Cram Final Exam
May a company enforce a policy of non negotiation of commission rates? A. Yes, as long as its competitors agree to do the same B. No, this would be collusion C. Yes, as long as rates are set independently based on actual cost in providing a service and as long as the consumer understands that other companies and licensees may have different policies and rates D. Yes, as long as it is a part of the company policy manual
C. Yes, as long as rates are set independently based on actual cost in providing a service and as long as the consumer understands that other companies and licensees may have different policies and rates
Sam and Emma both used a driveway located on the boundary line between their two properties. When Sam died, would his heirs have the right to use the driveway? A. No, this right is not transferrable B. No, this is an easement in gross and would not be transferrable C. Yes, this is an appurtenant easement and is inheritable D. Yes, but they would have to pay Emma for her loss.
C. Yes, this is an appurtenant easement and is inheritable
An option was given on a home for consideration of $1,000. When would the brokers fee be earned? A. It was earned when he brought the optionor and the optionee together B. The broker's commission would come out of the $1,000 fee C. Half of the commission is earned now and half when the option is exercised D. None of the above
D. None of the above
Which is true about personal property? A. It is attached to the land B. It is considered appurtenant to the land C. It is immovable D. None of the above
D. None of the above
Which of the following activities is permissible for a broker? A. Recording a listing contract that creates a lien for the purpose of causing a cloud on the title when no valid claim exists B. Accepting an oral listing from an owner and placing a "For Sale" sign on the property. C. Obtaining an exclusive listing from an owner while knowing that another broker has the property exclusively listed? D. None of the above
D. None of the above
In order to have funds in an interest bearing trust account the broker must do all of the following except: A. Notify the commission of the name of the account (which must contain the word trust or escrow) B. Notify the commission within 30 days of opening the account that said account is in a federally insured bank C. Notify the commission of the account number of said account D. Notify all parties to the transaction of the name of the bank where said trust funds will be kept
D. Notify all parties to the transaction of the name of the bank where said trust funds will be kept
A salesperson must do which of the following regarding rental property he just bought and plans to manage personally? A. Advertise the rental property under the name of his brokers company B. Require the first and last months rent as a security deposit from each tenant C. Make certain that all advertisements on the property include price, location, size and the type of lease to be used D. Obtain his broker's approval of the trust account used for any security deposits received.
D. Obtain his broker's approval of the trust account used for any security deposits received.
A broker advertises that if you will list with him and he cannot sell the property, he will buy it from you. Is this legal? A. Never. This is an inducement and is illegal B. Never. This is an unfair practice and a misdemeanor. C. OK, if the two parties agree to a sales price and terms when the property sells D. Ok, if the two parties agree to a sales price and terms prior to the listing being signed
D. Ok, if the two parties agree to a sales price and terms prior to the listing being signed
Sue acquires an option to buy a tract of land from Pete. Which of the following is not true? A. SUe is the optionee and Pete is the optionor B. The property may be purchased at the discretion of the optionee C. Pete may not diminish the value of the property (waste) during the period the option is in effect D. Pete may not sell the property to anyone else during the period the option is in effect
D. Pete may not sell the property to anyone else during the period the option is in effect
Which of the following actions is the Georgia Real Estate Commission (GREC) authorized to carry out through the provisions of the Georgia Real Estate Law? A. Fine an individual up to $5,000 operating in the capacity of a broker, without a license B. Fine a broker up to $1,000 for multiple violations C. Fine a licensee up $5,000 for one conviction of moral turpitude D. Refuse to issue a license to an applicant who falsified an application
D. Refuse to issue a license to an applicant who falsified an application
ABC Incorporated was organized with five stockholders. How would ABC Incorporated take title to property? A. Tenants in Common B. Tenants by the entirety C. Joint Tenants D. Severalty
D. Severalty
Which of the following is not true of the Real Estate Commission Members? A. Five must hold an active real estate license B. One must not hold an active license but can hold an inactive license C. Five must have been residents of Georgia for at least five years D. The commissioner is not the sixth member of the commission
