CE Shop Missed Questions

Jeffersontown has a zoning ordinance that requires all properties in a designated historic district to have brick or wood plank facades. No aluminum, cement board, or vinyl siding is allowed. What type of zoning is this? A) Aesthetic zoning B) Downzoning C) Incentive zoning D) Spot zoning

A) Aesthetic zoning The purpose of aesthetic zoning is to preserve the architectural integrity and cohesive look of an area. In other words, aesthetic zoning preserves the beauty of an area.

What does the Federal Trade Commission consider to be an unfair ad? A) Any ad or business practice that causes or is likely to cause injury B) Any ad that is likely to mislead consumers acting reasonably under the circumstances C) Any ad that makes a health claim D) Any ad with a claim that's difficult to evaluate

A) Any ad or business practice that causes or is likely to cause injury Any ad or business practice that causes or is likely to cause injury is considered an unfair ad, according to the FTC's Unfairness Policy Statement.

Who's the mortgagor in a mortgage? A. Borrower B. Lender C. Trustee D. Trustor

A. Borrower Plain English for the mortgagor is "borrower." This is because the borrower establishes the mortgage as a security instrument for the loan.

Over how many years is a commercial property depreciated? A) 27.5 years B) 29 years C) 39 years D) 40 years

C) 39 years

Which of the following is an example of constructive eviction? A) A landlord locks a tenant out of her unit after she fails to pay her rent for three months. B) A tenant chooses not to renew a lease when the term expires and moves out. C) A tenant dies. D) A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.

D) A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater. A constructive eviction occurs if a tenant vacates the property because the landlord failed to uphold the warranty of habitability.

Prior to a certain act's existence, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. What's this act called? A) Civil Rights Act of 1866 B) Fair Housing Amendments Act of 1988 C) Federal Fair Housing Act of 1968 D) Housing and Community Development Act of 1974

D) Housing and Community Development Act of 1974

Which of the following scenarios accurately describes the similarities between an open listing and an exclusive agency listing? A) In both types of listings, sellers are required to pay a commission to all of the brokers who list the home. B) In both types of listings, the broker owes the commission regardless of who sells the property. C) In both types of listings, the seller may work with multiple brokers to sell the property. D) In both types of listings, the seller who finds the buyer won't owe a commission.

D) In both types of listings, the seller who finds the buyer won't owe a commission. In both open listings and exclusive agency listings, the seller doesn't have to pay a listing agent commission if the seller finds a buyer.

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____. A) Condemnation B) Eminent domain C) Escheat D) Inverse condemnation

D) Inverse condemnation

In Georgia, how many years do we have to go back to trace the chain perfectly, with no gaps in ownership? A. 10 years B. 20 years C. 40 years D. 50 years

D. 50 years In Georgia, a chain dating back 50 years is considered sufficient to show marketable title.

In an amortized mortgage, the monthly payment is the same each month. The part used to pay the principal increases each month, while the amount going toward interest ______. A) Decreases B) Increases C) Increases and then decreases D) Stays the same

Over time, the portion of the monthly payment used to repay principal increases as the portion used to pay interest decreases. Total principal and interest payments remain the same, and the loan payment remains relatively stable.

A person was sued for damages related to a car accident in which they were involved last year. As part of the proceedings, the court placed a lien against the person's primary residence. What type of lien is this? A) Attachment B) General C) Mechanic's D) Voluntary

A) Attachment An attachment lien is when the courts place on encumbrance on the property of a defendant in a lawsuit for monetary damages.

One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______. A) Bulk zoning B) Commercial zoning C) Density zoning D) Residential zoning

A) Bulk zoning These requirements are all indicative of bulk zoning, which may be seen in both commercial and residential areas, and which decreases density.

Thich one of the following is true about ownership or title to a property? A) Constructive notice to the public of real property ownership occurs when the deed is recorded. B) The last party to record has priority. C) The seller is responsible for paying for owner's and lender's title insurance. D) Title isn't finalized until the deed has been recorded.

A) Constructive notice to the public of real property ownership occurs when the deed is recorded. Recording and possession give the public constructive notice that ownership has changed hands. It also protects the buyer from others' claims on the property.

Philip owns land in a state where growing marijuana is illegal. He wants to set up a small marijuana growing operation and export to states where marijuana has been legalized. He asks his attorney about the possibility. "No," his attorney explains. "It's not possible. Although you own the property outright, the right of ______ only allows you to manage the property in ways that are legal in this jurisdiction. A) Control B) Disposition C) Exclusion D) Possession

A) Control The right of control allows owner Philip to determine how the property will be used by himself or by others, meaning he can not only use but manage the property in any way he sees fit—as long as the enterprise is legal in the given jurisdiction. Other regulations, such as HOA regulations, may also apply.

