A consumer generally must obtain a court judgment and exhaust collection before claiming from the Fund.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which fund administered in connection with Georgia license law is designed to reimburse members of the public who suffer monetary loss due to certain wrongful acts of a licensee?
Answer: A. Georgia maintains a Real Estate Education, Research, and Recovery Fund that can reimburse injured members of the public for certain unrecoverable judgments arising from a licensee's wrongful acts.
Question 2 of 5
The Georgia Real Estate Education, Research, and Recovery Fund primarily exists to:
Answer: B. Georgia's recovery fund is designed to compensate aggrieved consumers who obtain a court judgment against a licensee for fraud or other covered violations but cannot collect it. It is not a budget source, a commission dispute fund, or a loan program.
Question 3 of 5
When the Georgia recovery fund pays a claim on behalf of a licensee, what typically happens to that licensee's license?
Answer: B. A payment from the recovery fund on a licensee's behalf generally results in automatic suspension of that license until the licensee repays the fund in full, plus interest. This protects the fund and deters misconduct.
Question 4 of 5
A Georgia broker tells a buyer that a leaking roof is 'perfectly sound' to push the deal through, knowing the statement is false. This conduct is an example of:
Answer: A. Knowingly making a false statement of material fact is substantial misrepresentation, a clear license-law violation. It is not mere puffing (subjective opinion), and the Commission may discipline the licensee in addition to any civil liability.
Question 5 of 5
Under Georgia license law, paying a referral fee or commission for brokerage services to an unlicensed person is generally:
Answer: B. Brokerage compensation may only be paid to licensed individuals (and a salesperson is paid through the broker). Paying an unlicensed person for performing or referring brokerage services is prohibited and exposes the licensee to discipline.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- GREC investigates complaints and may discipline licensees who violate the license law.
- Sanctions include reprimand, fine (citation), license suspension, and license revocation.
- GREC may require additional education or place a licensee on probation.
- Georgia maintains a Real Estate Education, Research and Recovery Fund to reimburse certain consumer losses.
- Recovery Fund payments cover qualifying losses from a licensee's fraud, misrepresentation, or conversion of funds.
- A consumer generally must obtain a court judgment and exhaust collection before claiming from the Fund.
- A paid claim against a licensee suspends that licensee until the Fund is repaid with interest.
Georgia License Discipline, Penalties & Recovery Fund: FAQs
Is Georgia License Discipline, Penalties & Recovery Fund 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.
