Your FREE Georgia Real Estate Flashcards 2026 – 200+ Cards

The Georgia state agency that licenses and regulates real estate salespersons, brokers, and community association managers under O.C.G.A. Title 43, Chapter 40.

Six members, appointed by the Governor and confirmed by the Senate for five-year terms — five active licensees and one consumer member.

Must have no connection to the real estate industry but a recognized interest in consumer protection.

GREC's chief administrative officer, who directs staff, investigates complaints, and issues citations and orders.

The Official Code of Georgia Annotated chapter governing real estate brokers and salespersons — the source of GREC's authority.

GREC's administrative rules implementing the statute — trust accounts, advertising, education, recordkeeping, and conduct.

A 75-hour GREC-approved salesperson course must be completed before sitting for the exam.

18 years old, and the applicant must be a high school graduate or hold a certificate of equivalency.

A new salesperson must complete a 25-hour GREC-approved postlicense course within the first year, or the license lapses.

36 hours of GREC-approved CE during each four-year renewal period, including a required 3-hour Georgia License Law course.

A real estate license renews every four years, due by the last day of the licensee's birth month at the end of the cycle.

An applicant must have held an active salesperson's license for at least three of the five years immediately preceding the application.

The Brokerage Relationships in Real Estate Transactions Act (O.C.G.A. Chapter 10-6A) — Georgia's statute defining agency relationships and duties.

A client is represented in an agency capacity under a brokerage engagement; a customer receives only ministerial acts with no agency relationship.

The contract (such as a listing or buyer agency agreement) that creates a client relationship under BRRETA.

Lawful only with the prior written consent of all clients (O.C.G.A. 10-6A-12); the consent must describe the transaction and the adverse interests.

Two licensees in the same firm, each appointed by the broker to represent a different client in the same transaction, so neither is a true dual agent.

A broker must deposit trust funds (earnest money) into the designated trust account as soon after receipt as is practicably possible.

A Georgia broker must retain trust account and transaction records for at least three years.

The broker's trust account must be clearly identified as a trust or escrow account at the financial institution.

GREC requires a broker to reconcile the trust account at least monthly.

Improperly mixing client trust funds with the broker's own or business funds — a violation of O.C.G.A. 43-40-20.

Up to $1,000.00 for each violation of the license law or GREC rules (O.C.G.A. 43-40-25).

Generally $5,000.00 for multiple violations in a single disciplinary proceeding (O.C.G.A. 43-40-25).

GREC may censure, fine, suspend, or revoke a license, or require additional education (O.C.G.A. 43-40-25).

An order from the Commissioner that may require a broker to correct trust-account problems and take other action short of a full hearing.

A Georgia fund (O.C.G.A. 43-40-22) compensating the public for an uncollectible judgment against a licensee for fraud or conversion.

No single claimant may recover more than $25,000.00 from the Recovery Fund for a claim.

The Fund's liability for the acts of any one licensee is capped at $75,000.00 in aggregate.

When the Fund pays on a licensee's behalf, GREC revokes the license; it is not reinstated until the Fund is repaid with interest.

A salesperson not actively engaged in brokerage may place the license on inactive status rather than affiliating with a broker.

If a license lapses for more than the statutory period for failure to pay renewal fees, the licensee may have to reinstate or re-examine.

The broker who holds a salesperson's license; a salesperson must work under and be paid through this broker, never independently.

Only from the sponsoring broker who holds the license — never directly from a client or another party.

A licensee must notify GREC of a change in mailing address (Georgia requires prompt written notice).

Generally whenever a person, for a fee, performs brokerage acts for another (listing, selling, leasing, or negotiating) under O.C.G.A. 43-40-1.

Owners dealing with their own property, attorneys acting in their practice, and certain others are exempt under O.C.G.A. 43-40-29.

Honesty, fair dealing, and disclosure of known latent defects — but not full agency duties.

O.C.G.A. Title 8, Chapter 3 — mirrors the federal protected classes (race, color, religion, sex, national origin, familial status, disability).

The Georgia Commission on Equal Opportunity, which investigates housing-discrimination complaints.

