practice exam

advance fees

Which of the following fees can be a percentage of listing amount or a set amount?

statutory law

Which source of law is created through legislation?

power of sale

Which clause is standard in a deed of trust or security deed and affects the foreclosure process that can be used if the borrower defaults?

common law

Which law source is based on customs and usage over a long period of time?

a.)confidentiality policies

Which of the following agency-related disclosures does Georgia law require? a.)Confidentiality policies b.)Licensee expertise c.)Number of annual transactions d.)Number of failed transactions

valuable consideration

Which of the following can be an exchange of money for a promise, an exchange of an item of value for money, or an agreement between the parties to do or not do something?

late charge

Which of the following clauses is included in Fannie Mae's multi-state note?

b.)consideration

Which of the following elements is always required for a real estate contract to be valid? a.)Earnest money b.)Consideration c.)Profit d.)Attorney review

estoppel

Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements?

c.)Add a standard addendum using standard language.

Which of the following is a licensee allowed to do when a sales contract doesn't cover the terms needed by the parties? a.)Terminate the contract on the client's behalf. b.)Draft an amendment using whatever language is needed to capture the missing terms. c.)Add a standard addendum using standard language. d.)Hire an attorney and invoice the client.

physical office

A county may not charge brokers a fixed tax unless they maintain a ______ in the county.

alienation clause

Albert wants to sell his house to his cousin, who's willing to assume the loan. What clause in Albert's mortgage requires him to obtain the lender's permission to do this?

one year

All fair housing complaints must be filed with the Fair Housing Division within ______ of the alleged violation.

a start and end date

An exclusive right-to-sell agreement must include ______.

unlicensed GA resident

An unlicensed, non-resident may obtain a real estate license in Georgia under the same qualifications and requirements as a(n) ______.

c.)Andrea can cure the default and reinstate the loan.

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

defines how and how much the agent will be paid

From an agent's perspective, what's one benefit of a buyer representation agreement?

3 years

GREC won't investigate a complaint unless the incident prompting the complaint occurred within the past ______.

six years

In Georgia, a party to a contract has ______ from the date of a contract breach to sue the other party.

the lender

In a deed of trust, who is the beneficiary?

b.)There is no statutory right of redemption

One difference between a judicial foreclosure and a non-judicial foreclosure is that with a non-judicial foreclosure, ______. a.)There is no equitable right of redemption b.)There is no statutory right of redemption

ZERO

Under certain circumstances, an attorney may perform real estate services without holding a real estate license. This would be true for an attorney who employs up to ______ salespeople.

endorsement of the note

When a promissory note is sold, how is ownership transferred?

at settlement

When is the balance of the down payment due?

obligee

lender=

trade fixtures

A jewelry store is relocating from a mall to a free-standing building and is pulling all of the display cases out of the storefront. These cases belong to the jewelry store because they are ______.

contract must be written for legal purposes

A real estate contract must be for a lawful objective. What does this mean?

c.)To minimize the potential of receiving bad advice on repairs, replacements, and parts

Above all, why should a property manager have some knowledge of systems such as heating, ventilation, air conditioning, structural engineering, waterproofing, plumbing, electrical, gas, oil, water, security, maintenance, and elevators? a.)To instruct tenants on how to make all repairs themselves b.)To seek personal enrichment c.)To minimize the potential of receiving bad advice on repairs, replacements, and parts d.)To make income on the side

one year after initiation

According to the Georgia Brokerage Relationships in Real Estate Transactions Act, if no expiration date is provided in the brokerage engagement, then the engagement will terminate ______.

brokerage relationship

Andrew is looking for a home. He's happy to let his friend, Keisha, who's a licensed real estate salesperson, send interesting listings to him, but he's not ready yet to sign an agency agreement. What type of arrangement do Andrew and Keisha have?

office

As a(n) ______ property manager, you need to negotiate favorable leases with businesses. Longer-term leases are great for the owner, but you want to make sure you build in stepped-up increases in leasing rates.

c.)License status and license number (on all other forms of advertising is optional)