Wendell just listed Barb's home. Barb told him that there weren't any easements on the property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility relative to the disclosure of any easements? A) He only needs to disclose easements if they're known. B) He should commission a survey if an existing one can't be found. C) He should do a title search to confirm any easements. D) He should require his seller to do online research in the county records database.

A) He only needs to disclose easements if they're known. Sellers and listing agents must only disclose easements of which they have actual knowledge. If neither are aware of any easements, then the buyer will typically discover them during due diligence.

In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer? A) The consumer's lender B) The consumer's mortgage broker C) The consumer's real estate broker D) The settlement officer for the transaction

A) The consumer's lender B) The consumer's mortgage broker C) The consumer's real estate broker D) The settlement officer for the transaction

A buyer has received a Closing Disclosure from the lender. What's the purpose of this form? A) To detail all costs the buyer will owe at closing B) To disclose the distribution of commissions that will occur at closing C) To estimate closing costs D) To estimate the seller's net proceeds

A) To detail all costs the buyer will owe at closing The Closing Disclosure, provided at least three business days before closing, details the buyer's closing costs, as well as other loan terms, such as the projected monthly payment.

If the foreclosure sale doesn't satisfy the debt, ______. A. A deficiency judgment against the borrower may be issued B. The debt balance passes on the the purchaser C. The lender must forgive the remaining debt D. The sale will be cancelled

A. A deficiency judgment against the borrower may be issued' When a foreclosure sale doesn't satisfy the debt, the lender may isue a deficiency judgement against the borrower.

Broker engagement agreements must include all parties' signatures. Anyone who signs the agreement must receive a photocopy. What else is required? A. A definitive end to the brokerage engagement agreement B. Retention of the paperwork for two years C. The date the relationship began D. The type of relationship

A. A definitive end to the brokerage engagement agreement Broker engagement agreements must include all parties' signatures. Those parties must all receive a photocopy of the agreement. The termination date must be noted in the agreement

In a deed of trust, who is the trustee? A. A neutral third party B. The agent C. The borrower D. The lender

A. A neutral third party The trustee is the one who holds the trust on behalf of the beneficiary (the lender).

The ______ clause is also known as a due-on-sale clause. A. Alienation B. Defeasance C. Power of sale D. Separation

A. Alienation The alienation clause allows the lender to make the loan due if the borrower sells or otherwise transfers the property.

In Georgia, what must be filed for the eviction process to begin? A. An affidavit B. A writ of possession C. Evidence of missed rental payments D. The lease

A. An affidavit The eviction process is handled by the court, and it begins when a landlord files an affidavit.

In Georgia, a person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______. A. An exception to the real estate licensing requirement B. Required to have a broker license C. Required to have at least an associate broker license D. Required to have at least a salesperson license

A. An exception to the real estate licensing requirement Trustees and those acting under a court order aren't required to have a real estate license when performing real estate-related activities.

Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a security deed. What rights does she have to redeem her property? A. Andrea can cure the default and reinstate the loan. B. Andrea can negotiate a new loan with the trustee of her current loan and regain title to the property. C. Andrea can purchase the property from the auction winner who is required to transfer title for 102% of the sale price. D. Andrea has a statutory right of redemption; she can redeem the property after the foreclosure sale.

A. Andrea can cure the default and reinstate the loan. The security deed gives Andrea the right to cure the default and reinstate the loan, but no rights of redemption after the sale.

In Georgia, buyer representation agreements ______. A. Aren't limited to any a state-specified form B. Come in different varieties, but all are approved by GAR C. May be oral D. Must be written on a specific form

A. Aren't limited to any a state-specified form Georgia doesn't require a specific buyer representation agreement form, but all such agreements must be in writing.

Which of the following tasks can an unlicensed assistant perform for a broker? A. Assemble closing documents. B. Call prospective clients to solicit business. C. Host an open house. D. Interpret contract information for a client.

A. Assemble closing documents Unlicensed assistants may perform administrative tasks only. Solicitation of business is an activity that requires a license.

Which of these statements is NOT true regarding a licensee who wants to transfer to another broker? A. Both the original broker and the new broker may charge the licensee a $50 fee to cover administrative costs of the transfer. B. The broker must notify GREC of the transfer. C. The licensee has 30 days to affiliate with a new broker or risk a lapsed license. D. The original broker must transfer the license even if the licensee owes the broker money.

A. Both the original broker and the new broker may charge the licensee a $50 fee to cover administrative costs of the transfer. Neither broker may charge the licensee a fee to transfer brokerage firms.