The broker must still deposit it into the trust account as soon as practicably possible per GREC Rule 520-1-.08.

A licensee buying for their own account, or selling property they own, must disclose their license status to the other party.

O.C.G.A. 44-1-16 — a death, felony, or a prior occupant's disease (e.g., HIV/AIDS) is not a material fact that must be volunteered.

Under O.C.G.A. 44-1-16, a licensee may decline to disclose whether a prior occupant had a disease such as HIV/AIDS, without liability.

A separate Georgia license category administered by GREC for those managing community associations.

O.C.G.A. § 48-6-1 establishes Georgia's real estate transfer tax on recorded deeds.

$1.00 for the first $1,000 of consideration plus 10 cents ($0.10) per additional $100 — effectively $1 per $1,000.

The seller is primarily liable, and it is paid when the deed is recorded with the Clerk of Superior Court.

Georgia requires a licensed Georgia attorney to conduct the real estate closing and examine title.

Georgia's standard security instrument (deed to secure debt): the borrower conveys title to the lender until the loan is repaid.

Foreclosure by power of sale — a non-judicial foreclosure by advertisement under the security deed.

Because the lender takes a security deed conveying title, Georgia is a title-theory (not lien-theory) state.

With the Clerk of Superior Court in the county where the property is located.

Acts that involve no discretion or advocacy, such as showing property or providing forms — what a broker may do for a customer.

A ground for discipline under O.C.G.A. 43-40-25, even for acts outside a specific transaction.

Applicants submit a criminal-history (GCIC) report and verify lawful presence with the license application.

A brokerage engagement is BRRETA's term for any agency contract; a listing is the seller-side example.

A broker representing only one client (buyer or seller) in a transaction, owing that client full BRRETA duties.

Georgia recognizes non-agency assistance: a broker may help as a facilitator without forming a client (agency) relationship.

All advertising must be done in the name of, and authorized by, the sponsoring broker; blind ads are prohibited.

A licensee may prepare a broker price opinion or CMA but may not call it a formal appraisal unless licensed as an appraiser.

GREC's online licensing system where Georgia licensees apply, renew, and manage their license records.

For a first renewal, the 25-hour postlicense course counts toward 9 of the 36 required CE hours.

Georgia brokers must include a minimum number of broker-specific CE hours within the 36-hour requirement.

A frequent basis for GREC discipline, including failing to deposit, commingling, or converting client funds.

The broker holding a salesperson's license is responsible for the proper handling of trust funds and supervision.

Permitted but disfavored; the conflict of interest makes full disclosure essential and GREC scrutinizes them.

GREC offers license recognition for certain out-of-state licensees who meet Georgia requirements.

Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.

Movable items not permanently attached to land; transferred by a bill of sale, not a deed.

Possession, use (enjoyment), exclusion, disposition (transfer), and control.

The most complete ownership — absolute, of unlimited duration, freely transferable by deed or will.

An estate limited to the life of a person; on death it passes to a remainderman or reverts to the grantor.

Personal property attached to realty so it becomes part of it; the MARIA tests decide fixture status.

Method of attachment, Adaptability, Relationship of parties, Intention, and Agreement — used to identify a fixture.

An item a tenant attaches for business use; it remains the tenant's personal property and may be removed.

A nonpossessory right to use another's land for a purpose, such as a driveway or utility line.

An easement benefiting an adjacent parcel (the dominant tenement) and burdening another (the servient tenement).

An improvement that unlawfully extends onto a neighbor's land; an encumbrance affecting title.

Any claim, lien, charge, or right that limits an owner's title — liens, easements, deed restrictions.

Government's authority to regulate land for public health, safety, and welfare — zoning and building codes.

Government's power to take private property for public use through condemnation, paying just compensation.

Property reverts to the state when an owner dies with no will and no heirs.

The four government powers: Police power, Eminent domain, Taxation, Escheat — only eminent domain pays the owner.

A legal description using distances and compass directions traced back to a point of beginning — common in Georgia.

A legal description referencing a recorded plat map by lot and block number in a subdivision.

A unit of land area equal to 43,560 square feet.

Private limits on land use placed by a developer or owner; enforced by other owners, not the government.

