Real Estate Exam Review 2022
A california couple has relocated to Georgia and is looking to buy a new home. They ask the salesperson which is the best way for a married couple to take a title in Georgia. What is the salesperson's best response?
"I suggest you discuss that with an attorney"
The rate of the transfer tax is
$.10 per $100 of taxable amount
The rate of the intangibles tax is
$1.50 per $500 of taxable amount
A licensee representing a seller under a brokerage engagement must disclose to the buyer certain adverse material facts about physical conditions in the neighborhood surrounding the property that exist within:
1 mile of the property
When a broker opens a trust account, he/she must notify the Commission within _____.
1 month
How many brokers may a licensee normally be actively licensed under?
1 only
When completing settlement statements, property taxes are usually prorated over a period of:
1 year
A person who claims to have been injured by a discriminatory housing practice may file a complaint with the U.S. Department of Housing and Urban Development (HUD) or a state or local agency no later than:
1 year after the alleged discriminatory occurred or terminated
The Recovery Fund must maintain a minimum balance of
1,000,000
The money available for education and research in the Education, Research, and Recovery Fund is anything over
1,000,000
After a listing terminates, the listing broker must remove a "For Sale" signe within
10days
After conviction, an applicant for a broker or associate broker license in Georgia who has been convicted of forgery, embezzlements, theft, or similar crime may be not granted a license untill after
10years
How to calculate proration?
1305 (rent) x 30 days 30-25 = 5 days, buyer owns property for 5 days 45.00x 5= 225.00 seller owes buyer
To receive a community association manager's license in Georgia, a person must be
18 years old.
The seller will pay off an existing loan on the day of closing, which is June 19. The seller paid the June 1 loan payment prior to closing. Assuming the seller owns the property on the day of closing, how many days accrued interest will the seller owe at closing
19
How to calculate intagible tax?
190000 x .80 152000/500=304 304x1.50=?
To receive damages from the Recovery Fund, a member of the public must take action within
2 years
In order to be licensed as a Community Association Manager, what is the minimum number of pre-license education hours?
25
To receive a community association manager's license in Georgia, a resident must successfully complete an approved prelicense course of at least
25 hours
The consumer is now applying for payment from the Education, Research, and Recovery Fund. What is the maximum the consumer might receive?
25,000
When damages are paid from the Recovery Fund, the most that a member of the public may recover regardless of the number of the transactions is
25,000
When damages are paid from the Recovery Fund, the limit of liability for a single transaction involving a licensee is
25000
When an affliated licensee of a firm employs an unlicensed support person, there must be ____ written agreements
3
To take the state brokers's exam, applicant must have been active licensee:
3 out of the last 5 years
For real estate sales transactions in which a broker is involved, the broker is required to keep copies of the closing statements for:
3 years
To receive a broker's license in Georgia, an applicant must have been an active licensee for
3 years
Under Georgia Law, after termination of a lease, a landlord must return any security deposit owed to the tenant within
30 days
Unless otherwise agreed to in the property management agreement, when an owner terminates a management contract with a broker, the broker must tell the owner all records of transactions and funds on behalf of the owner within
30 days
How many days of notice of cancellation for the fidelity insurance company required to give in order to be approved to operate in Georgia?
30days
The maximum loan amount the FHA will insure in Georgia (outside of Atlanta) for single-family residential?
331,760
To renew a license, most brokers or associate brokers must show proof of completeting (during the renewal period) continiuing education courses totaling at least
36hours
Buyers loan amount calculation
424000 x .80 =339200
Calculation of transfer tax
424000/100= 4,240 4240 x .10 =424.00
intangiable tax
42400x.80=339200 new loan 339200/500=678.4 (round up) 679x 1.50=1,018.50
Which is true of the Georgia Real Estate Commission>
5 members must be residents of and licensed in Georiga
In Georgia, a sufficient title search period is considered to be
50 years or more
In the event that a qualifying broker leaves a firm, the firm must obtain a new qualifying broker within
60 days
A lessor and a lessee have an estate at will rental agreement that has been in place about 3 years. Termination would require
60 days notice by the lessor or 30 days notice by the lessee
To receive a real estate broker's license in Georgia, a resident must successfully complete an approved broker prelicense course of at least _____ hours.
60 hours
If a licensee in GA is convicted of a crime, the license is automatically revoked if the license does not request a hearing from the commission of takes no action.How long does the licensee have to request a hearing?
60days
A developer has sold a buyer a condominum. Under the Georgia Condominium Act, should the buyer change his mind, how long does the buyer have to rescind the contract?
7 days
When a consumer is purchasing a condominium in Georgia, in a new development directly from the Developer, what is the number of days during which the consumer may legally terminate that contract?
7 days
When damages are paid from the Recovery Fund, the limit for any one licensee in multiple transactions is
75,000
Under Georgias Commercial Real Estate Broker Lien Act, a broker who is entitled to a commission in a commercial real estate transaction and is not paid may take action to place a lien on the property if the broker files a claim of lien written
90 days of the date of the commission
Who of the following is NOT eligible to be appointed to the Georgia Real Estate Commission?
A Tennessee broker with 20 years of experience who was recently licensed in Georgia
In order to maintain non-resident licensure, a licensee must be afflilated with
A broker licensed in Georgia
Items entered on a closing statement must be designated as either "debit" or "credit". Which statement regarding debits and credits is true?
A debit is owed, a credit is received
What is the difference between a mortgage and a security deed?
A mortgage conveys a lien to the lender and requires judicial foreclosure, whereas a security deed conveys legal title to the lender and allows for nonjudicial foreclosure
Which of the following items would most likely be included in the buyer's closing statement as a debit to the buyer?
A payment for the reserve account
According to state and federal fair housing laws, persons protected under the "handicap" or "disability" classification include all of the following EXCEPT
A person currently addicted to methamphetmine
Which of the following individuals is required to hold a community association manager license?
A person who provides community association managment services on behalf of a broker but does not hold a salesperson or broker license
Which of the following is NOT a protected minority under state law?
A same-sex couple who had a commitment ceremony
Which of the following statements about a survey is true?