Which of the following is the responsibility of a Georgia closing attorney? A. Calculate prorations B. Prepare the buyer and seller for closing C. Schedule agreed-upon property repairs D. Schedule the final walk-through

A. Calculate prorations The closing attorney calculates prorated taxes, interest, and any other items that require proration.

Which activity requires a license? A. Explaining terms to a client B. Placing an advertisement C. Posting a listing online D. Setting an appointment for a showing

A. Explaining terms to a client

Of the following, what is the main distinguishing feature between a mortgage, a deed of trust, and Georgia's security deed? A. Foreclosure process B. Institutional lenders use a mortgage; sellers use a deed of trust C. Recordation taxes D. Right of lender to inspect property

A. Foreclosure process The mortgage and the deed of trust serve the same purpose, but states may establish one or another as the preferred instrument due to the foreclosure process associated with each.

What must Georgia associate brokers do in order to work independently as brokers? A. Have written consent from all brokers involved. B. Sit for a qualifying broker license exam. C. Spend three of the most recent five years working under a broker's supervision. D. Take a GREC-approved business management course.

A. Have written consent from all brokers involved. Associate brokers may work independently as a qualifying broker with written consent of all brokers involved.

What's true about the extension clause in Georgia's brokerage agreements? A. It extends the agreement term if a binding contract that falls through for any reason. B. It's only valid if the parties agree to the extension. C. It's the same thing as the protected period. D. The parties decide on the extension period when signing the agreement.

A. It extends the agreement term if a binding contract that falls through for any reason. The extension clause adds time to the buyer brokerage agreement if the buyer is under contract and that falls through. The extension period equals the number of days the buyer was under contract.

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(Georgia Residential Mortgage Act) provisions? A. No, because of the number of units. B. No, because the loan amount exceeds GRMFA provisions. C. Yes, because it's secured by residential property. D. Yes, because the property being purchased is a residential unit.

A. No, because of the number of units. GRMFA applies to loans secured by one- to four-unit residential properties.

Business brokerage in Atlanta is hopping, and Azra would like to get into the field. But she doesn't have a real estate license. What are her options? A. She can broker transactions that involve business entities themselves and no transfer of real property. B. She can join a business brokerage firm because Georgia law doesn't require her to be licensed to broker businesses. C. She can specialize in commercial buildings and not residential real estate. D. She'll have to earn her real estate license to work in business brokerage ion Georgia.

A. She can broker transactions that involve business entities themselves and no transfer of real property. Per Georgia rules and regs, Azra can broker transactions that involve business entities themselves as long as no transfer of real property is part of the transactions.

Per the independent contractor agreement, who owns the photos and brokerage listings if the licensee is the one who secured them? A. The broker B. The licensee C. The licensee and the broker have an equal share. D. The licensee owns the copyright protection and the broker owns the brokerage listings.

A. The broker Per the independent contractor agreement, these are the property of the broker, even if secured by the licensee.

In which of these situations will a letter of intent most likely be used? A. When purchasing a condominium in a proposed condominium development B. When purchasing a cooperative C. When purchasing a historic home D. When purchasing an existing condominium

A. When purchasing a condominium in a proposed condominium development The letter of intent outlines the parties' intentions to move forward, but the sales contract serves as the legally binding agreement once it's signed by all parties.

Tracy is looking in the MLS and sees a listing marked "REO." Which of these statements regarding REOs is correct? A) An REO property is one that the lender is trying to help the owner sell before beginning foreclosure proceedings. B) Banks acquire REOs through failed foreclosure sales or deed in lieu of foreclosure actions. C) REOs are properties that the lender has given permission to sell for less than the loan amount. D) REOs refer to investment properties a bank owns.

B) Banks acquire REOs through failed foreclosure sales or deed in lieu of foreclosure actions.

Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing? A) Civil Rights Act of 1866 B) Civil Rights Act of 1968 C) Equal Credit Opportunity Act of 1974 D) Housing and Community Development Act of 1974

B) Civil Rights Act of 1968

What does the lot and block system use to develop a property's legal description? A) Compass headings and directions B) Plat references C) Principal meridians and base lines D) Townships and sections

B) Plat references The lot and block system uses plat references to develop a property's legal description.

What's the purpose of the fixed/adjustable rate note? A) To convert the interest rate from adjustable to fixed B) To convert the interest rate from fixed to adjustable C) To convert the loan from a fixed rate to an adjustable rate D) To convert the loan from an adjustable rate to a fixed rate

B) To convert the interest rate from fixed to adjustable The note converts the interest rate in an ARM from fixed to adjustable. It's part of the mortgage package.

