Trust funds must be kept separate from the broker's personal/operating funds — no commingling.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Earnest money received by a Georgia firm on behalf of others must be:
Answer: C. Money belonging to others, such as earnest money, must be held in a designated trust or escrow account, separate from the broker's own funds.
Question 2 of 5
Where must a Georgia broker deposit earnest money and other funds belonging to others?
Answer: A. Georgia license law requires that money belonging to others, such as earnest money, be held in a designated trust or escrow account, separate from the broker's own funds.
Question 3 of 5
If a Georgia broker improperly mixes clients' trust funds with the broker's own operating money, the broker has committed:
Answer: A. Mixing trust or escrow funds with the broker's own funds is commingling, which is prohibited under Georgia license law.
Question 4 of 5
Which statement BEST describes the relationship between a Georgia salesperson license and a broker license?
Answer: B. A broker may operate independently, hold escrow accounts, and supervise affiliated licensees. A salesperson must work under a broker's supervision and cannot independently hold trust funds or run a brokerage. Becoming a broker requires additional experience, education, and a separate exam.
Question 5 of 5
A brokerage's escrow (trust) account is subject to which form of oversight by the Georgia Real Estate Commission?
Answer: B. GREC has authority to inspect and audit a broker's trust/escrow account to ensure client and customer funds are properly safeguarded and accounted for. Improper handling of trust funds is a serious violation that can lead to disciplinary action.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Client funds (earnest money/deposits) must be held in a designated trust/escrow account.
- Trust funds must be kept separate from the broker's personal/operating funds — no commingling.
- The broker is responsible for proper handling and accounting of all trust funds.
- Sellers must disclose known material defects affecting the property's value or desirability.
- Federal lead-based-paint disclosure applies to most homes built before 1978.
- Georgia is NOT a community-property state — title and ownership follow common-law rules.
- Pre-license: 75 hours; Post-license: 25 hours in year one — core numbers to memorize.
- Mishandling escrow funds is a serious license-law violation subject to GREC discipline.
GA Disclosures, Escrow/Trust Funds & Key Numbers: FAQs
Is GA Disclosures, Escrow/Trust Funds & Key Numbers on the real estate exam?
Yes. State License Law is a scored domain on the Georgia real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Georgia test this differently?
Georgia applies its own license law on top of the national portion. This page covers the Georgia rules specifically, which is what the state section of your exam tests.
