Chapter 13: Brokerage Relationships: Other Georgia-specific Laws

Salespersons may accept commissions from a. a client wanting to provide the licensee with a bonus b. their employing/sponsoring broker c. any broker involved in the transaction d. any client represented by the licensee

b. their employing/sponsoring broker

Which of the following best defines agency? a.A real estate licensee's relationship with a customer b. Any relationship between a licensee and a consumer c. A relationship in which the broker acts on behalf of a client with that client's authority d. A real estate brokerage

c. A relationship in which the broker acts on behalf of a client with that client's authority

Which of the following statements is true regarding wills in Georgia? a. Wills regarding real estate can be hand-written. b. Wills regarding real estate can be oral. c. A spouse's right to a year's support can supersede a will. d. will must have three witnesses to be valid.

c. A spouse's right to a year's support can supersede a will.

Which of the following is NOT a duty owed to a client, based on BRRETA? a. Timely presentation of all offers, even if the property is subject to a contract b. Disclosing material facts concerning the transaction known to the licensee c. Discovering adverse material facts unknown to the licensee d. Advising the client to obtain expert advice regarding material matters beyond the licensee's expertise

c. Discovering adverse material facts unknown to the licensee

Which of the following is NOT an example of a brokerage engagement? a. Listing agreement b. Buyer agency agreement c. Escrow agreement d. Property management agreement

c. Escrow agreement

What is the statute of limitations for contracts in Georgia? a. For written contracts not under seal, six years; if under seal, 20 years b. For written contracts not under seal, five years; if under seal, 25 years c. For written contracts not under seal, three years; if under seal, 10 years d. For all written contracts, 10 years

a. For written contracts not under seal, six years; if under seal, 20 years

The Georgia Condominium Act requires that potential buyers are given what period of time in which to rescind the purchase contract? a. Seven days b. 48 hours c. Three days d. There is no right of rescission when purchasing a condominium

a. Seven days

In Georgia, when may a broker represent both parties in a real estate transaction? a. When the broker has obtained prior written consent of both parties b. Only when the broker is acting as a designated agent in a firm c. Only when the principal broker has agreed to the transaction d. Never

a. When the broker has obtained prior written consent of both parties

A home sold for $563,850, and the buyers obtained a loan of $507,000. What was the amount of the transfer tax? a. $563.90 b. $562.85 C. $507.00 d. $506.00

a. $563.90

In Georgia, the period of time required to establish adverse possession is a. 20 years with good title. b. seven years with good title. c. ten years with color of title. d. four years with color of title.

a. 20 years with good title.

Real estate in Georgia is assessed at % of market value. a. 40 b. 33 1/3 c. 25 d. 35

a. 40%

Required notices to terminate a tenancy at will are a. 60 days from the landlord or 30 days from the tenant. b. 30 days from the landlord or 60 days from the tenant. c. 30 days from either the landlord or the tenant. d. 60 days from either the landlord or the tenant.

a. 60 days from the landlord or 30 days from the tenant.

The Georgia law governing agency relationships with clients and customers is known as a. BRRETA b. RESPA c. CERCLA d. GREC

a. BRRETA

Which of the following property rights is recognized in Georgia? a. Equitable right of redemption b. Statutory right of redemption c. Tenancy by the entirety d. Community property

a. Equitable right of redemption

In Georgia, a designated agent is a. an agent appointed to represent either the buyer or seller in a transaction to the exclusion of other company licensees. b. a subagent to the seller as assigned by a cooperative broker. c. a transaction broker. d. a general agent.

a. an agent appointed to represent either the buyer or seller in a transaction to the exclusion of other company licensees.

Practicing real estate without a license could result in? a. issuance of a cease and desist order and a fine of up to $1,000/day. b. a fine of up to $5,000. c. issuance of a cease and desist order but no fine. d. imprisonment of up to one year.

a. issuance of a cease and desist order and a fine of up to $1,000/day.

A property sold for $250,500, and the buyers obtained a mortgage for $200,250. What is the amount of the intangible recording tax for this transaction? a. $600.00 b. $601.50 c. $750.00 d. $751.50

b. $601.50

How many hours of coursework are required to obtain a community association manager license? a. 60 b. 25 C. 35 d. 75

b. 25

Which of the following is true regarding a designated agent? a. A designated agent may share confidential information of the client with other licensees affiliated with the brokerage firm. b. A designated agent may share confidential information with his/her broker. C. A designated agent must share all information with all parties to the transaction. d. A designated agent may not share confidential information with anyone.

b. A designated agent may share confidential information with his/her broker.

