Georgia Exam Prep: State Laws and Rules

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Questions and Answers

Which practice is not permitted regarding trust funds?

Failing to turn over trust funds promptly to the broker (correct)

Commingling trust funds with personal funds (correct)

Maintaining a separate account for trust funds

Using an escrow agent with written agreement

What constitutes blockbusting in real estate?

Promoting a property with aggressive marketing

Advertising without the owner's consent

Selling properties below market value

Indicating an area's demographics are likely to change (correct)

Which of the following actions is considered unfair when advertising?

Maintaining transparency about commissions

Disclosing license status in advertising

Using factual statements about a property

Creating misleading advertising materials (correct)

How long must transactional records and accounting records for trust accounts be retained?

At least three years Signup and view all the answers

Which action is permitted when handling trust funds?

Promptly turning over trust funds to the broker Signup and view all the answers

What must licensees disclose in writing when they receive value on behalf of a principal?

The source of the fee or rebate Signup and view all the answers

What is a consequence of not disclosing license status in advertising?

Potential for legal repercussions Signup and view all the answers

Which of the following is considered a fair advertising practice?

Using accurate property specifications Signup and view all the answers

What is the main purpose of Georgia’s Fair Business Practices Act?

To protect consumers from unlawful actions by licensees Signup and view all the answers

Which of the following best describes the Georgia Uniform Deceptive Trade Practices Act (UDTPA)?

It addresses price fixing and does not require a consumer transaction to be violated Signup and view all the answers

What type of practices does the Georgia Code §43-40-25 specifically address?

Unfair trade practices in the real estate industry Signup and view all the answers

Which of the following actions would NOT be considered an unfair practice related to fair housing in Georgia?

Renegotiating price based on market trends Signup and view all the answers

What can consumers, brokers, or the state do under the Georgia Uniform Deceptive Trade Practices Act?

Sue licensees for violations regardless of a transaction Signup and view all the answers

Which of the following is a requirement to prosecute under Georgia’s Fair Business Practices Act?

Demonstration of misleading or fraudulent advertising affecting the public Signup and view all the answers

What is one of the consequences for a licensee found in violation of unfair trade practices in Georgia?

Triple damages in penalties Signup and view all the answers

Which of the following is considered an unfair practice under Georgia law?

Falsely advertising a property as sold Signup and view all the answers

Study Notes

Exam Overview

Expect around 16 questions on state laws and rules for Georgia licensees on the licensing exam.

Unfair Practices

Defined as deceptive, fraudulent, or unethical practices that seek to obtain business.
Georgia’s Fair Business Practices Act prohibits unfair and deceptive acts in transactions concerning goods, services, or property.
Act targets consumer transactions rather than business-to-business dealings.
Misleading or fraudulent advertising across all media types is strictly forbidden.
Requires a transaction to have occurred to pursue legal action for deceptive advertising.

Georgia Uniform Deceptive Trade Practices Act (UDTPA)

Addresses issues like price fixing and deceptive practices affecting free trade competition.
Violations can occur without a consumer transaction taking place.
Allows consumers, brokers, or the state to sue for breaches of the UDTPA.
Remedies can include triple damages, fines, injunctions, or a combination thereof.

Georgia Code §43-40-25

Governs unfair trade practices specifically in the real estate sector.

Fair Housing Violations

Licensees cannot discriminate based on the federally protected classes (race, color, religion, sex, disability, familial status, national origin).
Illegal actions include refusal to sell/rent to bona fide offers and discriminatory terms in sales or rentals.
Prohibited advertising indicating preference or discrimination regarding housing.
Blockbusting strategies that misrepresent neighborhood demographics are banned.

Trust Fund Mismanagement

Unacceptable practices include improper handling of trust funds, not promptly transferring funds to brokers, and commingling personal and trust funds.
Required to maintain separate federally insured accounts for trust funds or use an agreed-upon escrow agent.
Must secure written agreements on the interest earned before placing funds in an interest-bearing account.

Disclosure Obligations

Licensees must disclose in writing any received items of value concerning reimbursements or referrals made during a transaction.
Payments made to other brokers for referrals must also be disclosed.

Advertising Regulations

Prohibition against using deceptive or inaccurate information in advertising.
License status must be disclosed in all advertising.
Signs may not be placed on properties without written consent; they must be removed within 10 days post-listing expiration.
Discriminatory ads are also prohibited.

Recordkeeping Requirements

Transactional records and accounting records for trust accounts must be retained for a minimum of three years.

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Description

Prepare for your licensing exam in Georgia with this focused quiz on state laws and rules especially regarding unfair practices. This quiz highlights key concepts such as Georgia’s Fair Business Practices Act and the implications of unfair trade practices. Test your knowledge and ensure you understand the foundational laws that govern business conduct in Georgia.