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An 8-year-old building was worth $190,000 after depreciating at a rate of 3% annually. What was the original value?

$250,000

Johns building is 90 x 60 feet. He wishes to build a sidewalk 5 ft x 6 inch thick all around the building. How many cubic yards of concrete will be needed?

$29.63

What is the maximum allowable homestead exemption for a 65 year old widower who is legally blind?

$51,000 ($25k base + $500 widow + $500 legally blind + $25k for assessed value of $75k or more

What is the maximum allowable homestead exemption for a widow who is a veteran with a 25% disability due to a service connected injury?

$55,500 = 25k base exemption + $500 surviving spouse + $5k for disable vets + 25k additional exemption for homesteads with an assessed value of $75k or more Read the question what is the "maximum" allowable...

VA loan features

(Veterans Affairs) (1) Up to 100% financing- with as little as zero down payment for qualified buyers (2) Fixed-rate loan available (3) More flexible qualification guidelines than those for conventional loans

A n example of a previously granted variance would be what?

(example: shopping center that has fewer than the # of parking spaces required per sq ft of rent able space) - allows the owner of a property to vary from strict compliance with all or part of zoning code, because to comply would force undue hardship on the property owner

43560 square feet =

1 acre

Section

1 mile x 1 mile

Each township is divided into 36 sections of approximately:

1 square mile each, or 640 acres.

What is a point?

1% OF THE LOAN AMOUNT

Tenancy In Common

1) Ability to sell WITHOUT permission of others 2) Have Equal or Unequal Shares 3) Undivided Ownership

What is the Tax Rate Cap for Cities, Counties and School Boards?

10 mills each (1 mill = 1/10th of a cent)

Short Sales

= Homeowner is selling a property and the current market value is less than he or she owes on the mortgage due to... - more homes than demand - many banks and other lenders financed a larger than usual % of home's appraised value

Balloon Mortgage

= Mortgage loan that requires the remaining principal balance be paid at a specific point of time

Amortization

= Part of loan payment applied to pay accruing interest on a loan

Capitalization rate

= Rate of return a property will produce on the owner's investment

Absorption Rate

= Total # of vacant square feet of office space / square footage leased per year - Used to analyze demand of office space

Foreclosure

= When borrowers no longer make mortgage payments, then the bank forecloses taking ownership of the property

Principal

= amount borrowed or remaining unpaid

Prime Rate

= interest that banks charge to their preferred customers

Lien

= legal claim against a property that must be paid off when the property is sold. - A mortgage or first trust deed is considered a lien

Foreclosure

= legal process by which a borrower in default under a mortgage is deprived of interest in the mortgaged property

Deed-in-lieu

= short for deed in lieu of foreclosure - Conveys title to the lender when the borrower is in default and wants to avoid foreclosure

Deeds in lieu of foreclosure

= voluntarily turn over the deed to the bank in lieu of foreclosure - in this option, bank still ends up owning and then trying to sell the property, but homeowner's credit reports don't reflect a foreclosure

Lease

= written agreement b/w the property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time

Promissory Note

= written promise to repay a specified amount over a specified period of time

A Real Estate Settlement Procedures Act requires the lender to provide the borrower a good faith estimate of settlement. A. At the time of application or withing three business days of the completed application. B. At the time of application or withing seven business days of the completed application. C. Within three business days prior to closing. D. Within seven business days prior to closing.

A borrower obtains a new loan at a 7% interest rate and uses the proceeds to pay off an existing loan at a 9% interest rate. This would be an example of: A. Refinancing. B. An open end loan. C. A loan assumption. D. A rollover.

A borrower secures a second mortg loan on their home from a bank. Under the Truth-in-lending Act, the borrower has the right to rescinde the loan transaction up to: A. 3 biz days after signing the loan agreement B. 3 biz days afer the money has been disbursed C. 7 biz days afer the signing of the loan agreement D. 7 biz days after the money has been disbursed

A broker has an exclusive right to sell listing agreement with a seller. The seller an offer from a buyer for the sale of the house. The buyer meets all the requirements of the sales contract. Before closing the seller decides not to sell the property and backs out of the sale. Is the listing broker entitles to a commission? A. Yes, the broker produced a ready, willing and able buyer. B. Yes, provided the contract included earnest money. C. No, the sale did not close. D. No, the buyer was not ready, willing and able.

A broker is listing the property of a deceased owner who had five adult children. Two of the children are listing the property for sale. Before completing the listing agreement, the broker should do which of the following? A. Check the ownership of the record to see if the persons who are listing the property are the current owners. B. Check th deceased owner's will to verify who the heirs are. C. Require all the adult children to sign the listing. D. Require all the adult children sign a quit claim deed.

A broker managing rental property puts security deposits into interest bearing trust accounts. Is this permissible? A. Yes, if the broker has prior written consent of the parties. B. Yes, all security deposits must be deposited. C. No, interest bearing accounts are not permissible. D. No, this would be commingling.

A broker represents an Asian buyer. The buyer instructs the broker to show her several particular home located in predominantly Asian neighborhoods. The broker should: A. Follow the buyer's instructions. B. Not follow these instructions as this would be steering. C. Not follow these instructions as this would be blockbusting. D. Not follow these instructions as this would be puffing.

A broker was found guilty of commingling. The real estate Commission shall have the power to: A. Impose a fine not to exceed $1,000. B. Impose a fine not to exceed $5,000. C. Imprison the licensee up to one year. D. Imprison the licensee up to five years.

A broker's listing expired on May 10. The broker brings a new buyer to the same property on May 20. if the buyer buys the property is the seller obligated to pay the listing broker to a commission? A. No, the listing expired B. No, unless there was a protection clause C. Yes, the broker produced a ready, willing and able buyer D. Yes, the seller accepted the offer

A buyer acquired title to property to property that has an existing mortgage and agrees to become personally liable for the terms and conditions of the mortgage. This would e an example of a: A. Loan assumption. B. Contract for deed. C. Purchase money mortgage. D. Refinancing.

A buyer and seller voluntarily agree to rescind a real estate contract that included a $500 earnest money deposit. Who would receive the earnest money refund? A. Buyer. B. Seller. C. Broker. D. Lender.

A buyer is assuming a seller's loan. How would the loan balance appear on the closing statement? A. Credit to the buyer, debit to the seller. B. Credit to the seller, debit to the buyer. C. Credit to the seller only. D. Debit to the buyer only.

A buyer obtained a residential loan from a lender and paid for a lender's title policy. The policy would protect the: A. Lender only. B. Buyer only. C. Seller only. D. Buyer and the lender.

A buyer planned to buy an existing house and build a swimming pool in the backyard. The buyer signed and contract, the buyer discovered the restrictive covenants would no permit a swimming pool. This contract would be: A. Valid and enforceable. B. Void. C. Voidable. D. Unenforceable

A buyer purchased a house for the listed prise of $180,000. After closing the buyer discovered the seller had taken the remote garage door opener and house keys. The buyer would have a valid claim to these items because they would most likely be considered: A. Fixtures. B. Chattel (personalty). C. Emblements. D. Trade fixtures.

A buyer purchased a property from a seller and received a general warranty deed. Several years later a prior owner came forth and claimed an ownership interest in the property. The prior owner's claim was upheld by the court. in this situation the buyer is protected by the covenant: A. Of quiet enjoyment. B. Of seisin. C. Of further assurance. D. Against encumbrances.

A buyer purchased a vacant land in a growth are thing the land could be subdivided and would double in value on the next three years. This BEST describes the principle of: A. Anticipation. B. Competition. C. Change. D. Plottage

A buyer submits a contract to purchase contingent on the buyer's spouse approving the property within 48 hours. Which of the following statements is correct concerning this agreement? A. The contract would be valid if agreed to by both parties. B. Real estate contracts cannot contain contingencies. C. The contingency is not valid as it requires a personal judgement. D. The contingency would have to be made on a separate amendment agreement.

A capitalization rate would MOST LIKELY be used when appraising a: A. Shopping center. B. School. C. Single-family residence. D. Church

A change in zoning from a higher to lower classification, such as multifamily to single-family use, would be an example of: A. Downzoning. B. Upzoning. C. A variance. D. Spot zoning.

A city government wants to encourage growth in a particular area and therefore rezones the area. The government would be exercising its right of: A. Police power. B. Escheat. C. Eminent domain. D. Condemnation.

A clause used in a mortgage to waive the priority of the lien in favor of another lien is called the: A. Subordination clause. B. Subject to clause. C. Subrogation clause. D. Satisfaction clause.

A commercial lease in which the lessee pays a fixed amount of rent plus all of the expenses is called a: A. net lease. B. Gross lease C. Percentage lease. D. Ground lease.

A common element that is restricted to a specific condominium unit, such as an assigned parking space, is referred to as: A. A limited common element. B. Separate property. C. An amenity. D. An attachment.

A competitive market analysis (CMA) is based on the principle that: A. The sales price of the subject property is best estimated by recent sales of similar properties.u B. The sales price of the subject is best estimated by an appraisal. C. Many people by real property based o an emotional impulse. D. Many people buy real property based on the property's future income.

A corporation purchases a parcel of land. The corporation is owned by five stockholders, each owning an equal interest. Because a corporation is legal entity, title to the land owner by i is taken in: A. Severalty. B. Partnership. C. Trust. D. Joint tenancy

A farmer is growing crops and decides to sell his property. Could the farmer have the right to come back and harvest the current crops after the farm has been sold. A. Yes, emblements are the personal property of the farmer and the purchase agreement should clearly address re-entry. B. Yes, the crops are considered trade fixtures and can be removed before or after closing. C. No, crops are considered fixtures and belong to the new owner. D. No, crops are real property and cannot be removed.

A fifteen year old minor signs a sales contract to purchase real property. Can the minor disaffirm the contract? A. Yes, while under age and for a certain period of time after reaching legal age. B. Yes, only with the consent of the seller. C. No, only the seller may void the contract. D. No, the contract is valid and enforceable.

A form of depreciation caused by ordinary wear and tear on the property would be considered: A. Physical deterioration. B. Functional obsolescence. C. External obsolescence. D. Economic obsolescence.

A group of the brokers attempt to set the commission rates for all real estate transactions within their market area. Such action could subject the brokers to prosecution under the: A. Antitrust laws. B. Real Estate Settlement Procedures Axe (RESPA). C. Truth in Lending Law (Regulation(Z). D. Federal Fair Housing Acts.

A handicapped person is renting a unit in a residential apartment building and none of the parking spaces are assigned. The handicapped tenant requested an assigned space near the door. The property manager should: A. Make to space available if possible. B. Charge an additional security deposit. C. Assign all the spaces. D. Not provide the space.

A lease that provides for adjustments of rent according to changes in a cost of living index would MOST LIKELY be referred to as a(n): A. Index/graduated lease. B. Flat lease. C. Gross lease. D. Percentage lease.

A lending institution refuses to make loans in a specific geographical area of the city because it is racially mixed. the practice would be considered: A. Redlining. B. Sterring. C. Blockbusting D. Refinancing

A licensee convicted of a criminal action shall report the conviction to the Commission, in writing within: A. 10 days of the conviction. B. 30 days of the conviction. C. 10 days of renewal of license. D. 30 days of renewal of license.

A licensee is asked by a buyer to prepare a sales contract that will no earnest money. According to the law and the rules of the Commission, can licensee help negotiate a contract without earnest money? A. Yes, because neither the law nor the Real Estate Commission require the purchaser to pay earnest money. B. Yes, because the seller cannot reject an offer solely based on the amount of the earnest money. C. No, because it is illegal for a licensee to present an offer for which there is no earnest money. D. No, because Georgia law etstablishes earnest money as one of the essential elements of an enforceable real estate sales contract.

A lien on the property that has not been released by a lien holder would create: A. A cloud on the title. B. A latent defect. C. An encroachment. D. A deed restriction

A listing agreement is considered: A. An agency agreement. B. An offer to sell. C. An offer to purchase. D. A power of attorney.

A loan that is secured by real estate plus personal items such as a washer, dryer, and refrigerator would be considered a: A. Package loan. B. Blanket loan. C. Home equity loan. D. Construction loan.

A manufacturing plant that employs 20% of the local labor force closes. The effect on the area's real estate values will reflect the principal of: A. Supply and demand. B. Substitution. C. Highest and best use. D. Plottage.

A married couple owns real property with an assessed value of $30,000. A neighbor's real property has an assessed value of $35,000. If the tax rate is the same for both properties, which of the following is TRUE about the property tax? A. The neighbor will pay a higher ad valorem tax than the married couple. B. The neighbor will pay a higher improvements tax than the married couple. C. The married couple will pay a higher ad valorem tax than the neighbor. D. They will both pay the same amount of ad valorem tax.

A method of land description that identifies a parcel of land by reference to a recorded plat map of subdivided land would be: A. Lot and block system. B. Rectangular survey. C. Metes and bounds. D. Government survey.

