Georgia Real Estate Exam Review Part A
A real estate broker wishes to deposit an earnest money check in his business operating account until settlement, so the purchaser can earn a higher rate of interest on his funds. Can he legally do this? A. Yes, if the purchaser receives a comparison of available interest rates B. Yes, if the broker promises to insure such funds will be available at closing C. No, these funds must be placed in a separate escrow account D. No, the broker cannot guarantee a higher interest rate
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C All funds held for others must be deposited in a separate escrow account, NOT in the business operating account.
Which of the following would NOT be an agent? A. A real estate salesperson handling only referrals. B. A property manager employed by the owner. C. A person working for a multiple listing service. D. A person holding a power of attorney.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C An agency relationship is created when one person (the client) delegates to another (the agent) the right to act on his behalf in a business transaction. All of these choices would be agents except an individual working for a multiple listing service. That person is an employee of MLS.
An unlicensed assistant cannot: A. assemble contracts and other documents. B. locate signs on property. C. host open houses. D. check on loan commitments.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C An unlicensed assistant cannot host open houses.
All property other than real property is known as? A. Fixtures. B. Appurtenances. C. Chattel. D. Easements.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Any property not known as real property is chattel (personal property).
Broker Bob fears that a lawsuit will bankrupt his firm, so he puts a large sum of the firm's money in the firm's trust account. This is an example of: A. Disintermediation. B. Conversion. C. Commingling. D. Misappropriation.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Broker Bob has mixed the firm's money with client's money, which is an commingling
The commission received by a listing broker who is a member of a multiple listing service is: A. Set by the MLS. B. Set by the local realty board. C. Negotiated between broker and seller. D. Negotiated between buyer and seller.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Commission rates are ALWAYS negotiated between the broker and the client. No group of people can set rates, and any attempt to do so would be a violation of antitrust laws.
In order to qualify for a broker's license an applicant must: A. be at least 18 years old. B. complete an approved course and have at least 2 years as an active licensee. C. complete an approved course and have at least 3 years as an active licensee. D. complete an approved course and have at least 5 years as an active licensee.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Complete an approved course and have at least 3 years as an active licensee. The applicant must also be at least 21 years old and must be of good moral character.
Condemnation is the exercise of A. eviction. B. estoppel. C. eminent domain. D. escheat.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Condemnation is the exercise of eminent domain.
Condemnation is the means by which the state exercises its power of A. eviction. B. estoppel. C. eminent domain. D. escheat.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Condemnation is the means by which the state exercises its power of eminent domain.
A homeowner tells a broker that he would like to sell his house. The broker agrees to sell the house. This agreement would be considered: A. An express contract. B. An implied contract. C. An illegal contract as it requires a writing. D. An equilateral contract.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A This is an example of an express contract. The principal (seller) has expressed what he wants done and the agent (broker) has expressed his intent to comply with the request. This is a verbal listing agreement (contract) and the statute of frauds does not say that verbal real estate contracts are illegal, it just says that they are NOT enforceable.
The accumulation of soil on an owner's property caused by the movement of water is known as: A. Accretion. B. Riparian. C. Assemblage. D. Annexation.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A This is known as accretion.
A title insurance policy would likely protect the policyholder against each of the following, EXCEPT: A. Unrecorded easements. B. Recorded deeds that were forged. C. Recorded deeds signed by a mentally incompetent grantor. D. Title problems caused by a confusion over similar names.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Title insurance policies ordinarily do not cover unrecorded documents, such as unrecorded easements.
Court action taken to require the parties to a contract to carry out the terms and conditions of a contract is known as a suit for: A. Specific performance. B. Quiet title. C. Quiet enjoyment. D. Punitive damages.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A To force someone to carry out the terms of a contract that they had previously agreed to is known a suit for specific performance.
A trade fixture: A. Can be affixed to real property without becoming a legal part of the property. B. When affixed to a real property becomes an improvement. C. Automatically conveys with real property when sold. D. Cannot be removed.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Trade fixtures remain the personal property of the owner and can be removed prior to termination of the lease. The tenant would be required to repair any damage caused by the renewal.
Upon his death, Mr. Williams left his house to his niece and his furniture to his nephew. The gift to the niece is best described as: A. Devise. B. Bequest. C. Decree. D. Assumption
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: B Real property conveyed by a will is a devise. Personal property is a bequest.
If a property owner holds fee simple defeasible title, his or her title is subject to certain specified conditions. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: B The statement is true. Fee simple defeasible title means the ownership is subject to specified conditions.
Community property is a statutory estate. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: B The statement is true. It is statutory in the sense that it created by statute (law) in community property states.
Powers of the federal government include all of the following EXCEPT A. the right to impose a tax lien for unpaid real property taxes. B. the right to condemn property for the public good. C. the right to file liens for unpaid income taxes. D. the right to impose a tax lien for unpaid estate taxes.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: C The federal government does not have the power to levy property taxes and therefore cannot place liens against property for failure to pay property taxes.
Which of the following best describes a condominium unit? A. Personal property B. Air lot C. Stock ownership D. Interval ownership
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Condominium units are referred to as "air lots," since what the owner actually owns is a a cubicle of airspace that lies between the interior surfaces of the unit walls, and between the floor and the ceiling.
Condominiums come under which of the following? A. Homestead Act B. Horizontal Property Act C. Parallel Property Act D. Vertical Property Act
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Condominiums are governed by a Horizontal Property Act or Condominium Act.
All of the following are encumbrances EXCEPT A. easements. B. emblements. C. mortgages. D. restrictions.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Easements, mortgages and restrictions are encumbrances. Emblements (crops) are not an encumbrance.
Three people own a piece of property as tenants in common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell could file a suit, against the third, for: A. Foreclosure B. Partition C. Detachment D. Severance
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Filing a suit for partition is to ask the courts to partition the property or, if undividable, sell the property and divide the proceeds. A suit for partition can be used in situations that involve both joint tenants and tenants in common.
Three people own a piece of property as tenants in common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell could file a suit, against the third, for: A. Foreclosure. B. Partition. C. Detachment. D. Severance.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Filing a suit for partition is to ask the courts to partition the property or, if undividable, sell the property and divide the proceeds. A suit for partition can be used in situations that involve either joint tenants and tenants in common.
There are three owners of a property. They own 10%, 20% and 70% respectively. What type of ownership do they have? A. Joint tenancy. B. Tenancy in common. C. Tenancy by the entireties. D. Ownership in severalty.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B For joint tenancy, each tenant must have an identical interest in the property (unity of interest). Under tenancy in common, each owner may have a different percentage of interest. Tenancy by the entireties is reserved ONLY for husband and wife and severalty applies to only one person.
Which of the following is considered to be real property? A. A crop of wheat. B. Fruit trees in an orchard. C. A tent pitched and used to protect farm equipment. D. Fruit on the trees in the orchard.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Fruit trees are things growing on the land and are real property. Crops (the wheat and the fruit) are emblements, and a tent is not permanent.
Which of the following is NOT true about metes and bounds? A. The metes and bounds survey ends at the point of beginning. B. The distances shown in the deed will prevail over the actual distances measured. C. The length of metes in the survey can be measured to one hundredth of a foot. D. The monument at the point of beginning should be as permanent as possible.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B If there is a difference between the distances shown in the deed and the actual distances measured by survey, the data in the survey will be prevail over the data contained in the deed.
The order of priority of liens would most likely be A. mortgage, tax, mechanic's. B. tax, mortgage, mechanic's. C. mechanic's, tax, mortgage. D. mortgage, mechanic's, tax.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The order of priority of liens would most likely be tax lien, mortgage lien, mechanic's lien. Tax liens always come first. Lenders are careful not to loan money against properties which are subject to mechanic's liens. Mechanic's liens would most often relate to work done after the mortgage was in place.
A property owner wants to put a family room on the side of his house, but finds that the side yard restrictions interfere with his plans. He should apply to the local government for a: A. Spot zoning change. B. Zoning variance. C. Planned unit development. D. Subdivision revision.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The owner will apply for a zoning variance. This variance will apply only to one specific property and NOT to all property in the area. If it applied to ALL property in the area it would constitute a zoning change.
When an owner of real estate leases his property he retains a reversionary estate. This gives him the right to: A. reclaim his property when he sees that the tenant has abused it in some way. B. reclaim the property at the end of the lease term. C. sell the property. D. inspect the property at reasonable intervals.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The owner's reversionary estate gives him the right to reclaim the property at the end of the lease term.
Three people inherit a piece of property by will. How would they take title by default if no other form of ownership is stated? A. Tenants by the entireties. B. Tenants in common. C. Joint tenants. D. Tenants in severalty.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The problem does not state that they each received an equal interest which is mandatory for joint ownership. Entirety is reserved for husband and wife and severalty is one person only. The law provides that when there is co-ownership (more than one owner), title will be as tenants in common, unless the deed is specific as to some other form of ownership.
A legal procedure or action initiated by either buyer or seller to enforce the terms of a sales contract is known as: A. An option. B. A suit for specific performance. C. A suit for quiet title. D. A statute of frauds.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The question describes a suit for specific performance.
A buyer has given an earnest money deposit to Broker Bob, who has deposited the money in his trust account. A dispute has arisen between the buyer and the seller as to whether the offer was accepted prior to its stated expiration. Broker Bob turns the money over to a court and asks the court to determine who should rightfully receive the money. This court procedure is called a(n): A. Intercessory action. B. Interpleader action. C. Arbitration action. D. Nomenclatural action.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The question describes an interpleader action.
If a person pays for the right to purchase property at a specified price, within a specified time, the person has: A. A right of first refusal. B. An option. C. A sales contract. D. A lease.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The question describes an option.
A type of land title system whereby owners receive a registered certificate of title through the court is the: A. Basel system. B. Torrens system. C. Judicial order system. D. Common law system
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The question describes the Torrens system of land registration.
The phrase "a broker who has not entered into an agency relationship with any of the parties to a particular real estate transaction, and who performs only ministerial acts on behalf of one or more of the parties, for which he or she is paid valuable consideration" describes a: A. Designated broker. B. Transaction broker. C. Standard broker. D. Ministerial broker.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The quoted phrase gives the definition of a transaction broker.
A listing contract signed by both the seller and broker, in which the seller promises to pay and the broker promises to do things such as advertise and show the property, is a unilateral contract. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. The question states that both parties make promises, so this is a bilateral contract.
Property taxes on cooperative units are assessed in the form of: A. Individual tax bills for each unit. B. A single tax bill prorated among individual units. C. Annual tax bills based on the type of unit. D. Biannual tax bills based on the type of unit.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The tax bill is issued to the corporation or owner entity and then is prorated among the proprietary tenants
The document that determines what type of improvements you can build in a certain area is: A. Master plan. B. Zoning ordinance. C. Spot zoning. D. Bulk zoning.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The zoning ordinance would dictate the type of improvements that you can build in a given area.
A buyer and seller entered into a valid contract. The buyer, for personal reasons, asked to be released from the contract. The buyer located someone else to buy the property. The seller entered into a new contract with the other person and released the first buyer from any obligation. This would be an example of: A. Assignment. B. Novation. C. Implied consent agreement. D. Redemption.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B This is a novation of the contract. The difference between assignment and novation is that one party agrees to substitute another party and relieve the first party from liability. With an assignment the first party remains at least secondarily liable.
A home is empty and the neighbor has been parking his car in the driveway for 7 years. Is the neighbor entitled to claim title to the property? A. Yes, under adverse possession law B. No, because the required time period has not been met for adverse possession C. Yes, under law governing easements by prescription D. No, because the required time period for an easement by prescription has not been met.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B This neighbor has no claim to title. The 20 year requirement for adverse possession has not been met. An easement by prescription would not convey title to the property.
