GA Salesperson Exam Prep Edge: National & State Portions

86. Which of the following may represent an exemption from Georgia fair housing laws?

Angie owns a four-plex. She lives in one unit and rents out the others.

50. A local buyer is purchasing a property for $120,000. What will the seller pay in transfer tax if the rate is $.37 per $100? topic: real estate calculations subtopic: calculations for transactions

$444

14. Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? topic: real estate calculations subtopic: basic math concepts

$54,150

45. John and Amy purchased a builder's home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage? topic: transfer of title subtopic: warranties

10 years

38. Which of the following is an example of price fixing? topic: practice of real estate subtopic: antitrust laws

3 brokerages determine a standard commission rate

15. When advertising is placed on a property using the internet and the information has changed, the ad must be updated or removed within how many days of being placed? topic: state laws and rules subtopic: substantive regulations

30 days

65. In Georgia, how many years do we have to go back to trace the chain perfectly, with no gaps in ownership?

50 years

64. Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate?

6.5%

16. Which of these situations represents the illegal practice of blockbusting? topic: practice of real estate subtopic: federal fair housing laws and the ADA

Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values

22. What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form? topic: property disclosures subtopic: government disclosure requirements (LEAD)

EPA lead safety pamphlet

11. Stan and Margo want to redevelop an old industrial site in order to create a microbrewery and event space. However, an environmental review found that hazardous chemicals were once used on site, and there is a possibility they will be released during redevelopment. Stan and Margo may not be liable for cleanup, under what federal law? topic: land use controls and regulations subtopic: government controls

SARA Superfund Amendments and Reauthorization Act, created an innocent landowner defense. Often, the courts will review a SARA case and determine liability.

10. Jerome is developing an ad for 3 properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA? topic: financing subtopic: financing and lending

Get a low 4.925% APR An ad can show the APR without disclosing all the other credit terms. But if certain other "trigger" terms are included, such as down payment, payment amount, number of payments, or interest rate (other than APR), this would require full disclosure

80. Stephen is an attorney, appointed by the courts to handle matters for Mrs. Hamilton's estate, including the sale of her home. What can we conclude about Stephen?

He's exempt from real estate licensing requirements, as he's the court-appointed executor of Mrs. Hamilton's estate

Question style

In addition to traditional multiple choice questions with 4 choices and one correct choice, the state portion of the exam may include questions with multiple statements and ask you to select the choice that identifies the correct statements. Here's the sample question that's presented in the candidate handbook: 1. To qualify for a salesperson's license in Georgia, which of the following are required of an applicant? I. complete the required relicense coursework II. attain the age of 21 years III. be a high school graduate or holder of a certificate of equivalency IV. be a U.S. citizen A. I and III only B. I and IV only C. II and III only D. II and IV only In this sample question, option A is the correct choice.

81. What makes a binder a valid contract?

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

76. Jackson, a broker, regularly places his client's trust funds in the brokerage firm's business checking account and keeps a clean record of the deposit and the disbursement of the funds. What's the problem with this approach?

Jackson is commingling funds, which is a violation of Georgia license law

49. Which of these depicts a Georgia licensee committing a common real estate violation? topic: state laws and rules subtopic: substantive regulations

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

79. Jim represents Joel in the sale of Joel's country acreage and house. Jim's business partner, Rolly, informed Jim that he wants to put an offer in to purchase the property, with the intention to subdivide it. Which statement best represents the disclosure requirements regarding this transaction?

Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property

37. Which of these does the Americans with Disabilities Act address? topic: practice of real estate subtopic: federal fair housing laws and the ADA

Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs

96. Assuming that dual agency is legal where these scenarios occur and that the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency?

Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.

78. Jared wants to purchase property. One of the properties his agent shows him was formerly zoned for commercial use. It has a steep drop off at the back of the property, as well as some soft spots and mounds. Should Jared's agent recommend that he have a home inspector investigate it?