B. One must not hold an active license but can hold an inactive license
A broker had an exclusive right to sell agency listing. In order to collect the commission, he must: A. Prove he was the procuring agent B. Prove he was licensed at the time of sale C. Prove he had a ready, willing and able buyer that met the seller's terms. D. All of the above
B. Prove he was licensed at the time of sale
A homeowner with a mortgage replaced it with a new mortgage 3% lower in interest and obtained extra funds to make investments. This is called: A. Subordination B. Refinancing C. Subrogation D. Wraparound
B. Refinancing
What type of transaction exists when there is a written contract for a broker to receive pay from both or either party and performs only ministerial acts for one or both parties? A. Double Agency B. Transaction Broker C. Sub-Agency D. Single Agency
B. Transaction Brokerage
When a person, upon payment of a consideration, has an obligation to buy land at a fixed price within a specified period of time, his right could be described as: A. A right of first refusal B. An option C. A sales contract D. either A or B
C. A sales contract
If a purchaser tells a salesperson to hold the purchasers earnest money check for 5 days before depositing it, the salesperson must: A. Deposit the check in the brokers trust account as soon as practicable B. hold the check until the 5th day and then deliver it to her broker C. Deliver the earnest money check to the broker as soon as practicably possible, with the purchasers written instructions for the broker to hold the check D. Tell the purchaser the check wont clear in less than 5 days
C. Deliver the earnest money check to the broker as soon as practicably possible, with the purchasers written instructions for the broker to hold the check
Mr. Smith listed his farm with broker bob. Although Smith did not tell him, Bob knew he had to sell due to poor health. What should Bob tell potential buyers? A. Tell them of the illness only if they ask, but not the need to sell B. Tell them of the need to sell to insure a quick sale C. Do not tell them even though it appears that Smith's death is imminent D. In order to sell quickly, tell them that the seller is ill because death would cancel the listing.
C. Do not tell them even though it appears that Smith's death is imminent.
Which of the following is not true of the commissioner? A. He or she is hired by the Commission B. He or she may hold an inactive license C. He or she is appointed by the Governor and approved by the senate D. He or she is a full time employee
C. He or she is appointed by the Governor and approved by the senate
As long as a salesperson serves a seller under a listing agreement with the salespersons broker, that salesperson must always represent which of the following? A. The seller B. The buyer C. That salespersons broker D. Whichever broker delivers an offer
C. That salespersons broker
Which factor would influence a lender LEAST in making a loan? A. The present value and future value of the property B. The income and income potential of the borrower C. The borrowers need of financial assistant D. The attractiveness of other investments
C. The borrowers need of financial assistance
Besides the seller, who may sign a real estate listing agreement? A. The broker only B. Any salesperson or broker C. The broker or any salesperson with the broker's written authorization D. The broker or an associate broker only
C. The broker or any salesperson with the broker's written authorization
A lien was placed on a property for electrical equipment for $4500. There already existed a special assessment lien for $1000, a mortgage lien for $40,000, and an IRS lien for $20,000. The home was foreclosed on and sold. Which lien would take priority? A. The IRS lien. The government always comes first B. The mortgage lien. It is for the most amount of money C. The special assessment lien. The government always comes first D. The mechanics lien. It must be paid before the home can be sold
C. The special assessment lien. The government always comes first
Broker Jones is providing assistance to both Smith and Cline (seller and buyer respectively) by performing only ministerial acts through a written agreement. This is best referred to as: A. Dual agency because Jones is assisting both parties through a written agreement B. Designated agency because Jones is representing both parties through a written agreement C. Transaction brokerage with both parties D. Single agency with Smith only
C. Transaction brokerage with both parties
A broker estimated the property lines by stating it ran between two trees in the back yard. After closing, the buyer found it was over six feet off. Is the broker liable? A. No, he gave an estimate B. No, the buyer should have gotten a survey C. Yes, he made a statement which he realized could be false. D. Yes, the broker should have surveyed the property himself.