Surface rights consist of only the right to control, occupy, and use the surface area of a parcel of real estate. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B This statement is false. It includes the enjoyment of improvements and growing crops as well.
What is the most common way to determine if there are any encumbrances related to a particular piece of property? A. Obtain a certificate of title. B. Conduct a title search. C. Prepare an abstract of title. D. Request an affidavit of title from the court.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B To discover encumbrances relating to a parcel of land, you would most often order a title search. In some cases an abstract of title may be obtained after the title search.
Examples of possible real estate monopolistic activities would include: A. A broker and his sales associate establishing a commission fee. B. Commission rate fixing between two or more brokers. C. Exclusion from multiple listing services because of failure to meet the membership requirements. D. All of these choices.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Two brokers cooperating to set a commission would be a monopolistic activity in violation of anti-trust law. A broker can set a commission together with a sales associate. The exclusion from the MLS for not meeting membership standards is not monopolistic either.
A contract for the sale of land in which the buyer makes regular payments, takes possession, but does not receive title is known as a(n): A. Mortgage. B. Land contract. C. Lease. D. Option.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B What is described could be either a land sales contract, an installment contract or a contract for deed. In each of these the buyer makes payments, takes possession but the seller retains legal title until all payments are made.
If a person dies intestate leaving real property as part of her estate, her heirs will acquire title according to: A. a formal will. B. the law of descent and distribution. C. escheat. D. an administrator.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B When a person dies intestate (without a will), the heirs inherit the property under the state's law of descent and distribution.
A gas station, located in an area that is currently zoned residential, is destroyed in a windstorm. Which of the following is true? A. The owner may rebuild since he was using the property as a gas station before it was zoned residential. B. The owner may rebuild only if he obtains a variance or spot zoning permit. C. The owner may restore the property to its original condition, but may not build or expand beyond the original structure. D. The owner may not rebuild under any condition.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: C The owner would have to obtain either a variance or a spot zoning permit to rebuild on the same lot.
Broker Bob has made a decision not to establish a trust account for the brokerage firm. In what circumstances is this decision permissible? A. In all circumstances, since trust accounts are not required. B. Only if the firm will not hold funds which belong to clients. C. Only if the firm has sufficient surety bond coverage to offset the liability to clients. D. Under no circumstances, since trust accounts are a requirement of all brokerage firms in Georgia.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: D Firms may choose not to establish a trust account only if the firm will not be holding funds which belong to clients.
The owner of a unit in a cooperative gains the right to occupy the unit through a: A. Stock certificate. B. Proprietary lease. C. Rental agreement. D. Standard lease agreement.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: D The best answer is that it is the proprietary lease which gives the owner the right to occupy the unit. Granted, they must purchase the stock, but it is the lease which grants occupancy.
If a court finds an individual guilty of illegally operating without a real estate license, the individual could be sentenced to jail time of up to: A. Six months. B. 1 year. C. 3 years. D. 5 years.
>> CORRECT ANSWER IS: B The court could sentence the person to up to 1 year in jail for operating without a real estate license.
In a valid real estate contract, the seller is known as the: A. Offeror. B. Vendor. C. Grantee. D. Mortgagor.
>> CORRECT ANSWER IS: B The seller is the vendor. The buyer is the vendee. Think of the man selling hot dogs at a ball park, he is a vendor, a person who sells.
If a seller has delivered a deed into escrow, but dies before the closing of the sale, the deed is not considered to have been delivered, and the sale need not be consummated. ( True/False )
>> CORRECT ANSWER IS: B The statement is false. The delivery of a deed into escrow relates back to the date of delivery into the escrow.
Title to real property is conveyed by deed when: A. signed by the grantor. B. recorded by the grantee. C. delivered and accepted. D. signed by the grantee.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: A Title transfers when the deed is delivered and accepted.
In terms of ownership, PUDs most clearly resemble A. leasing. B. cooperative ownership. C. condominium ownership. D. time-share ownership.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: B In terms of ownership, PUDs most clearly resemble condominium ownership.
Two brokers form a partnership, each with a 50% interest. One is the general managing partner and the other is a sales broker. What type of ownership do the brokers have? A. Tenancy in common. B. Limited partnership. C. General partnership. D. Joint tenancy.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: B The type of business arrangements described in the stem of the question is a general partnership. Since there was no mention of the sales broker having limited liability, one cannot assume it is a limited partnership.
If you are showing property you are listing and tell a prospective buyer that "...this property is the best for you," the relationship created could be interpreted as: A. Universal agency B. Special agency C. Implied agency D. General agency
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: B This could create an implied agency, which might result in an undisclosed dual agency.
Which of the following is NOT an example of a real estate contract? A. Purchase and sales agreement. B. Lease agreement. C. Bill of sale. D. An offer to purchase agreement
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A bill of sale is used to convey personal property, not real property.
Which of the following is true of a contract under novation? A. A new contract replaces the old one. B. The old contract is void. C. The original parties to the contract remain jointly and severally liable with the new parties. D. A new party is assigned the rights of an old party.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A new contract replaces the old one is the basic definition of novation. The old contract is not void, but is extinguished (ceases to be).
A cloud on a title could be removed by: A. A quitclaim deed. B. A covenant of seizen. C. A suit for specific performance. D. An injunction.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A quitclaim deed is commonly used to remove "clouds" from a title. Another option available is a quiet title suit if there is a legally correctable defect in the title.
Each of the following is an involuntary method of conveying property EXCEPT A. quitclaim deed. B. escheat. C. condemnation. D. adverse possession.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A quitclaim deed is not an involuntary method of conveying property.
Alienation refers to change of ownership, not just by a deed. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Alienation refers to any change of ownership.
Which of the following statements is NOT true? A. Only money held for others must be deposited into a properly labeled trust account. B. Property managers must keep track of trust funds by client. C. Commingling is illegal. D. When a broker opens a trust account he must notify the commission within 1 month.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A All money OR VALUABLES held for others must be deposited into a properly labeled trust account.
An attorney-in-fact is someone who has received a _________ from someone else. A. Power of Attorney. B. Power of Substitution. C. Lis Pendens. D. Proxy.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A An attorney-in-fact is appointed by a power of attorney from someone else.
A broker has an exclusive-right-to-sell listing, but the owner finds a buyer and sells the property while the listing is still in force. The broker is entitled to: A. A full commission. B. 50% of the commission. C. Reimbursement for out of pocket expenses. D. No commission, because the owner sold the house himself.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A An exclusive right-to-sell entitles the broker to a full commission regardless of who sells the property, even if the owner sells it himself.
Which best describes marketable title? A. reasonably free from the risk of litigation over possible defects B. the right to obtain ownership to property when title is held in another's name C. proof of ownership D. statement of opinion of the title's status
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Marketable title is title reasonably free from the risk of litigation over possible defects.
Which of the following are appointed by the governor? A. Members of the Georgia Real Estate Commission. B. The Real Estate Commissioner. C. Real estate instructors. D. Georgia Real Estate Commission employees.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Members of the Georgia Real Estate Commission are appointed by the governor. The Real Estate Commissioner is an employee hired by the Real Estate Commission.
Which contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land? A. Metes and bounds. B. Rectangular survey. C. Subdivision lot and block. D. Government survey.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Metes and bounds contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land.
Carla, through her broker, is representing a buyer. Carla finds a house and the sale is made. Carla will receive her commission from which of the following? A. The broker that holds her license. B. The broker that listed the house that Carla sold. C. The settlement attorney handling the closing. D. The buyer, per his or her agreement with Carla.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A One thing you MUST remember is that a salesperson or an associate broker may ONLY receive compensation from his or her employing broker or the broker that holds his or her license.
The owner of a cooperative apartment unit: A. Owns stock in a non-profit corporation. B. Holds fee simple title that may be sold, mortgaged or leased. C. Owns the unit in fee simple with an undivided interest in the common elements. D. Holds title in partnership with unit owners.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Owners of cooperative units own stock in a non-profit corporation.
A deed is given and creates a joint tenancy. To be recorded the deed requires: A. Signature of the grantor. B. Signatures of the grantor and all of the joint tenants. C. Signatures of the grantor and one of the joint tenants. D. No signatures, the act of recording serves as constructive notice of ownership.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The only signature required for the validity of a deed is the signature of the grantor.
David owns property along the banks of the Little Big Horn River. Scott owns property adjoining David's, and has access to the highway, but not to the river. Scott and David grant each other appurtenant easements to cross each other's property to get to the road and the river respectively. The riparian rights associated with property ownership belong to: A. David because his property abuts the river B. Scott, because he has an easement to cross David's land C. Both David and Scott D. Neither, the granting of the easement revoked David's rights and Scott's property does not abut the river
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The owner of property that borders (abuts) on flowing water has riparian rights.
The purpose of a zoning ordinance is to: A. Promote the health, safety and general welfare of the public. B. Promote building conformity. C. Comply with Federal regulations. D. Assure higher resale values.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The purpose of zoning would be to promote the health, welfare and safety of the public. Building conformity is a result of building codes, not zoning.
A bill of sale is to personal property as a deed is to real property. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true -- bills of sale are used to transfer personal property while deeds are used to transfer real property
A real estate brokerage firm must be licensed as a real estate broker. A. True. B. False.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
A tenancy by the entireties will be severed by divorce. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
Common areas are owned as tenants-in-common with other condominium owners. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
Easements are terminated when the need for the easement no longer exists. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
Judgment liens are general, statutory, involuntary liens that attach to real and personal property. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
Restrictive covenants are a type of private zoning. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
State and local government police power is derived from the U.S. Constitution. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true.
Title by accession is involuntary alienation. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true. Accession occurs when soil from somewhere else is deposited on a shoreline.
Unless agreed to in writing by all the parties, the broker is not entitled to a commission until the transaction has been consummated. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The statement is true. Unless agreed to in writing by all the parties, the broker is not entitled to a commission until the transaction has been consummated.
When a developer records a plat showing property in three dimensions (length, width and height), he or she would be developing: A. An industrial park complex. B. A PUD which is for single family homes only. C. A multi-story condominium complex. D. A large one story shopping mall.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Condominium estates created by the developer would have to be shown on a plat in three dimensions (width and depth of each unit PLUS its height). Generally, fee simple ownership includes surface rights, rights to the ground under the property to the center of the earth and to the air above, all the way to the sky. A condo unit only includes the space between the floor and the ceiling.
The donation of real estate for public use is A. reverse condemnation. B. eminent domain. C. dedication. D. escheat.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Donation of real estate for public use is dedication.
Economic controls on the economy in general are enacted by: A. The federal government only. B. State governments only. C. Both federal and state governments. D. Neither federal nor state governments.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Economic controls on the economy are enacted by both the federal and state governments.
Which of the following is NOT a private limitation on title? A. liens B. deed restrictions C. eminent domain D. encroachments
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Eminent domain is not a private limitation on title. It is the power of government to take private property when needed for a public use.
An area of the city is rezoned residential. Would this change threaten a bowling alley which was already in use on this area? A. Yes, the owners would have 30 days to move. B. Yes, because the bowling alley does not qualify as residential. C. No, because the bowling alley was already there when the zoning changed. D. No, because the area residents would find it desirable to have this recreational facility easily available.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The bowling alley is a non-conforming use. It was in the area before the zoning changed and it would be allowed to remain.