What's the transfer tax on a Georgia home sold for $215,000 with a mortgage loan of $180,000? A. $180 B. $215 C. $2,150 D. A flat $150

B. $215 The transfer tax is .001 (.1%) of the sales price, so $215,000 x .001 = $215.

When advertising is placed on a property using the Internet and the information has changed, the ad must be updated or removed within how many days of being placed? A. 24 days B. 30 days C. 60 days D. Seven days

B. 30 days

Eduardo works in Fayetteville as a broker. How does Georgia license law define his status? A. A broker who chooses to work as a salesperson for another broker B. A person who, for a commission or other valuable consideration, performs specific real estate-related acts for another person C. A person who is associated with a licensed broker for the purpose of performing an act for which a real estate license is required D. A person who is represented by an agent

B. A person who, for a commission or other valuable consideration, performs specific real estate-related acts for another person A broker is defined as a person who, for a commission or other valuable consideration, performs real estate acts.

Decatur licensee Alistair is working with buyer Evie as a transaction broker. According to Georgia law, Alistair may only perform ministerial acts for Evie, which are ______. A. Actions provided at the highest level of representation B. Administrative actions that don't rise to the level of client-level representation C. Any real estate actions that require a license D. Tasks necessary to complete a real estate transaction

B. Administrative actions that don't rise to the level of client-level representation Transaction brokers don't represent the consumers they assist. Ministerial acts are administrative in nature and don't rise to the level of client representation.

What does the Exclusive Buyer Brokerage Engagement Agreement state about dual agency? A. Brokers need only disclose dual agency to buyers. B. Buyers don't have to consent to dual agency. C. Buyers in dual agency relationships shouldn't expect broker confidentiality. D. Dual agency isn't permitted in an exclusive buyer broker relationship.

B. Buyers don't have to consent to dual agency.

Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is used? A. A third-party trustee B. Craig C. Craig's lender D. The seller

B. Craig The borrower holds legal title to the property that secures the loan when a mortgage instrument is used.

GAFLA targets predatory lending by prohibiting which of the following? A. Discrimination against protected classes B. Excessive late fees and financing of credit insurance C. Excessive origination fees and discount points D. Redlining and blockbusting

B. Excessive late fees and financing of credit insurance GAFLA provisions prohibit excessive late fees and financing of credit insurance or debt cancellation charges. The act does not address origination fees, discount points, or fair housing issues.

What does the acronym GAFLA stand for? A. Georgia Act for Fair Lending Activities B. Georgia Fair Lending Act C. Georgia Fair Loan Administration D. Georgia Financing and Loan Act

B. Georgia Fair Lending Act GAFLA, the Georgia Fair Lending Act, designed to eliminate predatory lending, was enacted in 2002 and substantially revised in 2003.

Drake, an unlicensed employee at The Best Nest Brokerage in Savannah, works with broker Allison's property management clients. Which of the following tasks can he NOT perform legally? A. Giving owners financial information on their properties B. Handling and managing trust funds such as tenant security deposits C. Providing information that Allison has authorized to potential tenants about rental units and leases D. Showing available rental units to prospective tenants per Allison's instructions

B. Handling and managing trust funds such as tenant security deposits Unlicensed employees may collect security deposits, as well as rent and other payments, but they must turn those funds over to the broker to manage.

A holographic will is a will that is ___________. A. Captured on videotape B. Handwritten C. Verbally communicated D. Written in invisible ink

B. Handwritten A holographic will is a handwritten will. This type of will is valid in 19 states, but Georgia isn't one of them

Your broker has received an earnest money check from you for a transaction. Where should this check be deposited? A. In an interest-bearing account B. In a trust fund account C. In the firm's general business account, with a ledger entry for the client's name, labeled "trust fund" D. In the firm's safety deposit box until closing

B. In a trust fund account Trust funds must be held in accounts separate from personal and business funds to be in compliance.

Gina is buying a condo in Tybee Island. Unless otherwise negotiated, which of the following closing costs will she pay? A. Broker commission B. Intangible tax C. Satisfaction of liens D. Transfer tax

B. Intangible tax The buyer is responsible for payment of the intangible tax unless otherwise negotiated in the purchase contract.

Kathy mistakenly duplicates reporting an asset on her mortgage loan application. Is she in violation of Georgia's Mortgage Fraud Act? A. No, because it isn't a misrepresentation of her income. B. No, because it wasn't an intentional misrepresentation. C. Yes, because Kathy didn't correct it before she sent it to the lender. D. Yes, because the information is to be used in qualifying her for a residential mortgage loan.

B. No, because it wasn't an intentional misrepresentation. GRMFA covers only intentional misrepresentation of information.