C. Yes, he made a statement which he realized could be false
Where may a salesperson get the legal description of a property for insertion into the sales contract? A. By copying it down from the seller's warranty deed B. By drafting a new description from the survey C. By copying it down from the seller's security deed D. Either A or C
D. Either A or C
Joan has a listing with Broker Bob. A week into the listing, Joan gets a call from Broker Jill stating that the listing is now with her. Can this happen? A. It's OK as long as it was assignable in the original contract B. It's OK as long as the brokers have a written contract between them to transfer C. Never due to the statue of frauds D. It cannot be assigned because a listing contract is a personal services contract
D. It cannot be assigned because a listing contract is a personal services contract
A method of describing land using points, angles, and distances is which of the follow? A. Rectangular Survey B. Measurement by leaps and bounds C. Plat of survey or lot and block survey D. Measurement by meets and bounds
D. Measurement of meets and bounds
A Salesperson wants to purchase a building for personal reasons. Before presenting the offer, he must: A. State in the offer that he is a licensed real estate salesperson B. Furnish the Real Estate Commission with a copy of any offer he signs and/ or presents. C. Inform the broker of his intentions so that no commission will be paid D. None of the above
A. State in the offer that he is a licensed real estate salesperson
With respect to questions 90, Sandy and John would have what type of relationship? A. Tenancy in common B. Right of survival C. Severalty D. Joint tenancy
A. Tenancy in common
An appurtenant easement can be terminated by all of the following except? A. The servient tenement could release their rights through a quit claim deed B. The dominant tenement abandoned their property C. The dominant tenement purchased an adjacent property and now has access to public roads D. The servient tenement bought out the dominant tenement
A. The servient tenement could release their rights through a quit claim deed
An associate broker may? A. Advertise property owned personally without mentioning that he/she is licensed B. Sign transfer and release forms of licensees coming to or leaving the company, if he/she has written permission of the broker C. Accept earnest money from salespeople just as the broker may, because an associate broker is the same as a broker D. All of the above
B. Sign transfer and release forms of licensees coming to or leaving the company, if he/she has written permission of the broker
Buyer Burke has authorized Broker Rand to purchase a property on his behalf. What kind of agent is Broker Rand? A. General Agent B. Special Agent C. Universal Agent D. Secret Agent
B. Special Agent
A loan in which the buyer pays off the total principal at the end of the loan is a: A. partially amortized B. Straight-term C. Principal and interest D. Amortized loan
B. Straight-term
A home is listed at an inflated price and requires all minority prospects to pay that price. However, if a lower price is accepted from a non-minority prospect, this practice: A. Does not violate Fair Housing Laws because the home is still being made available to minority prospects B. Subjects the seller and the sellers agent to liability for money damages under a Fair Housing Suit C. Is a violation by the seller only D. Is illegal only if the only if the purchase of the house is being financed through FHA or VA
B. Subjects the seller and the sellers agent to liability for money damages under a Fair Housing Suit
A salesperson listed a property for $68,000. Soon thereafter, another property that had also listed for $68,000 sold for $75,000. The salesperson should: A. Tell the owner, as he had obviously made a mistake in the estimate of market price B. Tell the owner that another had sold for $75,000 C. NOT tell the owner because he should not admit that he made an error, as he would get in trouble with his broker D. Tell the owners because if it sells for $75,000 the commission would go up.
B. Tell the owner that another had sold for $75,000
Which BEST describes the sale price for a property in an option agreement? A. The sale price would be determined when the option is exercised B. The buyer is guaranteed a fixed price when the option is signed C. The buyer can purchase the property by matching any other offer D. The optionor is obligated to pay the sale price when the option is exercised
B. The buyer is guaranteed a fixed price when the option is signed
Security deposits kept in a designated rental trust account are credited to: A. The broker B. The tenant C. The landlord D. The lessor
B. The tenant
When is commission normally payable? A. Upon the broker bringing in a ready, willing, and able buyer B. Upon Closing C. Upon presentation of the offer D. Three days after closing
B. Upon closing
Smith has an exclusive listing with Broker Jones for $220,000. Jones finds a buyer who wants representation and Jones represents both Smith and the buyer, verbally disclosing that he is now representing both as clients. Has Jones violated license law? A. Yes, because this is sub-agency B. Yes, because this is undisclosed dual agency. C. No, because he disclosed to all parties that neither had to consent to dial agency D. No, because he disclosed to all parties that his actions may be adverse to either party, however he would not divulge confidential information
B. Yes, because this is undisclosed dual agency
An owner of a large estate told a broker he did not want an open house held on this property and wanted advertising in a national magazine only. Is this allowable? A. Yes, the seller is responsible for planning all marketing of the property B. Yes, the broker works for the seller and must follow all legal instructions of the seller. C. No, the broker has the right to hold the house open at his own discretion D. No, the owner cannot limit the broker's ability to earn a commission
B. Yes, the broker works for the seller and must follow all legal instructions of the seller.
Which of the following statements may a licensee property make? A. "I think a Cuban just moved into the neighborhood" B. "When the zoning changes to commercial, it will double in value" C. "According to the developer, the property will double in value within the next ten years." D. "All indications are that the property will double within the next ten years."