Which of the following terms does NOT refer to a land description method adopted because of western expansion? A. Government survey system. B. Geodetic survey system. C. Rectangular survey method. D. Subdivision plat method.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: B The Subdivision Plat System did not originate as a result of western expansion. The other choices are all names synonymous with the US Government Rectangular Survey method, which did result from western expansion.
Francoise is awarded a judgment lien against Gerald. Gerald's only asset is his real property worth approximately $20,000. This property already has a tax lien, a mortgage lien and a recorded mechanic's lien. If the property is sold at a foreclosure or trustee's sale, Francoise can expect to collect on the judgment lien, before which of the following: A. The mortgage. B. The tax lien. C. The mechanic´s lien. D. None of the above.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: B The order of priority of liens is generally the order in which the liens are recorded EXCEPT that property tax liens have priority over all others. Thus, Francoise's judgment lien would be last in priority for collection.
One would normally use a survey to identify all of the following EXCEPT: A. Legal location of the property. B. Violations of the zoning set-back ordinances. C. Encroachments of the property. D. Liens on the property.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A survey would uncover physical things about a property such as set-back violations and encroachments since the surveyor looks down the boundaries while taking the distance and direction measurements. A survey by a certified surveyor is the most accurate legal description of property. Being a physical inspection the survey would not identify any information relative to the title of the property.
How can an agency relationship be created? A. Written document. B. Action of the parties. C. Words of the parties. D. Any of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Agency can be either an express agency, as in a written or oral agreement, or it can be an implied agency, as with action or words.
In order to advertise a property for a client, the licensee must: A. advertise under the name of the broker. B. have the owner's written permission. C. include the firm's telephone number. D. all of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D All of the choices are true statements.
Which of the following statements regarding trust accounts is true under Georgia real estate law and regulation? A. Trust accounts must be held in accounts which are federally insured. B. Client funds must be deposited in trust accounts promptly. C. If the trust account is interest-bearing all parties must be informed about how and to whom the interest will be paid. D. All of these statements are true.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D All of the given statements are true.
A person who owns a fee simple estate may be subject to which of the following controls? A. Zoning and building codes. B. Restrictive covenants and sub-division restrictions. C. Escheat. D. All of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D All of these are restrictions on private property. Zoning, building codes and escheat are rights of the government. Restrictive covenants and subdivision restrictions are usually private in nature. Even though you own the property in fee simple you are subject to all of the restrictions listed.
Jones buys a lot that has no access by way of a public road. He can gain access to his land by way of his neighbor's land that has public road access A. Only if the grantor of the property caused the lot to be landlocked. B. Only if his neighbor agrees to give him an easement. C. Only by establishing an easement by prescription. D. Either if the grantor of the property caused the lot to be landlocked or if his neighbor agrees to give him an easement.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: C Jones can gain access to his land by way of his neighbor's land that has public road access either if the grantor of the property caused the lot to be landlocked or if his neighbor agrees to give him an easement.
Asbestos would most likely be found where in a house? A. Around electrical wires B. In the paint C. Around the fireplace D. Around pipes
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: C Prior to 1979, asbestos was a common building material and was used in floor tiles, ceiling tiles, roofing material and as insulation around pipes and heat ducts.
The unities of time, title, interest, and possession are required in order to create: A. an undivided interest in the property as a whole. B. separate ownership. C. concurrent ownership. D. the right of survivorship.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: C The unities of time, title, interest and possession are required for a joint tenancy, which has a right of survivorship.
Which of the following is NOT a legal description of real property? A. Metes and bounds. B. Lot and block. C. Rectangular survey system. D. Taxpayer Federal ID#.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A Federal ID # identifies a person or a corporation. It does not identify real property. The other choices are all valid methods of legal description.
A bill of sale would be used instead of a deed for all EXCEPT which of the following? A. Boat. B. Car. C. Motorcycle. D. Real estate.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A bill of sale would not be used instead of a deed for any real estate.
Which of the following is an enforceable deed restriction? A. Exterior design. B. Building size. C. Limitations on the height of trees. D. All of these choices are enforceable.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A deed restriction is a limit on the use of the property placed on the property by the owner. It could control and restrict the use of the property for any of the reasons given. It may NOT be a restriction that would be in violation of the law, such as Fair Housing.
Broker Jane is acting as a dual agent in a real estate transaction and decides to appoint salesperson Sara to represent the seller and salesperson Ben to represent the buyer. Ben and Sara both work in Jane's firm. A. Jane cannot legally do this. B. Ben and Sara are dual representatives. C. Ben and Sara must be independent contractors. D. Ben and Sara are designated representatives.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A designated agent or representative is a licensee who has been assigned by a supervising or principal broker to represent a client when a different client with opposing interests is also represented by that broker in the same transaction. The broker in this situation would be a dual agent.
The type of deed in which the grantee is given the most protection and in which the grantor retains the most liability is: A. a quitclaim deed. B. a deed of bargain and sale. C. a grant deed. D. a general warranty deed.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A general warranty deed. offers the buyer the greatest protection by the seller and therefore has the highest liability for the seller.
What is the maximum period a licensee may remain inactive? A. 2 years. B. 5 years. C. 10 years. D. Indefinitely.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A licensee may remain on inactive status indefinitely.
A quitclaim deed may be used to: A. Transfer ownership of a fee simple estate. B. Transfer interest in a life estate. C. Terminate an easement. D. Any of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A quitclaim deed CAN be used to transfer any interest in real property from one party to another. It is normally used for the transfer of an interest that is less than fee simple.
Which of the following is not considered a legal description? A. Metes and bounds. B. Lot and block. C. Government method of survey. D. Street address, city, state and zip code.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A street address is NOT a valid legal description because the street name is subject to change.
After the statutory period has elapsed, what would a person have to do to formally establish clear title through adverse possession? A. File an estoppel certificate. B. File a warranty deed. C. Apply for a writ of attachment. D. File suit for quiet title.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D A suit to quiet title would be filed in order to establish the ownership rights of the adverse claimant.
An offer is accepted by all parties with a settlement date of September 5. Three days prior to settlement the purchaser notifies the seller that funds are not available and settlement cannot take place as scheduled. Which of the following options are available to the seller? A. Sue for specific performance. B. Sue for monetary damages. C. Allow rescission of the contract. D. Any of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D All of these choices are available to the seller if the purchaser is unable to settle on the scheduled date and all of the other contract provisions are fulfilled. Although not listed as a choice, the seller could also agree to a change of the settlement date.
Which of the following statements about liens is ALWAYS true? A. A lien is an encumbrance on title. B. A lien arises from a debt. C. A lien creates a cloud on title when recorded. D. All of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D All of these statements are always true.
Samuel is interested in purchasing a parcel of land and wants to examine any recorded documents relating to this parcel of land. Samuel may do this with authorization from: A. The current owner. B. The civil court having jurisdiction. C. A magistrate. D. No one.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D All recorded documents pertaining to land are public information; therefore, no permission is required to gain access to this information.
Which of the following is NOT an economic control on the free enterprise system? A. Power of taxation. B. Control of the money supply. C. Granting of tax shelters or tax credits to spur investments. D. Allowing voters to decide by referendum if they want a bond issue to pay for a new school.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Allowing voters to decide by referendum if they want a bond issue to pay for a new school is not an economic control on the free market system.
An abstract of title would contain: A. The name of the original owner. B. A record of all encumbrances, liens, mortgages and court actions. C. A record of any transfer of title by devise. D. All of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D An abstract of title is a condensed history of title which shows the original owner of the land and all subsequent transfers of any type as well as any encumbrances which might affect title.
An agent's authority can arise from: A. Ratification. B. Custom. C. Implication. D. All of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D An agent's authority can arise from ratification, custom or implication.
An escrow account is maintained by a broker for the purpose of A. earning interest for the broker. B. earning interest for the broker�s clients. C. disposition of money to the buyer. D. impartial protection of both parties.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D An escrow account is maintained by a broker for the purpose of impartial protection of both parties.
Which of the following does NOT reflect current real estate market conditions? A. Increase in building permits. B. Decrease in deed recordings. C. Increase in mortgage recordings. D. Decrease in divorce filings.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D An increase or decrease in building permits, deed recordings and mortgage recordings would indicate an increase or decrease in real estate sales. Divorce filings would have no effect on value.
Jennings decided she will acquire title to a piece of unused land by adverse possession. In order to do this, Jennings' occupancy of the land must be: A. Hostile to the interest of the true owner. B. Continuous. C. Open and notorious. D. All of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Answer: To gain title to land through adverse possession, one must occupy the land for the statutory period of time and such possession must be actual, open and notorious, exclusive, continuous, and hostile to the interests of the true owner. The acronym of POACH applies to adverse possession P ossession must be O pen A ctual C ontinuous H ostile to the owner's interest.
Broker Smith wants to list John's house. Prior to signing a brokerage engagement with John, Smith must disclose which of the following: A. his firm offers dual agency. B. he will be offering commission splits with other brokers. C. his cousin has expressed an interest in the property. D. all of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Broker Smith would have to disclose each of these facts (assuming they are true) prior to signing the brokerage agreement.
Which is specifically used to control density and overcrowding by regulating setbacks, building heights and percentage of open areas? A. PUD. B. master plan. C. spot zoning. D. bulk zoning.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Bulk zoning controls density and overcrowding through setbacks, building heights and open areas.
Which of the following MUST be disclosed by an agent to his client, in a real estate transaction? A. Minority groups are moving into the area B. The average commission recommended by the local real estate association C. The buyer intends to violate deed restrictions D. The buyer has had previous credit problems which may have an impact on loan qualifications
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Disclosure of A would be a violation of Fair Housing Laws and could be considered blockbusting. The fact that the prospective buyer has credit problems is vital to the decision of the seller to accept or reject the offer.
Environmental concerns in real estate would include: A. The presence of asbestos. B. The level of radon gas. The level of radon gas. C. Urea-Formaldehyde insulation. D. Each of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Each of the given choices is an issue of environmental concern.
All of the following are encumbrances on real property EXCEPT: A. Easements B. Liens C. Deed restrictions. D. A license
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Encumbrances are restrictions on the use of land and may diminish the value of the land. A license is permission given by an owner to another person to use the land. It can be canceled at any time
All original applicants for an individual Georgia real estate license must do the following EXCEPT: A. obtain a GCIC report. B. have a high school diploma or certificate of equivalency. C. pass a state licensing exam. D. affiliate with a broker.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D If a broker is going to operate as a sole proprietorship the broker would not affiliate with a firm licensee but would instead provide the name under which he or she will operate.
Which of the following would cause what appears to be a valid contract to be declared void or invalid? A. Misrepresentation by one of the parties. B. Undue influence or duress. C. A mistake in fact. D. Any of the above.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D If any of the listed items is present, it would indicate that the offer and acceptance condition (meeting of the minds) of the contract was not met. The contract is voidable if one of the parties chooses to do so.
A deed in which the grantor protects the grantee only against claims that arise during the time that the grantor owned the property is referred to as a: A. Quitclaim deed. B. Bargain and sale deed. C. General warranty deed. D. Special warranty deed.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D In a special warranty deed, the grantor warrants to protect the grantee only against title defects and claims which occurred during the time the grantor held title to the property, but not before that time. General warranty deeds protect forever. Bargain and sale deeds and quit claim deeds offer no guarantees to the grantee.
When a real estate licensee moves to a different address, the licensee must notify the Georgia Real Estate Commission within: A. 5 days. B. 10 days. C. 15 days. D. 1 month.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Licensees must notify the Commission of address changes within 1 month of the change.
