Georgia - State Exam Practice 2

Buyer Allen's brokerage agreement with Atlanta licensee, Maria, states that he must pay an $800 non-refundable retainer fee that will be deducted from her 2.5% commission at closing. Allen buys a FSBO property for $100,000 and the seller won't pay the commission. Since Allen has already paid the retainer, how much will be responsible for paying Maria at closing?

$1,700 (100,000 x 2.5% = 2,500 - 800 = 1,700)

The court will order GREC to make a payment out of the Real Estate Education, Research, and Recovery Fund when applicable. What's the maximum dollar amount one claim can be, including all fees and claimants attached to the transaction?

$25,000

The seller countered buyer Addie's initial offer. Which of these statements is true about the situation?

A buyer may opt to "counter the counter" by submitting a counter-offer to the seller's counter-offer.

What type of tax can a Georgia county charge real estate licensees who don't have an office in that county for doing business there?

A gross receipts tax

Clara has been called to be an official witness to a deed signing. Who is Clara?

A notary public

What's required before an individual can perform real estate services for others for a fee, or for compensation of any kind?

A real estate license issued by GREC

What mortgage clause requires the lender's permission before a homeowner can allow a new buyer to assume the FHA loan?

Alienation clause

In Georgia, a person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______.

An exception to the real estate licensing requirement

The Georgia Residential Mortgage Fraud Act targets _________.

Anyone involved in the mortgage lending process who willfully misrepresents information

In Georgia, buyer representation agreements ______.

Aren't limited to any a state-specified form

At what point in a real estate transaction will the deposits and the disbursements of the transaction need to reflect a zero balance?

At the closing of the real estate transaction

According to the Georgia marketable title acts, the statutory limit is 50 years. Marketable title legislation ______.

Automatically quiets any title claims after a certain amount of time

Which of the following is an eligibility requirement for a community association manager in Georgia?

Be a member of the community association or a community association manager licensee

Buyer duties outlined in the Exclusive Buyer Brokerage Engagement Agreement include ______.

Being available during the agent's regular working hours to visit properties

In Georgia, real estate taxes are prorated on the basis of what kind of year?

Calendar year (365 days)

In Georgia, who manages the closing meeting and explains and presents documents for signatures?

Closing attorney

Which of the following terms describes the actions required to transfer a title by deed?

Delivery and acceptance

In Georgia, what are the requirements for security deposits when a landlord owns 10 or more units?

Deposit the funds in an escrow account and notify each tenant in writing what bank holds the deposit.

Which clause of the sales contract says that the contract is the one and only contract between the parties?

Entire Agreement, Modification and Assignment

Which of these is NOT a reason that the Georgia governor might remove a commission member from GREC?

Failure to pay renewal fees

In order to better supervise their independent contractors, many brokers may ask them for additional information. Which of these would brokers NOT typically ask for?

Family status

How many members of the six-member Georgia Real Estate Commission are licensed real estate brokers?

Five

In Georgia, what does GREC stand for?

Georgia Real Estate Commission

What must Georgia's governor do in order to remove a commission member from GREC?

Give notice and a hearing opportunity to the member

On a security deed in Georgia, what is the borrower referred to?

Grantor

Dolcita is an unlicensed assistant for licensee Glynnis at Acme Realty. Which of the following best describes how Dolcita can be compensated for her work?

Hourly, salaried, or per activity

Sharla received an eviction notice from her landlord and quickly responded when the court sent her a summons. At the hearing, she told the judge about the malfunctioning water heater, producing documentation to prove that she'd notified her landlord in writing five times. What type of eviction challenge is this?

Incomplete repairs

Which one of the following contract types defines the terms of the independent contractor's working relationship with the broker?

Independent contractor agreement

Which of the following is true about the Georgia Fair Housing Law?

It essentially mirrors the federal Fair Housing Act.

Which of the following is true about GREC's licensing authority?

