Georgia Real Estate Salesperson Practice Exam

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What can happen if a real estate agent fails to disclose a material fact?

They may receive a warning from the board

They face legal liability and risk losing their license

When a real estate agent fails to disclose a material fact, they can face legal liability and the potential risk of losing their license. Material facts are crucial information that could impact a buyer's decision regarding a property, such as structural issues, zoning changes, or defects in the home. The law requires agents to act in good faith and provide all relevant information to their clients.

By not disclosing such information, an agent may be held liable for damages resulting from the buyer's reliance on incomplete or misleading information. This liability can lead to lawsuits, financial penalties, and disciplinary actions from real estate boards or licensing authorities, which could include revocation of their real estate license. Such consequences emphasize the importance of transparency and ethical conduct in real estate transactions to protect both the buyer and the integrity of the profession.

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They may need to pay a fine

They could be required to attend training

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