Aside from your name, what else must be included on every page of your website, according to GREC's rules? a.)Personal contact number b.)Personal photo c.)License status and license number d.)City and state where the brokerage is located

buyer

At closing, who pays for and receives clear title for the property being purchased?

valid

Aubrey, an attorney for the seller, was extremely satisfied with the purchase offer his client was planning to sign. The sales contract contained all of the essential elements. What type of contract is this?

industrial

Because these types of properties have both specific physical and complex operational requirements, they are usually handled by more experienced real estate professionals.

the buyer

Before closing, ______ should provide evidence of a lender's and owner's title insurance policy.

c.)This is an express contract because the specific terms of the agreement and consideration to be exchanged are defined in words.

Bruno, a tenant, and Becka, the landlord, have entered into a nine-month lease agreement. Per their agreement, Bruno will pay Becka a monthly amount in exchange for using the property. What type of contract is this? a.)This is a unilateral contract because only one party is providing anything of value. b.)This is an implied contract because it is based on the parties' actions or behaviors and not defined in words. c.)This is an express contract because the specific terms of the agreement and consideration to be exchanged are defined in words. d.)This is an invalid contract because it is missing the essential element of offer and acceptance.

b.)Responding to broker communications in a timely fashion

Buyer duties outlined in the Georgia REALTORS® Exclusive Buyer Brokerage Agreement include ______. a.)Taking responsibility for broker compensation b.)Responding to broker communications in a timely fashion c.)Agreeing to see all properties identified by the broker d.)Accepting broker recommendations for legal and financial advice

real estate attorney

Cynthia loves her apartment and would like to have the option to buy it once her lease is up. Who's the best person to help Cynthia prepare a lease option?

illegal

Denise signed a buyer agency agreement with her buyer, Eunice. Since they didn't know how long it would take to find a property, Denise included an automatic renewal clause. This is ______.

advance fee

Fallon is a broker who wants to ensure she is paid, regardless of whether a property sells. She asks for 4% of the listing price up front, which is lower than her colleague's 6% contingency fee. What type of fee is this?

mortgage

Financing for a real estate transaction can use a note with a ______, a note with a deed of trust, or, in Georgia, a note with a security deed.

c.)She must receive her license and post it on her office wall.

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

b.)It's based on the amount borrowed, and is $1.50 per each $500 or fractional part thereof, with a maximum of $25,000.

How's the Georgia intangible tax computed? a.)It's based on .1% of the sales price. b.)It's based on the amount borrowed, and is $1.50 per each $500 or fractional part thereof, with a maximum of $25,000. c.)It's based on the sales price, and is $1.50 per each $500 or fractional part thereof with a maximum of $25,000. d.)It's a flat $10 fee for any mortgage subject to the Georgia Residential Mortgage Act.

c.)Pricing just below market value

In a hot market, when all other sellers are listing at or above market rate, what pricing strategy will likely induce a bidding war? a.)Pricing in line with comparable properties b.)Pricing just above market value c.)Pricing just below market value d.)Pricing far above market value

customers and other parties

In a real estate transaction, which two parties are owed the same duties?

goals

In order to produce useful and functional reports, a property manager should understand a property owner's ______.

75%

In order to successfully pass the licensing exam, a salesperson applicant needs a minimum score of ______.

c.)To detail all costs Jennings will owe at closing

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? a.)To disclose the distribution of commissions that will occur at closing b.)To estimate the seller's net proceeds c.)To detail all costs Jennings will owe at closing d.)To estimate closing costs

c.)No, because Carol found her own buyer.

Mardee is representing Carol in the sale of her condo, and they've signed an exclusive agency listing agreement. If Carol finds her own buyer, does she owe Mardee a commission? a.)No, because Carol is not a real estate licensee. b.)Yes, because they have an exclusive agency listing agreement. c.)No, because Carol found her own buyer. d.)Yes, but she only owes the listing commission.

the buyer

Prior to closing, who should review the Loan Estimate?

d.)Tennessee

Provided other requirements are met, a non-resident licensee from which of these states isn't required to hold a Georgia license to practice real estate in Georgia? a.)California b.)New York c.)Alaska d.)Tennessee

a.)Rachel can only purchase the condominium unit if the condo association doesn't want to.