A survey measures boundaries, determines land areas, and reveals encroachments
Which of the following statements about a title commitment is tue?
A title commitment is commitment issue a title insurance policy in the future if certain conditions are met
Which of the following actions is a specific violation of Georgia Law?
ALl of the above
Which of the following is NOT required to be included in a short form (recorded plat) legal description in Georgia?
Address
If a buyer asks a license a question that requires a legal interpretation, how should the licensee answer her?
Advise her to consult an attorney
If a buyer asks a licensee if the title on the home she is looking at is okay, what should the licensee do?
Advise her to consult an attorney
The license was revoked to due a violation of one of the unfair practices of the license law. When is the soonest the licensee may reapply for another license?
After at least 10 years have passed, and even then it may be denied
A non-resident may obtain a license in Georgia by meeting which of the following requirements for licensees?
Age, education, and examination
Which listings must be in writing in Georiga?
All exclusive listings
Which of the following is requirement concerning the presentation of offers in Georgia?
All offers must be presented, even if the seller may reject it
Which of the following meets the minimum requirements to sit for the salesperson's licensing examination?
An 17 year old with a GED who has completed an in-class prelicense course from an appooved school
A newly licensed salesperson and a broker are discussing the agreement between them. The broker is explaining the differences between an employee (which is what the salesperson has been) and an independent contractor. Which of the following statements BEST describes the differences?
An independent contractor pays their own income taxes, and the broker does not contribute to social security
The Real Estate Commissioner is
Appointed by the commission
Interest payment calculation
April 1 through 19, days no interest 30-19=11 days, buyer owes interest for 11 days $375000 x .045 = 13500 annual interest 13500/360= 37.50 per day 37.50x11 days = 412.50
Court action against anyone judged to be in violation of the license law or rules is brought by the _____.
Attorney General
A buyer obtains a new loan to purchase a home. Closing takes place on June 14th. When is the buyer's first loan payment due?
August 1
When a licensee transfers to a new broker, the licensee's former broker may forward the license of that person to the
Commission or the new broker
How to calculate insurance propration?
Days in the month minus closing day add whats above the sellers policy whichever day it ends Insurance premium divided by 360 Once calculated times by the days which it was recorded
Which of the following is most likely required in the short form legal description?
District
Mr. & Mrs. Green own their home by tenants by entirety, without an agreement with Mrs Green, Mr. Green
Do none of the above
When a listing agreement is signed, who is required by law to receive a copy of the listing
Each party who signs the listing agreement
When a listing contract is signed, who is required by law to receive a copy of the listing?
Each party who signs the listing agreement
The primary difference between the Fair Business Practice Act (FBPA) and the Uniform Deceptive Trade Practice Act (UDTPA) is that
FBPA has misleading advertising as its primary focus
which of the following actions is a violation of the Rules of the Georgia Real estate commission>
Failing to include in an offer to purchase the license number of each license participating in the transaction
Which of the following actions by a broker is a violation of the Georgia Real Estate License Law?
Failing to provide completed statements to the seller and the buyer when a sale is consmmated
A buyer is under contract on a property that is advertised as "most luxurious homes in Oceanview". As part of the inspection the buyer finds out the property is actually in Oceanside where the taxes are much higher and the values are lower than in Oceanview. The buyer rescinds the contract and brings actin against the broker. The law the broker violated was the
Georgia Fair Business Practices Act
Prior to receiving a non-resident license, the entity that must be designated as the receipient of any legal notices against the applicant is the
Georgia Real Estate Commissioner
The buyer who is buying a lot in a new subdivision asked the salesperson to reccomend a builder. What is the salesperson best response?
Here is a list of several builders, but you may want to loos elsewhere
Which of the follwoing awards the designation certified property manager to members who successfully required educational courses in property management?
IREM
Which of the following practices is a violation of state and federal fair housing laws?
In a large apartment complex, requiring families with small children to live in a separate builidng
which of the following actions by a broker is a violation of the Georgia Real Estate License Law?
Inducing a seller to break an exisiting sales contract when the broker receives a beteer offer for the seller Failing to provide completed closing statements to the seller and the buyer when a sale is consumnated Failing to retain copies of sales contract in the brokers files for a period of 3 years
Which of the following is TRUE of the Georgia Real Estate Commission's Commissioner?
It is the Chief Executive Officer of the Commission and if licensed must be inactive
An applicant for a salesperson's license has received their criminal background report, which indicates that in 1988 when they were 23 they got a DUI to which they pled nolo contendre, paid a fine, and completed a defensive driving course. What happens now?
It must be disclosed to the Commission who will do a preliminary investigation to determine if the applicant should be issues a license
A borrower has an amortized loan for which payments are due and payable on the first month. When feburary 1st paymentn is made, the portion of the payment applied to interest covers the month of ?
January
At minimum, which loan conditions must be entered on the conventional loan contingency exhibit attached to a Georgia residential purchase contract?
Loan amount, interest rate, loan term
Which web-accessible tool can member brokers use to broaden market exposure of a given property?
MLS
An executor of an estate is listing a property. He states the owners were the victims of a murder - suicide in the home. Based on the stigmatized property act. Which of the following is true
Murder and suicide can be kept confidential unlesss a buyer directly aks
When may a real estate license offer legal advice to a seller or a buyer in a sales transaction
NEVER
A salesperson has been working with a buyer and has reviewed agenecy but they did not enter a written brokerage agreement. The buyer has seen a house that she likes and has asked the salesperson if the asking price seems fair. Can the salesperson answer this question?
NO, this type of decision requires that there be a written agency agreement
If a borrower using a fixed rate VA loan wants to pay off the loan sooner, the prepayment is?
NONE
In Georgia, which type of death on a property must a seller or seller's agent voluntarily disclose to all potential buyers?
NONE
The person appointed to the office of Commissioner must ___ in real estate
NOT be actively licensed
When is a licensed real estate salesperson authorized to conduct a real estate closing in Georgia?
Never
A buyer and a seller entered into a written agreement for the sale of 1034 Brookhaven Circle in Land Lot 37 of the 17th section of district in the Overone Hills Subdivision in Seaview Georgia as recorded in Plat book 114 page page 38. This is an adequate legal description?