A person moved into an abandoned farm house, modernized it, began to raise crops, notifies the true owner of her recent possession and refused to leave the property. She paid the property tax and stayed there seven years. Is there any chance that this person could claim legal title to the farm by adverse possession? A. Yes, because her use was continuous, open, hostile and exclusive. B. Yes, because she modernized the house. C. No, because farm land cannot be acquired through adverse possession. D. No, because a notified owner may never lose title to property though adverse possession.

A potential buyer is considering purchase of one or two similar houses. He would probably no pay more for one house than the other based on the principle of: A. Substitution. B. Conformity. C. Highest and best use. D. Supply and demand.

A private agreement, usually contained in a deed that restricts the use of real property is called: A. A private deed restriction. B. A building code. C. An encroachment. D. A license.

A property owner gives permission to his friend to cross his property and fish in the lake. If the owner sells the property does the friend still have the right to cross the property? A. No, a license is terminated when the property is sold. B. No, an easement appurtenant is terminated when the property is sold. C. Yes, the license belongs to the friend and will not terminate if the property is sold. D. Yes, provided the friend compensates the new owner.

A property owner is violating the recorded deed restrictions. If the adjoining lot owners stand idly by while the violation is committed, they could lose their right to an injunction by their inaction. The court might claim their right was lost through the doctrine of: A. Laches. B. Abandonment. C. Escheat. D. Lis pendens.

A prospective buyer pays a store owner $150 for the right to buy the store at any time within the next six (6) months at a price of $500,000. The store owner accepts the $150. Is this option valid? A. Yes, because the $150 would be considered valuable consideration. B. Yes, because the option must be at lease six months for the person to decide if they are purchasing. C. No, because an option may not extend for more than 90 days. D. No, because the option consideration must be at least 5% of the purchase price as stated in the option.

A prospective purchaser asks to take possession of the property prior to closing. The salesperson consults with their broker and seller and is unable to find an alternative. The salesperson should have the parties sign a: A. Move-in agreement. B. Termination agreement. C. Listing Agreement. D. Modification agreement.

A quitclaim deed is commonly used to: A. Quiet a cloud on the title B. Warrant title or possession. C. Transfer title. D. Foreclose on real property.

A ready, willing and able buyer is one who: A. is legally capable and financially quilified, and signs an offer that meets the seller's terms and condition. B. has entered into an option agreement with the seller C. has signed an offer subject to obtaining the necessary financing D. has included earnest money in the offer

A salesperson found a buyer for a house listed with her company. How much commission would the salesperson be due? A. Whatever agrees upon with her broker. B. The full commission. C. Twice the commission. D. No commission, because it would be a dual agency.

A salesperson is paid a commission by broker and taxes are NOT withheld. What type of relationship would this be? A. Broker/independent contractor. B. Employer/employee. C. Employee/ customer. D. Principal/agent.

A salesperson presents two offers to the seller. It would be legal for the salesperson to discriminate between the offerers on the basis of: A. Financial status. B. National origin. C. Religion. D. Sex.

A salesperson wishes to advertise property owned by the licensee and which is not listed with a broker. The salesperson's supervising broker has been notifies in writing and has given his or her written consent. May the salesperson advertise the property? A. Yes, provided a disclosure is included that the "seller holds a real estate license". B. Yes, provided the property is listed with the supervising broker. C. No, because all advertising must be in the name of the broker who holds the salesperson's license. D. No, because this type of advertising would be considered a "blind ad".

A salesperson working as an independent contractor for a broker would MOST LIKELY have to: A. Pay their own income taxes. B. Keep specific office hours. C. Attend sales meetings. D. Attend all training sessions.

A seller agrees in a sales contract to take back a purchase money mortgage for part of the purchase price. To give public notice of the seller's financial interest in the property the seller should: A. Record the mortgage. B. Record the deed. C. Take out title insurance. D. Retain title to the property.

A seller attempts to place restrictions on the parties to whom the property may be offers to sale because of race, color and religion. A licensee should: A. Refuse the listing and tell the seller he or she could be in violation of federal law. B. Refuse to accept the listing. C. Accept the listing but refuse to follow the restrictions. D. Accept the listing with the restrictions.

A seller of rel property conveys title using a quit claim deed. What protection against defects in th title does the purchaser receive. A. No protection. B Protection against only the title defects that occurred during the seller's ownership. C. Protection against only title defects the occurred during the seller's ownership. D. Protection against only title defects occurred prior to the seller's ownership..

A seller stated in the purchase and sale agreement that they are selling the property "as is". This statement means: A. The seller shall have no obligation for repairs or replacement noted in the inspection report. B. The buyer must assume the exiting loan. C. The buyer cannot have the property inspected without the consent of the seller. D. The licensee is no longer required to disclose known defects in the property.

A seller tells their listing agent that they will only accept cash or check as earnest money. The broker receives an offer with the earnest money in the form of a promissory note. If the offer is presented to the seller and the promissory note not disclosed to the seller, did the broker do anything wrong? A. Yes, the broker should have disclosed the promissory note. B. Yes, the broker should not have presented the offer. C. No, earnest money is not required in contract, therefore it need not be disclosed. D. No, a promissory not is better than cash.

A seller who was recently divorced received ownership of the property through the divorce proceeding. She wants to sell the property but her ex-husband's name is on the original deed and she is unable to locate him. Her BEST action would be to: A. File a quiet title action. B. Seek a court action to partition the property. C. Sell the property as joint tenant. D. File a satisfaction.

A split level house has rotten sub-flooring.Tthis would be an example of: A. Physical deterioration. B. Functional obsolescence. C. External obsolescence. D. Economis obsolescence.

A tenant is renting space in a retail mall. The lease expires expires and the tenant wrongfully holds over after expiration of the lease without the landlord's consent. Tis would be an example of: A. A tenancy at sufferance and no notice of termination is required from the landlord. B. A tenancy at sufferance and a 30 day notice of termination is required from the landlord. C. A tenancy at will and a 30 day notice of termination is required from the tenant. D. A tenancy at will and a 30 day notice of termination is required from the landlord.

A tenant lease space from June 1 thought June 14. This would MOST LIKELY be considered: A. An estate for years. B. An estate will. C. A periodic tenancy. D. An estate at sufferance.

A tenant subleases a portion of his/her leasehold interest to a friend. Under the original lease who would be liable upon default by the lessee? A. The original lessee. B. The original lessor. C. Both the new tenant and lessee. D. The new tenant.

A three story apartment building with 10 units was built in 1965. The Federal Fair Housing Amendment requires which of the floors to be handicapped accessible? A. Ground floor only. B. First and second floors only. C. Second and third floors only. D. All floors.

A transfer of real property by court action would MOST Likely occur in which of the following? A. Eminent domain. B. Zoning. C. Delivery of the deed. D. Police power.

A veteran has applied for a VA loan to purchase a home with a sales price of $80,000. The VA appraises the home at $76,000. Which of the following statements about what the veteran may do is TRUE? A. The veteran may use the VA loan to buy the home if he makes a cash down payment of $4,000. B. The veteran cannot secure a VA loan because such a loan is limited to a maximum of $60,000. C. The veteran may buy the property with a VA loan only if the sales price is reduced to $76,000. D. The veteran may buy the property with a VA loan only if the seller agrees to take back a second note for $4,000.

A written employment agreement between a property owner and a real estate broker authorizing the broker to find a buyer for the owner's real property would be considered an: A. Expressed bilateral, executory listing agreement. B. Implied unilateral, executed listing agreement. C. Expressed bilateral, executory sales contract. D. Implied unilateral, executed sales contract.

A young married couple rented a n apartment for one year. The lease expired and the couple agreed to continue to rent the apartment by the month without specifying a definite expiration date. Would the couple have to give proper notice to terminate the lease? A. Yes, a tenancy from period to period requires a notice of termination. B. Yes, a tenancy for years requires a notice of termination. C. No, a notice of termination is not required. D. No, the lease will expire in one year.

All of the following are typical provisions in a listing agreement EXCEPT: A. The closing date of the sale. B. The names of the seller and broker. C. The legal description of the property. D. The commission rate to be paid to the broker.

All of the following organizations purchase real estate loans in the secondary market EXCEPT: A. Department of Housing an Urban Development. B. Federal National Mortgage Association/ Fannie Mae. C. Government National Mortgage Association/ Ginnie Mae. D. Federal Home Loan Mortgage Corporation/ Freddie Mac.

An adult buyer who is illiterate signs a contract to purchase property from a seller. The buyer understands the nature of the contract because the terms were explained orally. Is the contract binding? A. Yes, because the buyer understands the terms of the contract. B. Yes, because all adults are considered legally competent. C. No, because the buyer is illiterate and, therefore, legally incompetent. D. No, because a guardian must sign for the buyer.

An agent has an exclusive right to sell listing with an expiration date of September 20. The owner of the property dies before the listing expired. What happens to the listing? A. Death of the owner will terminate the listing. B. Death of the owner will not affect the listing. C. The expiration date would need to be extended. D. The heir would be responsible for the listing.

An apartment owner signs a management contract with a real estate broker. Has a agency been established? A. Yes, the owner has created a general agency with the broker to act on their behalf in managing the apartment. B. Yes, the agreement creates a universal agency between the apartment owner and the broker. C. No, an agency can only be formed between a seller and real estate broker. D. No, an agency with a broker can only be formed in transactions of buying and selling real estate.

An owner discovers an encroachment on their property. The owner's best course of action would be to: A. Seek a judicial remedy. B. Remove the encroachment. C. Sell the property. D. Purchase title insurance.

An owner is contemplating an addition to their present house. To obtain governmental approval for rhe construction of the addition, the owner needs to get a: A. building permit. B. Conditional-use permit. C. Certificate of occupancy. D. Variance.

An unlicensed friend of a licensee is hosting open houses and passing out brochures with information on the houses to secure prospects for the licensee. The person would be guilty of: A. A misdemeanor. B. A misrepresentation. C. Commingling. D. An undisclosed dual agency

Any firm using trade name on for sale signs, business cards, contracts, or other documents relating to real estate transactions shall include: A. The firm's name as registered with the Commission. B. The firm's name and address. C. The firm's name, address and phone number. D. The firm's owner's name.

At the beginning of a real estate career a salesperson must turn over all security deposits to the broker. When one tenant moved out three months early and demanded the return of his security deposit because of a breach in the lease by the landlord, the landlord also demanded that deposit. What should the salesperson do to help resolve the problem? A. The salesperson should suggest to each party that they put in writing to the broker a request for the deposit in doubt. B. Since the tenant moved out three months early,, the salesperson should suggest to the landlord that he is untitled to the security deposit. C. The salesperson should suggest to each party that they personally discuss this matter with the broker. D. The salesperson should inform the tenant that moving out three months early is a breach in the lease and that he will not be eligible for a return of his security deposit until the ens of the original lease term.

Baird and Carr share a common driveway locate on the boundary line between their two properties. If either party dies, would their heirs have the right to use the driveway? A. Yes, it is an easement appurtenant and inheritable. B. Yes, it is an easement in gross and transferable. C. No, it is an easement appurtenant and no inheritable. D. No, it is an easement in gross and not transferable.

Can an eligible veteran use his or her VA benefits more than once? A. Yes, as many times as he or she choses providing the previous benefit use has been paid. B. Yes, he veteran can have up to two active outstanding VA mortgages. C. No, VA benefits can be used one time only. D. No, once benefits are used they cannot be restored.

Can an offer to purchase with a "time is of the essence" clause be withdrawn by the offerer before the expiration date? A. Yes, provided the offer has not been accepted and communicated. B. Yes, with the expressed consent of the offeree. C. No, offers with an expiration date cannot be withdrawn by the offerer. D. No, an offer with a "time is of the essence" clause cannot be withdrawn by the offerer.

Creditors are trying to force a homeowner to sell her home to pay for debts such as charge accounts and personal loans. The homeowner may be allowed certain protection from judgements of creditors are a result of his state's: A. Homestead rights. B. Littoral rights. C. Courtesy rights. D. Dower rights.

Fees authorized under the Georgia real estate license law are established and collected by the: A. Real Estate Commission. B. Real Estate Commissioner. C. Active real estate brokers. D. Office of the Secretary of State.

If a deed is to be recorded in Georgia which of the following would NOT be required? A. The deed must be witnessed by a real estate broker. B. The deed must be in writing. C. The deed must be witnessed by a notary public. D. The deed must be signed by the grantor.

If a purchaser is transferred to another city before closing, can he or she assign the contract and let the new purchaser close? A. Yes, unless there is a statement in to contract to the contrary. B. No, only the seller can transfer his or her interest to another party. C. No, contracts cannot be assigned. D. Yes, all contracts can be assigned.

If a seller's agent knows that a buyer is using a fictitious name, are they required to disclose this to the seller? A. Yes, the agent owes the principal the duty of disclosure. B. Yes, this would be an anti-trust violation. c. No, the agent does not need to disclose this information. D. No, this would b confidential information.

If the purchaser is paying a substantial amount of earnest money, and particularly if the closing is several months later, it would be practical to place the funds in a interest bearing account. It is permissible to do so as long: A. All parties having an interest in the fund agree to this procedure in writing. B. The interest is paid to the seller at closing. C. The funds do not exceed $10,000. D. The broker has given you written permission.