C. "According to the developer, the property will double in value within the next ten years."
John purchased Judy's home for $229,550 and assumed her loan with a balance of $66,222 @ 7.75% interest and paid the balance in cash. The closing took place on March 31st. How much did John pay for the intangible tax? A. $199.50 B. $690.00 C. $0.00 D. $199.00
C. $0.00
If Sam had a due on sale clause in his loan, and the balance was $22,500 with an interest rate of 9.25% how much would he pay in accrued interest? Assume the closing is April 15th. A. $0.00 B. $85.53 C. $86.72 D. $92.50
C. $86.72
With respect to question 95, how much pre-paid interest would Emma pay if the closing took place on April 15th? A. $82.52 B. $81.48 C. $88.02 D. $86.91
C. $88.02
Any person violating the anti-trust laws is guilty of: A. a misdemeanor B. A violation of the Federal Fair Housing Law C. A felony D. Fraud
C. A felony
Which of the following would be exempt from Federal Fair Housing Laws? A. A FSBO who discriminated in advertising but not on race B. A non-profit religious organization based on national origin C. A senior citizens community where everyone was 62 years of age or older D. An owner of a duplex investment property in renting, but never based on race
C. A senior citizens community where everyone was 62 years of age or older
Which is the best example of functional obsolescence? A. Residential home built next to a meat processing plant B. A roof that is severely sun damaged C. A three bedroom home with one and a half baths and a single-car carport D. Residential home with central heat and air conditioning
C. A three bedroom home with one and a half baths and a single-car carport
A buyer and seller sign an agreement to change the contract to close on May 1 instead of May 2. This is a(an): A. Addendum B. Special Stipulation C. Amendment D. Clause
C. Amendment
What does the VA require a veteran do when applying for a loan? A. Make the down payment directly to the VA B. Make a down payment in cash C. Make the veteran assume liability for the loan D. NOT allow the veteran to make prepayments on the principal amount
C. Make the veteran assume liability for the loan
Georgia Law requires that licensees disclose who they represent in writing? A. At the first meeting B. At closing C. No later than the time of the written offer D. It is not required, but it is suggested
C. No later than the time of the written offer
An out-of-state tenant was able to negotiate a three month lease to perform a job function in Georgia. When must the tenant service notice? A. 30 days prior to the termination of the lease B. 60 days prior to the termination of the lease C. No notice is required D. Before the death of the landlord
C. No notice is required
Which of the following best describes a blind ad? A. One which is not directed at any consumer segment B. One which is directed at all consumer segments C. One which fails to disclose that the advertising party is licensed by the commission (active or inactive) D. One which fails to disclose that the advertising party is the seller
C. One which fails to disclose that the advertising party is licensed by the commission (active or inactive)
An unlicensed assistant cannot: A. Assemble contracts and other documents B. Place signs on the property C. Show property D. Check on loan commitments
C. Show property
When is the correct time for the salesperson to get the proper legal description of the seller's property? A. When filling out the offer B. When filling out the sales contract C. When filling out the listing D. Any time before closing
C. When filling out the listing
The purpose of the earnest money is to: A. Assure there is come valuable consideration B. Help assure the purchasers performance C. Assure the sellers performance D. Satisfy the commissions requirements for sales contracts
B. Help assure the purchasers performance
John, Judy, Emma and Sam owned a property as joint tenants. Sam sold his interest to Sandy. Judy and Emma would have what type of relationship? A. Tenancy in common B. Joint tenancy C. Severalty D. Inheritable estate
B. Joint tenancy
Typically in Georgia, the agent representing the seller is called? A. The selling agent B. The listing agent C. The sub-agent D. The listing broker
D. The listing broker
In a repayment of a mortgage loan, which type of interest is used? A. Simple B. Discounting C. Compound D. Floating
A. Simple
With respect to question 95, how much was the transfer tax? A. $155.50 B. $70.50 C. $466.50 D. $156.00
A. $155.50
In dual agency, the consent form must contain all of the following except? A. A lot and block legal description of the property B. A statement that the client does not have to consent to the dual agency C. A statement that the agent will disclose all adverse known material facts D. A statement that the agent will disclose any material relationships
A. A lot and block legal description of the property
