Georgia — Trust Accounts & Brokerage — Georgia Real Estate — State Law Practice Test
14 questions in this topic · 14 drawn at random this round
In Georgia, several affiliated licensees in one firm market themselves under a common name (a 'team'). Under GREC rules, the team's advertising must:
Session Progress
This Georgia Real Estate — State Law Georgia — Trust Accounts & Brokerage practice set has 14 practice questions based on the official exam materials, each with an instant explanation.
Sample questions
Three questions from the Georgia — Trust Accounts & Brokerage bank with the correct answer and an explanation. The practice quiz above draws 14 questions at random from the same bank.
Under GREC Rule 520-1-.08, where must a Georgia broker deposit earnest money and other trust funds received on behalf of others?
- In a separate designated trust or escrow account, apart from the broker's own funds — Correct answer
- In the broker's general business operating account
- In the affiliated licensee's personal checking account
- In any interest-bearing account chosen by the buyer
Explanation: Trust funds belonging to others must be held in a separate designated trust or escrow account, kept apart from the broker's own operating funds. Mixing them with the broker's money is prohibited. Trust account（信托账户 / cuenta de fideicomiso）: a segregated bank account holding clients' money. Source: GREC Rule 520-1-.08; O.C.G.A. §43-40-20.
Handbook: Georgia Trust Accounts — designated trust/escrow account (GREC Rule 520-1-.08; O.C.G.A. §43-40-20)
In Georgia, a broker deposits clients' earnest money into the firm's general operating account to cover office expenses. What is this prohibited practice called?
- Commingling — Correct answer
- Subrogation
- Novation
- Estoppel
Explanation: Mixing trust funds belonging to others with the broker's own business funds is commingling, expressly prohibited by GREC. Using those funds for the broker's purposes is conversion. Commingling（资金混同 / mezcla de fondos）: combining clients' trust money with the broker's own funds. Source: O.C.G.A. §43-40-20; GREC Rule 520-1-.08.
Handbook: Georgia Trust Accounts — commingling prohibited (O.C.G.A. §43-40-20; GREC Rule 520-1-.08)
Under Georgia law, when a broker who is holding trust funds spends those funds for the broker's own purposes, what is that act called?
- Conversion — Correct answer
- Accretion
- Reconciliation
- Disbursement
Explanation: Spending or appropriating entrusted money for the broker's own use is conversion — a serious violation that supports license discipline under O.C.G.A. §43-40-25. It goes beyond mere commingling. Conversion（侵占挪用 / apropiación indebida）: using another's trust funds as one's own. Source: O.C.G.A. §43-40-20; §43-40-25.
Handbook: Georgia Trust Accounts — conversion of trust funds (O.C.G.A. §43-40-20; §43-40-25)