Yes, these are clues that the property may have been used as a waste disposal site

66. What is the best description of a deed?

a document to transfer ownership/interest in real estate

55. In Georgia, which of the following contracts doesn't have to be in writing to be enforceable? topic: real estate practice in georgia subtopic: sales contracts

a lease that is for one year or less

42. A tenant leases an apartment from Quad City Leasing. The tenant has filed a complaint with the state real estate licensing division stating that Quad City's property manager breached her fiduciary loyalty to the tenant. Which of these statements about this situation is true? topic: leasing and property management subtopic: property manager's fiduciary responsibilities

a property manager owes fiduciary duties to the client and the apartment community

29. To which borrowers might a lender be most likely to recommend an FHA loan? topic: financing subtopic: types of loans

a young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

23. Decatur licensee Alistair is working with buyer Evie as a transaction broker. According to Georgia law, Alistair may only perform ministerial acts for Evie, which are ___. topic: real estate practice in Georgia subtopic: real estate practice

administrative actions that don't rise to the level of client-level representation

31. Who's entitled to reimbursement from the Real Estate Education, Research, and Recovery Fund? topic : state laws and rules subtopic: real estate education, research and recovery fund

aggrieved members of the public affected by a license or certificate holder's wrongdoing

27. Buyer Daphne and seller Kurt signed a sales contract with a definite closing date of May 15. Daphne then learned that she needed to move the closing date to June 15. What document should she use to make this change? topic: contracts subtopic: contract clauses; including amendments and addenda

amendment

43. In Georgia, what must be filed for the eviction process to begin? topic: real estate practice in georgia subtopic: property management

an affidavit

13. Which of the following questions can an agent in a dual agency transaction answer without breaching her duties to either client? topic: general principles of agency subtopic: agency and non-agency relationships

are you aware of any structural issues with the property?

1. A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of closing, has already paid annual property taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a calendar year proration, and round to the nearest dollar. Topic: Real estate calculations Subtopic: Calculations for transactions

credited $1,207

57. What does BRRETA outline as a buyer broker's responsibility? topic: real estate practice in georgia subtopic: listings and agency

disclose adverse facts related to the buyer's financial ability to meet the contract terms

6. Fewer buyers in a higher price range would create what kind of pressure on housing prices? topic: valuation and market analysis subtopic: estimating value

downward

70. Which activity requires license?

explaining terms to a client

92. A landlord has an available unit but refuses to show it to several applicants. These applicants are all single women with children. The applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law?

he is discriminating against people based on familial status by refusing to show available housing

68. Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true?

if the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.

72. In Georgia, after the commissioner reviews an investigator's report on a complaint, the commissioner may take one of several actions. Which of these is NOT an option?

impose sanctions against the licensee

85. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______.

in writing, and in accordance with uniform standards

95. Which approach to value is typically used for investment property of 2 to 4-family units?

income approach

56. Ashish is purchasing a bank-owned property. His real estate agent tells him the bank is offering insurable, not marketable, title. What does this mean to Ashish? topic: transfer of title subtopic: title insurance

insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy.

2. Which of these is true regarding the Georgia Real Estate Commission's licensing power? Topic: State Laws and Rules Subtopic: Commission organization and Procedures

it may grant or revoke a firm's license

32. What happens to an initial offer from the buyer after a seller counters? topic: contracts subtopic: counteroffers/multiple counteroffers

it's no longer in play

71. Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

joint tenancy

67. To be an effective property manager, a licensee must be familiar with a variety of ___.

lease agreements

30. Which of the following is an example of commingling? topic: practice of real estate subtopic: trust/escrow accounts (general, not state specific)

mixing earnest money with personal funds

47. You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben? topic: general principles of agency subtopic: agent's duties to clients

no, because you can't share one client's confidential information with another client

82. 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

12. According to the Georgia Brokerage Relationships in Real Estate Transactions Act, if no expiration date is provided in the brokerage engagement, then the engagement will terminate ______. topic: real estate practice in georgia subtopic: listings and agency

one year after initiation

40. In Georgia, what can a broker do for a buyer customer, as compared to a client? topic: real estate practice in georgia subtopic: listings and agency

only ministerial tasks

61. Which type of listing can help a real estate professional determine how quickly a home in a given price range received an accepted offer?

