Georgia — Disclosures — Georgia Real Estate — State Law Practice Test

This Georgia Real Estate — State Law Georgia — Disclosures practice set has 12 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Georgia — Disclosures bank with the correct answer and an explanation. The practice quiz above draws 12 questions at random from the same bank.

1. Regarding residential property condition, how does Georgia law differ from states like Florida and New York?

   • Georgia follows caveat emptor and has no mandatory statutory property-condition disclosure form — Correct answer
   • Georgia requires the same standardized state disclosure form as Florida and New York
   • Georgia bans the sale of any home with a known defect of any kind
   • Georgia places full disclosure responsibility on the buyer's lender

   Explanation: Georgia follows caveat emptor (buyer beware) and has NO statutory residential property-condition disclosure statement (PCDS) that the seller must complete and deliver, unlike Florida and New York. The seller/broker still may not actively conceal known latent defects, but Georgia imposes no mandatory statutory disclosure FORM. Caveat emptor（买方自慎 / cuidado comprador）: the buyer bears responsibility to inspect because the law imposes no general statutory disclosure form. Source: Georgia common-law caveat emptor; O.C.G.A. §44-1-16 (no PCDS).

   Handbook: Georgia Disclosures — caveat emptor, no statutory PCDS (O.C.G.A. §44-1-16; GA common law)

2. Even though Georgia is a caveat-emptor state, what must a broker still do about a known material adverse fact concerning a property?

   • Disclose it — the broker must reveal known material adverse facts the buyer could not reasonably discover — Correct answer
   • Nothing — caveat emptor means the broker has no disclosure duty whatsoever
   • Disclose it only to the seller, never to the buyer
   • Wait until closing and disclose it in the deed

   Explanation: Caveat emptor does not license concealment. A Georgia broker must disclose KNOWN material adverse facts about the property's physical condition that the buyer could not discover on a reasonable inspection, and may never actively misrepresent or conceal them. Material adverse fact（重大不利事实 / hecho adverso material）: a known condition that would significantly affect a reasonable buyer's decision or the property's value. Source: O.C.G.A. §10-6A-5 (broker disclosure duty); GA common law.

   Handbook: Georgia Disclosures — duty to disclose known material adverse facts (O.C.G.A. §10-6A-5)

3. What is the difference between a 'latent' defect and a 'patent' defect for disclosure purposes in Georgia?

   • A latent defect is hidden and not found by reasonable inspection; a patent defect is open and obvious — Correct answer
   • A latent defect is cosmetic; a patent defect is structural
   • A latent defect is one the seller created; a patent defect is one a prior owner created
   • A latent defect must be disclosed; a patent defect is illegal to repair

   Explanation: A latent defect is a hidden problem not discoverable by a reasonable inspection (e.g., a cracked sewer line under the slab); a patent defect is open and obvious to ordinary observation (e.g., a visibly sagging porch). Georgia's caveat-emptor rule bites hardest on patent defects the buyer can see, while concealment of a KNOWN latent defect remains actionable. Latent defect（潜在缺陷 / defecto latente）: a hidden fault not apparent on reasonable inspection. Source: GA common-law caveat emptor; O.C.G.A. §10-6A-5.

   Handbook: Georgia Disclosures — latent vs patent defects (GA common law; O.C.G.A. §10-6A-5)