No, the legal description must indicate the county where the property is located
The seller is signing an exclusive right to sale listing (brokerage engagement) on July 3 with an effective date of July 5th for 120 days. What is the expiration date?
November 1st
If a broker is not available, when should a licensee consult a lawyer for assistance in preparing a sales contract?
Only when directed to do so by her broker
When should a license consult a lawyer when writing a sales contract?
Only when directed to do so by her broker
When completing settlement statements, which costs are prorated?
Property taxes
A sales contract calls for closing on June 30. The seller is responsible for property taxes from January 1 through June 30, and the buyer is responsible for property taxes from JUly 1 through decemeber 31. The dividing of these types of expenses is known as:
Prorating
The property appraisal has come in at $225,000 bu the sales prices on the purchase and sale agreement was $229,000. The listing salesperson has some recent comps which she feels the appraiser does not know about the comps support the property's sales price. Wha should the salesperson do in this situation?
Provide the appraiser with the new comps
When a buyer asks a licensee to reccomend a lawyer to answer legal questions, what should the licensee do?
Provide the names of several lawyers
When completing settlement statements, which items are prorated?
Rents paid in advance
Which of the following is considered a disciplinary action that many be administered by the Commission?
Revocation of a license
Buyers loan amount 375000 x loan 80%
Sales price x loan 80%
Which of the following is used to secure a real estate loan in Georgia?
Security Deed
The _____ was enacted because it was not an uncommon occurrence for a borrower to see loans advertised for rates lower than the borrower actually wound up paying.
TILA
Which federal law prohibits discrimination against persons with handicaps at commercial properties of establishments?
The American with Disability Acts (ADA)
In Georgia, the law that addresses agency relationships in real estate is
The Brokerage Relationships in Real Estate transcations act
The Georgia Attorney General has issued a recommendation that a licensee's license be revoked. To whom does the licensee direct his challenge of the decision?
The Courts
A member of the Georgia Real Estate Commission finds it necessary too resign his appointment. How will the position be filled?
The Governor may appoint a replacement member for the unexpired term of the vacating member
If a resident real estate sales transaction involves a new loan, what document must the lender provide to the borrower no later than 3 business days prior to consummation of the loan?
The closing disclosure
A license has been inactive for 6 years and 7 months and was never renewed. Can the license be reactivated?
The license is no longer inactive, the licensee needs to reinstate the lapsed license
Which of the following would get an applicant a low rating on a loan application?
The loan is for property in a "bad-risk" neighborhood
The law that limits the amount a lender can require a borrower to pay in advance for property tax and insurance reserve accounts is
The real Estate Settlement Procedures Act
What is the exisiting lender's role in a transaction involving a short sale?
The short sale requires lender approval, but the lenderis not a party to the transaction
Black, Blue, and Green hold title to an investment property as joint tenants. Which of the following statements is/are true?
They all have use to the entire property
A salesperon is selling a new home under a cooperative relationship with the onsite brokerage firm is a subdivision where the builder has authorized a $5,000 selling bonus for cooperating agents. Which of the following is true of this situation?
This is acceptable, but the cooperating salesperson broker must know of, approve and oversee the bonus
A broker has been approached by the owner of an apartment building and asked to manage the property. The apartment owner tells the broker to only rent to females bc he feels that males cause more damage to the property than females. What should the broker advise the owner to do?
Treat tenant prospects of both genders equally
Who can recover damages from the Education, Research, and Recovery FUnds?
Unlicensed members of the public
When is practicing attorney in Georgia exempt from licensure as a real estate broker?
When a real estate work is incidental to law practice
Within how much time is a broker or someone authorized by the broker required to review a contract?
Within 30 days
A seller who is illiterate enters into a contract, to sell property, by signing his name with the letter x after the contract was reviewed verbally by his daughter. Is this contract enforceable?
Yes, an illiterate person is competent if they understood what they were doing
A salesperson is in need of some help with a 1031 Exchange she is involved in as a prinicipal. She has consulted both an attorney and a CPA for guidance salesperson acting property
Yes, but only if she first notified her broker of her personal business and is following her brokers instructions
A salesperson has a legal question. Time is critical, and the broker is unavailable. Should the salesperson contact the firm's legal counsel?
Yes, but only with the broker's permission
In Georgia, the written contract in which a seller, buyer, landlord, or tenant becomes a client of a broker and agrees that the broker may receive compensation for performing brokerage services is called
a brokerage engagement
Engaging in the activities of a licensed broker, and associate broker, or a salesperson without a license makes a person subject to
a cease and desist order
To engage in community association management services, an individual must hold:
a community association manager license, abroker license, or a salesperson license
A contract provision that requires the completion of a certain act before the contract is binding is
a contingency
A sales contract includes a provision that the sale will take place only if the buyers are able to sell their current home within 90 days. The contract provision is called
a contingency
The sales of a property is closing in September. If the property taxes for the year are paid in arrears, the settlement statement will show the proration of taxes as
a debit to the seller for the amount of January to closing
In Georgia, an exclusive brokerage agreement must include
a definite expiration date
A real estate sales contract may be referred to as any of the following EXCEPT
a devise
A closing in which the documents are signed but the funds are not disbursed and the deed is not delivered is called
a dry closing
Brown is the sole owner in a fee simple of a parcel of real estate. She is the owner
a freehold estate and an estate in severality
A broker paying a referral fee to another licensed broker is
a good business practice
Submitting a false statement on an application is grounds for all of the following EXCEPT:
a jail sentence
If a broker places his/her own money into a designated trust account in order to maintain a minimum balance required by the bank, this is _____.
a legal practice
The Education, Research, and Recovery Fund covers losses to a member of the public resulting from the actions of
a licensee performing acts requiring a real estate license
Designated agency occurs when
a licensee represents a seller and a different licensee aflliated with the same firm represents a buyer who is interested in the sellers property
A broker agrees to list a seller's property. The listing agreement does not include a list price or a commission rate. However, the broker and the seller agree that the seller will keep 200,000 of the proceeds from a sale, and the broker will receive all excess money earned from the sale over the amount. This type of listing is
a net listing, which is illegal in Georgia
Once the deed of trust is recorded in the county where the property is located and is given to either the lender or the trustee for safekeeping, to whom would title records show the deed of trust was conveyed?
