Where this fits on the exam
| Official syllabus topic | Real Estate Practice in Georgia: 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
Formation
Offer, acceptance, consideration, competent parties, lawful object, and sufficient property terms remain important, but the signed Georgia form supplies the operational details.
Due diligence
The length and termination or objection rights come from the contract. There is no single Georgia due-diligence period that applies to every sale.
Dates and notices
Effective date, days, time of day, delivery method, and amendment terms can decide the outcome. Guessing from custom is unsafe.
Licensee boundary
A licensee tracks deadlines, communicates instructions, and completes authorized forms, but legal interpretation and novel clauses belong to counsel.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A contract gives the buyer ten days of due diligence from the binding-agreement date and requires written termination notice. The buyer merely tells the inspector on day ten that the deal is off.
Reason it through. The contract controls the recipient and delivery method. Telling the inspector is not necessarily notice to the seller under the agreement.
Answer. The buyer must deliver the required written notice as the contract specifies before the deadline.
Common exam traps
- Inventing a standard due-diligence length
- Counting from the wrong date
- Confusing inspection with termination
- Giving a legal opinion about disputed notice
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 contract gives the buyer ten days of due diligence and requires written termination notice to the seller. On day ten the buyer tells the inspector the deal is off but sends nothing to the seller. What is the result?
- A. The deal ended, because the buyer decided before the deadline.
- B. The deal ended, because the inspector passes word to both sides.
- C. The buyer has three more business days to send the notice.
- D. The buyer did not terminate, since the seller got no written notice.
Show answer and explanation →
Answer: D. The buyer did not terminate, since the seller got no written notice.
The contract sets how termination works, including who must receive notice and in what form. Telling the inspector is not written notice to the seller, so the buyer did not terminate within the period. The three-business-day answer borrows a rescission period that Georgia purchase contracts do not supply by statute.
- A. Incorrect. Deciding to cancel is not the contractually required written notice to the seller.
- B. Incorrect. The inspector is not the notice recipient specified, and no written seller notice was sent.
- C. Incorrect. No automatic three-business-day extension changes the stated termination deadline.
- D. Correct. The buyer failed to deliver the written notice required to exercise the contract right on time.
Question 2How long is the due-diligence period in a Georgia residential purchase?
- A. Ten days, as set by Georgia statute
- B. Whatever length the parties' contract sets
- C. Three business days, as a statutory right
- D. Thirty days from the binding agreement date
Show answer and explanation →
Answer: B. Whatever length the parties' contract sets
Georgia has no single statutory due-diligence period. The length and the buyer's rights during it come from the negotiated contract. The ten-day answer is plausible because that length is common in practice, but custom is not a rule.
- A. Incorrect. Georgia does not impose a universal ten-day due-diligence period by statute.
- B. Correct. The negotiated contract sets the due-diligence period and termination conditions.
- C. Incorrect. A general three-business-day statutory purchase rescission right does not set this period.
- D. Incorrect. Thirty days may be negotiated, but it is not the required period for every purchase.
Question 3The buyer and seller disagree about whether a termination notice was delivered on time, and the seller asks the listing licensee for a ruling. What should the licensee do?
- A. Refer the question of legal effect to a Georgia attorney.
- B. Decide the issue, since the licensee tracked the deadlines.
- C. Tell the seller the notice was late, based on local custom.
- D. Declare the contract void and return the earnest money.
Show answer and explanation →
Answer: A. Refer the question of legal effect to a Georgia attorney.
A licensee tracks dates and passes along instructions, but deciding the legal effect of a disputed notice is legal interpretation. The right move is to refer the parties to a Georgia attorney. Deciding it because the licensee kept the calendar looks plausible, but tracking a deadline is not the same as interpreting a contract.
- A. Correct. The legal effect of disputed notice should be addressed by a Georgia attorney.
- B. Incorrect. Calendar tracking does not authorize a licensee to decide a disputed legal interpretation.
- C. Incorrect. Local custom does not resolve the meaning and legal effect of the contract's notice provisions.
- D. Incorrect. The licensee cannot declare the contract void as a ruling on the parties' dispute.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Find the actual due-diligence period and termination rights in the signed contract.
- Calculate the deadline using the contract's date, time, and notice method.
- Separate tracking a deadline from giving a legal opinion about a disputed clause.
- 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 Listing Agreements. The listing agreements lesson steps back to where the transaction starts, the seller's engagement with the broker, where the compensation trigger, term and owner exceptions decide who is owed what.
Return to the Real Estate Practice in Georgia hub for the complete official branch and the full lesson list for this Georgia group.