In Georgia any person acting as a real estate licensee without a license shall be guilty of: A. A misdemeanor. B. A felony. C. Misrepresentation. D. Fraud.

In Georgia, a broker engaged by a seller shall disclose to all parties with whom the broker is working all material facts pertaining to existing adverse physical conditions actually known by the broker and within how many miles of the property? A. 1 mile. B. 2 miles. C. 3 miles. D. 5 miles.

In Georgia, two licensees affiliated with a broker are assigned by the broker to represent a buyer and seller respectively in the same transaction. The would be considered: A. Designated agency. B. Dual agency. C. Implied agency. D. Ostensible agency.

In Georgia, under certain circumstances a buyer of a condominium or timeshare may rescind the contract to purchase within how many days after entering into the contract? A. 7 days B. 10 days. C. 30 days. D. 90 days.

In a limited partnership, can a limited partner be held liable for more than extent of their investment? A. No, liability cannot exceed their initial investment. B. No, the partnership usually has insurance to pay for any investment loss. C. Yes, all the partners are individually held responsible for all losses of the partnership. D. Yes, up to twice the initial investment.

In a sales contract, the seller and purchaser have agreed to prorate the country property taxes. The closing takes place on April 25 and the annual property taxes of $1475 have not been paid. The seller's share of the taxes would be. A. $464.73. B. $471.19. C. $1,010.27. D. $1,024.31.

In cooperative ownership the title to real property is: A. Held in severalty by a corporation. B. Held in severalty by the individual shareholders. C. Held as a joint tenancy by the corporation. D. Held as a joint tenancy by the individual shareholders.

In cooperative ownership, the stock of a cooperative owner is treated as: A. Personal property. B. Real property. C. Community property. D. Separate property.

In order to avoid a real estate commission, a buyer and seller agree to wait until after the listing before entering into a sales contract. Could the listing broker be awarded a commission by courts? A. Yes, if the broker could prove collusion. B. Yes, but the fee would be subject to negotiation. C. No, the listing expired. D. No, the closing would occur after the listing period.

In order to qualify for a Community Association Manager's license, an applicant must complete an approved course of study of at least: A. 25 hours. B. 60 hours. C. 75 hours. D. 90 hours.

In order to qualify for a new loan the buyer pays an up front payment to lower the interest rate. This would be considered: A. Buydown. B. Satisfaction. C. Balloon payment. D. Blanket

In the income approach to value which of the following steps would an appraiser use last? A. Divide the annual net income by the appropriate capitalization rate. B. Estimate the potential annual gross income. C. Determine the effective gross income by deducting vacancies and collection losses. D. Determine the annual net income by deducting annual operating expenses.

In the purchase of a single family residential house, the buyers thought they has been discriminated against. Under the Federal Fair Housing law the buyers could file a complaint with HUD within: A. 1 year B. 2 years. C. 3 years. D. 4 years.

In the reconciliation of the value estimates on vacant land, which approach would MOST LIKELY be given the most consideration? A. Sales comparison approach. B. Cost approach. C. Income Approach. D. Gross rent multiplier.

In the sale of a house, the seller agrees to owner-finance the property. The buyer becomes the owner of record of the property and the seller has a lien on the property. This type of financing agreement is called a: A. Purchase money mortgage. B. Contract for deed. C. Land contract. D. Reverse mortgage.

In the sales comparison approach the MOST consideration would be given to: A. Recently sold comparable properties. B. The capitalization rate. C. What the owner paid for the property. D. Gross rent multiplier.

In which of the following loans would a borrower most likely be required to purchase private mortgage insurance? A. A conventional loan in which the borrower has less than 20% for the down payment. B. A guaranteed loan secured by a qualified veteran. C. An adjustable rate mortgage. D. A conventional loan purchased by Fannie Mae.

Interest on a real estate loan is the: A. Fee paid by the borrower for use of the money borrowed. B. Fee paid by the borrower to originate the loan. C. Interest the lender has in the borrower's property at a foreclosure sale. D. Amount of money the lender is lending.

Items of personal property are referred to as: A. Chattels. B. Emblements. C. trade fixtures. D. Appurtenances.

Licensees must keep true and correct copies of all sales contracts, closing statements and other documents related to real estate closing for a period of: A. Three years. B. Three years and up to five at request of the Commission. C. Five years. D. Five years and up 10 years at the request of the Commission.

Mary Baird purchased a property under her married name of Mary Carr. Later after a divorce, she sold the property and signed the deed Mary Baird. Would the deed the valid? A. No, she should have conveyed title under the same name in which she acquired title. B. No, she did not have legal title to the property. C. Yes, use of an assumed name does not invalidate a deed. D. Yes, provided her ex-husband also signed the deed.

Mary owns one of twenty townhouses in the River Woods development in fee simple, along with a 5 percent ownership share in the parking facilities. recreation are and grounds. What kind of ownership does Mary have? A. Condominium. B. Timeshare. C. Coopererative. D. Trust

On January 10, a contractor started work on a new house. The work was completed on October 10. The general contractor was paid but a subcontractor for the general contractor was not paid. On December 1 the subcontractor filed a mechanics lien. What is the effective date of the mechanics lien? A. January 10. B. October 10. C. December 1. D. A subcontractor cannot file a mechanics lien.

Real Estate sales contracts are required to include a disclosure clause warning buyers of a potential existence of lead-based paints in homes built before: A. 1978. B. 1985. C. 1992. D. 1995.

Real property would NOT include: A. Trade fixtures. B. Air rights. C. Mineral rights. D. Improvements.

Regularly scheduled maintenance by the property manager to change the filters on the heating and air conditioning equipment would be be considered: A. Preventive maintenance. B. Corrective maintenance. C. Deferred maintenance. D. Factory maintenance.

Several investors are purchasing stock in a real estate syndication. Which state securities laws protect the public from fraudulent practices in the promotion and sales of the securities? A. Blue sky laws. B. Real estate license laws. C. Fair Housing laws. D. Anti-trust laws.

Several investors purchased property together, each having an equal ownership interest. Each co-owner has the right to sell or leave their interest to his or her heirs. How did the investors take title to the real estate? A. Tenancy in common. B. Joint tenancy with rights of survivorship. C. Life estate. D. Tenancy by the entirety.

The Real Estate Settlement Procedures ACT (RESPA) would apply to which of the following real estate transactions? A. A first mortgage loan to purchase a four family residential dwelling. B. A second mortgage on a single family dwelling. C. A construction loan on a commercial building. D. A new loan to purchase a 30 acre farm.

The clause in a mortgage which states the mortgage is void after the note has been paid in full is called the: A. Defeasance clause. B. Alienation clause. C. Acceleration clause. D. Subordination clause.

The final value estimate when appraising duplex house would be determined by. A. Reconciliation of the approaches used. B. Averaging the approaches used. C. Giving the greatest weight to the highest value. D. Giving the greatest weight to the lowest value.

The financing instrument used to Georgia in lieu of a mortgage is a: A. Security deed/deed to secure debt. B. Promissory note. C. Quit claim deed. D. Warranty deed.

The gross rent multiplier (GRM) on a residential property would be determined by: A. Dividing the sale price by the monthly rental rate. B. Dividing the sale price by the fixed costs. C. Multiplying the sale price by the monthly rate. D. Multiplying the sale price by the fixed costs.

The law pertaining to the period of time within which legal proceeding against certain actions in a contract must be brought to court is called the: A. Statute of limitation. B. Statue of frauds. C. Patrol evidence rule. D. Statue of estoppel.

The owner of a single family house, that has not been listed with and agent, refuses to rent or sell to anyone other than a member of a particular religion. Can the owner legally do this? A. Yes, provided neither a real estate broker or discriminatory advertising is used. B. Yes, provided the advertising is directed only at that particular religious group. C. No, this would be a violation of the federal fair housing law. D. No, this would be a violation of the antitrust laws.

The payment of the intangibles taxes are: A. Negotiable between the buyer and seller B. Paid by the seller only. C. Paid by the buyer only. D. Based on the sales price.

The primary purpose of a competitive market analysis (CMA) is to: A. Provide an estimate of the selling price for the property. B. Locate the boundary lines. C. Determine the loan amount. D. Estimate the property taxes.

The primary purpose of closing is to: A. Transfer title. B. Pay the real estate commission. C. Refund the earnest money to the purchaser. D. Distribute the closing statements.

The primary purpose of recording a valid deed is to: A. Give the public constructive notice. B. Give the public actual notice. C. Transfer the ownership. D. Establish marketable title.

The principle which stated that most people will pay no more for a house and lot than the cost of building a similar house on a similar lot is called: A. Substitution. B. Contribution. C. Highest and best use. D. Increasing and decreasing returns.

The purpose of a market analysis is to determine: A. What purchasers have been willing to pay for homes similar to the home you are listing. B. maximum loan value of the property for lending purposes. C. If the property has hidden defects which must be disclosed to potential buyer. D. If the property is in compliance with zoning regulations.

The sales price of a property is $73,500 with a loan assumption of $58,341. The transfer tax is: A. $15.20. B. $58.40. C. $73.50. D. $220.50.

The state law that requires real estate contracts to be in writing and signed by the parties to be legally enforceable is the: A. Statute of frauds. B. Anti-trust laws. C. Federal Fair Housing Law. D. Statute of limitations.

Two rooms in a house measure 20 ft.x15ft. and 20tf.x20ft. How many square yards (9 sq ft in 1 yard) of carpet would be needed to carpet both rooms. A. 78 sq. yards. B. 230 sq. yards. C. 700 sq. yards. D. 1000sq. yards.

Under RESPA, does the borrower have the right to inspec the settlement statement prior to closing? A. Yes, one biz day before closing B. Yes, 3 biz days before closing C. No, it is only availabe at closing D. No, it is only available to settlement agent

Under Section 1031 of the Internal Revenue Code real estate investors can defer taxation of capital gains by: A. The exchange of like kind properties. B. Selling the property. C. Selling the property. D. Making Improvements.

Under a listing agreement the broker was instructed to show the property by appointment only, advertise the property in the multiple listing service. use a "FOR SALE" sign and determine the validity of the title. Which of the following NOT a duty of the listing broker? A. Determine the validity of the title. B. Advertise in the multiple listing service. C. Show the property by appointment only. D. Use a "FOR SALE" sign.

Under the Georgia real estate license law. when a mobile home is affixed to land it is considered: A. Real estate. B. Personal property. C. An easement. D. A leasehold estate.

What document is recorded to provide evidence the home loan has been paid off? A. Satisfaction/ mortgage release. B. Mortgage. C. Promissory note. D. Warranty deed.

What is the difference between a subdivider and a developer? A. A subdivider buys undeveloped acreage and divides it into smaller lots; a developer improves the land. B. A subdivider improves the land, a developer buys undeveloped acreage and divides it into smaller lots. C. A developer draws up the plat maps, a subdivider constructs the homes. D. Developers draw up zoning regulation, subdividers draw up the plat maps.

What is the main purpose or mortgage insurance for the lender? A. To protect the lender from loss if the borrower defaults. B. To protect the lender from title claims. C. To guarantee life insurance on the borrower. D. To protect the lender in the event the property is destroyed by fire.

What type of agency is established when a listing broker is hired by a seller to find buyers for two of her properties? A. Special agency. B. General agency. C. Universal agency. D. Dual agency.

When a salesperson or associate broker requests that a release form be signed, the releasing broker shall sign the release: A. Immediately. B. Within 10 days of the request. C. Withing 14 days of the request. D. Withing 30 days days of request.

When adding special stipulation to contract, it is important to note that if there is a conflict between the preprinted portions of the contract and typed or handwritten stipulations the: A. Handwritten takes precedence over preprinted. B. Preprinted takes precedence over typewritten. C. Preprinted takes precedence over handwritten. D. Typewritten takes precedence over handwritten

When an active licensee wished to advertise property owned by the licensee and which is not under a brokerage engagement with broker, the licensee MUST: A. Notify his or her broker in writing and receive written consent to the advertising and the advertisement. B. Notify the Georgia Real Estate Commission. C. Keep a copy of the advertising for at least two (2) years. D. Always advertise in the name of his or her broker.

When an offer to purchase is made on a property on which sales contract already exits, the licensee should be sure that the subsequent offer contains a contingency. If it does not, the licensee should: A. Advise the seller to reject the offer and make a counteroffer contingent on the first contract nor closing. B. Not present the offer to the seller. C. Advise the seller to accept it and write in such a clause. D. Advise the seller to accept the new offer. and cancel the exiting contract.

Where does Fannie Mae (FNMA) obtain money to buy loans? A. From the sale of bonds and mortgaged back securities. B. From the Federal Reserve System/ C. From the primary market lenders. D. From the Government National Mortgage Association? Ginnie Mae

Which f the following statements BEST describes the validity of a contract? A. A void contract cannot be enforced legally. B. A void contract can be enforced legally. C. A voidable contract cannot be enforced by either party. D. A voidable contract cannot be rescinded by either party.