a neutral third party
once the deed of trust is recorded in the county where the property is located and is then given to either the lender or the trustee for safekeeping, to whom would title records show the deed of trust conveyed?
a neutral third party
To the eligible for a broker's license, a firm must designate:
a qualifying broker
Court action taken to remove a cloud title, when a person is not cooperative in removing title defects, is called
a quiet title action
The type pf deed commonly used to clear up on a cloud on title is
a quitclaim deed
A list or account of all rent from the units or leased space is referred to as:
a rent roll
Money received by a broker on behalf of others is deposited in
a separate trust or escrow account
A collection of property records maintained by title company for all counties in which the company does business is referred to as
a title plant
When a title insurance company receives a request for title insurance, a title examiner will perform
a title search
According to the Brokerage Relationship Disclosure Act, a broker who does NOT have a client relationship with any of the parties a transaction and who performs only ministerial acts for one or more parties for compensation is called
a transaction broker
A broker enters an agreement by accepting an employment opportunity and then does nothing to promote it. This employment agreement is terminated by
abandonment
Which of the following is NOT part of the acronym that is used to test a fixture?
accurectly assuming value
A formal declaration that the person signing a document is the person named in the document and that the signing of the document is a free and voluntary act is referred to as:
acknowledgement
A transaction broker is permitted to
act as a scriber preparing real estate firm contract or leases
Residential real estate sales transactions often require more information than will fit in the spaces provided on the sales contract form. When this occurs, documents providing the additional information are attached to the contract. These documents are referred to as:
addenda
Which listings must be in writing in Georgia?
all exclusive listings
According to the Brokerage Relationship Disclosure Act, which of the following MUST an agent present to a seller?
all offers, regardless of their form
An earnest money check may not be held by a broker unless
all parties agree in writing
A licensee representing a seller under a brokerage engagement has a duty to disclose adverse material facts pertaining to the physical condition of the property
all parties with whom the licensee is working
A "time of the essence" clause in sales contract means:
all times stipulated in the contract are obligations, and a party who does not comply has breached the contract
A housing development for the elderly is exempt from the state and federal laws regulating discrimination against families with children if:
all units are occupied by persons 62 years of age and older
Which listing in Georgia must have a definite date of termination?
all written listings
A full historical summary of all matters affecting title to property is
an abstract of title
A third-party that acts as an intermediary between an appraiser and a user of appraisal services and administers a network of independent contractor appraiser is
an appraisal management company
In Georgia, a real estate closing may be conducted by
an attorney only
When closing takes place in escrow, the neutral third party who handles the documents and the funds is referred to as:
an escrow agent
A title insurance policy purchased at closing to protect the buyer against any loss that results from defects in title is
an owner's title insurance policy
Acting in a transaction as an undisclosed dual agent is
an unfair trade practice
Inducing a party to break a contract for the purpose of substituting a better contract with another principal is _____.
an unfair trade practice
If a person wishes to act as a referral agent WITHOUT a real estate license, the only source from which he/she may receive compensation is
an unlicensed party to whom a referral is made
The Commission rules require that a broker give a copy of documents to all parties who sign
any real estate contract
A property owner's full time employee who handle only the property of that owner
are exempt from licensing
how many married spouses take title to property in GA?
as joint tenants or tenants in common
A licensee who receives an earnest money check must turn it over to the broker
as soon as practically possible
Real estate contracts are
assignable, unless the contract states otherwise
In Georgia, a residential real estate transaction is typically concluded:
at a closing meeting of all parties to the transactions
A listing broker's commission is typically paid
at closing
A property owner must allow a residential tenant with a handicap to make reasonable modifications to the dwelling unit
at the tenant's expense
When payment from the Recovery Fund is authorized, the license of the person against whom the claim is made is _____.
automatically revoked
A broker enters into a nonexclusive (open) listing with a seller. The listing does not have a set expiration date. If the property does not sell and the parties do not take action to terminate, the engagement will:
automatically terminate in 1 year
At closing, the insurance that protects the borrower is
available at the borrowers option
To obtain a community association manager license, an applicant must
be at least 18 years of age, complete the education totaling 25 hours, and pass an examination
If a licensee offers to purchase property in order to obtain a listing, when must the written purchase offer be made?
before execution of listing agreement
If a licensee offers to purchase property to enable a party to purchase another property, when must the offer be written?
before execution of the other party's contract to purchase new property
A salesperson tries to induce owner to sell their homes by telling that persons of another race, religion, or national origin are moving into their neighborhood. This a violation of the Rules of the Georgia Real Estate Commission and an example of
blockbusting
The decision as to whether a salesperson will be an employee of or an independent contractor to a broker is determined by the
broker and salesperson
Which of the following is NOT a function of a property manager?
building appraisal
Under the Brokerage Relationships in Real Estate Transactions Act, a buyer or a seller may become a client of a broker :
by entering into a written brokerage engagement
Earnest money may be paid in the form of
cash, certified check, personal check, promissory note, or other valuable asset
the acroymn DUST stands for
characteristics of value
Settlement statements are commonly referred to as:
closing statements
As part of his/her membership, a broker who is REALTOR must pledge to abide by NARS
code of ethics
Community association management services include:
collecting, controlling, and disbursing funds of a community association
A tenant may agree to rent a property only if given an opportunity to purchase it before someone else does. This is a common lease. this is called
comdenmnation
The purpose of the sales contract is to
commit each party to the price, terms, and conditions of the sale
One essential for a valid contract is something of value, such as a promise to do something, money, property, or personal services. This is called
consideration
Anyone acquiring a right or interest is expected to go to the property to make visual inspection for claims and inquire as to the extent of those claims and to
contact a property lawyer
Breach of contract may be remedied by all the following EXCEPT:
contract renegotiation
Private mortgage insurance is usually required on
conventional loans with a loan-to value ratio of 90% or 95%
the first step of the _____ is to estimate the current cost of an improvement, including labor and material
cost approach
A salesperson has property listed in Overton Hills and is hosting an open house. A prospective buyer comes to the open house. The prospective buyer should be treated as an
customer
If the buyer's agent is being compensated from the commission paid by the seller, the buyer's agent will typically treat the seller as a
customer
Another name for a security deed is
deed to secure debt
According to the Georgia Real Estate License Law, the relationship between a broker and an aflliated licensee is
determined at the discretion of the licensees
The education, research and recovery fund is used to
develop education materials and conduct research programs
According to BRRETA, an agent is not liable if the agent gives wrong information, provided the agent
did not know the information was wrong and referenced the source
According to the Brokerage Relationship in Real Estate Transactions Act (BRRETA), a broker who represents a seller under a brokerage engagement has the duty to
disclose to the buyer and the seller latent material defects pertaining to the property
In a large rental complex with several buildings, the landlord has developed a set of guidelines for the property manager to follow. Which guideline is under federal fair housing laws ?