Lacey works for a government agency as an office space location specialist. Her role is to gather information and locate office space for government agencies. Does she need a real estate license? A. If her compensation is tied to the transaction being completed, she needs a real estate license. B. No, government employees are an exception to the real estate license requirement. C. Yes, any individual involved in locating office space, whether for a government agency or non-government entity, must have a license. D. Yes, government employees must obtain a real estate license.

B. No, government employees are an exception to the real estate license requirement. Employees of government agencies acting for their agency are exempt from licensure.

What must a licensee do when he wants to purchase a home listed by the brokerage where he's affiliated? A. Notify his broker, and receive the broker's written permission. B. Notify his broker in writing and disclose his intentions to the seller. C. Notify the seller and the seller's agent in writing. D. Notify the seller's agent and lender in writing.

B. Notify his broker in writing and disclose his intentions to the seller. If a brokerage is listing a property that a licensee affiliated with that brokerage wants to purchase, the licensee must notify the broker in writing and disclose his intention to the seller.

Alpharetta licensee Angie is designing her personal website. Where should she include required information? A. On a page marked required information only B. On every page C. On the contact page only D. On the home page only

B. On every page On a website, required information must be placed on every page.

Genevieve has just passed her broker's exam and completed the requirements for licensure. She wants to operate under her own name in Georgia. What must happen first? A. She must be affiliated with a broker as an associate broker for two years. B. She must receive her license and post it on her office wall. C. She must receive new business cards. D. She must take an additional 75 hours of continuing education.

B. She must receive her license and post it on her office wall. While new business cards are in order, Genevieve must have her license and it must be posted before she can operate under her own name.

Who, or which entity, appoints the members of the Georgia Real Estate Commission? A. Georgia real estate association members B. The Georgia governor C. The mayors of every city in Georgia, through a vote D. The public, by election

B. The Georgia governor The governor appoints all six GREC members and the state senate confirms them.

When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage? A. The lender executes and records a deed of reconveyance and returns the note to the borrower. B. The lender executes and records a satisfaction of mortgage and returns the note to the borrower. C. The lender files for a release of lien and returns the note to the borrower. D. The lender returns the note and mortgage to the borrower.

B. The lender executes and records a satisfaction of mortgage and returns the note to the borrower. When a borrower has paid the loan in full, it's the lender's responsibility to execute and record a satisfaction of mortgage.

Homestead Realty had a listing agreement with Gertrude. The listing expired, and Gertrude moved the listing to another firm. Another licensee at Homestead Realty has a buyer client who's interested in Gertrude's property. What restrictions are in place for Homestead Realty? A) Homestead may not represent a buyer for the previously listed property. B) Homestead may represent the buyer but may not disclose any information about the property or previous offers on it. C) Homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality. D) No restrictions are in place since the previous property listing expired.

C) Homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality. Homestead must adhere to its fiduciary duties of confidentiality (to Gertrude) and disclosure (to all parties).

Which of these is an example of puffery? A) Kari's ad boasts that the property is "just blocks from the proposed metro light rail station." B) Katherine's ad for her newly renovated home states, "New from the studs up." Her carpenter might tell you a different story. C) Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay." D) Kim notes that the property "overlooks a serene, peaceful green space." It's next to a cemetery.

C) Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay."' Kevin's ad is the best example of puffery. Katherine's ad is fraudulent, and Kim's is in poor taste but probably true.

Lawrence is a buyer closing on a home for which he's obtaining financing. Which document will give Lawrence an estimate of the costs he'll likely pay at closing? A) Buyer Worksheet B) Closing Disclosure C) Loan Estimate D) Mortgage Disclosure

C) Loan Estimate The Loan Estimate, required by the Dodd-Frank Act, provides buyers with the costs they're likely to pay at settlement and discloses the mortgage loan specifics, such as its key features, costs, and risks.

Which of these circumstances does NOT require agent disclosure? Topic: General principles of agency A) As part of his corporation, Sean, a licensee, owns several investment properties. He's selling one. B) Gary represents the buyer. He's a shareholder in the title insurance company the buyer has selected. C) Marty is representing Dwayne in both the sale of his current home and the purchase of his new home. D) Megan has listed her brother's townhome for sale.

C) Marty is representing Dwayne in both the sale of his current home and the purchase of his new home. A licensee must disclose any situation that presents a conflict of interest. There's no inherent conflict of interest with one licensee representing a client in both the sale and purchase of property.

Angelo's aging mother needs a place to live out her remaining years. Angelo conveys a home to her, but only for her lifetime. This is an example of what type of life estate? A) Dower and curtsey B) Homestead C) Ordinary D) Pur autre vie

C) Ordinary Ordinary life estates are granted for the lifetime of the grantee. When the life estate holder dies, remaining interest is either returned to the original owner (reversion) or is granted to a third party (the remainderman).