Sole ownership by one person or legal entity.

Co-ownership with no survivorship; each owner holds an undivided, willable share.

Co-ownership with the right of survivorship; in Georgia the survivorship intent must be clearly expressed.

Time, Title, Interest, and Possession — all required to create a joint tenancy.

No — Georgia is a common-law (separate-property) state, not a community-property state.

The deed giving the most protection; the grantor warrants clear title against all defects, even pre-ownership ones.

Warrants title only against defects arising during the grantor's ownership.

Conveys only whatever interest the grantor has, with no warranties; used to clear clouds on title.

Competent grantor, named grantee, consideration, granting clause, legal description, and the grantor's signature and delivery.

Title passes when the grantor delivers the deed and the grantee accepts it — not merely on signing.

Recording a deed in the county gives constructive notice and establishes priority of interests.

A policy protecting the insured against loss from title defects that existed before the policy date.

The recorded history of ownership of a parcel; a break is a cloud on title.

Any claim or encumbrance that impairs marketable title; often cleared with a quitclaim deed.

Acquiring title by open, notorious, continuous, hostile possession for the statutory period.

Testate = dying with a valid will; intestate = dying without one, so property passes by state law.

The court process that validates a will and oversees the transfer of a decedent's property.

The 'to have and to hold' clause in a deed that defines the extent of the interest granted.

The most probable price a property should bring in a competitive, open market under fair conditions — an opinion.

Market value is an opinion of worth; market price is the actual amount a property sold for.

An impartial, supported opinion of value by a licensed appraiser as of a specific date, following USPAP.

A licensee's value estimate from recent comparable sales to help price a listing — not a formal appraisal.

The legal, physically possible, financially feasible, and most profitable use of a site — the basis of value.

A buyer will pay no more than the cost of an equally desirable substitute property.

Compares the subject to recently sold similar properties, adjusting for differences. Best for homes.

Land value + cost to rebuild the improvements new − depreciation. Best for new or special-use property.

Value = net operating income ÷ capitalization rate. Best for income-producing property.

Effective gross income minus operating expenses, before any mortgage payment.

NOI ÷ value; a higher cap rate signals more risk and a lower value.

Weighing the three approaches into one final opinion of value — not simply averaging them.

Loss in value from physical deterioration, functional obsolescence, or external (economic) obsolescence.

Loss in value from outdated design or features within the property, such as a poor floor plan.

Loss in value from factors outside the property, such as a nearby nuisance — generally incurable.

A quick value tool: price ÷ gross monthly (or annual) rent, used to compare rental properties.

A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.

Mutual agreement (offer & acceptance), consideration, legal purpose, and competent parties.

Requires contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.

A contract with no legal effect because it lacks an essential element.

A valid contract one party may rescind, such as one signed by a minor.

Bilateral = a promise for a promise; unilateral = a promise for an act (e.g., an option).

A buyer's good-faith deposit held in the broker's trust account, usually applied to the price at closing.

A condition that must be met for a contract to become binding, such as financing or inspection.

A court order making a defaulting party complete the sale, available because land is unique.

An agreed amount (often the earnest money) a party keeps if the other defaults.

A contract employing a broker to find a buyer for the owner's property for compensation.

The listing broker earns the commission no matter who finds the buyer.

The broker earns the commission unless the owner sells the property themselves.

Only the broker who actually procures the buyer earns a commission.

The broker keeps any amount above the seller's set price — a conflict of interest, disfavored.

A fiduciary relationship in which an agent represents a principal in dealings with third parties.

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.

An agent must protect the client's confidential information — and it survives the end of the relationship.

Express agency is created by a written or oral agreement; implied agency arises from conduct.

The broker whose efforts directly result in the sale and who is therefore owed the commission.

A brokerage engagement creating a client relationship between a broker and a buyer under BRRETA.

Single agency = representing one party; dual agency = representing both, allowed in Georgia only with written consent.

Substituting a new contract or party for an old one, releasing the original party from liability.

Federal law banning housing discrimination by race, color, religion, national origin, sex, familial status, and disability.

Illegally guiding buyers toward or away from neighborhoods based on a protected class.