In a cooperative sale, where the listing broker and the selling broker represent the seller, the selling broker has which of the following relationships? A. Agent of the listing broker B. Sub-Agent of the listing broker C. Agent of the seller D. Sub-agent of the buyer
A. Agent of the listing broker
When obtaining an FHA loan, which generally happens? A. An FHA approved appraiser appraises the property B. FHA makes the loans directly to the borrower. C. The borrower makes the down payment directly to the FHA D. None of the above
A. An FHA approved appraiser appraises the property
A man had rented a place to live but had stayed beyond his lease without the owner's consent. This would be A. An estate at sufferance B. An estate at will C. A periodic tenancy D. A tenancy for years
A. An estate at sufferance
Salesperson Dole was licensed under Broker Carr but sold a property that was listed by Broker Faulk. From whom would Salesperson Dole collect a commission? A. Broker Carr only B. Broker Faulk only C. Broker Carr and Broker Faulk D. The owner of the property
A. Broker Carr only
A market where there is an excess of supply over demand is known as a: A.Buyers market B. broad market C. Sellers market D. Thin market
A. Buyers market
In order to be eligible to take the real estate broker's examination, an applicant must be in which of the following situations? A. Have completed an approved broker's course of study and served at least three of the past five years as an active licensee. B. Have completed an approved broker's course of study and served at least two of the past five years as an active licensee C. Have completed at least 50 in class hours of a brokers course of study and served at least three of the past 5 years as an active licensee D. Be a resident of the state of Georgia and be registered in and attending a broker in class course of study
A. Have completed an approved broker's course of study and served at least three of the past five years as an active licensee.
A lender would require a blanket mortgage in which of the following circumstances? A. If the borrower was going to use several unencumbered properties as security B. If there was a mortgage clause stating that upon default, it would become a general lien C. If the lender made the loan to encompass all of the borrowers debts D. None of the above
A. If the borrower was going to use several unencumbered properties as security
Adjustments for advantageous financing would be made in the: A. Market Comparison approach to appraisal B. Cost approach to appraisal C. Income approach to appraisal D. Capitalization approach to appraisal
A. Market comparison approach to appraisal
The Sherman Antitrust Act has as one of its purposes to: A. Prohibit conspiracy in the restraint of trade B. Guarantee businesses some protection from federal income taxation C. Prohibit kickbacks in regard to providing settlement services D. Guarantee non-business consumers some protection against hidden credit costs
A. Prohibit conspiracy in the restraint of trade
With respect to question 98, if the annual taxes were $2,000 and the hazard insurance was $1500, how much was the closing is April 15th. A. $82.19 B. $575. 34 C. $431. 51 D. $421. 92
B. $575.34
Emma purchased a home from Sam and they agreed to a 15% purchase money mortgage @ 8.5% interest. The price was $155,000 and Emma agreed to pay the difference in cash. How much was the intangible tax? A. $155.50 B. $70.50 C. $466.50 D. $70.00
B. $70.50
Which loan will give a borrower the lowest monthly payment? A. 10% interest, 20 year term B. 10% interest, 25 year term C. 11% interest, 20 year term D. 11% interest, 25 year term
B. 10% interest, 25 year term
Most brokers will insert a protection clause in their listing contracts. This clause will usually allow: A. The listing of a house to automatically extend for an additional 30 days if the house is not sold during the agreed term or the listing B. A broker, who had procured a buyer before the expiration of the listing, to receive a commission even though negotiations were completed after the expiration date of the listing C. The listing agent has the first right of refusal in the event the house is not sold during the term of the listing D. None of the above are true
B. A broker, who had procured a buyer before the expiration of the listing, to receive a commission even though negotiations were completed after the expiration date of the listing
If all the principals live in the same city, in which of the following cases would the broker most likely need a power of attorney? A. The owner of a manufacturing plant lists it with a broker B. A buy contracted with a broker to purchase all properties put up for sale in that county. C. A couple going through a divorce lists their property with the broker D. The XYZ corporation, through its Board of Directors, authorizes the broker to sell a piece of property owned by the corporation
