Where this fits on the exam
| Official syllabus topic | Real Estate Practice in Georgia: 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
Exclusive right to sell
The broker generally earns the stated compensation if the property sells during the term, subject to the agreement's exceptions and conditions.
Exclusive agency
The broker is exclusive, but the agreement may reserve the owner's right to sell without owing the listing broker under defined conditions.
Open listing
Multiple brokers may seek a buyer, and the procuring-cause and agreement facts determine who earns compensation.
Net listing risk
GREC Rule 520-1-.06 prohibits brokers from accepting net brokerage engagements and requires the broker to add its fee so the client knows the gross price. The arrangement would also put the broker's interest against the seller's.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. An owner signs an exclusive-agency listing that expressly reserves an owner-sale exception, then finds a buyer without broker assistance during the term.
Reason it through. The answer depends on the written owner-sale exception, not the label exclusive alone. An exclusive-right-to-sell listing would usually allocate the risk differently.
Answer. Apply the agreement's owner-sale exception before concluding that commission is due.
Common exam traps
- Confusing exclusive agency with exclusive right to sell
- Ignoring the owner exception
- Assuming a listing belongs to the salesperson
- Treating a net listing as harmless
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 1An owner signs an exclusive-agency listing that reserves the owner's right to sell without owing a commission. During the term, the owner sells to a coworker with no broker involvement. Does the owner owe the listing broker a commission?
- A. Yes, because the listing is exclusive for its full term.
- B. No, because the owner-sale exception covers this sale.
- C. Yes, because the listing broker is the procuring cause.
- D. Half, because the broker spent money on marketing.
Show answer and explanation →
Answer: B. No, because the owner-sale exception covers this sale.
An exclusive-agency listing makes one broker the exclusive agent but can reserve the owner's right to sell without owing a fee. The owner found the buyer alone, so the exception applies. The first choice confuses exclusive agency with exclusive right to sell.
- A. Incorrect. Exclusivity of the broker does not eliminate this exclusive-agency owner-sale exception.
- B. Correct. The reserved exception applies because the owner found and sold to the coworker without broker involvement.
- C. Incorrect. The facts specify no broker involvement, so procuring cause does not support that answer.
- D. Incorrect. Marketing expenses do not create a half-commission rule under the stated listing.
Question 2A seller signs an exclusive-right-to-sell listing with no owner exception. During the term, the seller finds a buyer through church and closes without the broker's help. What is the usual result?
- A. No commission, because the broker did not find the buyer.
- B. A commission only if the broker had shown the buyer the home.
- C. The broker earns the stated commission under the listing.
- D. A reduced fee, set by the Real Estate Commission.
Show answer and explanation →
Answer: C. The broker earns the stated commission under the listing.
Under an exclusive-right-to-sell listing, the broker generally earns the stated compensation if the property sells during the term, no matter who finds the buyer. The seller reserved no exception here. The first choice applies open-listing or procuring-cause thinking to the wrong listing type.
- A. Incorrect. This listing does not reserve an owner-sale exception, so who found the buyer does not defeat the fee.
- B. Incorrect. An exclusive-right-to-sell fee is not limited to buyers the broker previously showed the home.
- C. Correct. The sale during the listing term triggers the agreed compensation under the stated terms.
- D. Incorrect. GREC does not set a reduced fee for an owner-found buyer; the agreement controls.
Question 3A seller tells a broker, "I need $300,000. Keep anything above that as your fee." How should a Georgia broker treat this net listing?
- A. Decline it, because GREC rules prohibit brokers from accepting net listings
- B. Accept it, as long as the seller signs a written conflict disclosure
- C. Accept it, because the Commission does not cap a broker's fee
- D. Accept it, if each buyer is told the broker's exact fee before offering
Show answer and explanation →
Answer: A. Decline it, because GREC rules prohibit brokers from accepting net listings
GREC Rule 520-1-.06 prohibits brokers from accepting net brokerage engagements and requires the broker to add its fee so the seller knows the gross price. A net listing ties the broker's pay to the gap between the net and the price, which puts the broker's interest against the seller's. It is true that no rule caps a broker's fee, which makes the third choice plausible, but that does not make a net listing lawful.
- A. Correct. GREC prohibits accepting the net brokerage engagement described.
- B. Incorrect. A conflict disclosure does not override the prohibition on accepting net engagements.
- C. Incorrect. Negotiable fees do not make a prohibited net listing acceptable.
- D. Incorrect. Buyer disclosure cannot cure the broker's acceptance of this prohibited engagement.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain when an owner's own sale earns a fee under each listing type.
- Distinguish an open listing's procuring-cause issue from an exclusive right to sell.
- Recognize a prohibited net engagement and distinguish it from an agreed commission.
- 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 Georgia Buyer Brokerage and Tenant Representation Agreements. The buyer and tenant agreements lesson covers the other side of the table, where the engagement also sets scope, term and compensation, and who pays the broker still does not decide who the client is.
Return to the Real Estate Practice in Georgia hub for the complete official branch and the full lesson list for this Georgia group.