What is the exam-ready answer?
| Roadmap lesson | 151 of 500 |
|---|---|
| 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 |
| Law checked through | August 2, 2026 |
| Last verified | August 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.
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 1Which statement best states the Georgia rule for Georgia Earnest Money: Receipt, Deposit, Dispute, and Disbursement?
- A. A broker may disburse disputed earnest money only after a court order.
- B. Earnest money may be held in the firm's operating account if the ledger is accurate.
- C. A broker may refund a check before confirming it was credited.
- D. Trace the money from receipt to broker custody, deposit, ledger, cleared funds, contractual entitlement, disbursement authority, and written notice.
Show answer and explanation →
Answer: D. Trace the money from receipt to broker custody, deposit, ledger, cleared funds, contractual entitlement, disbursement authority, and written notice.
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 2A buyer withdraws an unaccepted offer and the earnest-money check has cleared the broker's trust account.
- A. The broker may return the funds under Rule 520-1-.08 rather than waiting for a court order.
- B. Ignore the Georgia-specific fact because good intentions control.
- C. Apply the nearest national rule without checking Georgia authority.
- D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →
Answer: A. The broker may return the funds under Rule 520-1-.08 rather than waiting for a court order.
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. 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 3When solving Georgia Earnest Money: Receipt, Deposit, Dispute, and Disbursement, what should a candidate identify first?
- A. The answer choice that sounds most ethical, without classifying the actor or document.
- B. Do not decide who deserves the money. Identify the contract and one of the rule's authorized disbursement grounds, then follow notice and accounting requirements.
- C. One familiar deadline, applied to every Georgia transaction regardless of the source.
- D. A national default, even when the stem identifies a Georgia statute or GREC rule.
Show answer and explanation →
Answer: B. Do not decide who deserves the money. Identify the contract and one of the rule's authorized disbursement grounds, then follow notice and accounting requirements.
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 Property Management in Georgia. Continue through the roadmap from lesson 151.
Return to the Real Estate Practice in Georgia hub for the complete official branch and every canonical lesson in this Georgia group.