Which of the following is true regarding disclosure of material facts? a. A licensee will be held liable for unknowingly providing false information if the licensee was unaware the information was false and disclosed to the client the source of information. b. A transaction broker must disclose to buyers and tenants adverse material facts known to the broker pertaining to the property and neighborhood within one mile of the property. C. A listing agent who has no agency relationship with a buyer is not required to disclose adverse material facts regarding the property to the buyer. d. A prospective buyer is not responsible to inspect the property for any adverse conditions if the buyer is represented by a licensee.

b. A transaction broker must disclose to buyers and tenants adverse material facts known to the broker pertaining to the property and neighborhood within one mile of the property.

Which of the following is a true statement regarding advertising? a. A broker can never advertise another firm's listings. b. All advertising must be under the direct supervision of the broker and in the name of the firm. c. The Commission does not require franchise names to be included in advertising. d. There are no requirements addressing the size of the brokerage name in comparison to the size of the name of licensees.

b. All advertising must be under the direct supervision of the broker and in the name of the firm.

What right of rescission does a consumer have when entering into a contract to purchase a timeshare? a. 48 hours following the execution of a contract b. Seven days following the execution of a contract c. Three days following the execution of a contract d. 72 hours following the execution of a contract

b. Seven days following the execution of a contract

Which of the following is a duty of a buyer's agent? a. Ensuring that the seller and seller's agent are aware of the buyer's financial situation to encourage acceptance of an offer b. Timely presentation of any offer, even if the subject property is under contract c. Investigating and discovering any material defects in the property or neighborhood d. Advising the buyer that a home inspection is not necessary because the seller must disclose any defects

b. Timely presentation of any offer, even if the subject property is under contract

A licensee providing preprinted forms and acting as a scribe in the preparation of real estate contracts a. can be performed only by an agent of the buyer. b. are ministerial acts performed for a customer. C. creates an agency agreement between the licensee and the potential buyer. d. is prohibited by a designated agent.

b. are ministerial acts performed for a customer.

Which of the following duties is owed by a licensee to all parties to the transaction? a. confidentiality b. disclosure of material facts c. loyalty d. obedience

b. disclosure of material facts

Which of the following statements is NOT true regarding the brokerage in response to designated agency? a. The broker may delegate assignment responsibility of designated agency to other management personnel. b. Company policy must contain a provision to ensure each client is represented as required by law. c. If the broker appoints designated agents, broker and brokerage will be deemed to be dual agents. d. There is no imputation of information between broker, designated agents and clients.

c. If the broker appoints designated agents, broker and brokerage will be deemed to be dual agents.

Which of the following is NOT a penalty that can be levied by the Commission for license law violations? a. Suspension b. Revocation of license c. Imprisonment d. Fines

c. Imprisonment

Which of the following statements is true regarding a licensee engaged by the seller? a. The licensee has a duty to discover potential adverse facts affecting the property. b. The licensee is liable for providing false information given to the licensee by the seller. c. The licensee must present all offers to and from the seller, even when the property is subject to a contract. d. The licensee owes confidentiality and loyalty to the buyer.

c. The licensee must present all offers to and from the seller, even when the property is subject to a contract.

Which of the following DOES NOT terminate an agency relationship? a. Completion of performance of the engagement b.Any authorized termination of the relationship c. Written notice of the broker d. If no expiration is provided and no termination occurred, one year after initiation of engagement

c. Written notice of the broker

A transaction broker is best defined as a. a broker who represents both parties in the transactions. b. a broker whose affiliated licensees serve as designated agents. c. a broker who provides assistance to consumers by performing ministerial acts. d. a broker who represents only one of the parties to the transaction.

c. a broker who provides assistance to consumers by performing ministerial acts.

Responsibilities to clients engaged by broker include all the following EXCEPT a. seeking a sale or leasehold at the price and terms stated in the brokerage engagement, or as acceptable to seller or landlord client. b. seeking property at price and terms in the buyer or tenant brokerage agreement, or at price and terms acceptable to buyer or tenant client. c. advising the client on legal issues and matters beyond the expertise of the broker. d. disclosing to the client all material facts concerning the transaction of which the broker has actual knowledge.

c. advising the client on legal issues and matters beyond the expertise of the broker.

BRRETA requires brokers to disclose brokerage relationships with a customer or client a. within 24 hours of beginning the agency relationship. b. immediately upon beginning the agency relationship. c. in a timely manner, but no later than when any party first makes an offer. d. prior to writing an offer.

c. in a timely manner, but no later than when any party first makes an offer.