Which of the following activities by a real estate brokerage firm would NOT be violation of the Federal Fair Housing Law? A. The brokerage company has posted an "Equal Housing Opportunity" poster in their office. B. The broker runs an apartment ad that states "Seeking Adult Renters Only". C. Inducing homeowners to sell by making representations that members of a certain minority group are entering the area. D. A broker shows a Hispanic home buyer only houses in Hispanic neighborhoods.

Which of the following costs must be disclosed under Regulation Z? A. Loan costs. B. Real estate taxes. C. Recording fees. D. Survey fees.

Which of the following has a direct impact on the interest rates banks change to borrowers? A. The discount rate established by the Federal Reserve. B. The amount of money FHA has available to lend to borrowers. C. The Truth in lending Act. D. The Real Estate Settlement Procedures Act.

Which of the following is NOT an appurtenance that passes with the transfer of real property? A. Chattels B. Fixtures. C. Property improvements D. Water Rights

Which of the following is NOT an appurtenance that passes with the transfer of real property? A. Chattels. B. Fixtures. C. Property improvements. D. Water rights

Which of the following is NOT true about the Real Estate Commissioner? A. He or she is a part-time employee of the Commission. B. He ir she is the Chief Executive Officer of the Commission. C. If licensed, he or she must place his or her license on inactive status. D. The real estate Commissioner in appointed by the Commission

Which of the following is a lender in the primary mortgage market that would make a loan directly to a prospective borrower? A. Mutual savings banks. B. Federal Housing Administration (FHA). C. Federal Home Loan Mortgage Corporation (FANNIE MAE). D. Government National Mortgage Association (GINNIE MAE).

Which of the following is most likely evidence of ownership in a cooperative? A. Shareholder's stock certificate. B. Proprietary lease. C. Warranty deed. D. A tax bill for an individual unit.

Which of the following is the appraisal term that describes the final step in the valuation process, in which the various appraisal approaches are weighed to arrive at a final value estimate? A. Reconciliation. B. Averaging. C. Leveraging. D. Adjusting.

Which of the following is true of a valid deed? A. The grantee's name must be on the deed. B. The grantor can be a minor. C. The grantee must sign the deed. D. There must be a date on the deed.

Which of the following leases would NOT require a termination notice? A. Estate for years. B. Estate from period to period. C. Estate at will. D. Percentage lease.

Which of the following leases would be required to be in writing to be enforceable? A. A lease for more than one year. B.A lease for one year or less/ C. A lease for three months. D. A lease six months.

Which of the following loans allows a borrower who has repairs a portion of the loan to borrow those funds again without taking out a new loan? A. Open-end. B. Blanket. C. Package. D. Wraparound.

Which of the following organizations is a loan purchaser in the secondary market? A. Freddie Mac. B. Mortgage companies. C. Commercial banks. D. Federal Housing Administration (FHA).

Which of the following organizations is the largest purchaser of mortgages in the secondary market? A. Federal National Mortgage Association (FNMA)/ Fannie Mae. B. Federal reserve System. C. Department of Housing and Urban Development (HUD). D. Government National Mortgage Association/ Ginnie Mae.

Which of the following properties would meet the requirements to obtain a VA guaranteed loan? A. Owner occupied, single family dwelling. B. Owner occupied, ten unit dwelling. C. Tenant occupied, single family dwelling. D. Tenant occupied four family dwelling.

Which of the following services will be performed by an attorney who is conducting a closing for a lender? A. Explain the content of each legal document to both the buyer and seller before they sign it. B. Explain the content of each legal document to the buyer only before they sign it. C. Offer legal advice to both the buyer and seller. D. Offer legal advice to the buyer only.

Which of the following statements BEST describes a net lease? A. The lessee pays some or all of the operating expenses. B. The lessor pays all operating expenses connected with a leases space. Ce. The landlord receives a percentage of the gross income received by the tenant doing business on the leases property. D. The lessee pays only the rent.

Which of the following statements best describes a fixture? A. An article that was once personal property. B. An article that is considered personal property. C. It would not pass to the buyer upon sale of the land. D. It is usually removed upon sale of the property.

Which of the following statements best describes planned unit development (PUD)? A. A self contained development where land is set aside for diverse uses, such as residential, commercial and public. B. A high rise development which combines office space, retail stores and apartment units in a single vertical community. C. A form of ownership used in commercial condominiums. D. An abandoned warehouse that has been converted onto condominium units.

Which of the following statements describes the primary purpose of a quit claim deed? A. It releases whatever interest the grantor has in the property. B. It is commonly used to convey fee simple interest. C. It warrants the grantor's right of possession. D. It is similar to special warranty deed.

Which of the following statements is TRUE about restrictive covenants? A. They are private agreements usually contained in a deed and are binding on subsequent owners. B. The are imposed by the government to restrict the use of the property. C. They are usually enforced by means of the foreclosure. D. They have a tendency to cause property values to fluctuate.

Which of the following statements is correct concerning special assessment taxes? A. A tax levied on property to fund public improvements that benefit the property. B. They are tax deductible in the year the improvements were completed. C. The are general liens. D. The are based on th market value of the property.

Which of the following statements is the BEST definition of an appraisal? A. An opinion of estate of a property's market value. B. An opinion or estimate of the loan amount. C. A determination of the property's sales price. D. A determination of a property's depreciation.

Which of the following statements would BEST describe and easement appurtenant? A. The interest runs with the land. B. They are primarily used by power like and utility companies. C. They are generally created by condemnation action. D. They are a license to use the land

Which of the following terms best describes a taxable profit derived from the sale of a capital asset? A. Capital gain. B. Capital improvement. C. Capitalization. D. Cash flow.

Which of the following would NOT be considered when doing a sales comparison approach (market data approach 0? A. Property taxes on the subject property. B. Location of the subject house. D. Sale prices of the comparable properties.

Which of the following would be regulated by building codes? A. Installation of pluming in a new house. B. Zoning on a residential lot. C. A list of approved builders in a new subdivision. D. Minimum square footage of a residential lot.

Which statement about an encroachment is NOT true? A. An encroachment is usually reveled in the chain of title. B. Tree branches overhanging the property line would be considered and encroachment. C. A land survey will usually disclose and encroachment. D. A property owner could sue the encroaching party for damages.

While doing an urban renewal the city acquired privately owned property in a deteriorated neighborhood by eminent domain and sold it to a private developer who redeveloped it. Is the city justified in doing this? A. Yes, but if just compensation is to the private landowners. B. Yes, but the land must be resold to the original owners. C. No, because urban renewal is not for public benefit. D. No, because they sold the land to private developer.

You are estimating the market value of an income producing residential property. Which of the following would be the most useful when comparing the gross rental income of the subject property with the sales price of a comparable property? A. Gross rent multiplier. B. The income approach. C. Net opening income. D. The replacement cost.

Which of the following is not a violation of the Sherman Anti-Trust Law?

A BROKER SETTING A FIXED COMMISSION RATE THAT HE WILL CHARGE TO ALL OF HIS CLIENTS.

A broker lists a tract that has three mortgages amounting to approximately 90% of total market value. In order to convey title properly to a buyer, which statement is most correct? A. All subordinate mortgages must be either PIF or merged with the first B. The property must be refinanced C. A deed must be voluntarily delivered D. All mortgages must be PIF

A Deed must be voluntarily delivered

Which of the following is an example of a non-freehold estate? A Estate for years B Life Estate C. Fee Estate D. Estate by the entireties

A Estate for years - is a leasehold or non-freehold estate

A clause allowing a lender to move to or take a lower lien position is called:

A SUBORDINATION CLAUSE

What is a datum ?

A base point from which heights or depth can be measured ( condominium)

When personal property is sold ownership is transferred by ?

A bill of sale

What is a spot survey ?

A survey a buyer receives at closing

The liability of the Education, Research and Recovery Fund is terminates upon the issuance of court orders authorizing payments in what amount in any single transaction, regardless of the number of people aggrieved? A. $15,000. B. $20,000. C. $45,000. D. No limit.

A real estate co employs a secretary. A buyer walks into the office and hands her an earnest money deposit on Weds (no legal holiday involved). Which Statement applies? A. The broker must deposit the check into the escrow account no later than the end of the business day on Monday B. The receptionist could be fined and jailed for practicing real estate without a license C. The broker must deposit the check no later than the EOD on Friday D. Only a licensed real estate associate is allowed to accept an earnest money deposit on behalf of the broker

A. The broker must deposit the check into the escrow account no later than the end of the business day on Monday

Primary Mortgage MKT and Secondary Mortgage Mkt

Are Sources of funds for Financing. PRIMARY MORTGAGE MKT Lenders Originate or MAKE LOANS Directly to Borrowers. SECONDARY MORTGAGE MKT- BUYS MORTGAGES from PRIMARY LENDERS.

Carr is interested in a house that fits most of her needs, but is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called ?

Area preference

Situs is also known as:

Area preference.

What are improvements ?

Artificial Attachments includes such things as buildings, fences, driveways, pipelines, swimming pools, and even mobile homes if they are attached to the land.

A broker hired, under a property management agreement, to manage a large condominium project would be considered a: A. Universal agent. B. General agent. C. Special agent. D. Designation agent.

A broker listed a property owned by a husband and wife. The husband had to leave the country on a business trip and authorized his wife to sign any offers on hos behalf. The wife could sign the offer for him provided: A. The held ownership as community property. B. She had been granted a power of attorney by her husband. C,. The listing was signed by both husband and wife. D. She had a power of sale agreement signed by both parties.

A broker presents an offer to a seller for the full listed price of $215,000. The offer is accepted and communicated to the buyer. Later another offer on the same property come in at $210,000. What should the broker do with the second offer? A. Reject the second offer because the property is already under contract. B. Present the second offer to the seller. C. Hold the second offer until after the sale of the property closes. D. Not present the second offer because the offer is for less than the listed price.

A broker showed a buyer a forty-five year old residential home that was recently repainted. Under the federal Lead Based Paint Hazard Reduction Act which of the following statements is correct? A. The buyer must have the property inspected for lead-based paid hazards within ten days of signing a contract. B. The buyer must be provided within a pamphlet titled " Protect Your Family From Lead in Your Home." C. The house was recently repainted therefore the seller is not required to disclose known information on lead-based paint. D. House built prior to 1978 are not subject to the Act.

A broker wants to transfer tenants's security deposits to an interest bearing account to raise money for purchasing playground equipment. Is this action permissible? A. Yes, security deposits can be used for maintenance of the property. B. Yes, upon securing a written agreement signed by all parties, indicating to whom the broker shall pay any interest. C. No, security deposits are credited to the owner. D. No, security deposits cannot be used for property improvements.

A broker was listing a property owned by a married couple. The husband signed the listing but his wife was out of town. The husband instructed th broker to immediately advertise the property and put the listing in the multiple listing service. The broker should: A. Follow seller's instructions because the broker has the duty of obedience. B. Tell the husband that they will start marketing the property after obtaining the signature of the wife. C. Start advertising the property and get the wife's signature later. D. Refuse the listing because this would be considered a new listing.

A builder purchased several parcels of property with a mortgage containing a release clause. Which of the following mortgages would accomplish this? A. Package mortgage. B. Blanket mortgage. C. Open end mortgage. D. Purchase money mortgage.

A buyer and seller are negotiated the sale of a house through the mail. Acceptance of a mailed offer becomes and effective and binding contract when: A. The offeree signs the offer. B. Deposited in the mail by the offeree. C. The offerer signs the offer. D. Deposited in the mail b the offerer.

A buyer and seller are using a contract for deed 9 land contract) agreement for the purchase of real property. Which of the following statements concerning this agreement is correct? A. The seller is the vendee and retains legal title. B. The seller is the vendor and retains legal title. C. The buyer is the vendor and receives equitable title. D. The buyer is the vendee and receives legal title.

A buyer and seller have a verbal agreement stating the seller will pay all closing costs. When the agreement was in writhing it stated the buyer would pay all closing costs. If both the seller and buyer sign the agreement, who would most likely be responsible. for the closing costs? A. Seller. B. Buyer. C. Lender. D. Broker

A buyer broker entered into a buyer agency agreement. the buyer's broker cooperated with another brokerage company representing a seller. the buyer's broker would consider the seller to be the: A. Client. B. Customer. C. Principal. D. Agent.

A buyer is ready to purchase their first home. They would most likely negotiate a home loan through: A. An insurance company. B. A credit union. C. Fannie Mae. D. FHA.

A buyer makes an offer to a seller agreeing to all terms in the listing agreement. Would this result in a valid contract between the buyer and seller? A. No, because there was no acceptance by the broker. B. No, because there was no acceptance by the seller. C. Yes, all the terms of listing were met by the buyer. D. Yes, because the broker would be entitles to a full commission.

