Before you read
Test yourself first: 5 questions
Question 1 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.
Question 2 of 5
Who is ultimately responsible for the proper handling, accounting, and safekeeping of funds held in a Georgia firm's trust/escrow account?
Answer: B. In Georgia, the broker (the qualifying/principal broker) bears ultimate responsibility for trust funds, including proper deposit, accounting, and record-keeping, even when an affiliated salesperson physically receives the money.
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.
What you need to know
Mishandling escrow funds is a serious violation that can lead to discipline by the Georgia Real Estate Commission. Georgia licenses are renewed on a four-year cycle, and licensees must complete continuing education each renewal period to keep their license active; failing to renew on time or complete required education can result in the license lapsing.
Handling Escrow Funds and License Renewal in Georgia: FAQs
Is Handling Escrow Funds and License Renewal in Georgia 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.