Which of the following statements about offers is TRUE? A. An offer becomes a sales contract as soon as it is accepted. B. An offer must be accompanied by earnest money. C. Licensees must present all written and oral offers up to time of closing. D. Licensees must present all written offers up to time of closing.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Licensees must present all written offers up to time of closing. Oral offers are not binding and therefore need not be presented.
Which of the following does NOT result from local and state government legislation? A. Building codes. B. Housing codes. C. Subdivision regulations. D. Subdivision covenants.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Local ordinances and/or state laws (resulting from regulations at these levels of government) provide for building codes, housing codes and subdivision regulations. A covenant refers to a private restriction placed on the property by the original developer or present owner.
Mineral rights: A. Are considered to be personal property B. Always pass with the land C. Cannot be sold separately from the land D. Pass with the land, unless otherwise specified in the deed
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Mineral rights and other subsurface rights are considered to be real property and pass with the sale of the land unless specified otherwise. Mineral rights can be sold separately.
Mineral rights: A. Are considered to be personal property. B. Always pass with the land. C. Cannot be sold separately from the land. D. Pass with the land, unless otherwise specified in the deed.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Mineral rights and other subsurface rights are considered to be real property and pass with the sale of the land unless specified otherwise. Mineral rights can be sold separately.
A contract of sale CANNOT exist without an offer and: A. Assignment. B. Mortgage. C. Assessment. D. Acceptance.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D One of the essential elements of a valid contract is offer and acceptance. if acceptance is not present, there is no contract.
Property held in joint tenancy passes to the ______ upon the death of one of the owners. A. landlords B. state C. heirs of the deceased D. surviving owners
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Property held in joint tenancy passes to the surviving owners upon the death of one of the owners.
Bill has a contract in place to purchase Sam's house. Bill later changes his mind and defaults on the contract. Sam would have which of the following remedies? A. Rescind the contract. B. Sue for damages. C. Sue for specific performance. D. Any of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Sam could choose from any of the first three choices.
If a husband or a wife is the sole owner of real property, he or she owns the property: A. As a tenant in common. B. As a tenant by the entireties. C. As a joint tenant. D. In severalty.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Severalty means only one (1) person owns something. That person could be either a natural person or a legal person such as a corporation.
Each of the following statements about title is true, EXCEPT: A. A seller who has title which is reasonably free from doubt has marketable title. B. A seller who has "color of title" has a defect against the title. C. The chain of title is the history of conveyanced and encumbrances of the property. D. The Torrens System is the most common method of recording title in the United States.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The FALSE statement is that the Torrens System is the most common method of recording title in the United States. It is actually somewhat rare.
The UDTPA A. is a Georgia Law that deals with deceptive advertising practices regardless of media. B. deals with misleading advertising in newspapers and electronic media only. C. is a federal law that insures competition in the marketplace. D. is a Georgia law that allows brokers and others to file price-fixing complaints.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The UDTPA is a Georgia law that allows brokers and others to file price-fixing complaints.
Zelda wants to move into a subdivision with her giraffe. Which of the following would determine whether or not she could move into a home and keep her giraffe on the property? A. Police power because the police determine which pets are allowed in residential properties. B. Building codes. C. Urban planning with a restriction on regulating pets. D. Zoning ordinances.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D Zoning ordinances determine property uses permitted including the types of animals which may be kept.
Laws that set minimum construction standards are A. building codes. B. zoning codes. C. environmental laws. D. condemnation laws.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Laws that set minimum construction standards are building codes.
The length of the front of a lot along a street is referred to as the: A. Right of way. B. Township line. C. Setback. D. Frontage.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D What is described is referred to as front footage or frontage.
The government's right to make laws and regulations for the general welfare is known as A. eminent domain. B. police power. C. escheat. D. bundle of rights.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The government�s right to make laws and regulations for the general welfare is known as police power.
A buyer purchased a tract of land at a tax sale to satisfy the claim for delinquent taxes. If no one redeems the property during the statutory time period, the purchaser would most likely receive which of the following as evidence of ownership? A. Tax deed. B. Sheriff's deed. C. Certificate of title. D. Statutory warrant deed.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A buyer of a property sold to satisfy delinquent taxes would receive a tax deed after the period of statutory redemption (if any) has expired.
A client is obligated to her agent for A. indemnification against loss not caused by the agent. B. reimbursement. C. performance. D. all of the above.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A client is obligated to her agent for indemnification against loss not caused by the agent.
A datum is used to describe both air and subsurface rights. ( True/False )
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A datum is the point, line, or surface from which a vertical height or depth is measured. It is used when there is a vertical component to the land description.
A deed is acknowledged by A. the grantor. B. a notary public. C. the grantee. D. the clerk of the court.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A deed is signed and acknowledged by the grantor.
Amalia owns property and gladly allows her friend Sophie to use the land, reserving for herself the right to periodic inspections. In order to maintain her interest, Amalia should give Sophie: A. A license. B. A right of way. C. An easement appurtenant. D. An easement in gross.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A A license is permission to use the land. The license is subject to cancellation by the granting party. In the real world, Amalia could probably use a lease, depending on the use of the property.
Owner Kelly is leaving the area for a one year period. She asks salesperson Boren to manage her rental house for $45 per month while she is gone. Which of the following is true in this situation? A. Boren must work through her broker. B. Boren must put the $45 in an interest bearing escrow account. C. This is OK because the compensation is less than $1,000. D. This is OK because the time element is not more than one year.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Boren is "employed" by her broker and can only receive compensation through her broker for any act of real estate brokerage, therefore the arrangements must be made with the broker and Kelly. No salesperson may act on his or her own. All brokerage activity must be through the employing broker.
You are building a new structure in an area that is zoned commercial. You cannot open for business yet because you failed the inspection for the construction of the bathroom. You are in violation of: A. Building codes. B. Assemblage ordinances. C. Master plan. D. Zoning.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Building codes are in place and may require permits and inspections for the construction of the bathroom.
Which of the following is TRUE? A. A brokerage engagement must be in writing. B. A brokerage engagement is always a listing. C. Every person who signs an engagement must be given an original. D. Brokerage engagements must have a written termination date.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Choice A is the true statement. Brokerage agreements must be in writing. (Choice B is false because it could be a property management agreement. Choice C is false because one copy could be given to a husband and wife, for instance. Choice D is false because the brokerage engagement could be an open listing which has an assumed one year expiration date.)
The Sherman Antitrust Act prohibits each of the following activities, EXCEPT: A. Commingling. B. Price fixing. C. Boycotts. D. Tie-in arrangements.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Commingling is a violation of law, but not the Sherman Antitrust Act. The other actions all violate the Sherman Antitrust Act.
Which of the following is required to hold a real estate license? A. A person who, for compensation, helps sell his neighbor's home. B. A government employee selling land owned by the government. C. A property manager leasing property in the course of his employment for the owner. D. All of these choices.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Employees of property owners, such as government employees and property managers are exempt from having licenses to sell or lease property belonging to their employer. The key to this type of question is EMPLOYEE.
A person who rents a property from June 1 to June 30 of the same year would have: A. An estate for years. B. A periodic estate. C. A tenancy at will. D. An easement.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Even though the lease period is only one month, the lease has a definite beginning and end and is therefore an estate for years.
It would NOT be considered commingling of funds, if: A. The broker holds a deposit check at the request of the offeror until acceptance by the offeree. B. The broker holds a deposit check at the request of the offeror after acceptance by the offeree. C. The broker holds an earnest money deposit in his personal account until the offer is accepted or rejected. D. The broker holds an earnest money deposit in his brokerage operating account because the deal is going to be all cash.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Holding a check at the request of the offeror (buyer) until acceptance by the offeree (seller) is a normal practice and is NOT commingling. Once the offer is accepted, the money must be placed in the escrow account by the 5th business banking day following contract ratification. The broker NEVER puts money, belonging to others, in his personal or brokerage account.
If a person who has the right to make a claim against another, but does NOT do so within a reasonable period of time, a court could determine that the person has lost their right to any claim. The denial of the claim is an application of the theory of: A. Laches. B. Novation. C. Rescission. D. Reversion
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A If a person delays taking any action, and then later tries to take action that would be to the detriment of another person, the court would likely determine that such action is inequitable. Example: Assume that your neighbor builds a fence across your property line and you know it and do nothing about it. After the fence is finished and you sue the neighbor to have it moved, the court could find that you gave up your right by not acting sooner. This is the Theory of Laches.
In Georgia, a real estate closing can be conducted by: A. A licensed attorney only. B. A licensed attorney or a real estate broker who is not involved in the transaction. C. Any escrow company or title company officer. D. Any real estate licensee.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A In Georgia, real estate closings can only be conducted by a licensed attorney.
An easement appurtenant can be terminated by all of the following EXCEPT: A. The owner of the servient tenement, by executing a deed releasing his easement interest. B. The owner of the dominant tenement, by executing a deed releasing his easement interest. C. The dominant and servient tenements are merged. D. The owner of the dominant tenement abandons his easement interest.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A It is the owner of the dominant tenement or estate ONLY who can terminate the easement appurtenant. The servient tenant is subject to the rights of the dominant tenant.
Jerry Jones buys a piece of land that has no access to a public road. He can access his land: A. because the law guarantees all landowners egress and ingress. B. only if one of his neighbors grants him an easement. C. only by establishing an easement by prescription. D. because of the principle of laches.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Jerry can access the land because the law guarantees all landowners egress and ingress.
After buying and settling into her new home, Joanne discovered that the fence of her neighbor, Gloria, encroached ten feet on Joanne's side of the property line. Which of the following is true? A. Joanne may sue Gloria to have the fence removed if there has not been enough time for Gloria to get an easement by prescription. B. Joanne has legal recourse in the courts only if she did not inspect the property before she bought it. C. Joanne has to own the property for at least three months before she may take any action on getting her land back. D. Joanne really doesn't have any legal recourse since the fence was there before she bought the property.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Joanne should have inspected the property and had a survey done to verify the location of the fence. However, she may have legal recourse to have the fence removed.
If a seller learns, after he has entered into a valid contract with a buyer, that the broker was representing the buyer, the seller has the right to: A. Cancel the contract, without obligation to either buyer or broker. B. Cancel the contract, with written permission of the buyer. C. Cancel the contract, but would be liable to the broker for any expense incurred by the broker. D. The seller has no rights, the contract is valid and must be executed as agreed.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Representing both buyer and seller, without prior knowledge and approval is prohibited. The seller may cancel the contract without obligation or could accept the contract but refuse to pay the broker because of what would amount to misrepresentation. This is an undisclosed dual agency.
Residential property is composed primarily of: A. Single-family homes. B. Apartment buildings, no matter how large. C. Commercial buildings that may have a landlord's private apartment. D. A cattle ranch that has a sleeping room in a barn.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Residential property is made up primarily of single family homes.
Sam has a life estate in a five-acre tract of land. When Sam dies, the property will pass to his nephew. Sam wishes to sell his interest in the property. Which of the following is true? A. Sam's buyer will acquire the same interest held by Sam. B. Sam cannot sell his interest. C. Sam's nephew can sue to prevent the sale. D. Sam can only sell his interest with his nephew's permission.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Sam's buyer will acquire the same interest held by Sam, meaning that when Sam dies, the property would go to the nephew.
A real property owner leaves a life estate to one party and a remainder estate to another. The remainder estate is unrestricted. The type of estate that will be received by the remainderman is a: A. Fee simple estate. B. Life estate. C. Leasehold estate. D. Fee simple determinable estate.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Since the remainder estate is unrestricted, a fee simple estate will pass to the remainderman upon death of the holder of the life estate interest.