Licensee Kennie's neighbor, Buzz, wants to sell his house but doesn't want to sign an agency agreement. Kennie works with Buzz to list and show the property and negotiate offers. After the property sells, Buzz discovers that Kennie didn't present all offers to him, and he sues Kennie . Kennie Mae claims that because she didn't have an agency agreement with Buzz, she wasn't required to perform all fiduciary duties. What legal principle applies here? A) Agency after the fact, because Kennie continued to perform tasks for Buzz through the closing date. B) Law of agency, because Kennie defined her agency relationship with Buzz through the tasks she performed. C) The doctrine of estoppel keeps Kennie from disavowing the agency relationship because she provided agency tasks for Buzz. D) The ratification doctrine states that Kennie ratified her relationship with Buzz by signing the closing paperwork.

C) The doctrine of estoppel keeps Kennie from disavowing the agency relationship because she provided agency tasks for Buzz. The doctrine of estoppel prohibits an individual from making an assertion that's in opposition to actions or to a previous statement. Kennie acted as if she were Buzz's agent, so she can't later disavow that behavior.

How long does a broker have before notifying the commission that a trust fund account has been established? A. 10 days B. 14 days C. 30 days D. 60 days

C. 30 days The commission must be notified within 30 days of a trust account being established.

What type of brokerage engagement agreement is against the law in Georgia? A. A brokerage engagement agreement that terminates within 45 days of signing B. A gross brokerage engagement C. A net brokerage engagement D. An exclusive brokerage engagement

C. A net brokerage engagement Net brokerage agreements in which the broker will receive as a fee any amount above a specified sales price are illegal in Georgia.

The Certified Business Intermediary designation is a(n) ______ that is available in the specialized field of business brokerage. A. Award B. Certification C. Credential D. License

C. Credential Accreditation is available through a variety of state and national associations, such as the Certified Business Intermediary credential given by the International Business Brokers Association.

As a real estate licensee in Georgia, if you advertise or otherwise market using lies, deceit, misrepresentations, fraud, or other unethical practices, what are you in violation of? A. Business Opportunity Act B. Deceptive Trade Practices and the Consumer Protection Act C. Georgia Fair Business Practices Act D. Georgia fair housing law

C. Georgia Fair Business Practices Act The Georgia Fair Business Practices Act focuses primarily on deceptive advertising. Georgia license law 43-40-25 also addresses deceptive trade practices in real estate.

On a security deed in Georgia, what is the borrower referred to? A. Beneficiary B. Grantee C. Grantor D. Trustor

C. Grantor Two parties are involved in Georgia's security deed: the grantor (borrower) and the grantee (lender).

Marco, a buyer in Atlanta, wants to terminate his buyer's representation agreement with his agent. What is TRUE about this situation? A. He can not terminate the agreement under any circumstances. B. He can only terminate after the protected period has ended. C. He may or may not owe an amount under the terms of the agreement. D. He's not allowed to terminate until the terms of the contract have been performed

C. He may or may not owe an amount under the terms of the agreement.

What provisions are standard when any security instrument is used but are included in the promissory note rather than the security instrument? A. Acceleration B. Alienation C. Late charge D. Power of sale

C. Late charge Late charges that will apply if the borrower doesn't pay on time are a standard part of the promissory note.

Which of the following describes the GAR F913, Lease for Residential Property, use restrictions provision as shown in Section A? A. How the tenant will pay the rent B. The term of the lease C. Those who are permitted to occupy the premises D. Whether the lease is automatically renewable

C. Those who are permitted to occupy the premises The use restriction provision describes who's permitted to occupy the property and how the tenant will use the property, including allowable activities.

Barb is a qualifying broker in Georgia. She must ensure that all contracts prepared by her licensees are reviewed ______. A. By GREC B. By licensed assistants only C. Within 30 days D. Within three business days

C. Within 30 days Brokers should review contracts for compliance at least every 30 days. Brokers should review the paperwork of associated licensees as needed.

Paula provided her seller client, Amy, with a property disclosure form. Amy didn't claim any known structural or mechanical defects. One of the visitors at Paula's open house was a plumbing contractor who had repaired some pipes in the house and knew there was a major underlying problem. He was very upset that the issue wasn't disclosed. Is Paula legally liable for providing fraudulent information? A. No, licensees are not responsible for providing false information if they didn't know it was false. B. Yes, because Paula should have had an inspection done prior to holding the open house. C. Yes, ignorance of the condition doesn't negate liability. D. Yes, licensees are responsible for the accuracy of all disclosures.

