Trust funds must be kept separate from the broker's operating money (no commingling).
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which records must a Georgia broker retain to comply with GREC record-keeping requirements?
Answer: B. Georgia brokers must retain records of their real estate transactions and trust/escrow accounts (contracts, disbursements, deposits, agreements, etc.) for the period required by GREC. Relying solely on third parties does not satisfy the broker's duty.
Question 2 of 5
Regarding records of trust account activity, Georgia brokers are required to:
Answer: B. Georgia brokers must keep complete and accurate records of all money received and disbursed through the trust account and retain transaction records for the retention period required by GREC. Records are not optional or limited to disputed deals.
Question 3 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 4 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 5 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.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- A broker must deposit client funds (earnest money) into a designated trust/escrow account.
- Trust funds must be kept separate from the broker's operating money (no commingling).
- The broker's trust account records must be accurate and available for GREC review.
- Agency relationships and brokerage status should be disclosed to the parties under BRRETA.
- Known material defects affecting the property should be disclosed; agents must not misrepresent condition.
- Disputes over escrowed earnest money must be handled per the contract and GREC trust-account rules.
- Improper handling or conversion of trust funds is a disciplinable violation.
Georgia Required Disclosures & Escrow/Trust Timeframes: FAQs
Is Georgia Required Disclosures & Escrow/Trust Timeframes 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.