Rachel is buying a condominium from Mark and Stacey. The condominium association has the right of first refusal. How does this affect Rachel's purchase? a.)Rachel can only purchase the condominium unit if the condo association doesn't want to. b.)Rachel can only purchase the condominium unit if there are no other condo owners who wish to purchase it. c.)Rachel can only purchase the condominium unit if the condo association accepts her offer. d.)Rachel must wait 60 days to purchase the condominium unit.

credential

The Certified Business Intermediary designation is a(n) ______ that is available in the specialized field of business brokerage.

alienation

The ______ clause is also known as a due-on-sale clause.

True

The beneficiary is the lender; the trust is held by a neutral third party on behalf of both the borrower and the beneficiary. True or False?

$25,000

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?

the borrower

The signature lines on the multi-state Fannie Mae promissory note are set up for ______ to sign.

operating

The two primary purposes of which kind of budget are to help property managers maximize profitability and to avoid unforeseen major expenses.

intangible tax

Unless otherwise negotiated, which of the following closing costs will the buyer pay?

sale price

Upon what amount is the transfer tax calculated?

only ministerial tasks

What can a broker do for a buyer customer, as compared to a client, in Georgia?

buyer agrees to work with only one broker

What does "exclusive" mean in the Exclusive Buyer Brokerage Agreement?

real estate property

What does an equity Real Estate Investment Trust invest in?

b.)The seller promises that the property has marketable title.

What does the Warranty section say in the GAR F20 Purchase and Sale Agreement? a.)The seller promises that the buyer can order a title examination. b.)The seller promises that the property has marketable title. c.)The seller promises that the buyer can order a title examination. c.)If the buyer finds a defect in the property within 90 days, the seller promises to repair it.

an affidavit

What must be filed for the eviction process to begin?

late charge

What provisions are standard when any security instrument is used but are included in the promissory note rather than the security instrument?

enforceable

What type of contract do you have once the seller has accepted the buyer's offer in writing and the buyer has been notified of the acceptance?

reconveyance clause

Which clause in the deed of trust and Georgia's security deed is the equivalent of the defeasance clause in the mortgage?

d.)the listing agent stops working on the listing

Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission? a.)The seller has a change of heart. b.)The seller decides to sell the property without an agent. c.)The seller locates a buyer. d.)The listing agent stops working on the listing.

a.)A sales contract

Which of the following is an example of a bilateral contract? a.)A sales contract b.)A contest with a prize c.)An offer of a reward d.)A beauty pageant

b.)The seller pays this fee to the mortgage lender. It clears the balance of their current mortgage.

Which of the following is the best definition of an existing lien satisfaction fee? a.)This nominal fee is paid by either the buyer or seller, and it ensures that the buyer receives a clean title. b.)The seller pays this fee to the mortgage lender. It clears the balance of their current mortgage. c.)The buyer pays this fee to their broker, separately from the commission. It ensures the broker's full cooperation in the transaction. d.)The buyer pays this fee before closing to the lender. It is a good faith deposit toward the mortgage.

calculate prorations

Which of the following is the responsibility of the closing attorney?

community property

Which of these types of property ownership is not recognized in Georgia?

case law

Which source of law establishes legal precedent?

flat fee

Which type of fee can be paid either when the listing agreement is signed, or when the sale closes?

any broker not employed by another broker

Who can record a lien against a property in Georgia according to the Commercial Real Estate Broker Lien Act?

the buyer

Who's generally responsible for ordering and reviewing a survey of the property?

exclusive agency

With __________ ____________, the seller retains the right to sell and avoids paying the commission.

d.)Managing maintenance, landscaping, security issues, and concerns, and enforcement of the regulations