B. A buy contracted with a broker to purchase all properties put up for sale in that county.
A tenant had a one year lease which expired. The tenant stayed in the home past the expiration and continued to pay the rent in which the landlord accepted. This type of lease would be called: A. An estate for years B. A periodic tenancy C. A tenancy at sufferance D. An easement by prescription
B. A periodic tenancy
Seller Jane negotiates a sales contract with Buyer Bill, but before signing the contract, she contacts buyer Mike to see if he wants to buy it before Bill does. Mike probably had: A. an option B. A right of first refusal C. A listing agreement D. Both B and C
B. A right of first refusal
Examples of activities subject to the Sherman Antitrust Act include all except which of the following? A. Arranging for a homeowners insurance policy through a local office of a company whose headquarters are located in Jacksonville, Florida B. Advertising a Georgia beach front property in publications distributed throughout the state C. Obtaining financing for a property in Georgia through a mortgage broker who represents an out-of-state savings and loan association D. Referring a Georgia resident, who is relocation to Colorado, to a Colorado real estate firm
B. Advertising a Georgia beach front property in publications distributed throughout the state
One of the significant differences between an employee and an independent contractor is that: A. an independent contractor does not need an affiliation agreement with the broker B. An employer must pay an unemployment tax for each employee C. Only the independent contractor can have draws again future commissions D. Only the independent contractor has social security withheld from his or her commission checks
B. An employer must pay an unemployment tax for each employee
A seller wants to list the property with a broker, but wants to avoid paying any commission should the seller be fortunate enough to sell the property himself. Which of the following should the seller avoid signing? A. An exclusive agency listing B. An exclusive right to sell listing C. An open listing D. All listings
B. An exclusive right to sell listing
Broker Bob listed two properties and arranged for an exchange of the properties. Which is true? A. This could only be done if they are both debt free B. Broker Bob would typically be due the full commission on both properties C. The commissions would be added together and Broker Bob would get one-half D. There is no commission on an exchange
B. Broker Bob would typically be due the full commission on both properties
The contract signed between a buyer and a broker is called? A. Listing Contract B. Buyers brokerage engagement C. Listing engagement D. Buyers Relationship
B. Buyers brokerage engagement
Which would require compensation to be paid? A. Police Power B. Condemnation C. Escheat D. Encumberance
B. Condemnation
A contractor had a lien on a property for the nonpayment of services that he provided to build a deck. He started the job on Dec. 15th, 2001, recorded the lien on Jan 1st of the next year and sued the owner on Feb 2nd, 2003. What best describes the situation? A. As long as he recorded the lien within 90 days of the completion of the job, he should prevail in the law suit. B. He loses due to law of laches C. He loses because he did not bring the suit before Dec. 15th of 2002 D. IF foreclosure takes place, the lien is prioritized on Jan 1st 2003.