A buyer makes an offer to purchase a property listed for sale and does not state in the offer a specific expiration date. Which of the following statements would be TRUE concerning this situation? A. The offer can be withdrawn by the buyer. B. The offer can be withdrawn by the buyer anytime prior to communication of acceptance. C. The offer would be valid for seven business days. D. The offer would not be valid as it did not contain an expiration date.

A buyer makes an offer to purchase a seller's property. If the seller wanted to accept the offer, which of the following statements is CORRECT? A. If the offer had a time limit, the seller could not accept. B. If the offer had a time limit, the seller could accept within the time limit or later if the buyer agreed. C. If the offer did not have a time limit and seven day right of rescission had not expired, the seller could accept. D. If the offer did not have a time limit and the three day right of rescission had not expired, the seller could accept.

A buyer purchased a property for $200,000 and made capital improvements of $50,000. The buyer should the property for $325,000. The capital gains would be: A. $50,000. B. $75,000. C. $2000,000. D.$350,000.

A buyer purchased a vacant lot in a new subdivision and asked the salesperson to recommend a builder. The BEST course of action for the salesperson would be: A. Recommend a builder who would pay a referral fee to the salesperson. B. Suggest several builders and have the buyer make the choice. C. Recommend the builder with whom the salesperson has worked with preciously. D. Recommend the builder who has built the most homes in the subdivision.

A buyer purchases two acres of land within a residential area. The buyer was able to get a change in the local zoning ordinance permitting the two acres to be used commercially. This change is referred to as: A. Downsizing. B. Spot zoning. C. A buffer zone. D. A non- conforming use.

A buyer would like to assume the seller's existing loan. Which of the following would give the seller the most protection by releasing the seller from liability on the loan and making the new buyer solely liable? A. Assignment. B. Novation agreement. C. Mortgage release. D. Estoppel certificate.

A buyer's broker described the boundary lines of a property to a client without disclosing that the boundaries described were not exact. After purchasing the property, the new owner built a fence within the described boundaries. Later a neighbor brought an injunction against the new owner because the fence extended beyond the actual property boundaries. Can the broker be accountable for misrepresentation? A. Yes, because a broker must provide a survey before closing. B. Yes, because the broker knew the boundaries could be wrong. C. No, because the broker cannot be liable for verbal statements. D. No, because the buyer is responsible for having the property surveyed before installing the fence.

A city condemns a portion of an owner's property for an airport. The owner will be able to use the remaining portion of the lot. Is the owner eligible for compensation on the condemned portion? A. Yes, the city is rezoning the area for the higher use. B. Yes, the city is exercising it's power of eminent domain. C. No, the owner can still use the remaining portion of the property. D. No, the city is exercising it's police power

A city planned to install sidewalks in a particular neighborhood. Which type of tax would most likely be levied against the improved properties to pay for the sidewalks? A. Capital gain tax. B. Special Assessment tax. C. Advalorem tax. D. Inheritance tax.

A co-owner of a property, held in joint tenancy, conveyed his interest to a buyer by general warranty deed signed only by the co-owner. Which of the following statements is TRUE regarding this transaction? A. The general warranty deed conveyed ownership interest of all co-owners. B. The rights of the other co-owners were not transferred b the general warranty deed. C. Owners cannot convey their interest without the consent of the co-owners. D. The warranty deed made no warranties to the new buyer.

A condominium owner has a legal issue concerning compliance with the bylaws of the condominium owners' association. If the community association manager (CAM) is familiar with the bylaws the manager should: A. Resolve the legal issue themselves. B. Seek advice from the broker. C. Seek legal ad vice directly from an attorney. D. Seek advice from another community association manager.

A condominium property manager hires a full-time maintenance person. While repairing a water leak on the roof the maintenance person in injured. The claim for medical or hospital payments would be covered under the association's: A. Fire and hazard insurance. B. Worker's compensation coverage. C. Liability insurance. D. Casualty insurance.

A contractor hired by the property owner made improvements to the property. After the work was completed, he owner refused to pay the contractor for the work performed. The contractor should file a: A. Attachment. B. Notice of lien. C. Satisfaction of lien. D. Notice of nonresponsibility.

A developer purchased several vacant lots from a subdivider using a blanket loan. The developer takes out a construction loan to build a house on one of the lots. If the construction loan is going to have first priority, which of the following clauses would be needed in blanket loan? A. Subrogation B. Subordination. C. "Subject to". D. Assumption.

A farmer is leasing 10 acres of land. The lessee transfers 40% of the leasehold interest to another farmer. The would be an example of: A. Subordination. B. A sublease. C. An assignment. D. A percentage lease.

A gas station in a rural area went out of business and was torn down. The site was vacant for several years. The owner is considering selling the property. To assist the seller in making proper disclosures a licensee should recommend the seller obtain: A. A certificate of occupancy. B. An environmental site assessment. C. A plat map. D. A percolation test.

A handicapped tenant in a wheelchair made reasonable alterations at their expense to provide them with accessibility to their apartment. When the lease expires which of the following would the tenant NOT have to restore to its original condition? A. Return the kitchen cabinets to their original height. B. Return the doorway to its original width. C. Repair any walls damaged by the alterations. D. Remove all alterations.

A house has a replacement cost of $100,000. The outstanding balance of loan is $65,000. To meet the policy's coinsurance clause and mortgage requirements, the owner should carry how homeowner's insurance on the property? A. $100,000. B. $80,000. C. $65,000. D. $50,000.

A landlord leased land to a tenant farmer. Annual crops planted by the farmer would be considered: A. Personal property of the landlord. B. Personal Property of the tenant. C. Real property of the landlord. D. Real property of the tenant.

A landowner grants grants a friend permission to temporarily use his property for a specific purpose. This personal revocable right would be considered a: A. Lien. B. License. C. Deed restriction. D. Life estate.

A lease would be terminated if: A. Either party to the lease dies. B. The leasing parties mutually agree to cancel. C. The leased property is sold. D. The tenant abandons the leased property.

A legal life estate that a wife has in the real estate of her deceased husband is called: A. Curtesy. B. Downer. C. Homestead. D. Chattel.

A lender is about to take a foreclosure action against a borrower's property. If the borrower wants to protect their future credit rating, which of the following would protect the borrower's credit better than actual foreclosure? A. A judicial foreclosure. B. A deed in lieu of foreclosure/friendly foreclosure. C. A power of sale. D. A certificate of reasonable value (CRV).

A lender is selling a loan and the new mortgagee wants to know the existing loan balance. This would be accomplished with a(n): A. Certificate of reasonable value. B. Estoppel certificate. C. Certificate of occupancy. D. Certificate of eligibility.

A lender would consider which of the following loans to have the highest risk? A. Residential. B. Construction. C. Commercial. D. Conventional.

A licensee has a 90-day exclusive right to sell listing which is about to expire. The licensee wants to re-list the property and offers to purchase the property as a condition to extend the listing. The licensee must: A. Purchase the property at the listed price by the expiration date of the listing if the property has not been sold. B. Enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase price at the time of entering into the extension of the existing listing. C. Not enter into this agreement as it is considered an undisclosed "dual agency" arrangement. D. Enter into a purchase agreement with the seller after the new listing expires which expresses the terms and conditions of the sale.

A licensee has been given verbal permission to place a "For Sale" sign on the property by the seller. Could the licensee legally place a "For Sale" sign on the property with this permission? A. Yes, as long as the seller has given permission. B. No, permission must be in writing. C. Yes, permission is not required for "For Sale" signs. D. No, permission to place "For Sale" signs on any property must be obtained from the country.

A licensee induces a seller to break an existing contract for the purpose of accepting a subsequent offer with terms more favorable to the seller. The licensee's action was: A. Correct and the second offer would be considered a back-up offer. B. A violation of the license law. C. Correct, as it is the licensee's duty to obtain the best terms for the seller. D. Correct and enabled to seller to obtain better terms i the sale if his or her house.

A licensee refuses to accept a listing because of the owner's minority status. Is this a violation of Georgia Real Estate License Law? A. No, licensee's can refuse any listing. B. Yes, this could be considered a direct violation. C. No, minority status is not covered by the license laws. D. Yes, if the action is reported to the Commission.

A licensee shall make a written disclosure to both the buyer and seller revealing the party or parties for whom hat licensee's firm is acting as an agent and from whom that licensee's firm will receive any valuable consideration for its effort in the transaction. This disclosure must be made no later that: A. The time that any party is shown the property. B. The time that any party makes an offer. C. 10 days after acceptance of an offer. D. The agreed upon closing date in the transaction.

A life estate based on the lifetime of a person other than life tenant is called a: A. Conventional life estate. B. Pur Autre vie life estate. C. Dower estate. D. Courtesy estate.

A listing agent decides to buy a property the have recently listed. To avoid a breach of their fiduciary duties to the seller the agent should: A. Wait for the listing to expire and offer a lower price. B. Buy it for the listed price. C. Negotiate a lower price. D. Have a friend buy it and transfer it to the agent.

A loan in which monthly payments are made by a lender to a retired borrower based on the borrower's accumulated equity in there property is called a: A. Growing equity mortgage. B. Reverse annuity mortgage. C. Blanket mortgage. D. Package mortgage.

A married couple acquired title to real property. Unless another form of ownership is clearly specified in the deed the owners have acquired title as: A. Joint tenancy. B. Tenants in common. C. Severalty. D. Tenancy by the entirety.

A married couple rented an apartment for one year under a tenancy for years. At the end of the year the couple moved out. The landlord notified them that they owned an additional months's rent because they had not given the landlord a notice of termination before expiration of the lease. Which of the following statements is TRUE regarding this situation? A. The tenants would owe the additional months's rent. B. The tenants would not owe the additional month's rent. C. The tenants owe the additional month's rent because the lease in an estate at will and requires a notice to terminate by the tenants. D. The tenants owe an additional month's rent and could lose their security deposit for the failing to give notice to terminate.

A member of a homeowner's association fails to pay their association fees. The association would most likely: A. Foreclose on the owner's property. B. File a lien on the property for the unpaid fees. C. File a mechanics lien on the property. D. File a lis pendens against the owner.

A minor would be consider to have legal capacity when acting as a: A. Guardian. B. Grantee. C. Grantor. D. Testator.

A mortgage company makes a number of new loans to be assembled and sold in the secondary market to investors, this is called: A. Discounting B. Warehousing C. Package financing D. Blanket financing

A neighbor has the right to use a private access road to cross an adjoining property. Who is generally responsible for maintaining and repairing the access road? A. The adjoining property owner that the access road crosses (servient tenement). b. C. The homeowner's association. D. The county hight department.

A person or firm that brings the borrower and lender together and acts as an intermediart between them would be considered a: A. Mortgagee. B. Mortgage broker. C. Trustee. D. Beneficiary.

A person who violates the provisions of the Sherman Antitrust Act is: A. Guilty of a misdemeanor. B. Subject to a fine of u to $350,000 ($10,000,000 if a corporation) and/or up to three(3) years imprisonment. C. Subject to a fine of up to $500,000 ($10,000,000 if a corporation) and/or up to five (5) years imprisonment. D. Subject to a fine of up to $500,000 and/or up to ten (10) years imprisonment.

A property had a judgement files against it. This was the result of a: A. Mechanic's lien. B. Law suit. C. Mortgage foreclosure. D. Tax sale.

A property management agreement must contain which of the following? A. An allowable vacancy rate. B. Extent of property managers's authority. C. A flat fee salary. D. A listing price.

A property manager renting to a handicapped tenant could: A. Restrict the tenant to certain areas. B. Make the tenant obey the rules of the complex. C. Refuse to let the tenant to make reasonable modifications to have enjoyment of the premises. D. Increase the customary required deposit based on their handicapped status.

A property manager would most likely use a standard residential lease form regulated by the: A. Federal Fair Housing Laws. B. Uniform Residential Landlord Tenant Act. C. Uniform Limited Partnership Act. D. Uniform Commercial Code.

A property manager's fee is generally determined by: A. An agreement with the tenants. B. A flat fee or percentage of gross rental income. C. A standard fee schedule agreed on among property management companies. D. A percentage of the gross selling price.

A property owner feels that an error was made in determining the assessed value of their property. The owner's BEST course of action would be to: A. File a law suit against the taxing authority. B. Present their objections to a local board of appeal or board of reviews. C. Escrow sufficient funds to pay the higher taxes. D. Have the property rezoned.

A property owner's general real estate tax bill is computed by applying the tax rate to the property's: A. Market value. B. Assessed value, C. Loan to value ratio. D. Insurance value.

A property was listed for $220,000. The seller accepts an offer for $215,000 which included a $2,500 earnest money check. The sales price in the contract would be: A. $220,000. B. $215,000. C. $212,500. D. $217,500.

A real estate agent is encouraging owners to sell hir homes by claiming that the entry of a religious group into the neighborhood would have a negative impact on their property values. This would be an example of: A. Steering. B. Blockbusting. C. Redlining. D. Blind advertising.

A real estate licensee is using a street address only as a substitute for the legal description in a purchase and sale agreement. Is this practice acceptable by Georgia Real Estate Commission? A. Yes, if both the buyer and seller agree in writing. B. No, the Commission does not consider a street address a sufficient legal description. C. Yes, providing a broker is notifies. D. No, all legal description in Georgia must include a metes and bounds.

