Real Estate Practice Exam: All Questions

How long does a broker have before notifying the commission that a trust fund account has been established?

30 days

A due-on-sale clause is also known as a(n) ______ clause.

Alienation

In Georgia, what does the Duty to Cooperate clause mean in a sales contract?

All involved parties agree to move the process along in a timely fashion. It is the Duty to Cooperate section that says that all of the parties—including the lender, title insurance company, and other parties—must work together to move the contract along in a timely fashion.

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?

Andrea can cure the default and reinstate the loan. The security deed gives Andrea the right to cure the default and reinstate the loan, but no rights of redemption after the sale.

Savannah licensee Andrei wants to make certain to stay on the right side of Georgia's fair housing laws. Which of these is a good option for him?

Ask his broker to review his client qualification process.

How old must a broker be in Georgia?

At least 21

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 a deed of trust, who is the trustor?

Borrower

Which of the following is a true statement about license qualifications in Georgia?

Broker applicants must take an additional 60 hours of education prior to applying for a broker's license.

Which of the following is FALSE about GREC's members?

Broker members may continue to practice real estate during their term on the commission.

In Georgia, what does due diligence mean in a real estate transaction?

Buyers will thoroughly investigate the property while retaining the right to terminate the sales contract if the results are unsatisfactory.

Maury was brought up on a disciplinary action for a trust fund violation. GREC fined him and required him to take a course in trust fund accounting. This penalty is called a(n) ______.

Citation

Which of these would fulfill the educational requirement for a Georgia community association manager (CAM) license?

Complete a 25-hour Community Association Manager pre-licensing course.

Phil is a Georgia qualifying broker. He may do all of the following activities EXCEPT ______.

Delegate trust account supervision to his assistant

Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank?

Deliver the deed to Frank, his agent or attorney, or the title company issuing the title

Regarding their employment classification, unlicensed assistants in Georgia are most often ______.

Employees Because unlicensed assistants may not work on commission, they must be paid a salary.

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

Entire Agreement, Modification and Assignment

When the Georgia attorney general's office finds that the investigation's evidence has legal grounds, the office will either propose a consent settlement for the commission to review and approve or ______.

File a notice of hearing with the Office of State Administrative Hearings The attorney general's office will file a notice of hearing with the Office of State Administrative Hearings. Notice will also be sent to the licensee under investigation for violating Georgia license law.

In Georgia, what does GREC stand for?

Georgia Real Estate Commission

As part of Georgia's tax code, a broker can be assessed a(n) ______ on any commission earned in a city or county even if the broker's office is in another city or county.

Gross Receipts Tax

When discussing brokerage compensation policies, brokers must disclose ______.

How brokers representing other parties will be paid

Gina's mortgage payment arrives late one month. What language in the promissory note allows the lender to charge her a fee as a result?

Late charge provision

What's the name of the clause in a promissory note where this language appears: "If the Note Holder has not received the full amount of any monthly payment by the end of ______ calendar days after the date it is due, I will pay a late charge to the Note Holder"?

Late charge provision

Aside from your name, what else must be included on every page of your website, according to GREC's rules?

License status and license number

Which lenders are covered by GAFLA?

Loan brokers, servicers, and purchasers or assignees

Elisa is an unlicensed assistant for the Jefferson Team at Best Nest Realty. Tom is an associate broker on the team. Which of these activities must be performed by Tom and not Elisa?

Negotiating a commission with a client Negotiation is an activity that must be performed by a licensed real estate professional.

Paula provided her seller client, Amy, with a property disclosure form. Amy didn't claim any known structural or mechanical defects. One of the visitors at Paula's open house was a plumbing contractor who had repaired some pipes in the house and knew there was a major underlying problem. He was very upset that the issue wasn't disclosed. Is Paula legally liable for providing fraudulent information?

No, licensees are not responsible for providing false information if they didn't know it was false.

Which of the following would disqualify an individual from applying for a broker's license in Georgia?

Not having a high school diploma or GED To be licensed as a broker in Georgia, the applicant must have a high school diploma or GED.

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

Qualifying broker

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

Sales contract

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.

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?

Tennessee

How does Georgia license law define the commission?

The authority that regulates license law in Georgia

Which parties must be identified on the promissory note?

The borrower and the lender The parties involved in the loan must be identified, but the seller and the third-party trustee are not identified on the note.

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

The brokerage's name as it appears on the license

Thomas receives his Georgia real estate tax bill on January 15. What is the period of time covered by this tax bill?

The current year from January 1 through December 31 In Georgia, no matter when the tax bill's issued, the bill is for January 1 through December 31 of the year in which the bill is sent.

In Georgia, who or what sets the requirements for security deposit disbursal when a lease terminates?

The lease terms

Who's the mortgagee in a mortgage?

The lender

When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage?

The lender executes and records a satisfaction of mortgage and returns the note to the borrower.

When considering the sanctions to hand down to a licensee for an unfair trade practices law violation, what does GREC consider?

The licensee's history in matters of deception, fraud, or unethical behavior

What does GAFLA require regarding late fees?

They must be clearly specified in loan documents.

What can be said about a designated agent's duties?

They're the same as a single agent's duties. A designated agent and a traditional single agent both owe the same duties to their clients.

GREC will investigate a complaint if that complaint occurred within how many years?

Three years

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

Time is of the Essence The Time Is of the Essence clause renders all dates stated in the contract strictly enforceable.

Which type of broker performs ministerial acts for parties to a transaction but doesn't represent a client?

Transaction broker A transaction broker doesn't represent any of the transaction parties, but instead performs ministerial acts on their behalf.

Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender to right to sell the property if he defaults?

Transfer of Rights in Property The Transfer of Rights in Property section gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.

Seller Simone, who's 48, signs a sales contract with her nephew Ted, who's a 17-year-old rock guitarist sensation, for Ted to buy her house in Buckhead. What type of contract is this?

Voidable

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

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?

Her supervision and approval All advertising done by a brokerage firm's licensees must be done under the qualifying broker's name and under that broker's direct supervision and approval.

Licensee Doris is moving to Savannah and wants to transfer her license to a firm there. Her broker in Atlanta may/must do any of the following EXCEPT ______.

Hold her license until she repays all the money she owes Brokers must transfer the affiliated licensee's license upon request, even when the licensee is in violation of the law or owes the broker money. Brokers have the right to sue the licensee for money owed and file a complaint with GREC.

Holly's license lapsed 18 months ago because she hadn't completed the 36-hour continuing education requirement. What does this mean for Holly?

Holly will need to complete all required continuing education as well as pay all applicable fees for her license to be reinstated.

What's the purpose of the Transfer and Assignment clause in the purchase agreement?

It permits either party to assign interest in the contract to another person who will perform the contract's terms.

What makes a binder a valid contract?

It's in writing, signed by all parties, and communicated to the offeror.

Jacob, a broker in Chattanooga, Tennessee, wants to practice real estate in Georgia occasionally with Georgia broker Deb. But he doesn't want to obtain a Georgia license. Which of these rules applies?

Jacob and Deb will enter into a written agreement that specifies how Deb will split commissions with Jacob. Non-resident licensees must enter into a written agreement with a Georgia broker that specifies how commissions will be split. The agreement will be kept on file for three years.

Which of these statements is true regarding counter-offers?

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

Which of the following tasks is a closing attorney's responsibility?

Order title work

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?

Power of sale

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

The obligee The lender is the obligee who holds the note while it's being repaid. If the note is transferred, the new owner becomes the obligee and note holder.