C. Yes, ignorance of the condition doesn't negate liability. Brokers can't be held responsible for false information if they didn't know the information was false.

Suppose your buyer clients has failed to perform the duties set out in the GAR Exclusive Buyer Brokerage Engagement Agreement form. What does the form provide for in such circumstances? A. Both you and the buyer will submit to the mediation process. B. Either you or the buyer may file suit to break the agreement. C. You'll find a mutually agreeable arbitrator to help you resolve your differences. D. Your broker can assign another salesperson at the firm to represent the buyer.

C. You'll find a mutually agreeable arbitrator to help you resolve your differences. The agreement provides that you'll find a mutually agreeable arbitrator to help you resolve disputes. The arbitrator's decision will be final, and the arbitrator will have the authority to include attorney's fees or any other arbitration costs in the final decision and award.

When a mortgage is used as a security instrument, who holds the mortgage and the promissory note? A) The borrower holds the mortgage, and the lender holds the note. B) The borrower holds the mortgage and the note. C) The lender holds the mortgage, and the borrower holds the note. D) The lender holds the mortgage and the note.

D) The lender holds the mortgage and the note. The note and mortgage are the lender's leverage to foreclose in the event of default.

Which of these guarantees is offered by a general warranty deed but not a special warranty deed? A) The property is free of debt or other claims taken on by the grantor during the ownership period. B) The seller is legally allowed to sell the property. C) The seller owns the property (title). D) The seller will defend against all claims against the property's title.

D) The seller will defend against all claims against the property's title. With a general warranty deed, the seller will defend against all claims on title; with a special warranty deed, the seller warrants only those claims that stem from when he owned the property.

What must Georgia's governor do in order to remove a commission member from GREC? A. Deliver a citation to the member. B. File a petition in court. C. Formally sanction the member. D. Give notice and a hearing opportunity to the member.

D. Give notice and a hearing opportunity to the member. The governor may remove a member from GREC under certain conditions, but must first give notice and a hearing opportunity to the member.

Which of the following is true about GREC's licensing authority? A. It may grant, but not revoke, firm licenses. B. It may grant firm licenses, but not individual licenses. C. It may grant individual, but not firm, licenses. D. It may revoke individual or firm licenses.

D. It may revoke individual or firm licenses.

What makes a binder a valid contract? A. A binder is not a binding contract. B. It isn't binding until it's been converted into a letter of intent. C. It's in writing. D. It's in writing, signed by all parties, and communicated to the offeror.

D. It's in writing, signed by all parties, and communicated to the offeror. A binder must be in writing, signed by all parties to be valid, and the acceptance communicated.

Georgia licensee Greg and buyer Sandra's exclusive buyer agency agreement was set to expire on March 1. On Feb 10, Sandra signed a contract with a seller, but it fell through 10 days later due to a home inspection issue. What's the termination date of Greg and Sandra's buyer agency agreement? A. Feb 10 B. Feb 20 C. March 1 D. March 11

D. March 11 Greg and Sandra's buyer agency agreement is extended to accommodate the 10 days they were under contract, so the new expiration date is March 11.

Ansel holds a Georgia salesperson license. From whom may Ansel legally receive compensation? A. From any licensed broker B. From any licensee or consumer C. Only from another broker D. Only from his principal broker

D. Only from his principal broker Both salespersons and associate brokers can only perform real estate activities in association with a principal broker, and can only receive compensation from their own principal broker.

A county may not charge brokers a fixed tax unless they maintain a ______ in the county. A. Client B. Commission of more than $1 C. Listing D. Physical office

D. Physical office A county can't charge a fixed tax to a broker in that county unless the broker maintains a physical office there.

What option does a Georgia licensee have when a notice for a hearing has been received? A. File a counter complaint against the commission. B. Inform the commission of other violations the licensee has witnessed and have the charges dismissed. C. Not show up for the hearing, leading to a delay in the hearing process. D. Reach a settlement with the commission, halting the hearing process.

D. Reach a settlement with the commission, halting the hearing process.

Isabel received a citation from GREC that gave her notice of an unfair practice and included a fine. It also gave her the chance to ______. A. Ask for sanctions instead B. File an injunction against the commission C. Open her own investigation in her defense D. Request a contested case hearing

D. Request a contested case hearing

Which real estate finance instrument in Georgia may include the pledging of collateral and the release of that collateral in the same document? A. Deed of trust B. Mortgage C. Promissory note D. Security deed

D. Security deed Lenders may release the Georgia security deed simply by noting the release on the deed itself.

In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______. A. Contract for deed B. Finance deed C. Promissory note D. Security deed

D. Security deed The security deed is the primary security instrument used in Georgia.

What does BRRETA outline as a buyer broker's responsibility? A. Disclose adverse facts related to the buyer's financial ability to meet the contract terms. B. Disclose adverse neighborhood conditions to potential buyers and tenants. C. Seek a lease at the price and terms stated in the brokerage engagement D. Seek a property to lease at acceptable price and terms. The buyer's broker has a responsibility to disclose material adverse facts related to the buyer's financial situation.