A real estate licensee pays a $50 referral fee to an unlicensed person for securing potential buyers. Is this action permissible under the license law? A. Yes, referral fees can be paid by real licensees to unlicensed persons. C. Yes, provided the fee does not exceed $25. D. No, licensees cannot pay referral fees.

A residential parcel of property is rezoned to commercial. The value of this parcel of property would MOST LIKELY: A. Decrease in value. B. Increase in value. C. Remain unchanged. D. Depreciate

A sales doing a competitive market analysis (CMA) to arrive at a listing price for a property would be LEAST concerned with: A. The Sale of comparable properties in the neighborhood. B. The original price the owner paid for the property being listed. C. The listed prices of comparable properties in the neighborhood. D. The number of similar properties for sale in the neighborhood.

A salesperson advertising a seller's property should NOT: A. Advertise on company stationery. B. Run advertisements in the salesperson's name only. C. Put up pictures of the property in the broker's office. D. Run advertisements in the broker's name

A salesperson is holding an open house. A married couple looks at the house and tells her the house is just what they have been looking for but they had signed a contract to purchase a house down the street the day before. The salesperson tells them that they can sign a contract with her to purchase this house and simply not complete the purchase of the house that they had contracted to buy the day before. In this situation the salesperson has: A. Properly represented her principal and therefore acted correctly. B. Committed an unfair practice by inducing a party to break a contract. C. Acted properly as long as she notifies her broker of her intentions. D. Acted properly because she did not initiate the discussion.

A salesperson negotiated the sale of a house for a builder. Because the house had been on the market for a long time, the builder offered to give the salesperson a television as a bonus. Which of the following is true about this situation? A. The salesperson can accept the bonus only if he notifies the purchaser. B. The salesperson can accept the bonus only with the knowledge and consent of the broker holding the license. C. Because the value of the bonus is nominal, the salesperson can accept it without notifying anyone. D. The salesperson cannot accept the bonus under any circumstances because that would be an unfair trade practice.

A salesperson shows prospective buyers of a particular race, properties only in areas occupied bu families of the same race. This action best describes: A. Blockbusting. B. Steering. C. Panic peddling . D. Discounting

A salesperson working for a selling broker sold a property listed with another broker. The selling salesperson would collect their commission from: A. The listing broker. B. The selling broker. C. The seller. D. The buyer.

A seller is considering selling their property for $200,000. The sales price of comparable properties indicates that the subject property is worth $250,000. The listing agent should: A. Buy the property for $200.000. B. Tell the seller the property should see for $250,000 based on comparable sales. C. Have the property appraised. D. List the property for $2000,000.

A seller is selling a house financed with an existing VA loan. Can the new buyer assume the loan? A. Yes, only if the new buyer is an eligible veteran. B. Yes, if the Va approves the buyer and loan assumption agreement. C. No, VA approves the buyer and loan assumption agreement. C. No, Va loans cannot be assumed. D. No, the original borrower is always held liable for the loan.

A seller signs a written listing agreement giving a sole agent the right to find a buyer for a property within a specified time, but reserving the right for the owner to sell the property himself without owing a commission. What type of listing did the seller sign? A. Open. B. Exclusive agency. C. Exclusive right to sell. D. Net.

A seller sold a property for $225,00. The seller's first mortgage of $165,000 was paid off at closing. The buyer obtained a new 80% conventional loan. How much is the transfer tax in this transaction? A. $1665.00. B. $225.00. C. $180.00. D. $132.00.

A tenant leased a property for one year. When the tenant planned to move in they found a property was already occupied by another tenant. The new tenant could refuse to pay the rent due to the fact they were no given: A. A reentry right. B. Quiet enjoyment. C. An assignment. D. Non disturbance notice.

A tenant leased a property for two years. The tenant holds over after expiration of the lease without the landlord's consent. The holdover tenant's rights in the property would be considered a: A. Tenancy in common. B. Tenancy at sufferance. C. Joint tenancy. D. Tenancy for years.

A tenant leased space in the commercial building and attached shelves to the walls to display his products. The lease was about to expire and he decided to move to another building and wanted to take the shelving with him. Which of the following is true regarding this situation? A. The shelves are attached to the property, therefore, they are fixtures and must stay with property. B. The shelves are trade fixtures and can be removed ad long as it is done before expiration of the lease and the tenant is responsible for any damages caused by their removal. C. The shelves are fixtures and must be removed by the tenant before expiration of the lease. D. The shelves are trade fixtures and must remain with the building.

A title insurance policy will generally NOT cover a loss arising from: A. forged documents B. zoning and governmental restriction C. lack of capacity on the part of the grantor D. misfiled documents

A titlle agency pays a kickback to a lender for referring one of the lenders recent loan customers to them. This would be a violation of: A. Truth in Lending Act B. Real Estate Settlement Procedure Act C. usary laws D. Equal Credit Opportunity Act

A utility company has the right to use privately owned properties to erect power poles and electrical lines. The utility company has been grated a (n): A. Easement appurtenant. B. Commercial easement in gross. C. Encroachment. D. Personal easement in gross.

All of the following are features of land contract EXCEPT: A. Buyer receives equitable title to the property. B Buyer receives a deed to the property at closing. C. Buyer makes monthly payments to seller. D. Buyer takes possession of the property.

All of the following will terminate a lease EXCEPT: A. Condemnation of the leased property. B. Sale of the leased property. C. Destruction of the leased property. D. Expiration of the lease.

All of the following would be considered a private encumbrance on real property Except? A. Mortgage lien. B. Zoning. C. Easement. D. Deed restriction.

All of the following would be considered an agent EXCEPT: A. A property manager hired by a property owner. B. An employee of a multiple listing service C. A listing broker hired by a seller. D. An attorney-in-fact acting under a recorded power of attorney.

An agency relationship that arises by the actions of the parties rather than by expressed agreement is called a (n): A. Dual agency. B. Ostensible agency. C. Subagency. D. Expressed agency.

An agent has a listing on a residential property with an expiration date June 16th. On May 2nd, the seller accepts an offer from a buyer. On June 4th the title is conveyed at closing with a stipulation that the buyer will not take possession of property until June 11th. When is listing terminated? A. May 2nd. B. June 4th. C. June 11th. D. June 16th.

An agent has a property listed for $90,000. An optionee pays $600 for a ninety (90) day option to buy the property at $90,000. Which of the following statements BEST describes the listing agent's commission in this transaction? A. It is earned when the option is entered into. B. It is earned when the option is exercised. C. It is paid out of the option consideration. D. It is paid at the end of the ninety (90)day option period.

An agreement between parties to keep open, for a certain period of time, the right to buy or lease real property at a specific price is called: A. A listing. B. An option. C. A lease. D. A contingency.

An appraiser is hired to estimate a property's: A. Listing price. B. Market value. C. Boundary lines. D. Assessed value.

An attachment lien would be placed on a property to: A. Enforce a deed restriction. B. Prevent the owner form conveying title to te property until a lawsuit is decided. C. Give notice of a possible future lien. D. Enforce a judgement.

An attorney-in-fact acting under a limited power of attorney is a: A. General agent. B. Special agent. C. Dual agent. D. Universal agent.

An elderly mother has moved to a nursing home and wants her son to sell her home. To act as the agent of the mother, the son would need: A. A deed signed by the mother. B. A power of attorney signed by the mother. C. A listing agreement signed by the son. D. A power of attorney signed by the son

An executed sales contract is one in which: A. The contract has been signed by both buyer and seller. B. All parties have fulfilled their promises. C. The deed has been delivered and accepted. D. The deed has been recorded.

An investor purchased a property at a foreclosure sale. The right of the foreclosed owner to recover his/her property after the foreclosure sale is called: A. equitable redemption right. B. Statutory redemption right. C. Right of survivorship. D. Right of first refusal.

An owner decided to find a tenant to rent the upstairs portion of his home. He did not uses any form of discriminating advertising but required the tenant be a religious, non-smoking, white male. Is this a violation of the Federal Fair Housing Act? A. Yes, the owner discriminated on religion. B. Yes, the owner discriminated on race. C. No, the owner is exempt because he is renting his own home. D. No, the owner is exempt because he is not using discriminating advertising.

An owner grants a life estate to her grandson and stipulates that upon her grandson's death he title will pass to her son-in-law. The son-in-law's interest would be: A. A reversion interest. B. A remainder interest. C. An enstate for years, D. An enstate of inheritance.

An owner has a house with a scenic view, but could lose the view if the adjoining property is developed. Which of the following actions should the owner take to preserve the view? A. Have the adjoining property rezoned. B. Acquire a scenic easement from the adjoining property owner. C. File a lawsuit if the adjoining owner builds. D. Purchase title insurance.

An owner owns two parcels of land. One has a house the other is a farm. He pays the taxes on the farm, but not on the house. The delinquent taxes on the house could result in: A. A lien against the farm. B. A lien against the house. C. A lien against both the house and farm. D. A lien against the property owner's real and personal property.

An owner wants to hire an agent to sell his 20 unit apartment building. Which of the following agreements would accomplish this purpose? A. Lease contract. B. Listing contract. C. Property management contract. D. Sales contract.

An owner would most likely use a property survey to: A. Determine the value of the property. B. Determine the property lines before putting up a fence. C. Determine if the title was marketable. D. Determine the sales price of the property.

An owner's cherry tree extends over the owner's property line and the branches and cherries are falling on the neighbor's property. This would be an example of a(n): A. Easement. B. Encroachment. C. Fixture. D. License.

Any licensee who has exhausted all administrative remedies available within the license law, and who is aggrieved by a final decision in a contested case is entitled to: A. A refund of the unused portion of their fees. B. A judicial review in accordance with the georgia Administrative Procedures Act. C. A hearing before the Georgia Real Estate Commission. D. Appeal the case to the Real Estate Commissioner.

Baird and Carr owned real property as joint tenancy. Baird dies and wills his property to his wife. Who would receive Baird's interest under the joint tenancy? A. Baird's wife. B. Carr. C. Carr and Baird's wife. D. Baird's estate.

Baird has driven his car across his neighbor's property several times a day to reach the street for the past 22 years. Baird did not have the neighbor's approval. Could Baird acquire an easement on the neighbor's land? A. Yes, an easement by necessity. B. Yes, an easement by prescription. C. No, the neighbor must give approval. D. No Baird's use would be considered a license.

Baird,Carr and Falk hold title to farm land as joint tenants with rights of survivorship. Falk sells his ownership interest to Hart. which of the following statements is TRUE? A. Hart now has severalty ownership. B. Baird and Carr are still joint tenants and Hart is a tenant in common. C. Baird, Carr and Hart are tenants in common. D. Baird, Carr and Hart are joint tenants.

Before an applicant can take the broker's real estate examination they must provide evidence of completion of and approved broker's course and have been: A. Licensed at least 2 years. B. Actively licensed at lease 2 years. C. A resident of Georgia at least 2 years. D. A resident of Georgia at lease 3 years.

Closing is September 20. How many days of interest on a new loan must the purchaser prepay at closing? A. 10 B. 11 C. 20 D. 21

Due to the conduct of the landlord, the tenant is considering constructive eviction. The tenant would: A. Remain in the property and refuse to pay rent. B. Vacate he property within a reasonable time and refuse to pay rent. C. remain in the property and bring an action for damages. D. Remain in the property and deduct reasonable damages from the rent.

Every licensee shall notify the Commission, in writing, of the final disposition of any administrative and/ or criminal action filed in any court of competent jurisdiction. Such notice shall be given to the Commission: A. Immediately. B. Within 10 days of the conclusion of the proceeding. C. Withing 30 days of the conclusion of the proceeding. D. Upon request.

Exclusive brokerage engagements in Georgia must: A. Be for more than 90 days. B. Be in writing and have a definite expiration date. C. Be signed by the broker. D. Not contain an advance fee or fixed fee.

Exclusive listing contracts in Georgia are required to have: A. Earnest money. B. A definite expiration date. C. A safety clause. D. An advertising provision.

Formula: Seller's current loan amount times (X) the interest rate = one year's interest, divided by 360 days= one day's interest, times (X) number of days owned or refunded based on a calendar year. What is the accrued interest on a seller's loan if the payments are due on the first day of each month and payments are current? The loan balance is $73,450 at 8% interest closing is September 8. A. $128.79. B. $130.58. C. $359.09. D. $375.41.

Hazard insurance is: A. Effective the day after you take it out. B. Prepaid in advance. C. Usually paid for six months. D. Prorated by 360 days.

Homes are selling for $200,000 in a residential neighborhood. A potential buyer offered $200,000 for a similar home in the same neighborhood. The buyer's offer was based on the principle of: A. Conformity. B. Substitution. C. Competition. D. Plottage.

If a deed is not recorded in the public record: A. It would not be valid between the parties. B. It would still be valid between the parties. C. It would give constructive notice to the public if it were signed by both parties. D. It would still protect the grantee against claims of third party.

