Georgia Real Estate Salesperson Exam Study Guide
- Questions
- 152
- Passing score
- Pass required on both portions
- Exam fee
- $175
- Governing body
- Georgia Real Estate Commission (GREC)
Math questions on the salesperson exam are formula-recognition problems: identify which of a handful of formulas applies, then execute carefully. Here are the ones that matter, with the standard worked examples.
Commission
Commission = sale price × commission rate. A property that sells for $300,000 at a six percent rate generates an $18,000 commission, which is then split between the listing and selling brokers per their agreement. If a question asks for one broker's share, compute the full commission first, then apply the split.
Loan-to-value (LTV)
LTV = loan amount ÷ the lesser of the appraised value or purchase price, expressed as a percentage. A $240,000 loan on a $300,000 property is an eighty percent LTV, and the down payment equals the remaining twenty percent. The "lesser of" rule is the trap: when the appraisal and price differ, use the smaller number.
Proration
Proration divides shared expenses such as property taxes, rent, or interest between buyer and seller based on the portion of the period each party owns the property, using the closing date as the dividing point. Two mechanics to memorize:
- Many exams use a 360-day banker's year with 30-day months, so the daily rate is the annual amount divided by 360. Compute the daily rate first, then multiply by the days each party is responsible for.
- Direction of the credit: when an expense is prepaid by the seller, the buyer reimburses the seller for the unused portion; when an expense is paid in arrears, the seller credits the buyer for the seller's share.
Investor formulas
- Gross rent multiplier (GRM) = sale price ÷ monthly gross rent — a quick comparison tool for investors. Watch for answer choices built from annual rent.
- Income capitalization: net operating income ÷ capitalization rate = estimated value of an income property.
Georgia Real Estate Salesperson flashcards
15 cards on the highest-yield terms and rules. Grading uses spaced repetition and saves in this browser.
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How does a customer differ from a client in agency?
A customer is owed only honesty, fair dealing, and disclosure of known material defects — not the fiduciary duties owed to a client.
When is dual agency legal, and what may a dual agent NOT do?
Only with the informed written consent of both parties; the dual agent cannot advocate for one party against the other.
Does confidentiality end when the agency relationship ends?
No. Confidentiality survives termination and bars revealing information like the seller's lowest acceptable price.
What are the essential elements of a valid real estate contract?
Competent parties, mutual assent (offer and acceptance), consideration, a lawful object, and a writing under the Statute of Frauds.
What is the effect of a counteroffer on the original offer?
Any change to the terms is a counteroffer that rejects and terminates the original offer.
Which deed gives the greatest protection, and what does it warrant?
A general warranty deed — it warrants against all title defects arising at any time, even before the grantor owned the property.
What does a quitclaim deed convey, and when is it used?
Only whatever interest the grantor may have, with no warranties; commonly used to clear clouds on title.
Beyond signing, what final step makes a deed effective to transfer title?
It must be delivered to and accepted by the grantee (along with competent parties, words of conveyance, adequate legal description, and grantor's signature).
What are the fiduciary duties an agent owes a client (OLD CAR)?
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care and diligence.
Exclusive-right-to-sell vs. exclusive-agency listing — who gets paid if the SELLER finds the buyer?
Exclusive-right-to-sell: broker is paid regardless of who procures the buyer, including the seller. Exclusive-agency: broker earns nothing if the seller personally finds the buyer.
What does recording a deed accomplish?
It provides constructive notice to the world and establishes priority, generally protecting the first party to record.
What are the seven federally protected classes under the Fair Housing Act?
Race, color, religion, national origin, sex, familial status, and disability.
Define steering, blockbusting, and redlining.
Steering: channeling buyers toward/away from neighborhoods based on a protected class. Blockbusting: inducing owners to sell by suggesting protected-class people are moving in. Redlining: denying loans or insurance in areas based on protected characteristics.
When is PMI generally required on a conventional loan?
When the down payment is less than 20 percent of the purchase price.
Calculate LTV: a $240,000 loan on a $300,000 property.
LTV = loan ÷ lesser of appraised value or price = 240,000 ÷ 300,000 = 80% LTV, leaving a 20% down payment.
Georgia Real Estate Salesperson glossary
The Georgia Real Estate Salesperson Exam is a licensing examination that measures a candidate's knowledge of the principles and practices needed to represent clients in real estate transactions, testing understanding of agency relationships in which a principal authorizes an agent to act on their behalf in dealings with third parties.
12 terms the Georgia Real Estate Salesperson tests, defined in plain English.
- Counteroffer
- Any change to the terms of an offer. A counteroffer automatically rejects and terminates the original offer, so the original can no longer simply be accepted.
- Customer vs. Client
- A client is owed full fiduciary duties, while a customer is owed only honesty, fair dealing, and disclosure of known material defects — not fiduciary duties.
- Dual Agency
- When one licensee represents both the buyer and the seller in the same transaction. It is legal only with the informed written consent of both parties, and the dual agent may not advocate for one party against the other.
