Where this fits on the exam
| Official syllabus topic | Real Estate Practice in Georgia: Real Estate Practice; Sales Contracts |
|---|---|
| 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
Authorized forms
The statute protects completion of specified forms under its conditions; it does not turn a real estate license into a law license.
Factual explanation
A licensee may explain business terms and known facts within competence while avoiding conclusions about legal effect or enforceability.
Attorney referral
Questions about title, legal rights, custom clauses, remedies, or disputed interpretation should go to a Georgia lawyer.
Closing boundary
Georgia treats conveyancing and real estate closing as legal work. The lawyer must control the closing, not merely appear as a witness for a process run by others.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A buyer asks a salesperson to draft a clause guaranteeing the right to cancel if a future zoning change reduces value.
Reason it through. The request needs custom legal drafting and analysis beyond ordinary form completion. The licensee may document the concern and recommend counsel but should not invent the clause.
Answer. Refer the buyer to a Georgia attorney for the provision.
Common exam traps
- Calling every explanation legal advice
- Treating every blank form as safe to alter
- Giving a title opinion
- Using an attorney as a witness-only closer
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 asks a salesperson to write a custom clause letting the buyer cancel if a future zoning change lowers the home's value. What should the salesperson do?
- A. Draft the clause, since licensees may complete sales contracts.
- B. Adapt a similar clause from another state's contract form.
- C. Note the concern and refer the buyer to a Georgia attorney.
- D. Tell the buyer that such a clause would not be enforceable.
Show answer and explanation →
Answer: C. Note the concern and refer the buyer to a Georgia attorney.
Georgia law lets licensees complete lawyer-prepared forms with facts such as price, dates and required stipulations, but not draft new legal provisions. A custom cancellation right needs legal drafting, so the licensee records the concern and refers the buyer. Telling the buyer the clause is unenforceable looks cautious, but it is itself a legal opinion.
- A. Incorrect. Completing a lawyer-prepared form does not authorize drafting a new cancellation right.
- B. Incorrect. Borrowing a clause from another state does not resolve the need for Georgia legal drafting.
- C. Correct. Record the requested business concern and refer custom legal drafting to a Georgia attorney.
- D. Incorrect. Declaring the clause unenforceable would itself be a legal opinion beyond the salesperson's role.
Question 2Who must conduct a residential real estate closing in Georgia?
- A. A Georgia attorney who controls the closing
- B. A title company escrow officer acting alone
- C. The listing broker, with an attorney as a witness
- D. Any licensee the brokerage has trained to close
Show answer and explanation →
Answer: A. A Georgia attorney who controls the closing
Georgia treats conveyancing and closing as the practice of law, so a Georgia attorney must control the closing. An attorney who only watches while others run it does not meet that standard. The title-company answer comes from national material where escrow closings are common.
- A. Correct. A Georgia attorney must conduct and control the legal closing process.
- B. Incorrect. An escrow officer acting alone does not satisfy Georgia's attorney-closing requirement.
- C. Incorrect. An attorney serving only as a witness does not conduct and control the closing.
- D. Incorrect. Brokerage training does not qualify a licensee to perform the attorney's closing role.
Question 3Which of these acts is within a Georgia salesperson's role?
- A. Telling a seller whether a neighbor's easement is still valid
- B. Giving a buyer an opinion on whether the title is marketable
- C. Deciding which party is right in a contract dispute
- D. Filling in the price and dates on a lawyer-prepared contract form
Show answer and explanation →
Answer: D. Filling in the price and dates on a lawyer-prepared contract form
A licensee may complete listing and sales contracts prepared by legal counsel, filling in facts like property, price, payment terms and dates. Judging an easement's validity, title, or a contract dispute calls for legal judgment. The title-opinion choice looks plausible because licensees handle title facts, but rendering an opinion on title is legal work.
- A. Incorrect. An opinion on whether an easement is legally valid calls for legal advice.
- B. Incorrect. An opinion on marketable title is legal work, rather than routine form completion.
- C. Incorrect. Resolving the legal merits of a contract dispute belongs to legal counsel.
- D. Correct. A salesperson may insert the agreed factual price and dates into a lawyer-prepared form.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Separate completing an authorized form from drafting a new legal provision.
- Recognize when a title, enforceability, or remedy question needs an attorney.
- Explain why the Georgia lawyer must control the real estate closing.
- 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 BRRETA Complete Exam Guide. The BRRETA guide pulls the Georgia agency rules behind these limits onto one page, so you can review client and customer duties, dual and designated agency, and transaction brokerage in one sitting.
Return to the Real Estate Practice in Georgia hub for the complete official branch and the full lesson list for this Georgia group.