If a mechanic's lien is NOT enforced within the statutory period of time, which of the following occurs? A. The lien is foreclosed. B. The lien expires. C. The lien is withdrawn. D. A court will order an attachment.

If property in held by two or more owners as joint tenants with rights of survivorship, the ownership interest of a decreased owner will be passed to the: A. Heirs of the deceased owner. B. Surviving owner or owners. C. State under the law of escheat. D. Deceased owner's trust.

In Georgia, may a real estate licensee conduct the closing of a real estate transaction? A. Yes, only if it i a residential property. B. Yes, if the licensee has a license to practice law. C. No, real estate licensees cannot conduct a closing. D. no, real estate closing must be conducted by an independent accountant.

In Georgia, the Georgia Time-Share Act requires developers of timeshare projects make disclosures to prospective buyers including the buyer's right to rescind the contract within sever days. This information would be contained in the: A. Purchase and sale agreement. B. Public offering statement. C. Seller's property disclosure statement. D. Warranty deed.

In Georgia, the broker must deposit the earnest money in a separate trust or escrow account established for that purpose, unless: A. The amount is less than $500. B. All parties involved have agreed otherwise in writing. C. The broker has established a policy for holding the earnest money. D. The seller has requested that the money be deposited in his or her account.

In Georgia, to be legally competent to enter into valid contract, the parties must be: A. At lease 18 years old. B. At lease 18 years old and mentally competent. C. At least 21 years old. D. At least 21 years old and mentally competent.

In Georgia, which of the following documents operates only as security for a dept and passes no title to the property? A. Deed to secure debt. B. Mortgage. C. Promissory note. D. Deed.

In Georgia, which of the following forms of ownership must be stated in writing on the deed? A. Tenancy in common. B. Joint tenancy with rights of survivorship. C. Tenancy by the entirety. D. Community property.

In a residential community a husband and wife own rel property as joint tenants. Upon the death of one spouse the surviving spouse will hold title to the property as: A. Community property. B. Severalty. C. Joint tenancy. D. Tenancy by the entirety.

In an assignment of a mortgage by a lender, the mortgage would pay the: A. Mortgagee. B. Assignee. C. Assignor. D. Optionee.

In determining the replacement cost of a commercial warehouse, a appraiser would MOST LIKELY be interested in: A. Square footage of the improvement. B. Cubic footage of the improvement. C. Front footage of the lot. D. Square footage of the lot.

In doing a market analysis you find a recently sold property where the owner had just been divorced. It was listed for $250,000 but sold for only $200.000 after three months. Would this be good comparable property to use? A. No, it was only on the market for 3 months. B. No, because of the divorce it was not an arms length transaction. C. Yes. you would use the listed price of $250,000. D. Yes. you would use the actual sales price of $200.000.

In real estate financing, which of the following written documents creates a person obligation on the borrower to repay the loan? A. Mortgage B. Promissory note. C. Warranty deed. D. Trust deed.

In the investigation and hearing process which of the following would Best describe the sequence of events? A. Investigation-Hearing-Complaint-Final Decision. B. Complaint-Investigation-Hearing-Final Decision. C. Hearing-Final Decision-Proposed Decision-Complaint. D. Complaint-Investigation-Findings of Fact- Hearing.

In the repayment of a real estate loan, which type of interest is usually charged on the promissory note? A. Compound interest. B. Simple interest. C. Prepaid interest. D. Add-on interest.

In the termination of a real estate sales contract that includes earnest money. Which of the following actions returns the contract's parties to their original position before the contract (status quo), including return of the earnest money? A. Suit for specific performance. B. Rescission. C. Reversion. D. Subordination.

In which of the following transactions may a licensed real estate salesperson be required to obtain a securities license? A. The sale of an ownership interest in a condominium unit. B. The sale of stock in a real estate cooperative or limited partnership. C. The sale of a vacant residential lot in a new subdivision. D. The sale of a commercial shopping center.

Injuries or losses sustained within an owner's condominium unit would most likely be covered by: A. The condominium owner's association insurance. B. The unit owner homeowner's insurance. C. The landlord's insurance. D. The unit owner's title insurance.

Is earnest money essential to create a binding agreement? A. Yes, it is considered a portion of the sales price. B. No, earnest money is not essential to a binding contract. C. Yes, it is required to have a valid offer. D. No, providing the offer is for all cash and no financing is required.

It shall be lawful for real estate licensees in Georgia to complete listing or sales contracts whose form have been drafted by: A. A real estate broker. B. Legal counsel. C. A salesperson. D. The real estate commission.

Land conveyed to a university "so long as" the real estate is used for educational purposes. This would be considered: A. A fee simple estate. B. A fee simple indefeasible (determinable) estate. C. A like estate D. A living trust

Land is conveyed to a university "so long as" the real estate is used for educational purposes. This would be considered: A. A fee simple estate. B. A fee simple defeasible (determinable) estate. C. A life estate. D. A living trust.

Mary purchases ten shares of stock in the Oceanview Retirement Corporation, entitling her to a proprietary lease on apartment 428 and use of the common elements. This is an example of: A. Condominium ownership. B. Cooperative ownership. C. A fee simple estate. D. A land syndication.

Mary sold her property to Ron subject to her existing mortgage. If Ron defaults on the loan who is liable? A. Ron is primarily liable to the lender. B. Mary is primarily liable to the lender. C. Mary is primarily liable and Ron is secondarily liable. D. Ron is primarily liable and Mary is secondarily liable.

Mrs. Jones has been using the vacant lot next door to her property as a garden for the past ten (10) years, without the owner's permission. Mrs. Jones could claim title to the vacant lot by: A. Eminent domain. B. Adverse possession. C. Severalty D. Color of title

On Monday evening, after a brokerage off has closed, a salesperson receives an offer to purchase and an earnest money deposit in the form of a personal check. On Wednesday, she obtains the final acceptance on the offer. The earnest money check would MOST LIKELY be turned over to her broker: A. Monday. B. Tuesday. C. Wednesday. D. Thursday.

On a VA loan, the amount of money that protects a lender if an eligible veteran defaults is called the: A. Mortgage insurance. B. Entitlement/ guarantee. C. Interest rate. D. Eligibility

On a closing statement which of the following items would MOST LIKELY be a debit to the seller: A. Insurance policy refund. B. Transfer tax. C. Sale of personal property. D. Property sale price

Once a commission rate has been agreed upon in a listing contract, can it be changed? A. Yes, if the property sells for more than the listed price. B. Yes, if both the client and broker agree to the change. C. No, the state's real estate commission sets the rate and it cannot be changes. D. No, real estate commissions are not negotiable.

Predetermined damages agreed to by the parties in a sales contract should either party breach the agreement is referred to as: A. Earnest money. B. Liquidated damages. C. Down payment. D. Security deposit.

Several persons own property as tenants in common. One of the owners desires to sell the property whereas the other owners prefer to retain the property. If the parties cannot reach an agreement, which of the following actions would most likely be taken by the owner who wants to sell? A. Force the remaining owners to buy his or her interest. B. File a partition action. C. File a foreclosure actions. D. Rent his/her interest to the others.

The Georgia Real Estate Commission is NOT authorized to: A. pass rules and regulations consistent with the real estate license laws. B. Set real estate commission rates changes by licensed brokers. C. Appoint the real estate commissioner. D. Change and collect fee authorized by the license law.

The Georgia Real Estate Commission is: A. A private corporation regulated by the state. B. A budget unit Georgia assigned to the office of the Secretary of State. C. A brokerage company. D. Regulated by the Real Estate Commissioner.

The Georgia Real Estate commission prohibits a broker from acception which of the following types of listings? A. Open. B. Net. C. Exclusive agency. D. Eclusive right to sell.

The N 1/2 of the NE 1/4 of section 10, would contain: A. 10 acres. B. 80 acres. C. 160 acres. D. 640 acres.

The Priority of a lien would most likely be determined by all of the following EXCEPT: A. Recording Date. B. The dollar amount of the lien. C. Type of lien. D. The effective date of the lien.

The amount of compensation a salesperson would receive for a completed real estate transaction would be determined by: A. the standard commission rates in the area B. the salesperson's contract with their broker C. the amount specified by the state's real estate commission D. the amount specified in the listing agreement

The assessed valuation of all real property within a taxing jurisdiction is the: A. Tax rate. B. Tax base. C. Budget. D. Tax roll.

The clause in a mortgage which permits a subsequent mortgage to take priority is called the: A. Acceleration clause. B. Subordination clause. C. Escalation clause. D. Alienation clause.

The condominium owner's association has authority to assess and collect from the individual unit owners sufficient money to maintain the common areas and to ensure he financial stability of the condominium. When a unit owner is in default of the monthly changes of special assessments, the association could: A. Declare actual eviction and have the owner removed. B. Place a lien against his or her unit, which can be foreclosed to satisfy the debt. C. Increase the monthly fees to the other unit owners to cover the unpaid fees. D. Sell his or her common stock in the owner's association to pay the fees.

The cooperating firm agrees to pay 60% of their commission to the salesperson that finds a buyer. If the property was listed for $250,000 and sold for $240,000, how much would the salesperson receive? A. $3000 B. $4320 C. $4500 D. $2880

The cost approach and sale comparison/ market date approach are based on the principle of: A. Contribution. B. Substitution. C. Conformity. D. Supply and demand.

The creator of a life estate may retain what interest in the life estate? A Remainder interest. B. Revisionary interest. C. Simple interest. D. Dower rights.

The disclosure of the annual percentage rate under the Truth-in-Lending Ac (Regulation Z) allows the borrower to: A. Determine the closing costs. B. Shop around and compare credit costs of various lenders. C. Rescind the loan. D. Determine the interest rate.

The extent of an owner's rights in land would include: A. Only the surface of the earth. B. The surface of the earth extending down to the center and upwards to the sky. C. Only the earth's surface and downwards to the center of the earth. D. Only the earth's surface and upward to the sky.

The first step in the appraisal process is to: A. Reconcile the estimated values. B. Define the problem or purpose. C. Gather necessary data. D. List data sources.

The interest a buyer has in real estate once a purchase agreement has been accepted and signed, but not closed, is called: A. Simple interest. B. Equitable title. C. Legal title. D. Adjustable interest.

The listing firm refused to let another firm show the property. The other firm brings an offer to purchase on the same property. Does the listing firm have the right to refuse to present the offer? A. Yes, if the other firm is not a subagent the listing firm has the right to refuse. B. No, the listing firm must present the offer. C. No. by obtaining an offer to purchase, the other firm has become a subagent of the listing firm.been authorized to present the property. D. Yes, the other firm has not been authorized to present the property.

The maximum possible estate one can possess in real property which has an indefinite duration would be described as a: A. Defeasible fee estate. B. fee simple estate. C. Life estate. D. Leasehold estate.

The metes and bounds description must contains which of the following? A. A reference to a recorded plat of subdivision. B. A point from which the description begins and ends. C. A street address. D. A base line reference.

The name of the grantee is misspelled on the warranty deed filed in public record. To correct the cloud on the title the grantor should: A. Sign a security deed. B. Execute a quitclaim deed with the correct spelling. C. File a trust deed in public record. D. Sign a special warranty deed.

The owned of a property signed a valid sales contract to convey to a neighbor the ownership to a piece of land between the owner's fence and the neighbor's property line. Later, the owner changed his mind and refused to transfer the property to the neighbor. Would the neighbor have any recourse against the landowner? A. Yes, the property owner violated the Statue of Frauds. B. Yes, the agreement was in writing and could be enforced. C. No, the neighbor only had an easement to use the property. D. No, an agreement for only a portion of the property is not enforceable.

The owner installed a custom chandelier in the hallway. When the property is sold can the owner take the chandelier? A. Yes, custom chandeliers are personal property. B. Yes, if the parties to the sales contract agreed the chandelier is personal property. C. No, the item is attached and cannot be removed b the seller. D. No, installed chandeliers are fix fixtures and cannot be moved under any circumstances.

The primary purpose of the secondary market is to: A. Regulate interest rates changed to first time home buyers. B. Provide a source of liquidity for primary mortgage market lenders. C. Make loans to unqualified home buyers. D. Determine how much money banks must keep of reserve.

The principle in a real estate loan is considered the: A. Term of the loan. B. Amount of money borrowed. C. Change for using the money. D. Monthly payment

The property manager of an apartment complex suspected that one of the tenants was involved in illegal activities. The manager's BEST action would be to: A. Conduct an investigation. B. Inform the owner of the apartment building. C. Terminate the tenant's lease. D. Ignore the situation.

The right of a borrower to pay off part or all of the debt prior to maturity, without penalty, is called: A. Prepayment penalty. B. Prepayment privilege. C. Prepaid interest. D. Prepaid items.

The state could take a homeowner's property to build a new school under the right of: A. Police power. B. Eminent domain. C. Escheat. D. Taxation.

The substitution of a new contract in place of original contract is considered: A. Assignment. B. Novation. C. Rescission. D. Consideration.