You want to become a planned unit development (PUD) property manager. What is an area of responsibility that you will undertake? a.)Overseeing the construction of commercial buildings b.)Paving the way with municipal agencies and other local organizations to embrace the development project c.)Working primarily with lenders and investors d.)Managing maintenance, landscaping, security issues, and concerns, and enforcement of the regulations

reasonable skill and care

You were just given information that the buyer found some issues during the walk-through. You immediately phone your seller client and let her know. This is an example of ______.

corrective

Your tenant, Tom, has called to complain about a broken water heater. You hire someone to replace it. What type of maintenance are you performing?

exclusive right-to-sell

_________ _________ __ _______ agreements prohibit the seller from selling the property without paying the listing agent.

express contract

contract in which the terms of the agreement and the consideration to be exchanged are defined in words, whether verbally or in writing.

365 days or 1 year

How long after a lien against commercial property is recorded does the broker have to take legal action?

61

How many hours of real estate education must a licensee complete after license issuance, and before the four-year license renewal?

25 hours

How many post-licensing hours must licensees complete to continue their real estate license?

fax machine

In Georgia, you could be fined up to $500 per solicitation if you use this method to advertise and a prior business relationship does not exist.

because they're minors

In the eyes of the law, why do people under age 18 lack contractual ability?

insurance provision

Property manager Dawson was reviewing a property management agreement and was happy to learn that he would be indemnified for any losses due to tenant negligence. Where is this likely found in the property management agreement?

December 11 (The property was under contract for 10 days, so the extension clause extends the original expiration date by that many days. It moves from December 1 to December 11).

Seller Sharon signed an exclusive listing agreement with Daniel, which terminates on December 1. Sharon accepted an offer and signed a purchase and sale agreement on November 15. On November 25, the buyer's agent informed Daniel that the buyer was unable to secure financing and couldn't comply with the 10-day financing contingency in the contract. The extension clause in the GAR listing agreement extends the listing agreement to what date?

statutory right of redemption

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

d.)Mail a copy of the lien notice to the property owner.

What should the broker do after recording a property lien with the county land records office? a.)Mail a copy of the lien notice to the seller. b.)Mail a copy of the lien notice to the seller's attorney. c.)Mail a copy of the lien notice to the lender. d.)Mail a copy of the lien notice to the property owner.

real estate syndicate

What type of real estate investment may meet the definition of being a security and must adhere to the rules and regulations of the Securities and Exchange Commission?

any form of media

What types of advertising fall under GREC's rule 520-01-.09?

failing to complete 36 hours of continuing education within four years

What will cause a real estate license to lapse?

duress

occurs when a threat is involved.

Alienation Clause (Due on Sale Clause)

this clause allows the lender to make the loan due if the property is transferred without the lender's consent.

a start and end date for listing period

An exclusive right-to-sell agreement must include ______.

undue influence

Regarding the need for consent for a contract to be valid, which of the following exists when an act of persuasion overcomes another person's free will and judgment?

36 hours every 4 years

What's the continuing education requirement for a community association manager?

kiting

Representing the sales price on a home as an amount greater than what it actually sold for is considered ______.

loan estimate form

Because of updated RESPA requirements, buyers receive a disclosure form that estimates the final closing costs for their mortgage transaction. What form do they receive?

March 11

Greg and Sandra entered into an exclusive buyer agency agreement that was set to expire on March 1. On Feb 10, they entered into a contract, but it fell through 10 days later due to a home inspection issue. What's the termination date of their buyer agency agreement?

a.)When purchasing a condominium in a new development

In which of these situations will a letter of intent most likely be used? a.)When purchasing a condominium in a new development b.)When purchasing a historic home c.)When purchasing an existing condominium d.)When purchasing a cooperative

something of value in exchange for something of value

In a contract, consideration is the giving of ______.

investor

In the real estate business, which professional's primary role is to fund high risk land development/construction projects?

a.)The eventual buyer inquired about the property during the agreement period.