do not disclose to prospective tenants that a former tenant had AIDS
If a real estate licensee is an independent contractor for a broker, the broker
does not withhold income taxes and Social Security from the licensee's commission checks
If the buyer authorizes a listing agent to represent him in the purchase and sale agreement negotiations, to provide him with counsel and advice, and to otherwise protect the buyer's interest, what kind of relationship exists between the buyer and the broker?
dual agency
All of the following are true regarding the Georgia Real Estate Commission EXCEPT:
each Commision member must be actively licensed as a broker with at least 5 years of experience
The owner of a commerical property enters into an open listing agreement with 3 different brokers. In this situation
each broker has the opportunity to earn the full commission by becoming the procuring cause of a sale
A complaint alleging discrimination in housing may be filed by
either HUD or an individual adversely affected by an act of discrimination
The chairperson of the Commission is
elected by the Commission
During the time period beginning when the buyer and seller sign the sales contract until the seller delivers the deed at closing, the buyer holds
equitable title
A GA real estate licensee's continuiing education requirements must be met
every renewal period
If a real estate sales contract has been signed by all parties, but closing has not yet taken place, the contract is referred to as
executory
Brokerage Relationships in Real Estate Transactions Act (BRRETA) specifically states that a broker representing the buyer must:
exercise ordinary skill and care
An ___ occurs when the parties to the contract declare their intentions in either oral or writing
expressed contract
In Georgia, most antitrust activity is prosecuted under
federal antitrust laws
The education, Research, and Recovery Fund is funded from:
fees paid at intial licensure
Establishing a condominium in Georgia requires
filing a plat of the property, filing plans showing the locations and dimensions of the units, and making a declaration that includes specific details of the condominium
A real estate licensee is permitted to
fill in the blanks of a contract form that has been drafted by an attorney
While assisting a buyer in submitting an offer on a property, a real estate licensee is permitted to
fill in the blanks of a contract form that has been drafted by an attorney
The three common categories of expenses for rental property are:
fixed expenses, variable expenses, and reserves for replacements
The legal procedure that is implemented when a borrower defaults on a note secured by real property is referred to as:
foreclosure
When a salesperson transfers to a new broker, any written listings or names of prospects are the property of the
former broker
For a deed to be recorded in Georgia it must contain all of the following EXCEPT the
grantee's signature(s)
The borrower in a real estate loan in Georgia is the
grantor
In the event of conflicting instructions on a contract, what prevails is the
handwritten portions of the contract
A license was revoked and a payment made from the Education, Research and Recovery Fund. The licensee may reapply for another license after at least 10 years have passed and the licensee
has repaid the fund plus interest
To advertise a property for sale, a broker must
have the seller's written permission
All of the following are correct regarding the Georgia Real Estate Commissioner EXCEPT:
he or she must hold an active broker's license for at least 5 years to be eligible to be the Commissioner
If an applicant is refused a license, the first recourse is a(n)
hearing request
A salesperson or associate broker who chooses to incorporate must earn commission on behalf of
her affliliated broker
The process of pledging an asset as security for a loan without giving up possession is called
hypothecation
A buyer and a seller has signed a binding sales contract. What happens to the contract if one of the parties dies before the title is transferred to the buyer?
if either party dies, the contract remains in effect and is enforceable against the heirs of the party
Which item would a typical property management agreement NOT include?
if families are accepted as tenants
A lease for real property must be in writing
if more than 1 year
In Georgia, a licensee who represents a seller must disclose to a prospective buyer?
if the property was the site of a homicide or suicide but only if asked
Buying a property and immediately selling it at a fraudulent, increased price is:
illegal flipping
When a licensee requests to be released by a broker, the broker should sign the release form
immediately
In a real estate sales transaction, if the buyer will obtain a title insurance policy that protects the buyer, the premium is paid
in a single payment at closing
When a prospective buyer and seller are in the counteroffering stage of neogoitating a contract and one of the terms has been changed in the original document, the change should be
initaled, dated, and timed by both parties when they agree on the issue
Which of the following is provided by a special assessment?
installation of street lights in a neighborhood
the resale of cooperative sales has traditionally been financed by the means of
installment sales agreement
If a licensee has her license revoked or suspended, or has surrendered her license as a result of a Commission investigation, then any instructor or school approval held by the licensee:
is also revoked, suspended, or surrendered
If a Commission staff member or the Commissioner is licensed, he/she _____.
is exempt from all fees
An attorney in fact acting under a power of attorney for a specific transaction
is exempt from licensing requirements
An individual has been found to be selling real estate for a fee without a real estate license. The Commission shall have the authority to
issue a cease and desist order
To be enforceable under the Georgia Statute of Frauds, all of the following contracts must be in writing EXCEPT:
leases for 1 year of less
The use of forms pre-printed by legal counsel for a sales transaction is _____.
legal
The money in the Education, Research, and Recovery Fund may be invested in any investment that is
legal for domestic life insurance forms
To whom does the legal title convey in a lien theory state?
lender
If the commission determines that an alleged violation appears to have to done harm to a third party or to the public, it may issue a
letter of findings
The operational costs of the Commission are funded primarily from
license fees
If a licensee in a branch office disregards a written policy provided by the broker and, in the process, violates a provision of the license law, the person(s) who will likely be considered liable is (are) the _____.
