Georgia-State Exam Practice Test

All fair housing complaints must be filed with the Fair Housing Division within ______ of the alleged violation.

1 year All complaints must be filed within one calendar year.

Mindy is a high school junior and would like to practice real estate. At what age will she be old enough to apply for a real estate salesperson license?

18, provided she has a high school diploma or equivalent

What's the continuing education requirement for a community association manager?

36 hours every four years

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

50 years In Georgia, a chain dating back 50 years is considered sufficient to show marketable title.

If a licensee wanted to plan ahead and divide the required continuing education hours over the period that a license is valid, how many hours of continuing education would the licensee have to complete each year?

9 A licensee wanting to plan ahead could complete nine hours of CE per year in order to complete the 36-hour requirement for a four-year renewal cycle. Three hours of CE must include the mandated Georgia law course.

The seller countered buyer Addie's initial offer. Which of these statements is true about the situation?

A buyer may opt to "counter the counter" by submitting a counter-offer to the seller's counter-offer.

Clara has been called to be an official witness to a deed signing. Who is Clara?

A notary public

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

The ______ clause is also known as a due-on-sale clause.

Alienation The alienation clause allows the lender to make the loan due if the borrower sells or otherwise transfers the property.

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.

Who usually acts as a closing attorney?

An attorney who may or may not be the lender's attorney

Evan signed a buyer agency agreement with licensee Lydia to help him find a condo in Buckhead. Evan is now Lydia's client, which is best described as ______.

Any person who is represented by an agent

What organization offers the Community Association Manager certification exam in Georgia?

Applied Measurement Professionals administers the exam that community association managers need to pass in order to be certified.

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.

Broker Mandy hires Jake to be an assistant at her firm. She would like to compensate Jake on a completed-transaction basis. For this to be permissible, Jake must ______.

Be licensed

Which of the following individuals must have a real estate license to perform real estate activities?

Blake, an attorney, who's selling his cousin's home for a fee

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. Neither broker may charge the licensee a fee to transfer brokerage firms.

Sub-agency is a legal form of agency in Georgia, ______.

But it's rarely used Sub-agency is a legal form of agency in Georgia, but it's rarely used. Some firms forbid their licensees from practicing sub-agency, which is almost extinct because of presumed buyer's agency. In the absence of a contract to the contrary, such as a listing agreement, it's assumed that a licensee assisting a buyer represents that buyer.

Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Georgia. Which of these activities can he perform?

Calculate commissions for team members. Unlicensed assistants can't perform any activities that require a real estate license. Prohibited activities include hosting open houses, showing homes, explaining listing information to a consumer, and soliciting business, among others.

In Georgia, real estate taxes are prorated on the basis of what kind of year?

Calendar year (365 days) Real estate taxes are calculated using a 365-day year in Georgia.

Exclusive agency relationships in Georgia can terminate if the buyer ______.

Comes to an agreement in writing with the broker

Where are option contracts on multiple properties commonly seen?

Commercial Properties

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.

Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is used?

Craig The borrower holds legal title to the property that secures the loan when a mortgage instrument is used

The Certified Business Intermediary designation is a(n) ______ that is available in the specialized field of business brokerage.

Credential

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 Joe Bob has to deliver the deed to Frank, his agent or attorney, or the title company issuing the title and acceptance is presumed.

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

Which is NOT a violation for which the real estate education, research, and recovery fund may compensate claimants in Georgia?

Failure to disclose a criminal conviction

Which of these is NOT a reason that the Georgia governor might remove a commission member from GREC?

Failure to pay renewal fees

In order to better supervise their independent contractors, many brokers may ask them for additional information. Which of these would brokers NOT typically ask for?

Family Status

Which Georgia agency houses the Fair Housing Division?

Georgia Commission on Equal Opportunity

What does the acronym GAFLA stand for?

Georgia Fair Lending Act

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.

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

Sharla received an eviction notice from her landlord and quickly responded when the court sent her a summons. At the hearing, she told the judge about the malfunctioning water heater, producing documentation to prove that she'd told her landlord about it at least five times. What type of eviction challenge is this?