Six months after Brady bought his home, he installed custom made storm windows and doors throughout the house. Later, when he sells his property, will these storm windows and doors automatically convey with the house? A. Yes, unless in advance of the sale, Brady clearly specifies that they will be removed B. Yes, if he lived in the property at least a year before the sale C. No, because they were not part of the original structure D. No, because they can be removed, if they are taken off carefully
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Storm windows and doors which are "custom made" for a property are considered fixtures since they have been adapted to the property. In order for Brady to legally remove them after the sale of the property, Brady would have to clearly indicate BEFORE THE SALE that these items are excluded from the sale.
Six months after Brady bought his home, he installed custom made storm windows and doors throughout the house. Later, when he sells his property, will these storm windows and doors automatically convey with the house? A. Yes, unless in advance of the sale, Brady clearly specifies that they will be removed. B. Yes, if he lived in the property at least a year before the sale. C. No, because they were not part of the original structure. D. No, because they can be removed, if they are taken off carefully.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Storm windows and doors which are "custom made" for a property are considered fixtures since they have been adapted to the property. In order for Brady to legally remove them after the sale of the property, Brady would have to clearly indicate BEFORE THE SALE that these items are excluded from the sale.
Husband and wife own property as tenants by the entireties. The husband dies naming their son as devisee in his will. Which of the following is true? A. The wife owns the property in severalty. B. The son is a tenant in common with his mother. C. The son will automatically inherit the property when his mother dies. D. The son has a life estate, per autre vie.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A Tenancy by the entireties is a form of joint ownership with rights of survivorship. When the husband dies, he CANNOT will his portion to his son; it automatically goes to his wife. The wife may not include the son in her will, so the passing of title cannot be assumed although you may think that it is the right and natural thing to do.
Each of the following statements about brokerage engagement contracts is correct, EXCEPT: A. An exclusive brokerage engagement does not need a specific expiration date, but will automatically expire at the end of one year. B. A non-exclusive brokerage engagement does not need a specific expiration date, but will automatically expire at the end of one year. C. Net engagements are prohibited. D. Engagement contracts should have one original document, with a true copy given to each person who signs it.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The FALSE statement is that exclusive brokerage agreements do not need a specific termination date. It is non-exclusive engagements that would expire after one year.
The costs associated with routine maintenance of the common area in a condominium complex, such as mowing the lawn or snow removal, are financed through: A. Payment of homeowners association dues. B. Payment of special assessments. C. Pro-rata billing among the unit owners. D. None of these choices.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The HOA collects dues from owners and that money is then used to maintain the common areas.
The Parol Evidence Rule controls which of the following: A. An oral agreement leading to a written contract. B. A dispute between cooperating brokers. C. A settlement which occurs while a licensee is imprisoned. D. None of the above.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The Parol Evidence Rule states that a written agreement will override any previous oral agreement.
An owner lists a property with a broker. The broker shows the property and receives an offer, but is unable to present the offer to the owner. Two days later, the owner cancels the listing agreement. What should be done with the earnest money deposit received with the offer to purchase agreement? A. Returned to the buyer B. Given to the seller C. Split between the broker and the seller D. Split between the broker and the buyer
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: A The broker should return the deposit to the buyer. There is an offer but there has been no acceptance and therefore, there is no contract between buyer and seller.
David owns property along the banks of the Little Big Horn River. Scott owns property adjoining David's, and has access to the highway, but not to the river. Scott and David grant each other appurtenant easements to cross each others property to get to the road and the river respectively. The riparian rights associated with property ownership belong to: A. David because his property borders the river. B. Scott, because he has an easement to cross David's land. C. Both David and Scott. D. Neither, the granting of the easement revoked David's rights and Scott's property does not border the river.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: C The owner of property that borders (abuts) on flowing water has riparian rights.
A buyer purchased a tract of land at a tax sale to satisfy the claim for delinquent taxes. If no one redeems the property during the statutory time period, the purchaser would most likely receive which of the following as evidence of ownership? A. Sheriff's deed B. Deed in partition C. Certificate of title D. Statutory warrant deed
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: D A buyer of a property sold to satisfy delinquent taxes would receive a sheriff's deed or tax deed after the period of statutory redemption (if any) has expired.
If a third party is not named, the grantor of a life estate retains a: A. Reversionary interest B. Less-than-freehold estate C. Remainder estate D. Fee simple determinable estate
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: D If a third party is not named, the grantor of a life estate retains a reversionary interest.
Which of the following individuals could NOT file a mechanic's lien? A. A contractor supplying tools to a gas station. B. A contractor supplying lumber to build a shopping center. C. A laborer who digs the foundations for the construction of homes. D. A plumbing supply company which furnishes sinks and toilets for an apartment house.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: D Only those who furnish materials to improve real property or those who work to improve the real property belonging to another, may file mechanic's liens. Tools are personal property.
Under BRRETA, what rules regarding fidelity bonds or fidelity insurance apply to a brokerage firm which handles community association management: A. A fidelity bond or policy is required if the firm collects more than $60,000, and a separate bond or policy is required for each association managed. B. A fidelity bond or policy is required if the firm collects more than $60,000, but only one bond or policy is required per firm. C. There are no requirements for fidelity bonds or insurance. D. A fidelity bond or policy is required for each association for which collections exceed $60,000.
>> CORRECT ANSWER IS: A >> YOUR ANSWER IS: D The true statement is that a fidelity bond or policy is required if the firm collects more than $60,000, and a separate bond or policy is required for each association managed.
If the Real Estate Commission issues a citation to a licensee, the licensee: A. May either accept the citation or request a hearing. B. Must comply with the requirements or surrender the license. C. May only request a hearing if the citation includes a fine. D. Is under no obligation to respond to the citation or comply with the citation.
>> CORRECT ANSWER IS: A A licensee who is issued a citation by the Commission may either accept the citation (and comply with its requirements) or may request a hearing.
Which of the following is not required for a contract for the sale of real property to be valid and enforceable? A. Performance B. Offer and acceptance C. Consideration D. In writing
>> CORRECT ANSWER IS: A Offer and acceptance is required to create the contract. Consideration is required in all contracts. Contracts for the sale of real estate must be in writing. Performance is not required, but if either party fails to perform his or her obligations, the person could be sued for damages and sometimes for specific performance.
Fructus industriales is another term for: A. Emblements. B. Easements. C. Appurtenances. D. Trade fixtures.
>> CORRECT ANSWER IS: A This is another term for emblements.
Suppose that Ace Realty is one of the largest real estate franchise organizations in Georgia. Broker Bob is a sole proprietor of a brokerage firm which is licensed under the name "Ace Realty, Anytown." When Broker Bob runs an advertisement, what name must appear in the advertisement? A. Ace Realty. B. Ace Realty, Anytown. C. Broker Bob. D. Any of these choices.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A Advertisements for franchisees must include the name of the firm as it appears on its license.
Government can regulate land use any way they want. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A Government restrictions on land use must be nondiscriminatory and promote the general welfare.
Most title insurance policies protect the title against encroachments. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A Most title insurance companies will not insure against an encroachment.
What is the one unity in a tenancy-in-common ownership? A. interest B. possession C. time D. title
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A Possession is the one unity in a tenancy-in-common ownership.
A country store located in a residential area burns down. Which of the following is most likely? A. The owner can rebuild the building exactly as it was. B. The owner may rebuild a store only if he obtains a variance. C. The owner may restore the building to its original condition. D. The owner may not rebuild at all.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A The owner may rebuild a store only if he obtains a variance.
A deed need only be executed to pass title. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A The statement is false. A deed must be delivered and accepted in order to pass title.
Under the terms of an exclusive agency listing the broker collects his commission if the broker or the seller obtains the buyer. A. True. B. False.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: A The statement is false. In an exclusive agency listing, if the seller finds the buyer, no commission would be payable.
Which of the following best describes a condominium? A. Personal property B. Air lot. C. Stock ownership. D. Interval ownership.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A condominium is described as an air lot because you own the airspace inside your unit.
In a residential subdivision, the deed restrictions establish a central playground which uses four feet of the backyard of each owner. Barnes has decided to put in an organic garden in his backyard and in so doing he will move a piece of playground equipment. His neighbor, Bates, objects to Barnes' plan. What can Bates do? A. Nothing, because private citizens cannot enforce deed restrictions. B. Petition the court for an injunction to stop Barnes. C. Establish that all homeowners share the vegetables produced by Barnes. D. File a lis pendens.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A deed restriction may be enforced by a private individual in the neighborhood taking the proper action through the courts. If successful, the court would issue an injunction to prohibit the violation of the deed restriction.
The largest "bundle of rights" to real estate is a? A. Remainder estate. B. Fee simple estate. C. Life estate D. Homestead estate.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A fee simple estate is the highest form of ownership and therefore has the largest bundle of rights.
If a fence or wall is built on the property line between two adjoining properties, who owns the fence or wall? A. The person that paid to have it installed. B. The owners of the adjoining properties own it together. C. The county because it is on the line. D. The neighborhood owners association.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A fence or wall built between two adjoining properties is for the use of both owners, therefore it is owned jointly. It should have been decided who was going to pay for it prior to erection.
Which of the following is NOT a freehold estate? A. Life estate B. Leasehold estate C. Fee simple estate D. Fee simple determinable estate
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A leasehold estate is not a freehold estate.
A mushroom farm is industrial property. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A mushroom farm is agricultural property.
Which of the following best describes a parcel of land? A. The surface of the earth including control of all minerals and substances beneath. B. The surface of the earth extending down to the center and upward to the sky. C. The earth's surface closely marked by certain boundaries. D. The surface of the earth extending down a reasonable distance and up into the air a reasonable distance.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A parcel of land is the surface of the earth extending down to the center and upward to the sky.
A person who meets all the qualifications of a broker, but who chooses to work for a real estate broker and perform acts of real estate on the broker's behalf is known as a(n): A. Representative broker. B. Associate broker. C. Assistant broker. D. Qualifying broker.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A person who meets all the qualifications of a broker, but who chooses to work for a real estate broker and perform acts of real estate on the broker's behalf is known as an associate broker.
Under which of the following conditions would a buyer most likely sue for specific performance? A. If the seller did not inform the buyer that the property being purchased is a servient estate (easement placed upon it).. B. If the seller defaulted on the contract before closing. C. If the broker lied about the location of the schools. D. If the salesperson misquoted the size of the lot.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B A suit for specific performance is available only in the case of a breach of contract, such as when the seller defaulted prior to closing. Each of the other choices represent misrepresentation and/or fraud. The injured party could sue for damages, but not for specific performance.
All mortgages are? A. Due on sale. B. Liens. C. Recorded. D. None or these choices.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B All mortgages are liens.
An adequate metes and bounds description will have all of the following EXCEPT? A. A definite point of beginning. B. Four sides. C. Closure. D. linear measurements and compass directions.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B An adequate metes and bounds description is not required to have four sides. It might be shaped as a triangle, for instance.
An assessors parcel number is an adequate legal description. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B An assessor's parcel number is not an adequate legal description.
Mark gives Suzanne the authority to sign for him in a real estate transaction. Suzanne is considered, in the eyes of the law, to be: A. A broker B. An attorney-in-fact C. An attorney-in-trust D. An attorney-at-law
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B An attorney-in-fact is a person given authority to perform an act for another through a power of attorney. Regardless of who that person is, legally they are considered to be an attorney-in-fact.