Inducing panic selling by suggesting a protected class is moving into an area.

A lender refusing to lend or insure in an area based on its racial or ethnic makeup.

A change in rules or policies so a person with a disability can use housing, such as allowing a service animal.

Brokers may not agree with competitors to fix commission rates — rates are always negotiable.

A contract conveying the right to use property for a term in exchange for rent (lessor = landlord, lessee = tenant).

The tenant pays a fixed rent and the landlord pays the operating expenses.

The tenant pays rent plus some or all of the property's operating expenses (taxes, insurance, maintenance).

A contract making a broker the owner's agent to manage a property for a fee.

Georgia residential leases are governed by Georgia landlord-tenant law under O.C.G.A. Title 44.

Held for the tenant; Georgia law governs how and when it must be returned after the lease ends.

When a landlord's failure to maintain the premises makes them uninhabitable, justifying the tenant's departure.

A licensee using client trust money for the licensee's own purposes — a serious violation.

Licensees must follow federal telemarketing and truthful-advertising rules in their practice.

Any fact that would affect a buyer's decision or the price they would pay; known material facts must be disclosed.

A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.

An obvious defect a reasonable inspection would reveal.

'Let the buyer beware' — now limited by disclosure laws requiring sellers and agents to reveal known material defects.

A common Georgia form for disclosing the property's known condition, though stigmas under O.C.G.A. 44-1-16 are exempt.

For pre-1978 housing: disclose known lead paint, give the EPA pamphlet, and allow a 10-day inspection window for sales.

Residential dwellings built before 1978 — the housing covered by the federal lead-based-paint rule.

An odorless, radioactive gas from soil that can accumulate indoors and is a known health hazard.

A hazardous fiber in old insulation and flooring; controlled by removal or encapsulation.

Grows in damp areas; may require disclosure and remediation.

Can leak and contaminate soil and groundwater, creating cleanup liability.

Federal law imposing liability for cleanup of hazardous-substance contamination.

Federally protected areas where development is restricted and may require permits.

The borrower's written promise to repay the loan — the evidence of the debt.

Georgia's financing instrument: the borrower conveys title to the lender until the loan is repaid.

Georgia's non-judicial foreclosure by advertisement under the security deed's power-of-sale clause.

A loan not insured or guaranteed by the government; PMI is usually required if the LTV exceeds 80%.

A loan insured by the Federal Housing Administration, allowing lower down payments.

A loan guaranteed by the Department of Veterans Affairs, often with no down payment, for eligible veterans.

Insurance a borrower pays on a conventional loan when the LTV exceeds 80%, protecting the lender.

Loan amount ÷ value (or price); a higher LTV means a smaller down payment and more lender risk.

The Real Estate Settlement Procedures Act — requires settlement-cost disclosures and bans kickbacks.

The Truth in Lending Act — requires lenders to disclose the cost of credit, including the APR.

A disclosure the lender must give within three business days of application under TRID.

A disclosure the borrower must receive at least three business days before closing under TRID.

Prepaid interest paid at closing to lower the loan's interest rate; one point = 1% of the loan amount.

Georgia requires a licensed attorney to conduct the closing, disburse funds, and record the deed.

Commission = sale price × commission rate.

$300,000 × 0.06 = $18,000 total commission.

Price = net ÷ (1 − commission rate). A $282,000 net at 6% needs $282,000 ÷ 0.94 = $300,000.

Divide the sale price by 1,000 — a $250,000 sale owes $250.00 (about $1 per $1,000).

LTV = loan ÷ value; an 80% LTV on a $300,000 home is a $240,000 loan.

One acre = 43,560 square feet — a figure not provided at the test center.

One mile = 5,280 feet — memorize it for the exam.

One section = 640 acres = one square mile.

Value = NOI ÷ cap rate. $90,000 NOI ÷ 0.09 = $1,000,000.

Assessed value × tax rate (or mills × 0.001 × assessed value).

Splitting taxes, rent, or interest by the days each party owns the property as of closing.

Area = length × width; for an irregular lot, divide it into rectangles and triangles.

Profit ÷ cost (original investment) = percent gain; a $20,000 gain on $200,000 is 10%.