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National curriculum lesson 118 · Practice of Real Estate

Confidential Information, Privacy, and Transaction Funds

Real estate professionals protect confidential client motives, bargaining limits, finances, identity records, access information, offer terms, and transaction data, except when disclosure is authorized or legally required. Other people's money must be delivered, deposited, recorded, reconciled, and disbursed only under the contract, law, and broker procedure. Cybersecurity is part of both duties because email compromise can expose data and redirect funds.

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?

Real estate professionals protect confidential client motives, bargaining limits, finances, identity records, access information, offer terms, and transaction data, except when disclosure is authorized or legally required. Other people's money must be delivered, deposited, recorded, reconciled, and disbursed only under the contract, law, and broker procedure. Cybersecurity is part of both duties because email compromise can expose data and redirect funds.
Official syllabus mapping for Confidential Information, Privacy, and Transaction Funds
Roadmap lesson118 of 500
Official syllabus topicConfidential Information, Privacy, and Transaction Funds
Official PSI areaPractice of Real Estate
Published area weight12% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

Confidential versus material

A client's urgency or maximum price can be confidential, while a known material property defect may require disclosure. Confidentiality cannot be used to facilitate fraud.

Data minimization

Collect only what the transaction and law require, restrict access, use secure approved systems, avoid unnecessary attachments, and follow retention and disposal policy.

Transaction funds

Earnest money, deposits, rents, and closing funds have different owners and instructions. Receipt, custody, notice, ledger, reconciliation, dispute, and release procedures must be followed exactly.

Wire and account security

Use multifactor authentication, strong unique credentials, verified contacts, and independent callback procedures. Never rely on last-minute emailed wire changes without trusted-channel confirmation.

Decision rule

Before sharing data or moving money, verify authority, recipient, purpose, secure channel, written instruction, and required record.

Georgia-specific distinction

Georgia Commission rules govern trust accounts, earnest money, records, broker supervision, and advertising systems. A Georgia salesperson should immediately report suspected compromise or disputed funds to the broker and must not improvise a disbursement.

Worked example

Scenario. A message that looks like the closing attorney changes the wire account two hours before closing.

Reason it through. Urgency and changed instructions are common fraud signals, and email identity can be spoofed or compromised.

Answer. Stop, use a previously verified phone number to confirm with the closing office, and alert the broker under the incident plan.

Common exam traps

  • Emailing sensitive data casually
  • Sharing a client's bargaining limit
  • Disbursing disputed earnest money unilaterally
  • Trusting changed wire instructions

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

Which fact is usually confidential for a buyer client?

  1. A. The buyer's maximum willing price
  2. B. A recorded zoning ordinance
  3. C. The listing's public price
  4. D. The county tax rate
Show answer and explanation →

Answer: A. The buyer's maximum willing price

A bargaining limit can harm the client's negotiating position and should not be shared without authority.

Question 2

Who should authorize disputed earnest-money disbursement?

  1. A. The contract, parties, court, or other lawful procedure
  2. B. Salesperson alone
  3. C. Photographer
  4. D. Neighbor
Show answer and explanation →

Answer: A. The contract, parties, court, or other lawful procedure

The brokerage must follow the agreement and Georgia trust-fund procedure rather than choose a winner.

Question 3

How should changed wire instructions be verified?

  1. A. Through an independently trusted channel
  2. B. By replying to the same email only
  3. C. By social media
  4. D. No verification
Show answer and explanation →

Answer: A. Through an independently trusted channel

Independent callback to a known number helps detect spoofing and compromised accounts.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Due Diligence and the Boundaries of Real Estate Practice. Continue to roadmap lesson 119 and build on this decision rule.

Return to the Practice of Real Estate hub to see every official branch and the complete lesson sequence for this content area.

Confidential Information, Privacy, and Transaction Funds questions

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

Is Confidential Information, Privacy, and Transaction Funds on the Georgia real estate exam?

Yes. It belongs to PSI's Practice of Real Estate content area, which is 12% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Confidential Information, Privacy, and Transaction Funds?

Before sharing data or moving money, verify authority, recipient, purpose, secure channel, written instruction, and required record.

What Georgia-specific distinction should I remember?

Georgia Commission rules govern trust accounts, earnest money, records, broker supervision, and advertising systems. A Georgia salesperson should immediately report suspected compromise or disputed funds to the broker and must not improvise a disbursement.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.