licensee
If a sales contract states that if a buyer defaults, the seller will receive the earnest money as damages. This remedy for breach is referred to as
liquidated damages
When a member of the public wins a court award of damages from a real estate licensee, the first source of funds for the damages comes from the _____.
liquidation of the licensees assets
The introduction of Freddie Mac Loan Prospector program overhauled process of
loan underwriting
A broker provides community association management services to more than one community and collects funds totaling more than 60000. The broker is required to
maintain a separate fidelity bond or fidelity insurance policy for each community association
According to the Georgia Real Estate License Law, property management services include
marketing real property to tenants
The person appointed to the office if Commissioner ___ active in real estate business
may NOT be
The amount of money of earnest money in a real estate sales contract
may be a matter of negotiation between the seller and the buyer
If an applicant for a non-resident license in Georgia has recorded of any disciplinary action by a state licensing authority, that person
may be denied a Georgia license
If an applicant for a real estate license in Georgia has been convicted of forgery, embezzlement, theft, or a similar crime, that person:
may be denied a license
In a foreclosure, if the property sells for less than the amount owed, the lender
may go to court to obtain a deficiency judgement against the borrower
A broker is active in real estate sales transactions and also manages real property for property owners. With regard to handling trust funds, the broker:
may maintain a separate rental trust account but is not required to do so
A purchase a sale contract has fallen apart, and both the buyer and seller are insisting the others in default. The broker has been unable to get the parties to reach an agreements concerning the disbursement of earnest money. Which represents the broker's best course of action? the broker
may make a reasonable interpretation, notify the parties in writing, assure the earnest money has been credited to the trust account, and disburse to the decision
An owner of several rental properties in different counties did not realize that the tenants of one properties who had received the property taxs bill, had not forwarded that tax bill to the landlord/owner, but had bought the property at a tax foreclosure. The owner
may redeem the property under statutory redemption
A property owner would be in violation of fair housing laws if she refused to rent to someone because of
mental disability
which of the following is a way in which an easement may be terminated?
merger
Acts that may be performed by a transaction broker and do not require the broker's professional judgment or skill are called :
ministerial acts
Providing administrative assistance by giving a list of recent sales, provifing a list of lenders, and locating suitable properties for showing are examples of
ministerial acts
A person who manages property for several owners but is not involved in buying or selling property
must be licensed
A licensee offers to purchase property in the oder to obtain a listing, the offer to purchase
must be made prior to entering into the listing agreement
The fees set by the Commission
must be reasonable
Written permission to advertise property under a listing agreement
must have a definite expiration date
All of the following are requirements for the position of Commissioner EXCEPT:
must hold a broker's license
If an individual brings a sworn , written complaint against a licensee, the commission
must investigate the complaint
An owner has owned his house for 5 years. He decides to sell the house himself. He refuses an offer from a Catholic because he doesnt like their religion. This type of discrimination is permissible if
neither discriminatory advertisinf nor the services of a broker are used
During a closing conducted by an attorney for the lender, the attorney may provide legal advice to
neither the seller nor the buyer
The Georgia Real Estate Commissioner has
no voting rights
When an exisiting structure does not conform to a new zoning law, it is "grandfathered in" as an
nonconforming use
If a borrower using a fixed-rate VA loan wants to pay off the loan sooner, the prepayment penalty is
none
Under a security deed that contains a power of sale clause, the foreclosure process is
nonjudicial foreclosure
Under Georgia Law, after termination of a lease, a landlord may retain all or a portion of the tenant's security deposit to cover any of the following items EXCEPT:
normal wear and tear on the property
When an owner indicates that he intends to turn aways Hispanic buyer, the broker should
not accept the listing
The records of an investigations by the Commission on charges against a licensee are normally
not disclosed publicly
In Georgia, a seller disclosure form is
not required
An individual employed by a broker to show rental units, deliver and receive lease applications, and collect rents is
not required to hold a real estate license
To buy, sell or lease property in his/her own name, a licensed salesperson, when acting as prinicipal, must
notify his/her broker in writing
If a licensee violates the license law, the licensee's broker should:
notify the Commission
If a licensed salesperson intends to advertise his own property sale, the licensee must do all of the following EXCEPT:
notify the Georgia Real Estate Commission in writing
If a licensed salesperson intends to sell her own property , the licensee must
notify the broker with whom she is aflliated in writing
A Georgia broker is representing a seller under a brokerage engagement, if the broker receives an offer after the seller has already accepted another offer and entered into a contract of sale, the broker is
obligated to submit the subsequent offer
According to the Rules of the Georgia Real Estate Commission, a broker acting as a property manager is required to provide written statements of property income and expenses to the owner
on at least an annual basis
A licensed community association manager engages in community association management services
on behalf of a real estate broker
If a Commission staff member or the Commissioner is licensed, he/she must be _____.
on inactive status
In a sales transaction that involves a buyer's agent and a seller's agent, the earnest money check is typically made payable to
one of the brokerage firms
How many brokers may a salesperson be licensed under at one time?
only one
The business name used by a broker can be
only the name on the broker's license
If a metes and bounds description must be prepared, a licensee should consult a lawyer
only when directed by her broker to do so
Earnest money for real estate sales contract is
optional but a common business practice
According to the Georgia Real Estate License Law, a community association in an association of
owners of residential or mixed use common interest property, in which membership is mandatory
If a license lapses due to failure to complete the 25 hour postlicense course, the license may be reinstated without penalty prior to the license lapsing if the
paid for and enrolled in the course
the division of common interest on concurrently held property is known as
partition
The brokerage Relationships in Real Estate Transactions Act (BRRETA) specifically states that a broker representing the buyer must
perform the terms of the brokerage engagement
If a buyer contracts with and pays a seller for the purchases of a home and the seller delivers the deed to the buyer, the contract is considered to be discharged based on
performance
In Georgia, dual agency is
permitted with written consent from all clients
When unscrupulous lenders engage in actions the take advantage of unsophicated or uneducated borrowers in order to benefit the lender, it is called
predatory lending
Prior to issuing a policy, a title company will search the public records for all of the following EXCEPT
previous sales prices
When two or more brokers from different brokerage firms work together to set commission rates, it is
price fixing, which is illegal
Advertising that is directed at, or refers to persons of any particular race, color, religion, sex, handicap, familial status, or national origin is
prohibited
The Real estate Settlement Procedures Act (RESPA)
prohibits referral fees and kickbacks prohibits the seller from requiring the buyer to purchase title insurance from any particular title company limits the amount the lender can require for property tax and insurance reserve accounts
A signed offer to purchase or sell real estate must be delivered to the seller or buyer _____.
