GA State Exam Practice Pt. 2

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

$215

The court will order GREC to make a payment out of the Real Estate Education, Research, and Recovery Fund when applicable. What's the maximum dollar amount one claim can be, including all fees and claimants attached to the transaction?

$25,000

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

25 hours of post-licensing education

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

30 days

If the foreclosure sale doesn't satisfy the debt, ______.

A deficiency judgment against the borrower may be issued

Broker engagement agreements must include all parties' signatures. Anyone who signs the agreement must receive a photocopy. What else is required?

A definitive end to the brokerage engagement agreement

What legal agreement is required when a licensee guarantees the sale of a property?

A purchase agreement written at the same time as the listing agreement

Who's entitled to reimbursement from the Real Estate Education, Research, and Recovery Fund?

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

GREC may deny a license application for several reasons. Which of the following would likely NOT be a reason for an application denial?

An associate broker applicant was convicted of theft in high school 15 years ago

At what point in a real estate transaction will the deposits and the disbursements of the transaction need to reflect a zero balance?

At the closing of the real estate transaction

Darcy signed an exclusive right-to-sell agreement with licensee Shane, which gives Shane authority to ______.

Authority to negotiate the contract

Buyer duties outlined in the Exclusive Buyer Brokerage Engagement Agreement include ______.

Being available during the agents regular working hours to visit properties

In a deed of trust, who is the trustor?

Borrower

Which of these statements is NOT true regarding a licensee who wants to transfer to another broker?

Both the original broker and the new broker may charge the licensee a $50 fee to cover administrative costs of the transfer

Which of the following conducts closings in Georgia?

Closing attorney

In Georgia, what are the requirements for security deposits when a landlord owns 10 or more units?

Deposit the funds in an escrow account and notify each tenant in writing what bank holds the deposit

Damon and Kristine were returning from their baby shower when they ran into their property manager, Jimmy. "I didn't know you were pregnant, I just thought you were getting fat," Jimmy said with a scowl. The next day, the couple received an eviction notice. On what grounds can they contest the eviction?

Discrimination

Some brokers may opt to attach other documents to an independent contractor agreement. Which of the following is NOT one of these such attachments?

Employee agreement

Which of the following is a true statement about Georgia's real estate education, research, and recovery fund?

Fund money may be invested and interest is deposited back into the fund

What agency is charged with ensuring the balance of the Real Estate Education, Research, and Recovery Fund is maintained at $1 million or higher?

GREC

What does the acronym GAFLA stand for?

Georgia Fair Lending Act

In Georgia, what does GREC stand for?

Georgia Real Estate Commission

Which entity administers license law in Georgia?

Georgia Real Estate Commission

Dolcita is an unlicensed assistant for licensee Glynnis at Acme Realty. Which of the following best describes how Dolcita can be compensated for her work?

Hourly, salaried, or per activity

Alistair has decided to work with you as a customer instead of a client. You explain to him the ministerial tasks you're permitted to perform on his behalf, including ______.

Identifying property and property information

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

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

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

Karen and Joe are purchasing a six-unit apartment complex for $450,000. The loan is secured by the property being purchased. Is this purchase subject to GRMFA provisions?

No, because of the number of units

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, the licensees are not responsible for providing false information if they didn't know it was false

A beneficiary, trustor, and trustee are the parties involved when the finance instrument is a ______.

Note with deed of trust

Which of the following is a prohibited housing practice under federal and Georgia fair housing laws?

Offering different terms, conditions, or privileges for certain people

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

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

Qualifying broker

In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______.

Security deed

Charlene signed a lease and is getting ready to pay her security deposit. Which of the following statements is true about security deposits in Georgia?

Security deposits are typically equal to one month's rent

Adrian doesn't have a real estate license. What real estate activity can he legally perform in Georgia?

Sell his dad's house under a power of attorney

With a security deed in Georgia, how may a lender release the deed when the loan is paid off?

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

Valdosta licensee Sonya represents a buyer, Damon, an African American who wants to purchase a home in a neighborhood where his children will only play with children of his race. Which of the following is Sonya's responsibility?

Sonya should show Damon properties in specific areas he requests, but should refrain from commenting on the ethnic composition of the neighborhoods

Regina has defaulted on the terms of her mortgage, and now her lender has foreclosed. The property was sold at a sheriff's sale three months ago. Regina suddenly learns that she has inherited a great deal of money. She wants her property back. Under a judicial foreclosure, what right might allow her to buy her property from the winner of the foreclosure auction?

Statutory right of redemption

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

Which of these features is shared by the mortgage, the deed of trust, and Georgia's security deed?

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

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

The brokerage's name as it appears on the license

Alicia is about to sign an exclusive buyer agency agreement with her new client, Eric. Which form will she use?

The form approved in the brokerage policy and procedure manual

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

The lease terms

In Georgia, what's the first step in the foreclosure process (sometimes called pre-foreclosure)?

The lender notifies the borrower and attempts to have the default cured

What information is considered optional when placing any form of advertisement in Georgia?

The licensee's telephone number

Which of the following is a true statement about when a promissory note is sold?

The promissory note is endorsed to the new owner of the loan

One difference between a judicial foreclosure and a non-judicial foreclosure is that with a non-judicial foreclosure, ______.

There is no statutory right of redemption

Which of the following is true about the sales contract form in Georgia?

There's no standard form for the sales contract

Which of the following describes the GAR F913, Lease for Residential Property, use restrictions provision as shown in Section A?

Those who are permitted to occupy the premises

What's the reason for using employee and independent contractor agreements?

To define the terms of the broker and worker's professional relationship

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

Assuming no tenant is moving out, when a leased property is sold, the previous owner must either refund tenants' security deposits or ______.

Transfer the security deposits to the new owner

What do unfair trade practice laws in Georgia prohibit?

Unfair and deceptive business acts or practices

When a borrower fails to cure any default within 120 days of the lender's original notification, the lender may begin the foreclosure process. In Georgia, borrowers may redeem the property ________________.

Up to five days before the scheduled foreclosure sale

In which of these situations will a letter of intent most likely be used?

When purchasing a condominium in a proposed condominium development

When is dual agency allowed in Georgia?

With both parties' consent