pending

54. Because there were no deadlines specified in the contract, a buyer delayed applying for a loan to help purchase the property. The seller ended up suing the buyer for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did the buyer fail to do? topic: contracts subtopic: offers/purchase agreements

perform contractual obligations within a reasonable time

89. Marilyn is reviewing the inspection report with her buyer clients. Which. of the following issues in the report should Marilyn flag as most significant?

presence of mold

19. Subdivision regulations imposed by developers in an effort to maintain control of the development of the subdivision are an example of ___.

private land use control

90. Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?

promissory note

87. Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?

real estate contracts must be in writing

77. Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others he used. What process is he utilizing?

reconciliation

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

reconveyance

41. A homeowner has converted 2 rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do? topic: practice of real estate subtopic: federal fair housing laws and the ADA

refuse to rent to a female tenant

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

security deed

28. An easement dictates that property owner A gives the right to property owner B to use a portion of the property. Which term describes property A? topic: property ownership subtopic: encumbrances and effects on property ownership

servient estate

48. Which of the following is an example of a fixture that is real property? topic: property ownership subtopic: real versus personal property; conveyances

shelves attached to the wall with brackets

39. With a security deed in Georgia, how may a lender release the deed when the loan is paid off? topic: finance and closing subtopic: finance

sign the security deed verifying release of the collateral and re-recording the security deed

4. Eva, Stella, and Lynn owned a vacation home two blocks from the beach. Sadly, Stella passed away over the winter, so when summer arrived, Eva and Lynn shared the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this? topic: property ownership subtopic: types of ownership

tenancy in common

17. Alice listed a 3 bedroom home for her client, but before she finds a buyer, the home burns to the ground. What happens to the agency agreement that Alice has with her client? topic: general principles of agency subtopic: termination of agency

the agency agreement is terminated if the property is destroyed.

18. A seller tells his agent that he has to sell his house quickly because of a divorce proceeding, and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Which of these is true? topic: general principles of agency subtopic: agent's duties to clients

the agent has breached his duty of confidentiality to his client.

34. All business that a licensee of a brokerage firm conducts must be in ___. topic: real estate practice in georgia subtopic: real estate practice

the brokerage's name as it appears on the license

63. In situations where pleased property is sold and the tenants' security deposits will be refunded, who's responsible for refunding those security deposits?

the original owner

93. Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement?

the taxes are a prepaid expense, and will appear as a buyer debit and a seller credit

36. Which of following actions would result in the legal termination of an agency agreement? topic: general principles of agency subtopic: termination of agency

the term specified in the agency agreement expired

74. Assuming licensee Shannon has actual knowledge of all of the following property issues, which of these issues should she disclose to prospective buyers?

the upstairs bathroom has a leaky toilet

26. What special concern do foreclosed properties often present? topic: transfer of title subtopic: special processes

there could be hidden title issues

62. In a real estate transaction in which you represent the seller, your duty to other parties is to __.

treat them honestly and fairly

94. Blake is allowed to use his property in a way that's prohibited under current zoning ordinances, because those ordinances would cause undue hardship for him. What gives him this permission?

use variance

69. Sylvia, who's 15 years old, and her neighbor Marge, who's 24, sign an agreement that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this?

voidable

91. Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this?

voluntary

7. Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor? topic: practice of real estate subtopic: licensee and responsibilities

whether the licensee receives benefits from the brokerage firm

98. Barb is a qualifying broker in Georgia. She must ensure that all contracts prepared by her licensees are reviewed ___.

within 30 days

60. Chelsea's mother owns several rental properties and intends to keep them to pass on to the family. Chelsea holds a special power of attorney to manage the rental properties, including working with the property manager to place and evict tenants as necessary. Which of these would violate the POA?

without consulting her mother, Chelsea decides to completely refurbish one of the properties

44. Bernie represented Oscar in the sale of Oscar's home. They signed an exclusive right-to sell-listing agreement. If Oscar were able to find his own buyer, would he owe Bernie a commission? topic: general principles of agency subtopic: creation of agency and non-agency agreements; disclosure of conflict of interest

yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the buyer

53. A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property? topic: property ownership subtopic: land characteristics and legal descriptions

$1,335.67

88. Buyer Allen's brokerage agreement with Atlanta licensee, Maria, states that he must pay an $800 non-refundable retainer fee that will be deducted from her 2.5% commission at closing. Allen buys a FSBO property for $100,00 and the seller won't pay the commission. Since Allen has already paid the retainer, how much will be responsible for paying Maria at closing?

