1st 152 test
Broker engagement agreements must include all parties' signatures. Anyone who signs the agreement must receive a photocopy. What else is required?
A definitive end to the brokerage engagement agreement
Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of?
A land contract
What legal agreement is required when a licensee guarantees the sale of a property?
A purchase agreement written at the same time as the listing agreement
Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan?
A trustee will hold title until the loan is paid.
Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of ______.
Accepting partial performance
In Georgia, a person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______.
An exception to the real estate licensing requirement
In Georgia, buyer representation agreements ______.
Aren't limited to any a state-specified form
Ed is a homebuyer reviewing the Loan Estimate he received from a lender. He notices the loan terms include a prepayment penalty. Because he's a savvy consumer, he ______.
Asks the lender if there are other options available that would not involve a prepayment penalty
You represent the buyer in one transaction and the seller in a different transaction. What type of agency relationship do you have with the buyer?
Buyer agency
Which approach to value measures the cost to produce a property, including land acquisition and construction costs?
Cost approach
A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of settlement, has already paid annual property taxes of $1,949. Using calendar year proration, the seller will be ______ on the closing statement (round to the nearest dollar).
Credit 1,207
What are the two types of physical depreciation?
Curable and incurable
Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title?
Depending on his state's laws, Mario may have a marketable title
Which clause of the sales contract says that the contract is the one and only contract between the parties?
Entire Agreement, Modification and Assignment
Which entity services rural development loans?
FSA
Which of the following is an example of an agent exercising the duties owed to customers and other parties?
Francine disclosed information about the flooding basement to the buyer and buyer's agent.
The Georgia attorney general serves as the legal counsel for all state agencies. Which entity does the attorney general represent in real estate license law matters?
GREC
Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.
Guaranteed loans
A holographic will is a will that is ___________.
Handwritten
Marco, a buyer in Atlanta, wants to terminate his buyer's representation agreement with his agent. What is TRUE about this situation?
He may or may not owe an amount under the terms of the agreement.
What economic principle is related to a property's most profitable use that is both legal and economically feasible?
Highest and best use
Georgina is an escrow agent who's holding funds for several transactions. Which of these statements about how she'll disburse these funds is true?
If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law.
Sam and Bridget are cousins who jointly own property. They are both named on the deed, they received title at the same time, they have the right of survivorship, and they each have equal interest and undivided rights of possession. What type of ownership do they have?
Joint Tenancy
Luci's client Kaden wants to purchase a new construction property, and he wants to get as much house as he can afford. Which of the following does Luci need to advise Kaden about regarding interest rates when purchasing a newly built home?
Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders aren't likely to lock in an interest rate for more than 90 days before closing.
Which of the following is an example of sub-agency?
Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller.
Fair housing laws give homeseekers a legal right to which of the following?
No discriminatory limitations on communities or locations of housing
Karen and Joe are purchasing a six-unit apartment complex for $450,000. The loan is secured by the property being purchased. Is this purchase subject to GRMFA provisions?
No, because of the number of units.
Your client is purchasing a single-family home with a conventional loan. The listing price is $150,000. Does this situation require a licensed or certified appraiser?
No, since the sales price is less than $400,000.
All fair housing complaints must be filed with the Fair Housing Division within ______ of the alleged violation.
One year
Under which types of agency agreement may a buyer and agent operate?
Open, exclusive right to represent, and exclusive agency
Gene, a real estate licensee, prefers to use electronic documents and signatures because it means he doesn't have to track people down to deliver documents or have them signed. Which of these statements is true?
Parties to the contract decide whether or not to accept the use of electronic signatures and documents.
Tyne entered a contract to buy Fred's home. Per the terms of the contract, Tyne agreed to pay $20,000 for the earnest money deposit by this coming Wednesday and have the property inspected within seven days. She submitted the earnest money deposit on time and had the property inspected within five days. This is an example of ______.
Performance of this part of the contract
The buyer you're working with doesn't want to enter into an agency relationship. However, the buyer begins to rely more and more on your advice and, indeed, implied agency has begun! You could have avoided this issue by providing appropriate disclosures, but now that you've created implied agency, what should you do?
Ratify the implied agreement by getting a signed agency agreement.
Kristin is going over an exclusive buyer brokerage agreement with potential buyer client Beau. Which of these is NOT a feature of the agreement?
Resolve issues and disagreements
Eleanor is moving from a starter home into something a little larger. Her agent has cautioned her against making the offer on the new place contingent on the sale of Eleanor's starter home. Why the caution?
Sellers would view an offer without a contingency as a stronger offer.
Tagger has made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid?
Sign the note, mark it "Paid in Full," and return it to Tagger.
DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______.
Suing for specific performance
Which section of the sales contract says that certain unmet obligations will continue or be completed even after closing?
Survival of the agreement
The ______ is the federal act that deals with telephone solicitation.
Telephone Consumer Protection Act
Which of these features is shared by the mortgage, the deed of trust, and Georgia's security deed?
The borrower is required to maintain the property and pay property taxes and insurance.
What entity is allowed to charge a gross receipts tax to licensees on their earnings?
The county or municipality
Esme buys Steve's beach townhouse for $475,000. The transfer tax in the area is $2.00 for the first $1,000 and $0.10 for each additional $100. Calculate what Steve will pay for the transfer tax at closing.
The first $1,000 is $2.00. The transfer tax for the remaining $474,000 will multiplied by .001 ($0.10 for each additional $100). So the total transfer tax will be $476 ([$474,000 x .001] + $2).
In Georgia, who or what sets the requirements for security deposit disbursal when a lease terminates?
The lease terms
Who's the mortgagee in a mortgage?
The lender
When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage?
The lender executes and records a satisfaction of mortgage and returns the note to the borrower.
Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified that he couldn't take possession of or title to the property. What likely happened?
The previous owners redeemed the property by paying all mortgage payments and fees.
In pricing a property, what might expired listings tell the real estate professional?
The price at which a property won't sale
GREC won't investigate a complaint unless the incident prompting the complaint occurred within the past ______.
Three years
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document?
To detail the estimated closing costs for Lawrence's loan
Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender to right to sell the property if he defaults?
Transfer of Rights in Property
Your client, Darnell, is interested in buying a rental property that has current tenants. He plans to rent the property to friends the month after he buys it. Which of the following statements is true and could affect Darnell's decision to buy the property?
Unless stated otherwise in the lease, the existing tenants usually have the right to retain possession of a property, even if it's sold during their lease term.
Which of the following can be defined as what a property is worth?
Value
When is a promissory note most often used in Georgia?
When an owner finances the sale of their property
Zach wants to purchase a property that's subject to an existing lease agreement, which includes the tenant's right to renew the lease. What is Zach's obligation, if any, to uphold the terms of the lease agreement?
Zach must honor that right and allow the tenant to renew at the end of the term.