Which of the following is the most common method of enforcing a restrictive covenant? A. Eminent domain. B. Injunction. C. Attachment. D. Escheat.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B An injunction is a court order issued to restrain a person from doing a particular thing such as an act prohibited in a restrictive covenant of a deed. The court action is generally instigated by neighbors of the violator.
Which of the following statements, made by a broker, would NOT be considered puffery? A. "This is the most beautiful house in the world". B. "You can double your money on this property in less that 2 years, I guarantee it". C. "This is the best deal we've had in years". D. "The property is close to everything".
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Any time that a broker suggests or guarantees the return on investment, he has crossed over the line from puffery to misrepresentation or possibly fraud. Puffery is a matter of opinion.
Building codes standardize all of the following features, EXCEPT: A. Design. B. Financing. C. Structural systems. D. Construction materials.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Building codes deal with methods of construction and types of materials. Financing is not part of the building codes imposed by the local government.
Combining two or more contiguous parcels real estate into a single parcel is known as plottage. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Combining two or more contiguous parcels of real estate into a single parcel is known as assemblage, not plottage.
In a cooperating agency relationship, which of the following statements is correct? A. Each licensee must represent a different side of the transaction. B. Each licensee may represent the same side of the transaction. C. Cooperating agency representation is another term for acting as transaction broker. D. Cooperating agency representation must be used in place of dual agency.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B In a cooperating agency relationship, there might be two licensees on the same side of the transaction. This could occur if one agent has the listing and is agent of the seller, while the other agent is representing the buyer as a customer. That agent would then be on the seller's side of the transaction as well.
The system which provides notification of ownership rights and claims by certain creditors against real property is created by the: A. Federal constitution. B. State recording act. C. Federal legislation. D. State statute of frauds.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B It is the system of recording documents into the publicly available records which provides this notification. The recording system is created by the recording act in each state.
Which of the following practices is/are illegal? A. Puffing. B. Misrepresentation. C. Both of these choices. D. None of these choices.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Misrepresentation is illegal. Puffing is a recognizable exaggeration or matter of opinion and is not illegal
Boundary markers of land, either natural or man-made, are: A. Benchmarks B. Monuments C. Liens D. Metes
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Monuments can be a natural object such as a tree, a rock or river. They can also be artificial markers, something that is permanently placed by man. A surveyor's benchmark is an example of an artificial monument, but when used to define the area of a parcel of land, it is considered a monument.
Licensee Laurie makes a listing presentation to Seller Steve. Steve agrees to give Laurie a listing and agrees to pay her a commission upon sale, but refuses to sign any written contract. How was this agency relationship created? A. There is no agency relationship since it is not in writing B. This is an expressed agency C. This is an implied agency D. This is agency by ratification
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Oral listing are a type of expressed agency. It is far better to have it in writing since oral listings are not enforceable.
Personal property is immovable. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Personal property is movable.
Landlord Lloyd hires Property Manager Paul to manage an apartment complex owned by Lloyd. Property Manager Paul would most likely be considered a(n): A. Subagent. B. General Agent. C. Universal agent. D. Special agent.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Property managers are typically general agents because they represent the owner of the property in many different aspects of property management.
The following liens have been recorded against a property: (1) a property tax lien was recorded on January 1 of 2015 but was not due until June 30th. (2) A mortgage was recorded on November 10, 2014. (3) A mechanic's lien was recorded on February 28, 2015. (4) A judgment lien was recorded on March 15, 2015. Which lien would have priority in the event of a forced sale of the property? A. The mortgage lien. B. The property tax lien. C. The mechanic's lien. D. The judgment lien.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Property tax liens always have first priority. Mechanic's liens may take priority when worked commenced in some states, but they would not take priority over property taxes.
Public property includes property owned by churches. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Public property is government owned property.
Realtors determine the price of land. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B Supply and demand determines the price of land.
To transfer the rights contained in a note, mortgage, or lease from one party to another, by a written instrument is referred to as a(n) A. Easement. B. Assignment. C. Sublet. D. Deed of trust.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The TRANSFER of rights contained in a mortgage, note, lease or other contract is called an assignment. Thus, a mortgagee can transfer his rights to a note and mortgage to an investor buying these documents. The investor has the right to receive the payments through the assignment.
The actual amount of money paid for a particular parcel of real estate is said to be that property's: A. Value. B. Price. C. Market value. D. Settlement value.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The actual amount of money paid for a particular parcel of real estate is said to be that property's price.
The avoidance of conflicts of interest would be a key part of which of the following duties of an agent to a client? A. Reasonable care and diligence. B. Loyalty. C. Disclosure. D. Confidentiality.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The avoidance of conflicts of interest is part of an agent's duty of loyalty to the client.
Broker Bob has a listing on Seller Steve's house. He presents an offer to Seller Steve which meets the terms of the listing contract from a financially qualified buyer. Seller Steve informs Broker Bob that he has decided not to sell the house after all and rejects the offer. Which of the following statements would be correct in these circumstances: A. The buyer could successfully sue the seller to force the sale of the property. B. Broker Bob could successfully sue the seller for his commissions. C. The buyer could successfully sue the seller to force the sale and the broker could successfully sue the seller for the commission. D. None of these statements are true.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The buyer could not successfully sue the seller to force the sale, since the buyer never had a contract with the seller. The broker earned the commission by presenting an offer that met the listing terms from a buyer who was ready, willing and able to purchase the house and could therefor successfully sue the seller.
Fred bought a new boat. He hired a contractor to build a dock on his lake-front property. Fred did not pay the contractor. In an attempt to get paid, the contractor may file a: A. Mechanic´s lien against the boat. B. Mechanic´s lien against the property. C. General warranty lien against the boat. D. Littoral rights lien against the property.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The contractor improved real property by building a dock and is therefore entitled to file a mechanic's lien against the property which was improved. He cannot file a mechanic's lien on the boat because it is personal property.
Property owner Kilmer, who is living overseas, lists his property with Broker Huff. Later the land is rezoned for a higher use, increasing its value. Huff buys the property herself and sells it six months later. Which of the following is true? A. As long as Huff informs Kilmer of her intent to buy the property before she does so, her action is above reproach. B. Huff can buy the property only after informing Kilmer of the zoning change and the effect that it has on the property. C. Huff cannot legally act for someone who is overseas. D. When Huff resells the property in six months, she has a legal obligation to inform Kilmer.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The rezoning of the property is a material fact and the agent of the seller, the broker has the obligation to inform the seller of the zoning change and what effect it will have on the property value.
Which of the following is NOT a right of government in private property? A. Eminent domain. B. Title closure. C. Taxing power. D. Police power.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The rights of government in privately owned real property are eminent domain, property taxes, police power and escheat. Title closure is a meaningless term
Which of the following is NOT a right of government in private property? A. Eminent domain B. Title closure C. Taxing power D. Police power
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The rights of government in privately owned real property are eminent domain, property taxes, police power and escheat. Title closure is a meaningless term.
The state is considering the condemnation of several pieces of property in the inner-city for the construction of a sports complex. The assembled property would then be leased to three private concerns for the operation of the complex. Can the state do this? A. Yes, but only if the pieces of property are vacant lots. B. Yes, if just compensation is paid to the landowners. C. No, because this is in the middle of the city. D. No, because condemned property cannot benefit private individuals.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The state has the right to do this under its right of eminent domain. The construction of a sports complex could be considered in the public good because it would create taxes and offer employment. The rights of eminent domain are assignable.
In real estate advertising for a specific property the licensee's name and telephone number must be equal to or larger than the firm name and telephone number. A. True. B. False.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false.
Mark is the qualifying broker for ABC Realty. Sam is an ABC associate broker. Mark has not received complete records from Sam's last transaction. Sam asks Mark to sign a release form so he can move his license to another firm. Mark tells Sam that he will sign the form immediately upon receiving Sam's missing paperwork. Mark's actions are legal. A. True. B. False.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. A broker cannot refuse to sign a release form.
Life tenants may do anything they want to with the premises of their life estate property. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. A life tenant may not commit waste, must maintain the premises in good repair, and pay the mortgage, taxes, and insurance.
A nuncupative will is a handwritten will. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. A nuncupative will is an oral will.
When someone assigns his contract to buy real estate to a third party, he, the assignor, is no longer liable for the performance of the contract. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. An assignor remains secondarily liable on the contract unless released by the original party.
An easement is just another form of encroachment. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. An easement is the legal right to enter onto another's land, usually in order to cross the land.
Sam owns a 50 unit apartment building. Sam is not licensed. He has employed Ben to manage the property for him. Ben has an inactive salesperson's license. This is legal because Ben's license is inactive. A. True. B. False.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. Ben cannot take advantage of the exemption from licensing for property management as an employee of the owner while he holds an inactive license. To be exempt, Ben would have to surrender his license and would have to be a full-time employee of Sam.
Escrow records must be kept only until the transaction closes. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. Escrow records must be kept for a period years (which varies by state).
Net listings are acceptable in most states. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. Net listings are usually illegal in most states.
All employees of the commission must be unlicensed or inactive, but all commission members must be active real estate licensees. A. True. B. False.
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. One member of the Commission must be a "consumer member" with no connection to the real estate industry.
Police power is the same thing as eminent domain. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. Police power is the uncompensated regulation of property; eminent domain is a compensated taking.
All states allow nuncupative and holographic wills. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. Some states do not recognize holographic or nuncupative wills.
A salesperson can set up escrow accounts for each of his or her clients, in the name of the client and the salesperson. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. The escrow account must be in the name of the brokerage firm
The person who makes a will is called an intestate. ( True/False )
>> CORRECT ANSWER IS: B >> YOUR ANSWER IS: B The statement is false. The person who makes a will is a testator.
Which of the following BEST describes a buffer zone? A. An industrial park located between an area zoned residential and another zoned commercial B. An office park located between an apartment project and an area zoned for industrial use C. A recreation park located between an apartment complex and an area zoned for single family homes D. A highway that separates residential property from commercial property
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A buffer zone is open space. It could be an area that is left in its natural state or a park used for recreational purposes. Either would meet the definition of a buffer zone. A highway COULD be considered a buffer zone, but the question asked for the BEST description.
Bill, the buyer, signs an offer to purchase agreement and gives broker Joan, a $1,000 earnest money deposit. The next day, before Joan has a chance to present the offer to the seller, Bill finds he needs his $1,000. What should he do? A. Ask the broker to return his money B. Nothing because he is bound to go through with the offer C. Withdraw his offer and ask Joan for his money D. Give Joan $500 for letting him out of the contract
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A buyer can withdraw the offer to purchase at anytime before the offer is accepted by the seller. If Bill withdraws his offer prior to seller's acceptance he is entitled to have his deposit returned.
Which of the following is NOT an improvement of land? A. Building. B. Sidewalk. C. Corn crop. D. Flower bed.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A corn (or other) crop is considered personal property.
When may a counteroffer be withdrawn? A. Within twenty-four hours after acceptance. B. Within thirty-six hours after acceptance. C. At any time before acceptance. D. At any time before closing.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A counteroffer is the rejection of the original offer and a new offer. As with any offer, the counteroffer may be withdrawn at any time, PRIOR to the time that it is accepted by the offeree.
Which of the following deeds creates the greatest liability for the grantor? A. Quitclaim deed. B. Bargain and sale deed. C. General warranty deed. D. Special warranty deed.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A general warranty deed is a conveyance by which the grantor fully warrants, or guarantees, clear title to the real estate being sold and therefore has the highest liability for the grantor (the seller).