$1,700

73. What's the transfer tax on a Georgia home sold for $215,000 with a mortgage loan of $180,000?

$215

33. Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $200,500. Their tax rate is 1.5%. How much will their monthly taxes be? topic: real estate calculations subtopic: calculations for transactions

$250.62

20. A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell? topic: real estate calculations subtopic: calculations for transactions

$315,789

51. Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio? topic: financing subtopic: basic concepts and terminology

75% (300,000 / 400,000)

5. Chrissy lives in Lake Ridge Estates, a neighborhood in which vinyl siding may not be used on homes. This HOA regulation is what kind of private land control? topic: land use controls and regulations subtopic: private controls

CC&R

About your licensing exam

Georgia real estate licensing exams are administered by PSI. The exam consists of 2 portions, but the questions are intermixed. -Time limit: 4 hours -National portion: 100 scored questions (may include 5 pretest/unscored questions) -State portion: 52 scored questions (may include 5 pretest/unscored questions) -Minimum scaled passing score: 72 (or 109 questions answered correctly) If you don't pass the exam, you'll receive reapplication instructions so you can take the exam again. The state's candidate bulletin includes a list of topics and subtopics and the ratios in which those topics will appear on the exam. It also includes important information about the process for registering for the exam and exam location guidelines. We've included a link to the bulletin in your resources so you can locate information for your state.

Leo knew about the square footage and intentionally didn't mention it. He's guilty of intentional misrepresentation

Leo's client is looking for a property with at least 2,500 finished square feet. Leo finds a 2,200-square-foot property with all the other features the client is looking for, and purposely doesn't mention the square footage to his client. His client agrees to look at the property, falls in love with it, and wants to make an offer, but does not realize it doesn't contain his desired square footage. Which of these statements accurately represents Leo's level of misrepresentation in this situation? topic: practice of real estate subtopic: advertising and technology

9. What factors does the underwriter consider in reviewing a mortgage loan application? topic: financing subtopic: financing and lending

credit, capacity, and collateral

35. In which of the following situations can the state use its power of escheat? topic: land use controls and regulations subtopic: government rights in land

Nadine died with no heirs and no debt

59. 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

97. Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of agreement do Desmond and the Harpers have?

bilateral

58. Which of these statements about a conventional mortgage loan is true? topic: financing subtopic: types of loans

borrowers with larger down. payments and higher credit scores are most likely to select a conventional mortgage

52. Which of the following features is most likely to be the cause of an adjustment to a comparable when preparing a CMA? topic: valuation and market analysis subtopic: competitive/comparative market analysis

busy street

3. Jules is new to property management. Which of the following tasks may be one of her duties? Topic: leasing and property management subtopic: landlord and tenant rights and obligations

creating a budget for next year's projected maintenance costs

25. Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Georgia. Which of these activities can he perform? topic: real estate practice in Georgia subtopic: real estate practice

calculate commissions for team members

24. Which of the following is the responsibility of a Georgia closing attorney? topic: finance and closing subtopic: closing procedures

calculate prorations

83. Which of the following written statements is required in a dual agency disclosure in Georgia?

confidential information won't be provided to the opposite party

46. Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting construction of any building taller than one story. Ronesha wants a three-story house. What should she do? topic: land use controls and regulations subtopic: private controls

conform to the deed restriction

21. Burt owns a development company that specializes in constructing new, energy-efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the ___. topic: violation and market analysis subtopic: estimating value

cost approach