Incomplete Repairs

Why is the recording of a deed so vital?

It protects new owners from former sellers claiming they still own the property. Acknowledgment and recording of a deed are vital in protecting new owners from former sellers claiming they still own the property.

Georgia licensee Greg and buyer Sandra's exclusive buyer agency agreement was set to expire on March 1. On Feb 10, Sandra signed a contract with a seller, but it fell through 10 days later due to a home inspection issue. What's the termination date of Greg and Sandra's buyer agency agreement?

March 11 Greg and Sandra's buyer agency agreement is extended to accommodate the 10 days they were under contract, so the new expiration date is March 11

Financing for a real estate transaction can use a note with a ______, a note with a deed of trust, or, in Georgia, a note with a security deed

Mortgage The mortgage is a security instrument that describes the security for the note.

Corinne signs a buyer brokerage agreement with Juan, but he's transferred to Chicago. How will their agreement terminate?

Mutual agreement Brokers and clients may mutually agree to terminate the agency agreement with no repercussions for either party.

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. GRMFA applies to loans secured by one- to four-unit residential properties.

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.

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

Note with Deed of Trust The beneficiary is the lender, the trustor is the borrower, and the trustee is the third party who reconveys title when the loan is paid off.

What must a licensee do when he wants to purchase a home listed by the brokerage where he's affiliated?

Notify his broker in writing and disclose his intentions to the seller.

Athens licensee Lucius is representing both the seller and the buyer in the same transaction, with both clients' consent. That makes him a dual agent, which Georgia license law defines as ______.

One licensee representing both the buyer and the seller in a single transaction

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 ______.

One year after initiation The law states that a brokerage engagement without a termination date expires one year after the engagement began.

The ______ clause in a deed of trust allows the lender to foreclose non-judicially.

Power of Sale The power-of-sale clause can be understood as the borrower granting to the lender a right to sell the property in case of default, making this a non-judicial foreclosure

In Georgia, lenders use one of two methods to release the security deed when the promissory note is paid in full. One method is to simply note on the original deed that it's being released. What's the second method?

Prepare a Cancellation of Debt Secured by Deed form The second method of release used in Georgia is to prepare a Cancellation of Debt Secured by Deed form. The borrower is responsible for paying to have the document recorded.

Who or which entity is responsible for funding the Real Estate Education, Research, and Recovery Fund?

Real estate license holders

Genevieve has just passed her broker's exam and completed the requirements for licensure. She wants to operate under her own name in Georgia. What must happen first?

She must receive her license and post it on her office wall. While new business cards are in order, Genevieve must have her license and it must be posted before she can operate under her own name.

Which of the following is NOT a benefit of affiliating with a Georgia broker?

Split Commissions with the Broker Shared advertising costs, floor time opportunities, and professional office space are all benefits of affiliating with a broker in Georgia, among others.

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

The Original Owner

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

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

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

What does the Warranty of Title (aka Warranty) in a real estate sales contract say?

The seller is legally able to deliver good and marketable title to the buyer at closing.

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 A statutory right of redemption is one that occurs after the sale. This occurs only in judicial foreclosures, and isn't allowed in every state.

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

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

What do Georgia license law and the commission's regulations say about trust funds?

Trust funds must be kept in a specific trust fund account.

What do unfair trade practice laws in Georgia prohibit?

Unfair and deceptive business acts or practices

After a fierce bidding war with three other potential buyers, the Carsons enter into an agreement that includes $2,000 earnest money. When the sale is later terminated, the earnest money goes to ______.

Whichever party it belongs to based on the agreement terms

Roger needed to unload an investment property and paid the appraiser an additional fee for appraising at a value that would allow Roger to come out ahead on the property. Is the appraiser in violation of GRMFA?

Yes, because the appraiser fraudulently received funds in connection with a residential mortgage. Remember that anyone involved in the intentional misrepresentation of data in relation to the mortgage lending process may be held liable for fraud under the Georgia law.