In which of these instances would a broker still be owed a commission, even after a listing agreement terminates? a.)The eventual buyer inquired about the property during the agreement period. b.)The seller accepted an offer, but it fell through due to a home inspection issue. c.)The seller rejected an otherwise good offer because it was below list price. d.)The broker terminated the agreement because the seller was too difficult to work with.

preventative

It's time to change the air filters in a 10-unit apartment complex. What type of maintenance will you be performing?

open

James, a seller, signed a listing agreement that allows him to contract with multiple agents, but only pay a commission to the agent who locates a buyer. This type of listing agreement is called ______.

her supervision and approval

Jaqueline is the qualifying broker for a bustling firm in Avondale Estates, and she has many salespeople to oversee. The firm's licensees' advertisements must be done under her name as it appears on her license. What else is required?

variable

Julian is glad that the property owner at the townhouse community he manages established a substantial capital reserve budget for unexpected expenses, like the new roofs needed after a hail storm. What are these types of expenses called?

b.)The doctrine of estoppel keeps Kennie Mae from disavowing the agency relationship because she provided agency tasks for Buzz.

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

protection clause

Many buyer agency agreements contain a provision which comes into play if the buyers let the agreement expire and then try to contact a seller directly. What is this provision called?

$1700

Maria is Allen's buyer's agent. Her exclusive buyer brokerage agreement with him states that her $800 retainer fee is non-refundable unless he closes on a property within the agreement term. At that point, she'll return the retainer fee or deduct it from the commission she's owed. Their agreement also states that she'll receive 2.5% of the sales price. Allen buys a FSBO property for $100,000. The seller won't pay Maria's commission, so Allen is responsible for paying Maria how much?

c.)Request a rent-related credit history from a credit reporting company.

What's the best way for a property manager to assess an applicant's financial status? a.)Charge a higher application fee and see if the check clears. b.)Call the applicant's current landlord and ask how often the rent was paid on time and if any checks bounced. c.)Request a rent-related credit history from a credit reporting company. d.)Request the applicant's last three pay stubs.

manage the process from start to finish

What's your responsibility as a listing agent relative to the transaction as a whole?

owners covenants

When Saundra Neill signed a property management agreement with Henderson Properties, Inc., she made sure the agreement stated explicitly that Henderson owned each property she would be managing. In which section of the agreement would she find this verification?

imputed notice

When actual knowledge received by an agent is deemed to have been given to the principal

30 days

When advertising is placed on a property using the Internet and the information has changed, the ad must be updated or removed within how many days of being placed?

one or both parties have completed only a portion of the terms agreed to in the contract.

When does partial performance of a contract occur?

the seller

When two parties enter into a land contract, who or what entity is the vendor of the contract?

commercial properties

Where are option contracts on multiple properties commonly seen?

a.)The borrower is required to maintain the property and pay property taxes and insurance.

Which of these features is shared by the mortgage, the deed of trust, and Georgia's security deed? a.)The borrower is required to maintain the property and pay property taxes and insurance. b.)In the case of foreclosure, the borrower has a statutory right of redemption. c.)There are three parties involved: a lender, a borrower, and a party who hold title to the property. d.)Non-judicial foreclosure is standard.

c.)Oversee the maintenance of buildings on the property

Which one of the following commercial property managers' duties requires that they keep the property and facilities in good condition and schedule and budget for needed repairs and upkeep work? a.)Negotiate leases b.)Qualify potential tenants c.)Oversee the maintenance of buildings on the property d.)Lease the property

b.)negotiate leases

Which one of these commercial property manager's duties requires the property manager to secure a profitable deal for the landlord and also to negotiate a lease the commercial tenant can afford? a.)Evict tenants who fail to comply with the terms and conditions of the lease agreement b.)Negotiate leases c.)Qualify potential tenants d.)Oversee the maintenance of buildings on the property

security deed

Which real estate finance instrument may include the pledging of collateral and the release of that collateral in the same document?

duty to cooperate

Which section of the GAR F20 Purchase and Sale Agreement says that all of the parties must work together to move the contract along in a timely fashion?

survival of agreement

Which section of the GAR F20 Purchase and Sale Agreement says that paying commission, providing warranties, and seller representations will continue or be completed even after closing?

obligee

Who holds the promissory note while it's being repaid?