Georgia Contracts
Practice Questions & Answers (2026)
Contract law questions on the Georgia real estate exam test both general contract principles and Georgia-specific transaction requirements. The Georgia Real Estate Commission (GREC) tests how Georgia contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Georgia law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong GA-specific timeframe or rule.
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Georgia Contracts — Practice Questions & Answers
190 questions on Contracts from the Georgia real estate question bank. First 10 are free — sign up to unlock all 190.
Q1. The Georgia Association of REALTORS (GAR) Purchase and Sale Agreement is an example of a:
Explanation
The GAR Purchase and Sale Agreement is a standardized contract form developed by the Georgia Association of REALTORS for use by member brokers and agents in Georgia residential transactions. It is widely used but not mandatory for all licensees.
Q2. Under Georgia law, which of the following is essential for a real estate purchase contract to be enforceable?
Explanation
Under Georgia's Statute of Frauds, a contract for the sale of real property must be in writing, signed by the party to be charged, and supported by consideration. Parties must be legally competent and there must be mutual assent.
Q3. A Georgia buyer includes a due diligence period in their offer. During the due diligence period, the buyer may:
Explanation
Georgia's 'due diligence' contingency (also called a 'free look' period) allows the buyer to terminate the contract for any reason during the specified period and receive a full refund of earnest money, without having to identify a specific defect.
Q4. Under a Georgia purchase contract, earnest money is typically held by the:
Explanation
In Georgia, earnest money is typically held by the listing broker in their trust account (escrow account) or by a designated closing attorney or escrow agent agreed upon by the parties.
Q5. In Georgia real estate contracts, a 'special stipulation' is used to:
Explanation
A special stipulation in a Georgia contract is language added by the parties to address specific circumstances unique to their transaction. When there is a conflict between a special stipulation and the printed terms of the contract, the special stipulation generally controls.
Q6. A Georgia seller accepts an offer on their home. Before closing, the roof sustains significant storm damage. The risk of loss provision in the contract most likely:
Explanation
Most Georgia real estate contracts include a risk of loss provision requiring the seller to maintain the property and deliver it in substantially the same condition as at contract signing. The seller is generally responsible for repairing significant damage that occurs before closing.
Q7. The Georgia Association of Realtors (GAR) Purchase and Sale Agreement is best described as a:
Explanation
The GAR Purchase and Sale Agreement is the standardized residential real estate purchase contract widely used by Georgia REALTORS for residential transactions.
Q8. Under Georgia contract law, an offer becomes a binding contract when:
Explanation
A contract is formed when the offeree (seller) communicates their acceptance to the offeror (buyer). Verbal acceptance alone or signing without communication is not sufficient.
Q9. What is the legal effect of a counteroffer under Georgia contract law?
Explanation
A counteroffer rejects the original offer and creates a new offer. The original offeror can then accept, reject, or counter the new offer.
Q10. Under the Statute of Frauds as applied in Georgia, real estate contracts must be:
Explanation
Georgia's Statute of Frauds (O.C.G.A. § 13-5-30) requires that contracts for the sale of real estate be in writing and signed by the party to be charged in order to be enforceable.
Q11. In a GAR contract, the Due Diligence Period gives the buyer the right to:
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