What is the exam-ready answer?
| Official syllabus topic | Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements |
|---|---|
| Official PSI area | Property Management |
| Published area weight | 3% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 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.
The lesson
These ideas work together. On the exam, the wrong answers usually describe a nearby concept, so learn where each one stops.
Possession and duties
The landlord provides the promised possessory interest and fulfills nonwaivable duties. The tenant pays rent, uses the property lawfully, avoids damage, and follows enforceable lease terms.
Deposits and accounting
Deposit collection, location, notice, deductions, inspection, itemization, and return are governed by state law and the lease. Records should always show who owns each dollar.
Trust-account controls
Segregation, timely deposit, authorized disbursement, property ledgers, bank reconciliation, supporting documents, and broker oversight protect other people's money.
Default and lawful process
Late payment or other breach requires the notices and legal remedies allowed by the lease and law. Lockouts, utility shutoffs, or removal of possessions can be unlawful self-help.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A manager receives tenant rent belonging to the owner and deposits it into the manager's personal checking account until bills are due.
Reason it through. The manager has commingled other people's money with personal funds and bypassed required accounting and broker controls.
Answer. The handling is improper; funds belong in the authorized account with ledger and reconciliation records.
Common exam traps
- Commingling
- Disbursing disputed funds without authority
- Using self-help eviction
- Assuming every deposit rule has no exception
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 1A property manager deposits a tenant's security deposit into the brokerage's operating account. What is this?
- A. Acceptable if the ledger notes the deposit
- B. Acceptable if the owner is told afterward
- C. Commingling of trust funds with firm money
- D. Acceptable for deposits under one month's rent
Show answer and explanation →
Answer: C. Commingling of trust funds with firm money
Other people's money must be kept separate from the firm's own funds, and placing a deposit in the operating account mixes them, which is commingling. A ledger note looks plausible, but recording the money does not cure holding it in the wrong account.
Question 2A Georgia residential tenant on a lease signed in 2025 is two weeks behind on rent. The owner tells the manager to change the locks. What should the manager do?
- A. Change the locks after 24 hours' written notice
- B. Shut off the utilities until rent is paid
- C. Move the tenant's belongings into storage
- D. Give the required notice and use the court process
Show answer and explanation →
Answer: D. Give the required notice and use the court process
Lockouts, utility shutoffs and removing possessions are unlawful self-help; the landlord must use notice and the dispossessory process. For Georgia leases signed or renewed on or after July 1, 2024, that starts with a written notice to pay or leave within three business days. The 24-hour notice option is plausible because it sounds formal, but no notice makes a lockout lawful.
Question 3A Georgia residential lease signed in 2025 sets rent at $1,600 a month. What is the largest security deposit the landlord may require?
- A. $2,400
- B. $3,200
- C. $1,600
- D. $4,800
Show answer and explanation →
Answer: B. $3,200
For Georgia residential leases signed or renewed on or after July 1, 2024, a security deposit cannot exceed two months' rent, so 2 x $1,600 = $3,200. $1,600 is the wrong answer for candidates who assume a one-month cap, which Georgia does not use.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Landlord-Tenant Rights, Funds, Trust Accounts, and Disbursements in one clear answer without notes.
- Separate Possession and duties from Deposits and accounting using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Deed Types and Requirements for Effective Transfer. Deed Types and Requirements for Effective Transfer leaves leasing, where the owner keeps title and grants only possession, and covers how a deed actually transfers ownership through delivery and acceptance.
Return to the Property Management hub to see every official branch and the complete lesson sequence for this content area.