promptly
Which of the following liens are always superior to other liens?
property tax liens
When settlement statements are prepared, some ongoing expenses and income items are divided between the seller and the buyer based on the period of ownership. The division of expenses and income items is referred to as
prorating
When there is not sufficient room in a residential sales contract regarding financing, the licensee should:
provide the information on an exhibit to the contract
While showing a property to a prospect, a licensee stated that the property had the most attractive landscaping of any property in the county. This statement constituted:
puffing
Under Georgia law and federal fair housing law, it is illegal to discriminate in housing based on
race, color, religion, gender, disability or handicap, familial status, or national orgin
In Georgia, a broker who performs brokerage services for a client owes the client
reasonable care
In Georgia, if a borrower fails to make payments, and the lender initiates the foreclosure process, the borrower may
reclaim the property, under equity redemption, by paying the amount owed before the foreclosure sale
The process of completing a real estate sales transaction may be referred to as all of these EXCEPT:
reconciliation
When a non-resident applies for licensure in Georgia, he/she must have the licensing body of his/her home state supply evidence of licensure in that state and _____.
records of any discplinary action
When a buyer asks a licensee to provide a second contract just to take to a lender, the licensee should:
refuse to do so
When the Education, Research, and Recovery Fund fails below $1,000,000 funds are raised in the form of
renewal fees up to $30 per year
On FHA loans, monthly escrow payments for property taxes and insurance are
required
If an applicant for a community associate manager license passes the licensing examination but fails to activate the license within 12 months, the applicant may activate the license only after
retaking the examination
Brokers commission calculation
sales price x percent of the brokerage
Which of the following is an economic characteristic of land?
scarcity
What happens if a property that is subject of a sales contract is damaged by fire or other disaster prior to closing?
seller is typically responsible for the cost of the repairs
which of the following are the buyers responsiblity to furnish at closing?
settlement funds and loan commitment
According to the Brokerage Relationship in Real Estate Transactions Act (BRRETA), to promote the interest of the buyer, a broker representing the buyer
should seek a property that meets the clients needs
which type of deed means to renounce all possession, right, interest, and contains no covenants or warranites?
special warranty deed
The expiration date on an exclusive listing must be
specified in the listing
The expiration period on an exclusive listing must be
specified in the listing
The HUD requirements, administered by the Office of Interstate Land Sales Registration, apply primarily to
subdivision lots located in one state and sold to residents of another state
The HUD requirments, administered by the Office of Interstate Land Sales Registration, apply primarily to
subdivision lots located in one state and sold to residents of another state
A partition in kind is accomplished through
subdivision of property
If a Georgia resident licensee moves out of the state and the licensee takes no action, his/her license will _____.
terminate
A seller does nit agree with the request for repairs in a buyers offer. the seller makes a counteroffer that eliminates the repair request. The buyers orginial offer
terminated by the sellers counteroffer
A person who dies and leaves a valid will is said to have died
testate
The central repository for Georgia's Violent Sexual Offender registry is
the Georgia Bureau of Investigation (GBI)
The state law that addresses deceit and misreprensentation in residential real estate loans is
the Georgia residential mortgage fraud act
Under the American Disability act, an alteration is NOT required by law if
the added accessiblity costs are disproportionate to the overall costs of the orginial alteration
The clause in a security deed that allows the lender to prevent the loan from being assumed is
the alienation clause
The clause in a security deed that permits the lender to call in the note if the borrower sells or conveys any interest in the property is
the alienation clause
Which of the following is NOT a requirement for a community association managers license?
the applicant must be a college graduate and hold a diploma
In Georgia, when a security deed is used to secure a loan, how is title held while the borrower is making payments on the loan?
the borrower hold equitable title
The point at which rent from a property covers the expenses is called
the break-even point
In the absence of a brokerage engagement, the unrepresented party is considered
the brokers customer
Although the payment of closing costs and discount points is negotiable, these costs are typically the responsibility of
the buyer
In Georgia, which of the following situations would create an agency relationship in which the buyer becomes a client of the broker
the buyer and the broker enter into a writtne brokerage engagement
At closing, the security deed must be signed by
the buyer only
A walk-through is
the buyer's opportunity to ensure that agreements regarding the condition of the property have been kept
The consideration in a real estate sales contract is:
the buyer's promise to pay and the seller's promise to sell and deliver ownership
The day when the buyer pays for a property and a seller delivers the deed is referred to as:
the closing date
Closing refers to
the consummation of a real estate transaction
Which of the following items would most likely be included in the buyer's closing statement as a credit to the buyer?
the deposit the buyer paid when the sales contract was signed
In a residential real estate sales transaction using a warranty deed that the seller delivers to the buyer and a security deed that is used to secure the loan, the buyer is:
the grantee in the warranty deed and the grantor in the security deed
If a hearing is held on charges of a license law violation against a licensee and the licensee does not appear, _____.
the hearing may proceed
In georgia, the tax assessed when a new loan is recorded is
the intangibles tax
If a residential real estate sales transaction involves a new loan, the attorney conducting the closing represents
the lender
In Georgia, when a security deed is used to secure a loan, who holds legal title to the property while the borrower is making payments on the loan
the lender
The purpose of private mortgage insurance is to protect
the lender against default by the borrower
In a foreclosure by power of sale, the procedure begins when
the lender files a notice of default with the public recorder
A salesperson license has lapsed due to non-renewal a little over 5 years ago. To become active salesperson
the license cannot be renewed. The salesperson must requalify as an original applicant
Which of the following may fill out a pre-printed form agreement that has been approved by the lawyer?
