Georgia Real Estate License Law Practice Exam

Brokers must maintain trust funds without using them for business purposes, in accordance with Georgia Real Estate law. This means that any funds received from clients for specific transactions—such as earnest money deposits—must be held in a segregated trust account. The primary purpose of this requirement is to ensure that client funds are protected and not commingled with the broker's personal or business funds.

This practice is crucial for maintaining client trust and ensuring compliance with legal obligations. It safeguards clients' interests by ensuring that their money is readily available for its intended purpose, whether that is a future closing or a refund in case the transaction does not proceed as planned. Brokers are tasked with the responsibility of handling these funds with care and accountability, highlighting the importance of ethical standards in real estate transactions.