A broker engaged by the seller must present all offers to and from the seller a. within 24 hours. b. immediately upon receipt. c. in a timely manner. d. within 48 hours.

c. in a timely manner.

The most common mortgage instrument for real estate loans in Georgia is a a. mortgage. b. promissory note. c. security deed. d. contract for deed

c. security deed.

BRRETA requires that dual agency disclosure contain all the following statements EXCEPT a. description of transactions or types of transactions in which the broker will serve as a dual agent. b. that, as a dual agent, the broker represents two clients whose interests at time could be adverse. c. that the dual agent is prohibited from disclosing adverse material facts to either party in a dual agency relationship. d. that the client is not required to consent to dual agency.

c. that the dual agent is prohibited from disclosing adverse material facts to either party in a dual agency relationship.

Regarding a broker's legal relationship with customers and clients, BRRETA states that a. brokers who perform brokerage services for clients owe fiduciary duties to clients. b. brokers who perform brokerage services for customers owe fiduciary duties to customers. c. the broker is not considered to have fiduciary relationship or owe fiduciary obligations to the client but is responsible for exercising reasonable care in the discharge of duties. d. the broker has a duty to discover any potential adverse facts affecting the property.

c. the broker is not considered to have fiduciary relationship or owe fiduciary obligations to the client but is responsible for exercising reasonable care in the discharge of duties.

hich of the following statements is correct regarding agency relationships in Georgia? a. A broker must represent the party who is paying the broker's commission. b. Licensees have an obligation to advise clients on the legal aspects of real estate contracts. c. Ministerial acts are services performed to assist the licensee's client. d. Disclosure of information between the broker and an affiliated licensee representing the client is not a breach of confidentiality.

d. Disclosure of information between the broker and an affiliated licensee representing the client is not a breach of confidentiality.

Which of the following is a protected class per Georgia fair housing law? a. Age b. Ancestry c. Marital status d. Family status

d. Family status

Which of the following is an INCORRECT statement regarding security deposits? a. Security deposits must be returned within one month, or the tenant must be provided with written statement of the reason for retention. b. Prior to accepting a security deposit, the tenant must be given a list of any existing damages. c. Within three business days of occupancy termination, landlord or landlord's agent must inspect premises, list damages and estimate values for keeping any portion of deposit. d. If the tenant refuses to sign the damages list, he/she should not list in writing the items to which the tenant dissents.

d. If the tenant refuses to sign the damages list, he/she should not list in writing the items to which the tenant dissents.

Which of the following is NOT a duty required of the transaction broker? a. Timely presentation of all offers to and from parties involving sale, lease, and exchange of property b. Timely accounting of all money and property received by broker on behalf of parties in transaction c. Timely disclosure to all buyers and tenants with whom broker is working, adverse material facts pertaining to property's physical condition d. Obeying all lawful directions of the customer

d. Obeying all lawful directions of the customer

Which of the following statements is accurate regarding property management transactions? a. Only the landlord has a duty to disclose adverse material defects. b. Only the broker has a duty to disclose adverse material defects. c. The broker and landlord are solely responsible for discovering and disclosing adverse material facts. d. Prospective tenants have an obligation to inspect and familiarize themselves with potentially adverse physical conditions of the property and neighborhood.

d. Prospective tenants have an obligation to inspect and familiarize themselves with potentially adverse physical conditions of the property and neighborhood.

When and to whom is a licensee required to disclose agency relationship? a. To the client only, prior to closing b. To the client only, at the time of writing or presenting an offer c. To all parties, prior to closing d. To all parties, in a timely manner, but no later than when any party first makes an offer

d. To all parties, in a timely manner, but no later than when any party first makes an offer

Which of the following is NOT a legally recognized form of agency in Georgia? a. Designated agency b. Single agency c. Buyer agency d. Undisclosed dual agency

d. Undisclosed dual agency

Closings of real estate transactions in Georgia must be conducted by a. the listing broker. b. either the listing broker or selling broker. c. both the listing broker and selling broker. d. an attorney.

d. an attorney.

Complaints may be filed against Georgia licensees by a. clients only. b. customers only. c. consumers who are not licensees. d. anyone.

d. anyone

To renew an inactive license to active status, the licensee must do all the following EXCEPT a. obtain the signature of his/her broker. b. meet continuing education requirements unless the licensee maintained an active license in another state with continuing education requirements while inactive. c. pay a renewal fee. d. retake the licensing exam but not the pre-license course.

d. retake the licensing exam but not the pre-license course.