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Georgia curriculum lesson 137 · Real Estate Practice in Georgia

Georgia Practice Boundaries and Unauthorized Practice of Law

Georgia licensees may complete transaction forms when the forms and activity fit O.C.G.A. Section 43-40-25.1, follow client instructions, explain real estate concepts within competence, and recommend professional advice. They may not give legal opinions, resolve disputed legal rights, draft novel legal provisions beyond authorized practice, or conduct a closing reserved to a Georgia lawyer. The safest exam answer identifies the issue and refers legal judgment to an attorney.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

Georgia licensees may complete transaction forms when the forms and activity fit O.C.G.A. Section 43-40-25.1, follow client instructions, explain real estate concepts within competence, and recommend professional advice. They may not give legal opinions, resolve disputed legal rights, draft novel legal provisions beyond authorized practice, or conduct a closing reserved to a Georgia lawyer. The safest exam answer identifies the issue and refers legal judgment to an attorney.
Official syllabus mapping for Georgia Practice Boundaries and Unauthorized Practice of Law
Roadmap lesson137 of 500
Official syllabus topicReal Estate Practice in Georgia: Real Estate Practice; Sales Contracts
Official PSI groupReal Estate Practice in Georgia
Published group count21 of the 52 Georgia questions
Exam portionGeorgia salesperson supplement
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Law checked throughAugust 2, 2026
Last verifiedAugust 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.

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

Ask whether the requested act needs legal judgment or creates legal language. If it does, stop and refer rather than improvise.

Georgia rule and national contrast

Georgia's statute and State Bar authorities define the form-completion and attorney-closing boundary. National material that treats a title company as the universal closer can give the wrong Georgia answer.

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 1

Which statement best states the Georgia rule for Georgia Practice Boundaries and Unauthorized Practice of Law?

  1. A. A real estate license authorizes any contract drafting requested by a client.
  2. B. Separate factual information and authorized form completion from legal advice, custom drafting, title opinions, and closing conduct.
  3. C. A Georgia closing may be run entirely by a nonlawyer if an attorney watches briefly.
  4. D. Referring a legal question to counsel violates the broker's duty to assist.
Show answer and explanation →

Answer: B. Separate factual information and authorized form completion from legal advice, custom drafting, title opinions, and closing conduct.

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 2

A buyer asks a salesperson to draft a clause guaranteeing the right to cancel if a future zoning change reduces value.

  1. A. Ignore the Georgia-specific fact because good intentions control.
  2. B. Apply the nearest national rule without checking Georgia authority.
  3. C. Refer the buyer to a Georgia attorney for the provision.
  4. D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →

Answer: C. Refer the buyer to a Georgia attorney for the provision.

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. 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 3

When solving Georgia Practice Boundaries and Unauthorized Practice of Law, what should a candidate identify first?

  1. A. The answer choice that sounds most ethical, without classifying the actor or document.
  2. B. One familiar deadline, applied to every Georgia transaction regardless of the source.
  3. C. A national default, even when the stem identifies a Georgia statute or GREC rule.
  4. D. Ask whether the requested act needs legal judgment or creates legal language. If it does, stop and refer rather than improvise.
Show answer and explanation →

Answer: D. Ask whether the requested act needs legal judgment or creates legal language. If it does, stop and refer rather than improvise.

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 BRRETA Complete Exam Guide. Continue through the roadmap from lesson 137.

Return to the Real Estate Practice in Georgia hub for the complete official branch and every canonical lesson in this Georgia group.

Georgia Practice Boundaries and Unauthorized Practice of Law questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Georgia Practice Boundaries and Unauthorized Practice of Law on the Georgia real estate exam?

Yes. It maps to PSI's Real Estate Practice in Georgia group, which has 21 of the 52 Georgia questions. PSI does not publish a guaranteed question count for this individual lesson.

What is the main Georgia rule for Georgia Practice Boundaries and Unauthorized Practice of Law?

Ask whether the requested act needs legal judgment or creates legal language. If it does, stop and refer rather than improvise.

How is this different from a national real estate rule?

Georgia's statute and State Bar authorities define the form-completion and attorney-closing boundary. National material that treats a title company as the universal closer can give the wrong Georgia answer.

How do I know I have mastered this Georgia lesson?

State the rule and source without notes, solve the scenario after changing a controlling fact, explain every distractor, and maintain accuracy when this topic is mixed with the other Georgia supplement groups.