds are credited.
- C. Refund it from the operating account to avoid a delay.
- D. Keep it until the buyer and seller sign a mutual release.
Show answer and explanation →
Answer: B. Wait for reasonable assurance the funds are credited.
Rejection is a valid ground for disbursement, but the broker needs reasonable assurance that the bank has credited the funds before paying them out. Otherwise the broker could disburse money the trust account never received. Refunding at once is plausible because the ground exists, but the timing rule still applies.
Question 3A buyer terminates during due diligence and asks for the earnest money back. The seller objects. The broker reasonably reads the contract as entitling the buyer to the refund. Under GREC Rule 520-1-.08, what may the broker do?
- A. Disburse on that reasonable reading and give written notice.
- B. Hold the money until the buyer and seller sign a mutual release.
- C. Hold the money until a judge decides who is entitled to it.
- D. Split the money evenly between the buyer and the seller.
Show answer and explanation →
Answer: A. Disburse on that reasonable reading and give written notice.
Georgia's rule does not limit a broker to mutual release, court order, or interpleader. A broker may disburse on a reasonable interpretation of the contract, with written notice to the parties when they do not all agree. Waiting for a mutual release is wrong because it ignores a ground the rule expressly gives.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Georgia Earnest Money: Receipt, Deposit, Dispute, and Disbursement in one clear answer without notes.
- Separate Receipt and deposit from Accounting 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 Property Management in Georgia. The property management lesson applies the same trust-account discipline to rents and security deposits, where each owner's money must stay in its own ledger and bills are paid only from funds actually credited.
Return to the Real Estate Practice in Georgia hub for the complete official branch and the full lesson list for this Georgia group.