Which of the following is subject to the Statute of Frauds? A. Six-month lease for an apartment B. Tenancy at will C. Two-year lease for real property D. Month to month rental
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A lease for more than one year must be in writing under the Statute of Frauds.
A licensed real estate salesperson may legally accept an extra commission for a difficult sale from: A. An appreciative seller. B. A thankful buyer. C. His or her broker-employer. D. The mortgage lender.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A licensed salesperson may ONLY accept compensation for an act of real estate brokerage from his or her employing broker.
A lien attached to one parcel of real estate A. is a statutory lien. B. arises from a voluntary agreement. C. is a specific lien. D. is a federal tax lien.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A lien attached to one parcel of real estate is a specific lien.
A married woman may NOT own property with a man other than her husband as A. tenants-in-common. B. joint tenants. C. tenants by the entireties. D. all of the above.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A married woman may NOT own property with a man other than her husband as tenants by the entireties.
Broker Bob is the qualifying broker for Acme Real Estate, which is a corporation. If Broker Bob passed away, Acme Real Estate would need to name a new qualifying broker within ____ days or it would be required to cease operations. A. 10. B. 30. C. 60. D. 90.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A new qualifying broker must be named within 60 days or the firm must suspend operations.
Mr. Smith inherits a ranch in the Midwest and without having seen it, wants to sell it. Which is the best deed he can use to convey the ranch with the least liability to himself? A. General warranty. B. Bargain and sale. C. Quitclaim. D. Trustee's deed.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A quitclaim deed leaves the seller (grantor) open to the least liability as it conveys only that interest, if any, which the grantor has. A bargain and sale deed implies that the grantor has an interest in the property to convey to the grantee. A trustee's deed is one used by a trustee to convey real property.
To be legally binding, a real estate contract MUST contain: A. A termite clause. B. A list of personal property. C. A property description. D. A commission.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A real estate contract probably will include all of the items mentioned, but the contract MUST include a property description.
A special warranty deed would include which of the following covenants? A. A covenant of warranty. B. A covenant of quiet enjoyment. C. A covenant against grantor's acts. D. All of these choices.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A special warranty deed contains only the covenant against grantor's acts. It only promises that the grantor has done nothing to cloud the title, but there are no assurances regarding previous owners.
A married woman and an unmarried man may not own real estate as: A. tenants-in-common. B. joint tenants. C. tenants by the entireties. D. partners.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A tenancy by the entireties can only be held between a married couple.
A tenancy in severalty exists when A. husband and wife own property together. B. any related persons hold real estate together. C. one person owns real estate. D. the tenant has the right to sublet.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A tenancy in severalty exists when one person owns real estate.
A workman who is not paid for work that improved real estate may file a: A. labor judgment. B. novation. C. mechanic's lien. D. lis pendens.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C A workman who is not paid for work that improved real estate may file a mechanic's lien.
A purchaser submits an offer to a seller with the condition that the property is to be financed by a conventional loan at no more than 10% interest. If the seller agrees but such financing cannot be obtained, which of the following is true? A. The purchaser loses his deposit but is relieved of further liability. B. The seller is obligated to return the deposit plus interest. C. The purchaser may request his deposit be returned. D. The seller can sue for specific performance.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C If this provision is in the contract and the seller accepts, then it becomes a condition of the contract. If the buyer cannot find financing, then the contract cannot be executed and the purchaser may request the return of his deposit.
Which of the following would cause a contract to be void? A. Fraud. B. Undue influence. C. Illegal purpose. D. Duress.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C In order for a contract to be valid, it must be for legal purpose. If the contract was entered into and there was fraud, undue influence or duress, the contract would be VOIDABLE not VOID or invalid.
If there is a breach of a contract for the sale of real property, an option available to the non-defaulting party is A. rescission. B. reversion. C. suit for specific performance or actual damages. D. suit for punitive damages.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C In the case of a breach of a contract of sale, the injured party may file a suit for specific performance or actual damages.
Special purpose properties include all but the following: A. Churches. B. Hospitals. C. Industrial park. D. Nursing homes.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Industrial parks are not special purpose properties.
The regulations regarding advertising Georgia properties include: A. Licensees must have the written permission of the property owner to advertise a listed property. B. An owner's written permission for a licensee to advertise the property must have an expiration date. C. Licensees must have the written permission of the property owner to advertise a listed property and this permission must have an expiration date. D. Advertising must be approved in advance by the Commission.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Licensees must have the written permission of the property owner to advertise a listed property and this permission must have an expiration date.
Merging two or more properties into common ownership is known as ______, while any increase in value that results is known as ______. A. Progression; regression. B. Plottage; assemblage. C. Assemblage; plottage D. Situs; production.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Merging two or more properties into common ownership is known as assemblage while any increase in value that results is known as plottage.
Under Georgia law, offers and counteroffers must be presented to a client: A. Within 24 hours B. Within 48 hours C. In a timely manner D. Immediately
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Offers and counteroffers must be presented in a timely manner. There is no specific time limit as circumstances may vary.
A broker has entered into a signed listing agreement. Which of the following reasons would make the agreement voidable? A. The agreement specifies that no other broker may show the property. B. The seller, being illiterate, signed the agreement with an "X". C. The seller was under the influence of alcohol when the contract was signed. D. The contract specified a 10% commission to be paid.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Remember that a voidable contract is one that appears to be valid but can be declared void by one of the parties. The person under the influence could be considered incompetent at the time of signing and could therefore declare the contract void. He also has the option, upon learning what he had done, to let the contract stand.
A family owns a home located on land which borders a stream. Their rights to the use of the stream are known as: A. Littoral B. Dower C. Riparian D. Navigational
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Riparian rights refer to flowing waters, such as a river or stream. Littoral rights refers to lakes or oceans.
Salesperson Sam has a listing on Seller Sally's house. Sam runs an advertisement that reads as follows: "Great property! 4bdr 2 bath You won't believe the price. Call Sam at 800-xxx-xxxx." This advertisement is a(n): A. Template ad. B. Hidden ad. C. Blind ad. D. Identity ad.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Since the ad makes it appear that the licensee is the owner of the property, it is an example of a blind ad
The legal process of "tacking" relates to an adverse possession claim under: A. Eminent domain. B. Descent and distribution. C. Color of title. D. Assemblage.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Tacking is the combining of two periods of adverse occupiers in an attempt to obtain ownership through color of title.
What is the legal process, used by the government, to acquire property from a private citizen? A. Eminent domain B. Escheat C. Condemnation D. Taxation
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The PROCESS is condemnation. If the stem of the question were to ask for the right, power or authority that the government has to take private property, that is eminent domain. Be careful when you read the question.
A condominium advertises a pool and tennis court, but they have not yet been completed. Which is correct? A. This is illegal advertising. B. It is allowed so long as the advertising states "not yet completed." C. This is allowed if they are labeled not yet completed and a completion date is specified. D. This is allowed since the rule of caveat emptor reigns.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The advertisement is allowed if they are labeled not yet completed and a completion date is specified.
Peyton wishes to buy a home within the city limits. His real estate broker tells him that he will not be allowed to keep his pet alligator in his swimming pool. Which of the following would most likely be responsible for the decision? A. City Health Department. B. City Police Department. C. City Zoning Commission. D. The neighbors.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The alligator would be restricted by City Ordinances as part of the responsibility of the City Zoning Commission. This is a restriction of the use of private property through a government's use of Police Power.
Seller Corcoran is in very poor health and cannot work his farm. Should a broker, who has a listing on the farm, disclose this fact to prospective buyers? A. Yes, it is a material fact about the farm which Moore must disclose. B. Yes, it may help to get at least a low offer and help sell the farm. C. No, it may hurt Corcoran's bargaining position and hurt his chances to get a fair price for the property. D. No, it would be a violation of Federal Fair Housing Laws.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The broker is precluded from discussing Corcoran's health with prospective buyers as it may weaken Corcoran's bargaining position which would be contrary to Corcoran's best interest. The sellers health is not an adverse material fact related to the property, nor is it covered under Federal Fair Housing Laws.
A broker has the buyer's earnest money deposit deposited in an escrow account. The amount of the deposit exceeds the amount of the broker's commission for the sale. The broker may remove his commission on this sale ONLY: A. When the buyer moves into the property. B. When the seller moves out of the property. C. When the closing is completed. D. Whenever the seller says it is ok to do so
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The broker may remove his commission from the escrow account after the completion of closing or when ALL parties to the transaction agree in writing, not just when the seller agrees.
When a broker creates a trust account, the broker must notify the Georgia Real Estate Commission within: A. 5 business days. B. 15 calendar days. C. 1 month. D. 2 months.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The broker must notify the Commission within one month of opening any trust account.
A developer of commercial property is required to provide for off-street parking for tenants. This is an example of: A. Eminent domain. B. Taxation. C. Police power. D. Escheat.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The county government would impose such a restriction on property owners. This is an example of police power.
Which type of deed creates the most liability for a seller? A. Special warranty deed. B. Universal warranty deed. C. General warranty deed. D. Quitclaim deed.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The general warranty deed is the most complete of all deeds. It carries all the warranties of title. A quitclaim deed is the least complete in that it warrants nothing.
A landscaper has not been paid for landscaping a homeowner's yard. A friend tells him the house is for sale. What should the landscaper do? A. Sue the listing agent. B. File an injunction. C. File for a mechanic's lien. D. Write a letter to the owners demanding immediate payment.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The landscaper should file for a mechanic's lien.
When would title be transferred by the laws of intestate succession? A. testator has living heirs B. voluntary alienation C. pursuant to descent and distribution D. there is a will
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The law of intestate succession applies when a person dies intestate (without a will) and are often referred to as the law of descent and distribution.
The loan contingency contained in an offer to purchase will contain all of the following EXCEPT: A. The loan amount. B. The rate of interest. C. The name of the financial institution. D. The date of the commitment.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The loan contingency in an offer states...."we will buy the house at the price specified and will pay for it by obtaining a loan for $........, at ....% interest with monthly payments of $......" and the offer is dated. The one thing not required and often not even known at the time of the offer is where the money will come from (the lending institution).
The maximum aggregate liability of the recovery fund for the acts of a single licensee is: A. $10,000. B. $15,000. C. $75,000. D. $50,000.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The maximum payout to all clients because of the actions of a single licensee is $75,000.
Barney owns a lot valued at $84,000. He purchases an adjoining lot for $66,000 and merges the two properties. The current appraised value of the newly formed lot is $177,500. This is an example of: A. Accretion. B. Avulsion. C. Plottage. D. Hypothecation.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The merging of properties is assemblage. The resulting increase in value is referred to as plottage.
Which of the following statements is true under BRRETA? A. The agent, on behalf of the buyer, not the buyer himself, is responsible for obtaining information from public records. B. An agent owes a fiduciary responsibility to his principal. C. If a broker elects designated agency, the firm is not in a dual agency situation. D. Ministerial acts are those acts performed by an agent for his or her principal.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The only true statement is that under BRRETA, there is no dual agency by either the firm or the firm's licensees when designated agency is used.
A person that has the legal authority to act for another is: A. A listing broker. B. An attorney-at-law. C. An attorney-in-fact. D. An ostensible agent.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The person is known as an attorney-in-fact and receives his power to act through a power of attorney. Usually the power of attorney is very specific as to exactly what the agent may do. A broker usually does not have the authority to act for someone else. Under the agency agreement (listing) with a broker, the broker's job is to find a ready, willing and able buyer at the terms and conditions set by the client.
A purchase contract has been agreed to by the buyer and seller of a home. The contract calls for closing to occur in 45 days. Later, the closing is actually scheduled for the 47th day. The contract could be rescinded if the contract included which of the following phrases? A. "Exact times required." B. No special wording is required. C. "Time is of the essence." D. "Time limits are specific."