- Earnest Money
- A good-faith deposit a buyer submits with an offer to show serious intent. It is held in the broker's trust account rather than kept by the agent.
- Exclusive-Right-to-Sell Listing
- A listing agreement in which the broker earns a commission if the property sells during the listing term no matter who finds the buyer — even if the seller finds the buyer themselves. It gives the broker the strongest commission protection of any listing type.
- Fiduciary Duties (OLD CAR)
- The core legal obligations an agent owes a client, remembered by the acronym OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Loyalty means putting the client's interests ahead of the agent's own and avoiding conflicts of interest.
- General Warranty Deed
- The deed offering a buyer the greatest protection, because the grantor warrants against all title defects arising at any time — even before the grantor owned the property. A special warranty deed, by contrast, covers only defects that arose during the grantor's ownership.
- Loan-to-Value Ratio (LTV)
- The loan amount divided by the lesser of the appraised value or purchase price, shown as a percentage. For example, a $240,000 loan on a $300,000 property is an 80% LTV, and PMI is generally required on conventional loans when the down payment is less than 20%.
- Protected Classes (Fair Housing)
- The seven groups the federal Fair Housing Act shields from discrimination in housing: race, color, religion, national origin, sex, familial status, and disability. Familial status covers households with children under eighteen and pregnant persons.
- Quitclaim Deed
- A deed that conveys only whatever interest the grantor may have, with no warranties of any kind. It is commonly used to clear clouds on a title.
- Recording / Constructive Notice
- Recording a deed in the county land records gives constructive notice to the world of the grantee's interest and establishes priority, generally protecting the first party to record.
- Statute of Frauds
- The rule that a real estate contract must be in writing and signed to be enforceable. A valid contract also requires competent parties, mutual assent, consideration, and a lawful object.
Frequently asked questions
What listing agreement earns my agent a commission even if I find the buyer myself?
That is the exclusive-right-to-sell listing. Under it, the broker earns a commission if the property sells during the listing period regardless of who procures the buyer — including you, the seller. Compare that to an exclusive-agency listing, where the broker earns no commission if you personally find the buyer, and an open listing, which is non-exclusive: only the broker who actually procures the buyer is paid, and you may list with multiple brokers at once. If keeping the door open to sell it yourself matters to you, exclusive-agency or open listings preserve that option; the exclusive-right-to-sell does not.
What are the fiduciary duties a real estate agent owes their client, and how do I remember them?
Use the acronym OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Two of these carry weight the exam loves to test. Loyalty requires the agent to place the principal's interests above the agent's own and avoid conflicts of interest such as undisclosed self-dealing. Confidentiality survives termination of the agency and bars revealing information that would harm the principal's bargaining position, such as the seller's lowest acceptable price — so even after the deal closes, your agent cannot leak your bottom line. Accounting requires safeguarding entrusted funds and prohibits commingling client money with the agent's own funds. Crucially, these full fiduciary duties are owed only to clients; customers are owed just honesty, fair dealing, and disclosure of known material defects.
How do I calculate a commission and an LTV problem on the exam?
For commission, multiply the sale price by the commission rate. A property that sells for 300,000 dollars at a six percent rate generates an 18,000 dollar commission, which is then split between the listing and selling brokers per their agreement. For loan-to-value, divide the loan amount by the lesser of the appraised value or purchase price. A 240,000 dollar loan on a 300,000 dollar property is an eighty percent LTV, and the down payment equals the remaining twenty percent. Remembering that the down payment is simply 100 percent minus the LTV lets you back into the numbers quickly when the exam gives you one figure and asks for the other.
Which fair housing rules apply even when a sale or rental is otherwise exempt?
Two big ones. First, advertising that indicates a preference or limitation based on a protected class is illegal even if the underlying transaction would be exempt — you can never publish a discriminatory ad. Second, the Civil Rights Act of 1866 separately prohibits all racial discrimination in property transactions with no exemptions at all. The narrow Mrs. Murphy exemption for owner-occupied buildings of four or fewer units does not apply to race and cannot be used with discriminatory advertising or a real estate licensee. The practical takeaway: because you are a licensee, that exemption is off the table for you, and race and advertising are never exempt for anyone.
Official sources
Every exam fact on this page traces to a primary document published by the body that administers the exam.
- Georgia Real Estate Candidate Information BulletinPSI / Georgia Real Estate Commissiontest-takers.psiexams.comeffective July 1, 2026
- Occupational Employment and Wage Statistics, May 2025 — Real Estate Sales Agents (SOC 41-9022)U.S. Bureau of Labor Statisticsbls.goveffective May 31, 2025
- Rule 520-1-.05 — Maintaining a LicenseGeorgia Real Estate Commissiongrec.state.ga.useffective July 1, 2025
- Rule 520-1-.04 — Obtaining a LicenseGeorgia Real Estate Commissiongrec.state.ga.us
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