B. He loses due to law of laches
Price fixing between brokers is a violation of federal antitrust laws. If your broker fixes prices with another broker, he or she may: A. be found guilty of a criminal offense B. Be found civilly liable to injured persons C. Face disciplinary proceedings by the Real Estate Commission D. All of the above
D. All of the above
When a property is being sold on an assumption of the existing loan, complications with the transfer of some mortgage loans can be: A. The purchaser may have to qualify with the lender as if it were a new loan B. The purchaser may have to pay a higher rate of interest C. The loan may be non-assumable and due in full if the seller transfers ownership D. All of the above
D. All of the above
Which documents must be in writing to be enforceable according to the statue of frauds? A. Leases over a year old B. Real Estate sales contract C. Deeds D. All of the above
D. All of the above
Which of the following activities is illegal? A. Price fixing if real property B. Unreasonable refusals by real estate boards to accept new members C. Rate fixing of real estate commissions D. All of the above
D. All of the above
Which of the following persons would require a real estate license in Georgia? A. A licensed auctioneer selling real property at a single auction for another party for compensation B. A licensed forester selling a single parcel of timberland for another for compensation C. A licensed attorney acting outside the normal scope of the practice of law by selling for another for compensation D. Any of the above
D. Any of the above
Which of the following is not a principle of value? A. Substitution B. Assemblage C. Conformity D. Depreciation
D. Depreciation
A property listing with one broker was bought by a buyer who worked with another broker. The two brokers decided to split the commission. If the federal authorities found out about this they could: A. revoke the brokers licenses B. Suspend the brokers licenses C. Fine the brokers $1,500 D. Do nothing
D. Do nothing
In order to provide brokerage services for an unlicensed individual such as a developer, builder or management company, a licensed salesperson or associate broker must: A. Work through a listing agreement established B. Give up his or her license entirely before beginning work C. neither of the above D. Either A or B
D. Either A or B
How may a husband and wife take title to real estate in Georgia? A. Joint tenants B. Tenants by the entireties C. Tenants in Common D. Either A or C
D. Either A or C
If a seller agrees to take a purchase money mortgage from a buyer as a second mortgage, which of the following statements would be true about the intangibles tax? A. Intangibles taxes are not applicable to second mortgages, only to first mortgages B. Any intangibles tax must be paid by the seller because the seller holds the mortgage C. Any intangible tax must be paid by the buyer because it was for the buyer's benefit that the loan was made D. Either party can pay the intangibles tax
D. Either party can pay the intangibles tax
Jane, a licensee, refuses to return the $1000 security deposit back to her renter within 30 days of the termination of the lease. Which of the following is most likely to happen? A. Jane could lose her license B. Jane could be forced to pay the renter and the commission a fine of $5000 each C. Jane could be forced to pay the renter and the commission a fine of $5000 each D. Jane could be forced to pay the renter $3000 and be disciplined by the GREC
D. Jane could be forced to pay the renter $3000 and be disciplined by the GREC
In order to recover monetary damages from the Real Estate Recovery Fund, the claimant shall be required to show the claimant: A. Is not licensed B. Is not the spouse of a licensee C. Has obtained a judgment D. Meets all of the above requirements
D. Meets all of the above requirements
If a purchaser tells the salesperson that the seller has clearly breached his responsibilities and the purchaser demands the immediate refund of his earnest money deposit, the salesperson should: A. Calm the purchaser down and assure him that the broker will return the funds in no more than one weeks time B. Tell the purchaser to see his own attorney since the salesperson is not allowed to give legal advice C. Tell the purchaser that the most he can take without the sellers agreement is 1/2 of the deposit D. Tell the purchaser that she will forward his request to her broker and that the broker or she will get back to the purchaser quickly with a response
D. Tell the purchaser that she will forward his request to her broker and that the broker or she will get back to the purchaser quickly with a response
When a salesperson prepares an offer to purchase on a property listed with another real estate firm, he/she should recommend to the customer that the earnest money check be made payable to: A. The selling salesperson B. The selling company C. The listing salesperson D. The listing company
D. The listing company
A real estate salesperson intends to offer for sale a tract of land he inherited without listing it with a real estate brokerage company. Which of the following is not true concerning the marketing of this property? A. The salesperson must notify the broker in writing of his intention to sell the property. B. In order to advertise the property, the salesperson must have his broker's written consent to do so. C. In advertising the property, the advertisement must state, "Owner is a licensed real estate agent acting as a principal" D. The salesperson must offer the property through his broker's company. He may not advertise the property except as a listing of his company.
D. The salesperson must offer the property through his broker's company. He may not advertise the property except as a listing of his company.
When a salesperson is negotiating a listing contract, she learns that the seller has an assumable loan. Should she discuss with the seller ways to assist a buyer in financing the property? A. No, because if the seller's loan is assumed, the seller will always remain in a vulnerable position B. No, because financing part of the purchase price would place the seller in a vulnerable position C. Yes, because every seller's equity in his/her property must be reduced to avoid capital gains taxes D. Yes, because the seller's willingness to assist in the financing by allowing the loan to be assumed and possibly taking a second mortgage may make the property much more marketable, which would be to the sellers benefit
D. Yes, because the seller's willingness to assist in the financing by allowing the loan to be assumed and possibly taking a second mortgage may make the property much more marketable, which would be to the sellers benefit