the licensee
Who is legally responsible for any contracts that a licensee prepare
the licensees broker
If a residential real estate sales transaction involves a new loan, what document is provided to the potential borrower within 3 business days after submitting an loan application to help the borrower understand the costs and compare the costs of different loan offers?
the loan estimate
If the settlement agent fails to file IRS Form 1099-S, which is sued to report the seller's proceeds from the sale of the real estate, to whom does the responsibilty to first?
the mortgage lender
An out-of -town buyer is making an offer and has the wrong checkbook for writing the required earnest money check in the amount of 5,000. What should the licensee advise the buyer
the offer will need a special stipulation requiring the check be held
A broker is attempting to obtain and out-of-state license through the recipority and must submit a license history from the Commission . What period of time will it most likely cover?
the previous 5 years
When a monthly payment is made on an amortized loan, the portion of the payment applied to interest covers the _____ month.
the previous month
The written statement provided to a prospective buyer of a time-share interval in Georgia that discloses information about the time-share development is
the public offering statement
If a firm, licensed as a broker, is the defendant in a contested case before the commission, who is responsible for binding the firm to any settlement with the Commission
the qualifying broker
If a firm, licensed as a broker, violates the license law or rules, who is subject to sanction?
the qualifying broker
A person who acts as a referral agent is exempt from the real estate licensing requirements as ling as he/she does not receive compensation from
the referred party or any licensee
In Georgia, a written property management agreement must include all of the following EXCEPT:
the rent amount for the property
In Georgia, a brokerage engagement must advise the client of all of the following EXCEPT?
the requirement to seek legal advice before entering into a real estate transaction
Which of the following is true for a sales associate who is an independent contractor?
the sales associate is responsible for paying his/her own income taxes and social security
Which of the following items would most likely be included in the seller's closing statement as credit to the the seller
the sales price of the property
If a seller disclosure form will be provided to a buyer prior to the buyer entering into a sales contract, who completes and signs disclosure form?
the seller
The transfer tax is a state tax charged to:
the seller
Under an installment contract, until all payments have been made by the buyer
the seller holds legal title to the property
IF a property is sold "as is"
the seller makes no warranty or guarantee of the condition of the property
At closing, the warranty deed must be signed by
the seller only
In gerogia, who typically attends the closing of a residential real estate transaction?
the seller, the seller's real estate agent, the buyer, the buyer's real estate agent, and the closing attorney
To be enforceable, a real estate contract must be in writing and must include all of the following EXCEPT:
the signature of at least one witness
A contract may be discharged by Novation. Novation is
the subsitution of a new contract between the same of new parties
If a broker holds a security deposits in a designated rental trust account, they must be credited to
the tenant
A salesperson attends a closing on behalf of
their broker
the ______ was enacted because it was not an uncommon occurrence for a borrower to see loans advertised for rates lower than the borrower actually wound up paying
tila
While a seller is considering an offer made yesterday, her listing agent receives two more offers on the property. In this situation, the listing agent should:
timely submit the new offers to the seller
Which of the following is true of lending in the state of Georgia? Georgia is
title theory in respect to mortgages and when using a mortgage would require judicial foreclosure
A broker had been representing a buyer under a brokerage engagement, if the engagement ended when the buyer bought a property, which of the broker's duties to the buyer would continue after the brokerage relationship ended
to account for all funds related to the engagement
On which of the following can a person find all recorded deeds, mortgages, and other documents at the recorders office that relate to parcel?
tract index
A georgia buyer who has not signed a buyer brokerage contract is looking at property with an agent associated with ABC realty. The buyer wants to see a F. S.B.O. (for sale by owner) that has "Brokers Protected" included on its For Sale sign. At the request of the buyer, the agent has set up an appointment to see if the for sale by owner in this case ABC Realty will be a:
transaction broker
An agent who is not representing the seller or the buyer is referred to as a
transaction broker
If a salesperson receives an earnest money check for a transaction in which the salesperson represents the buyer, the salesperson must
turn the check over to salesperson's broker as soonn after receipt as is practically possible
A broker may refuse to release an aflliates license
under no circumstances
In georgia, after foreclosure sale, the borrower may reclaim the propert
under no circumstances
Under the state and federal fair housing laws, the term "children" means children
under the age of 18
Gross effective income equals gross potential income minus
vacancy and collection losses
If a licensee must take courses to reactivate a license that was inactive for 5 12 years, the required number of hours of continiuing education is
whatever would have been required had the license been active
To reactivate a license which has been inactive, the licensee must complete continuing education courses totaling:
whatever would have been required had the license been active
According to the Georgia Real Estate License Law, a broker must deliver completed closing statements to the seller and buyer
when a sale is consumnated
When are authorized employees of a government agency, utility company, or lending institution exempt from real estate licensing requirements?
when conducting official business
A lender's title insurance policy terminates
when the loan is paid in full
A licensee working for a buyer submits a buyer's offer to the seller's agent, and the seller accepts and signs the offer. A contract is created
when the seller's acceptance is properly communicated to the buyer
A licensee working for a buyer submits a buyers offer to the sellers agent, and the seller accepts and signs the offer. A contract is created
when the seller's acceptance is properly communicated to the buyer
When should a licensee consult her broker when preparing a sales contract?
whenever she has a question
Which statement regarding the methods for closing a residential real estate transaction is true?
with escrow, the closing process is conducted by a neutral third party
Which of the following conditions is NOT an allowed circumstance for a broker to disburse money from a trust account?
with permission from the seller only
A licensee may pay a fee or commission to a licensee who represents another party
with written consent of all parties
Inder the Georgia Time share act, a purchaser may cancel a time-share sales agreement without penalty
within 7 days after signing the sales agreement or receiving the public offering statement, whichever is later
In Georgia, in order for a deed to be accepted for public recording, the acknowledgement must be
witnessed by two witnesses, one of whom must be a notary public
If a blank in a preprinted real estate sales contract form does not apply to a specific transaction, the licensee filling out the form should
write N/A in the blank
According to BRRETA, providing advice concerning where to obtain a loan, or which inspector to use, or how much to offer requires that the buyer and agent enter into a/an
written brokerage engagement