D. Seek a property to lease at acceptable price and terms. The buyer's broker has a responsibility to disclose material adverse facts related to the buyer's financial situation.

With a security deed in Georgia, how may a lender release the deed when the loan is paid off? A. Contact the county land office to execute a reconveyance. B. Execute and record a document called a Satisfaction of Deed to Secure Debt. C. Have an attorney prepare a reconveyance document and then sign it. D. Sign the security deed verifying release of the collateral and re-recording the security deed.

D. Sign the security deed verifying release of the collateral and re-recording the security deed.

With a security deed in Georgia, how may a lender release the deed when the loan is paid off? A. Contact the county land office to execute a reconveyance. B. Execute and record a document called a Satisfaction of Deed to Secure Debt. C. Have an attorney prepare a reconveyance document and then sign it. D. Sign the security deed verifying release of the collateral and re-recording the security deed.

D. Sign the security deed verifying release of the collateral and re-recording the security deed. When the debt is fully repaid, the lender is required to sign the document verifying release of the collateral and re-recording the security deed. Or the lender may instead execute and record a document called a Cancellation of Deed to Secure Debt.

Who or which entity has the authority to bring injunctive action against a real estate licensee for the violation or the potential violation of Georgia license law and GREC's established rules? A. GREC B. The commissioner C. The Georgia attorney general D. The U.S. attorney general

D. The U.S. attorney general The Georgia attorney general has the authority to bring injunctive action against a licensee. GREC can make the request, but the attorney general has the authority.

What does "exclusive" mean in the Exclusive Buyer Brokerage Engagement Agreement? A. The broker will only work exclusively with one buyer. B. The broker won't work as a designated agent. C. The broker won't work as a dual or agent. D. The buyer agrees to work with only one broker.

D. The buyer agrees to work with only one broker. An Exclusive Buyer Brokerage Engagement Agreement means that the broker will be the only broker the buyer works with.

Alicia is about to sign an exclusive buyer agency agreement with her new client, Eric. Which form will she use? A. GAR Exclusive Buyer Brokerage Agreement form B. GREC's mandated buyer agency agreement form C. NAR Exclusive Buyer Brokerage Agreement form D. The form approved in the brokerage policy and procedure manual

D. The form approved in the brokerage policy and procedure manual There isn't a standard buyer representation agreement form used in Georgia. Licensees will use the form their broker prefers.

What's required of a licensee who receives trust funds from a client? A. The licensee can deposit the funds within four business days of accepting them. B. The licensee must deposit the trust funds within 48 hours of accepting them. C. The licensee must deposit those funds as soon as practically possible. D. The licensee must turn the trust funds over to their broker as soon as practically possible.

D. The licensee must turn the trust funds over to their broker as soon as practically possible. Licensees must turn trust funds over to their qualifying broker as soon as possible. To delay is a violation of Georgia license law.

How many years must a Georgia broker retain sales contracts? A. 10 years B. Five years C. Four years D. Three years

D. Three

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? A. Acceleration of Release B. Assumption C. Due on Sale D. Transfer of Rights in Property

D. Transfer of Rights in Property The Transfer of Rights in Property section gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.

New construction multifamily dwellings in Georgia must provide basic accessibility to people with disabilities. This applies to which of the following? A. All units in a multifamily dwelling with six units and no elevator B. Ground floor units in a 10-unit building with no elevator C. Multifamily dwellings ready for occupancy as of 1990 D. Multifamily dwellings with two units and an elevator

If the building has no elevator and four units and was ready for occupancy after March 13, 1991, disability requirements apply to ground floor units.

How many hours of post-licensing education and continuing education (nine hour credit of post-licensing deducted) must a licensee complete after license issuance, and before the four-year license renewal in Georgia? A. 25 B. 36 C. 52 D. 61

Licensees must complete 25 hours of post-licensing education within their first year, and an additional 36 hours prior to their four-year license renewal. Nine of the 25 hour post-licensing hours count towards the 36 hours of continuing education. 25 + 36 - 9 =52.

Financing for a real estate transaction can use a note with a ______, a note with a deed of trust, or, in Georgia, a note with a security deed. A. Mortgage B. Negotiable instrument C. Promise to repay D. Title

Mortgage