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The phrase "time is of the essence" means that time limits are to be strictly enforced.
All of the following statements are true with regard to restrictive covenants in a deed EXCEPT: A. The covenant runs with the land. B. The covenant may be removed without legal action. C. The covenant does not need a termination date. D. The covenant may vary with Fair Housing laws.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: B The Federal and state fair housing laws make it illegal to restrict the sale or lease of property based on a person's race, color, religion, national origin, sex, handicap or familial status. Any restrictive covenants in a deed that conflict with Fair Housing would be unenforceable.
A property owner obtains a building permit to add a bedroom to her house. Her neighbors notice that the addition will result in a violation of the setback restrictions in the owner's deed. What, if anything, can the neighbors do? A. Wait until construction is finished and sue for damages. B. Nothing, the owner received a building permit from the county. C. Obtain an injunction against the owner to prevent construction. D. Ask the county to revoke the building permit.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The setback restrictions described are deed restrictions, not zoning restrictions. The neighbors would file for an injunction to prevent the addition from being built. If the injunction is granted, then the building permit would be meaningless.
Which of the following statements is TRUE? A. If the tenant is behind in rent the landlord may shut off the electricity. B. If the tenant's ladder falls on a guest the landlord can be held liable for injuries to the guest. C. The tenant enjoys exclusive use of the property. D. If the tenant has a tenancy at will the landlord can evict him anytime he chooses.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C The true statement is that the tenant enjoys exclusive use of the property.
A person has a fee simple ownership of one unit of a multi-story building and pays property taxes on this unit. What type of ownership does this situation describe? A. Proprietary lease. B. Cooperative ownership. C. Condominium ownership. D. Joint tenancy in the common area.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C This describes condominium ownership which includes a fee simple interest in the individual condominium unit and a tenancy in common interest in the common areas. The owner pays a mortgage payment, taxes, insurance, etc. on his or her individual condo unit.
Broker Bob represents both the seller and the buyer as agent in the same transaction. Which of the following statements is correct? A. This arrangement is always illegal. B. This arrangement is never illegal. C. This arrangement is only legal with the informed consent and written permission of both the buyer and the seller. D. This arrangement is legal only in a few states.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C This is a dual agency, which is only permissible with the informed consent and written permission of both parties
A real estate developer who plans to build a large industrial park must buy property from three different owners before he can proceed with his development plans. This would be considered? A. The development stage of planning. B. Plottage value. C. Assemblage. D. Contiguous combination.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C This would be considered assemblage.
Which of the following is NOT a test of a fixture? A. Manner of attachment. B. An agreement between the parties. C. Time of attachment. D. Manner of adaptation.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Time of attachment is not a test of a fixture.
Title to real property passes when a deed is: A. Executed. B. Acknowledged. C. Delivered and accepted by the grantee. D. Recorded.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Title to real property passes from grantor to grantee when a deed is delivered and accepted. Upon delivery, acceptance is generally assumed.
A variance could be reasonably requested in each of the following instances, EXCEPT: A. A minor exception to a setback requirement. B. Rebuilding of improvements that were legally nonconforming but were destroyed by fire. C. A request by a developer to build a major shopping center on land which is zoned for residential use. D. All of these choices.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C Variances are for a single property to be exempted from requirements in cases that will not change the character of the neighborhood. The shopping center in a residential neighborhood would require a rezoning, not a variance.
When a broker is representing a buyer he must? A. inform the seller if the buyer has a terminal illness. B. inform the seller if the buyer has children. C. inform the seller if the buyer is not able to afford the house. D. inform the seller if the buyer is out of the country.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C When a broker is representing a buyer he must inform the seller of the buyer's financial ability to perform under the contract, such as if the buyer is not able to afford the house.
Broker Bob is the qualifying broker for Acme Real Estate. Salesperson Steve has become discouraged about his lack of success in sales and has stopped coming to the office and has not attended any sales meetings for several months. Bob decides to terminate Steve and calls Steve to ask him to come in and sign the necessary release form. Steve's phone service has been discontinued. How can Broker Bob notify the Real Estate Commission of the termination if he cannot get Steve's signature on the release form? A. He must request a hearing with an administrative law judge. B. He cannot terminate the affiliation without the release form. C. He can send Steve's wall license to the Commission with a copy of a letter sent to Steve's last known address informing Steve that he has one month to either transfer to another broker or place his license on inactive status. D. He can return Steve's wall license to the Commission and attach documentation of his efforts to contact Steve.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: C When the salesperson cannot be contacted, the broker can return the salesperson's wall license to the commission along with a copy of a letter sent to the salesperson's last known address informing the salesperson that he or she has one month to either transfer the license to another broker or place his or her license on inactive status.
Ann is a top salesperson with ABC Realty. Mickey Properties owns and develops large condominium projects. The firm is not a broker and handles all sales in-house. Mickey wants Ann to manage their sales department. A. Ann can do this if she has the permission of her broker. B. Ann can do this if she places her license on inactive status. C. Ann can do this if she surrenders her license. D. Ann can do this if she is a full-time Mickey employee.
>> CORRECT ANSWER IS: C >> YOUR ANSWER IS: D Ann can do this if she surrenders her license. Since Mickey Properties is not a broker, she cannot transfer her license there. She cannot hold an inactive license and use the exemption from licensing for full-time employees of the owner.
A Georgia real estate broker may have money earned as commissions in the broker's trust account: A. Under no circumstances. B. Without restriction. C. As long as the commissions are withdrawn from the trust account within 24 hours of being earned. D. As long as the commissions are withdrawn at least monthly.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: A Commissions may be in a broker's trust account as long as they are withdrawn at least monthly.
Which of the following choices would be the most accurate definition of the term "agency relationship" in real estate practice? A. A contract whereby a seller hires an agent to represent the seller in the sale of a property. B. A contract whereby a buyer or seller hires an agent to represent the buyer or seller in a real estate transaction. C. A contract which is effectively a power-of-attorney. D. A contract whereby a client hires an agent to represent the client in a real estate transaction of some kind.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The choice about the power-of-attorney is false. There is a measure of truth in all of the other choices, but the best answer is that the client hires an agent to represent the client in a real estate transaction of some kind because it is the broadest statement of the remaining choices. Not all agency relationships are with buyers or sellers -- property managers are also agents of their clients.
A citation issued by the commission may be: A. An order to complete a real estate education course of study. B. Require an independent accountant to periodically report on the trust account. C. The payment of a fine. D. Any of these choices.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The commission may require any of these choices.
Which of the following does NOT describe a cooperative form of ownership? A. A corporation owns the land and improvements. B. Taxes are general liens against a corporation. C. Unit owners are stockholders. D. Unit owners hold a real property interest in the land and improvements
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The false statement is that unit owners hold a real property interest. In fact, the unit owner only owns shares of stock of the corporation that owns the property.
The Real Estate Research, Education and Recovery Fund may only make payments based on judgments to: A. Brokers. B. Salespeople. C. The Commissioner. D. Non-licensees.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The fund is to reimburse consumers (non-licensees) for uncollectible judgments against licensees.
A document that is based on a full examination of the public record but frequently only identifies the present owner of record and lists only the existing encumbrances is called a(n): A. Abstract of title. B. Title search. C. Title insurance summary. D. Certificate of title.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The question describes a certificate of title.
When the city wishes to take title to property for public improvements, title may be acquired from an unwilling owner through the right of: A. Adverse possession. B. Police power. C. Dedication. D. Eminent domain.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The right of eminent domain applies here. It is one of the four rights that the government withholds from private owners. The others are police power, taxation and escheat.
The right of a city government to take title to private property for public improvements is derived from the city's right of: A. Adverse possession. B. Police power. C. Condemnation. D. Eminent domain.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The right of eminent domain is one of four rights held by the government in private property. The others are: taxation, police power and escheat. The question gives an examples of eminent domain.
A person who has a military service-related disability of 50% is taking a Georgia licensing exam. Which of the following statements is correct about this applicant. A. This applicant could receive an extra 5 points added to the score on the salesperson's license only. B. This applicant could receive an extra 5 points added to the score on either the salesperson's or broker's exam. C. This applicant could receive an extra 10 points added to the score on the salesperson's license only. D. This applicant could receive an extra 10 points added to the score on either the salesperson's or broker's exam.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The service-related disability would qualify this person for an extra 10 points on either the salesperson's or the broker's exam.
Which of the following statements regarding a listing contract is TRUE? A. A listing must have an expiration date. B. A listing contract does not have to include the sales price. C. A listing contract requires the seller to sell when his requirements are met. D. A listing must be in writing to be enforceable.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D The true statement is that a listing must be in writing to be enforceable. As for the other choices, it is exclusive listings of either type that must have a definite termination date; listings will indicate the seller's terms, including the price; and the seller does not have to sell, although the seller may owe a commission if the broker finds a ready, willing and able buyer under the exact terms of the listing.
Land use that pre-exists but is in violation of the current zoning regulations is called a(n): A. Illegal use. B. Variance. C. Spot zoning. D. Nonconforming use.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D This is a nonconforming use. The use of the property was legal at one time but now that the zoning ordinances have changed, it no longer conforms to current regulations.
Dave and Pat want to purchase the home that is occupied by their grandparents. They want to take title in such a way that will result in the least amount of income tax liability for them. How should a real estate salesperson or broker advise them? A. Advise them to take title as tenant-in-common with their grandparents. B. Advise them to acquire title as joint tenants with each other. C. Advise them to take title as tenants-in-common but each with an equal interest. D. Refer Dave and Pat to an attorney or tax advisor.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D This is a problem that real estate people should NOT get involved in. Tax matters can be very complex. You will be doing them a favor and keeping yourself out of possible trouble.
Sam is licensed in South Carolina. Sam has a client who wants to sell property he owns in Georgia. Sam refers his client to Stephanie who is a Georgia broker. Stephanie represents Sam's client and sells the Georgia property. Stephanie splits her commission with Sam. Stephanie does not tell the client about the commission split. A. This is legal because the seller is Sam's client. B. This is legal because Sam is not licensed in Georgia. C. This is illegal because Stephanie cannot split a commission with an out of state broker. D. This is illegal because Stephanie must inform her client of all fees paid to a third party.
>> CORRECT ANSWER IS: D >> YOUR ANSWER IS: D This is illegal because Stephanie must inform her client whenever she is sharing (splitting) her compensation with others.
Mark is 16 years old and has inherited $50,000 from his grandfather. Mark contracts with Harold, an adult, to purchase his video game center. One year later, Mark decides he wants to cancel the contract. Which of the following statements is true? A. The contract between Mark and Harold is illegal. B. If Harold learns that Mark is a minor, he (Harold) may declare the contract void. C. Mark can sell the property. D. Mark may declare the contract with Harold void and get his money back
>> CORRECT ANSWER IS: D The contract between an adult and a minor is valid and binding on the adult, but is voidable by the minor. When dealing with a minor, care should be taken to avoid problems. You should insist on dealing with the guardian of the minor.
A prospective applicant for a real estate salesperson's license takes the state exam and passes it in September 2015. In October 2016 the person submits his application for a real estate license. A. This person must pay a fee equal to 2 times the original fee. B. This person must retake the 75 hour required education prior to submitting his application. C. This person must complete post-license education before submitting his application. D. This person must retake the state licensing exam.
>> CORRECT ANSWER IS: D This person must retake the state licensing exam since no application for the license was submitted within 12 months.