It may revoke individual or firm licenses

In Georgia, which of these people must obtain a real estate license before performing real estate activities?

Mickey, who's going to earn a flat fee of $1,000 for representing his cousin in the sale of her home

Karen and Joe are purchasing a six-unit apartment complex for $450,000. The loan is secured by the property being purchased. Is this purchase subject to GRMFA provisions?

No, because of the number of units.

A beneficiary, trustor, and trustee are the parties involved when the finance instrument is a ______.

Note with deed of trust

Which of these statements is true regarding counter-offers?

Once a counter-offer has been made, the prior offer is cancelled.

In Georgia, lenders use one of two methods to release the security deed when the promissory note is paid in full. One method is to simply note on the original deed that it's being released. What's the second method?

Prepare a Cancellation of Debt Secured by Deed form

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______.

Promissory note

Which is NOT a focus of Georgia's Fair Housing Division?

Provide financing for diverse housing communities

Within a brokerage, who's responsible for supervising a team's unlicensed personal assistant?

Qualifying broker

Kristin is going over an exclusive buyer brokerage agreement with potential buyer client Beau. Which of these is NOT a feature of the agreement?

Resolve issues and disagreements

In Georgia, offer to purchase, purchase agreement, and purchase contract are all names for the ______.

Sales contract

In Georgia, who owns the property on the day of closing?

Seller

Which of these is NOT one of GREC's powers?

Sentence licensees to jail time

The termination agreement ______.

States what happens when the agent separates from the firm

An investigation found evidence that suggests Emmie may have violated Georgia license law and a hearing has been scheduled. What are Emmie's rights at the hearing?

Subpoena witnesses and documents

Forms provided by the Georgia Association of REALTORS® cover all of the following situations EXCEPT ______.

Tenants looking solely for rent-to-own situations

All business that a licensee of a brokerage firm conducts must be in ______.

The brokerage's name as it appears on the license

Robert, the qualifying broker of a firm, was convicted of fraud and embezzlement. What will happen to the brokerage as a result?

The commission will revoke the firm's license

What is a statutory right of redemption?

The right of a borrower to redeem the property by paying amounts owed plus costs, even after the foreclosure sale

What does GAFLA require regarding late fees?

They must. be clearly specified in loan documents

Valdosta licensees Ken, Sharon, and Kate dislike a lender in town and agree to direct business away from that lender and discourage their clients from using it. Which Georgia unfair trade practice act does this violate, if any?

This violates the Georgia uniform Deceptive Trade Practices Act

Which of these depicts a Georgia licensee committing a common real estate violation?

Tim includes an automatic renewal clause in his listing agreements in case his seller clients' properties don't sell by the end of the original listing agreement.

Which clause in the sales contract says that all dates in the contract are strictly enforceable?

Time is of the Essence

What's the reason for using employee and independent contractor agreements?

To define the terms of the broker and worker's professional relationship

In Georgia, which of the following closing costs is usually paid by the seller?

Transfer tax

Assuming no tenant is moving out, when a leased property is sold, the previous owner must either refund tenants' security deposits or ______.

Transfer the security deposits to the new owner

What do Georgia license law and the commission's regulations say about trust funds?

Trust funds must be kept in a specific trust fund account

Eli, an unlicensed resident of South Carolina, may obtain a real estate license in Georgia under the same qualifications and requirements as a(n) ______.

Unlicensed Georgia resident

When a borrower fails to cure any default within 120 days of the lender's original notification, the lender may begin the foreclosure process. In Georgia, borrowers may redeem the property ________________.

Up to five days before the scheduled foreclosure sale

Which of the following is an example of a net brokerage agreement?

When a licensee agrees to a commission of any amount above a certain sales price

After a fierce bidding war with three other potential buyers, the Carsons enter into an agreement that includes $2,000 earnest money. When the sale is later terminated, the earnest money goes to ______.

Whichever party it belongs to based on the agreement terms