The supply of properties available for sale exceeds the market demand. This would considered: A. A seller's market. B. A buyer's market. C. Physical deterioration. D. A thin market.

There is a question concerning the legal description of the property being conveyed. The description on which of the documents will take precedence? A. Listing agreement. B. Deed. C. Purchase agreement. D. Mortgage.

To allow a more intensive use of subdivision land, a zoning variation would be required to permit which of the following? A. A decrease in the number of building per acre. B. An increase in the number of buildings per acre. B. An increase in the number of building sites per acre. C. Deed restrictions prohibiting the sale of any individual lot to a family of fewer than four persons. D. Deed restrictions prohibiting the shrinkage of the backyard area in any residential lot.

Trees growing on the property are cut down by the owner. This process is called: A. Severance and the removed trees are real property. B. Severance and the removed trees are personal property. C. Annexation and the removed trees are real property. D. Annexation and the removed trees are personal property.

Two mortgages and a judgment were filed against a property. The priority of the liens would be determined by the: A. Amount of each lien. B. Recording dates. C. County where th liens were filed. D. The type of lien.

Under Georgia law, if a husband and wife do no jointly own property: A. Only the husband is required to be a party to the transaction. B. Only the spouse holding title is required to be party to the transaction. C. Only the wife is required to be a party to the transaction. D. Both parties would be required to sign the sales contract.

Under an option agreement the optionee: A. Is obligated to purchase the property at the fixed price. B. Must pay the optionor valuable consideration. C. Will take possession of the property. D. Must include a down payment.

Under condominium ownership the land under the building and common areas are owned by: A. A corporation. B. All the individual unit owners as tenants in common. C. All the individual unit owners as joint tenants. D. Each individual unit owner in severalty.

Under the Georgia Real Estate license law, the Real Estate Commissioner is: A. A member of the Georgia Real Estate Commission. B. A full-time employee of the Georgia Real Estate Commission. C. An active licensed real estate broker. D. Appointed by the Governor.

Upon termination of management agreement by a community association or property owner, licensee shall provide all records, documents and funds within what period of time of the termination? A. 10 days. B. 30 days. C. 1 year. D. 3 year.

What is the name of the map that shows the location of individual lots in a subdivision? A. Road maps. B. Plat maps. C. Topographical survey. D. Subdivision map.

When a Certifies General Appraiser performs an appraisal of a commercial office building, the appraisal approach that would usually be given the most weight is the: A. Cost approach. B. Income approach. C. Market data approach. D. Gross rent multiplier approach.

When a licensee offers to purchase a property a property as a condition to obtaining a listing to sell, the licensee must: A. Make a disclosure in the sale contract that they are acting as a dual agent. B. Enter into a written sales contract prior to or at the same time the seller signs the listing agreement. C. Offer the "asking price" of the property being purchased. D. Enter into a written sales contract after the listing contract has been signed.

When an offer to purchase has been accepted and signed by all parties, the licensee is obligated to deliver a signed copy of the purchase agreement to: A. Purchased, seller and lender. B. Purchased, seller and broker (s). C, Purchaser, lender and broker (s). D. Seller, lender and broker (s).

When appraising a vacant lot an appraiser would probably NOT take into consideration: A. Land contours (topography). B. Replacement costs. C. Zoning. D. Available utilities.

When completing a competitive market analysis (CMA) a licensee should: A. Use only Properties that are listed. B. Choose properties that sold which are similar to the subject property. C. Make adjustments to the subject for differences in the comparable properties. D. Use only properties that required financing.

When determining if an item is a fixture the court would most likely give the MOST consideration to: A. The cost of the item. B. The use of the item. C. The size and replacement cost of the item. D. The age of the item.

When doing a neighborhood analysis which of the following would NOT be an appraisal factor: A. Size of the lots in the neighborhood. B. Racial composition of the neighborhood. D. Sale prices of homes in the neighborhood.

When doing a neighborhood analysis, and appraiser would MOST LIKELY be concerned about the: A. Racial composition. B. Economic obsolescence. C. Physical deterioration. D. Functional obsolescence.

When selecting tenants a property manager can legally do which of the following? A. Refuse to rent to members of a particular religion. B. Check the financial status of potential tenants. C. Change a higher security deposit to tenants tho have children. D. Refuse to rent to single women

When showing a listed property, the licensee is asked by a prospective purchaser if the seller will consider a lease/purchase or lease/option agreement. If the seller agrees to this type of arrangement, when would the sales contract be negotiated and signed? A. Before you write the residential lease. B. Simultaneously and attach a copy to the lease. C. At the closing. D. After the residential lease expires.

Whenever the Commission revokes or suspends a license, the Commission may: A. Fine the licensee up to $10,000. B. Publish the name of such licensee on its' official website C Refund any unused portion of the licensee's fees. D. Allow the licensee to keep their "pocket card."

Which appraisal approach would MOST LIKELY be used when appraising a residential property? A. Income. B. Sales comparison/ market date. C. Cost. D. Capitalization.

Which clause in a mortgage makes the loan non-assumable without the lender's permission? A. Partial release. B. Due on sale/alienation. C. Acceleration. D. Defeasance.j

Which clause in a promissory note or mortgage allows a lender to demand immediate payment of the entire loan balance when a borrower defaults on a mortgage loan? A. Alienation. B. Acceleration. C. Defeasance. D. Prepayment.

Which loan is MOST LIKELY to have 100% loan to value ratio? A. FHA. B. VA. C. Conventional, insured. D. Conventional, uninsured.

Which of the following BEST expresses the difference between building codes and zoning regulations? A. Building codes apply to the use of real property, zoning regulations apply to improvements on the property. B. Building codes apply to improvements on the property; zoning regulations apply to use of the property. C. Building codes are encroachments on the property, zoning is a lien. D. Zoning is an example of eminent domain and building codes are an example of taxation.

Which of the following actions by the owner would have the most positive effect on the value of their property? A. Repairing a water leak in the roof. B. Adding a second bathroom in a four bedroom house. C. Replacing an air conditioning unit. D. Building a fence around the property.

Which of the following clauses in a mortgage allows a mortgage to proceed with a foreclosure sale without having to go to court first? A. Acceleration. B. Power of sale. C. Due of sale. D. Defeasance.

Which of the following clauses in a mortgage states that if the lender is forced to foreclose on a landlord's property the lender will allow the tenants to stay in the property? A. Nonrecourse B. Nondisturbance. C. Defeasance. D. Due-on-sale.

Which of the following clauses would a lessor include in a lease that would allow the landlord to increase the rent certain intervals to protect against inflation? A. Acceleration. B. Escalation. Ci. Due-on-sale. D. Subordination

Which of the following costs is usually on the estimated purchaser's cost worksheet? A. Purchase price B. Accrued interest on lean assumed. C. Survey. D. Hazard insurance escrow

Which of the following deeds protects the buyer against title defects that occurred only during the seller's ownership? A. General warranty deed. B. Special warranty deed. C. Quitclaim deed. D. Trust deed.

Which of the following describes a type of depreciation? A. Reconciliation. B. Economic obsolescence. C. Plottage. D. Assemblage.

Which of the following facts would LEAST LIKELY need to be proven in order for a broker to claim a commission in a court action? A. The broker is properly licensed at the time of the transaction. B. The transaction closed according to the contract. C. The broker produced a ready, willing and able buyer. D. The broker was employed by the seller of the listed property.

Which of the following is a feature on a VA loan? A. Prepayment penalty. B. High loan to value ratio. C. Down payments are prohibited. D. Insured by HUD.

Which of the following is a function of the Georgia Real Estate Commission? A. To interpret particular laws and rules concerning real estate transactions. B. To ensure professional competency among real estate licensees. C. To establish a reasonable fee structure that licensees can change the public to real estate services. D. To settle legal disputes between real estate licensee.

Which of the following is a responsibility of a real estate licensee at closing? A. Have the buyer and seller sign the warranty deed. B. Deliver a copy of the closing statement to the buyer and seller. C. Conduct the closing. D. To give legal advise to the buyer and seller concerning the contents of the documents.

Which of the following leases is usually used for retail business? A. A gross lease. B. A percentage lease. C. A ground lease. D. A lease purchase.

Which of the following must a licensee ALWAYS do when advertising their own property for sale? A. Notify the Georgia Real Estate Commission of the specific property to be advertised. B. Include the legend "Seller holds a real estate license". C. Advertise in the name of the broker. D. Have a broker's written consent to advertise the property.

Which of the following private deed restrictions in a new subdivision could directly affect the cost of building a new house in that subdivision? A. Restrictions on the conveyance or use. B. Restrictions C. Prohibiting parking on the street. D. Requiring owners to belong to a homeowner's association.

Which of the following refers to ownership of property in a residential community by one person? A. Community property. B. Severalty ownership. C. Tenancy in common. D. Tenancy by the entirety.

Which of the following statements BEST describes a balloon payment? A. A prepayment of principal made by the borrower of a fully amortized loan. B. The final mortgage payment that is larger than the previous installment payments and repays the debt in full. C. A prepayment penalty charged on a conventional loan. D. The initial payment on a graduated payment loan.

Which of the following statements BEST describes the difference between a bilateral and unilateral contract? A. the number of promised in a contract. B. The number of parties involved. D. The dollar amount of the transaction.

Which of the following statements best describes a variance? A. A use that existed before the zoning ordinances where created and is allowed to continue. B. An exception to the zoning law but not change it. C. A change to the existing zoning codes. D. An exception to the zoning law automatically granted to the landowner.

Which of the following statements concerning a safety clause in a listing agreement is CORRECT? A. State statute will determine how many days of protection are appropriate for the safety clause. B. If during the safety clause period the owner re-lists the property with a new broker the owner could be liable for two commissions. C. A safety clause to seller should be informer by phone of any person who inspected the property during the listing period. D. To enforce the safety clause the seller should be informed by the phone of any person who inspected the property during th listing period.

Which of the following statements is TRUE of an exclusive right to sell listing agreement? A. The seller can sell their property without paying a real estate commission. B. The listing broker is guaranteed a fee if the property is sold. C. The listing broker must find the buyer to collect a fee. D. The seller usually appoints may brokers to find a buyer.

Which of the following statements s an example of amortization? A. A final loan payment that is larger than previous payments. B. Repayment of financial obligation by payments of principal and interest. C. Payments of interest only on a loan for a period of time. D. The prepayment of a debt.

Which of the following will terminate an agency agreement? A. Physical incapacity of the listing broker. B. Mental incapacity of the listing broker. C. Physical incapacity of the listing salesperson. D. Mental incapacity of the listing salesperson

Which of the following would be an example of functional obsolescence? A. A loss in value due to lack of maintenance and upkeep. B. A loss in value caused y something being outdated. C. An increase in value due to assemblage. D. An increase in value caused by lower interest rates.

Which of the following would increase a property's cost basis to determine the capital gain? A. Depreciation. B. Capital improvements. C. Mortgage interest. D. Rental income.

Which of the following would most likely effect economic obsolescence? A. A poor floor plan. B. The change in zoning. C. The house is on septic tank. D. The roof need repairs.

Which of the following zoning classifications would require new construction in a certain area to conform to a specific type of architecture? A. Incentive zoning/ B. Aesthetic zoning. C. Bulk zoning. D. Directive zoning.

BILATERAL CONTRACT

BOTH PARTIES OBLIGATED TO PERFORM

A chemical manufacturing company purchases a plant. After closing they discover that the previous owners had spilled hazardous materials on the land. According to CERCLA, who is liable for the cost of the cleanup?

BOTH THE NEW AND THE PREVIOUS OWNERS.

Exclusive Buyer agency

BUYER IS LEGALLY BOUND to pay the agent when the buyer purchases the property described in the contract . Even if BUYER FINDS PROPERTY HIMSELF _ he stills has to pay

EQUITABLE TITLE

BUYERS INTEREST IN PROPERTY (SALES CONTRACT, LAND CONTRACT, TRUST DEED). EQUITABLE TITLE INTEREST. LEGAL TITLE HELD BY ANOTHER PARTY

A seller desires to net $20,000 from the sale of her property which has a loan balance of $61,700. The brokerage fee will be 7% of the sales price and the seller must pay $2,000 in the other selling expenses. Which sales price would provide her with $20,000 net? A. $83,700 B. $87,419 C. $89, 559 D. $90,000

Blank

A seller received a closing check for $210,150. The broker's commission was 5% and the closing costs paid by the seller amounted to $3,600. What was the selling price? A. $213,750. B. $221,200. C. $225,000. D. $250,000.

Blank

The sale of property is to be closed on September 15. Current real estate taxes of $1,800 have been paid. Prorate according using 360 days in a year and 30 days in a month, seller to pay for the day pf closing. At the closing on September 15, which of the following is correct? A. Credit seller $1,275; debit buyer $525. B. Credit seller $1,800; debit buyer $525. C. Credit seller $375; debit buyer $525. D. Credit seller $375; debit buyer $3745.

Blank

What is the purchaser's monthly PMI payment on an $80,000 home if the purchases put $8,000 down and finances the balance with a conventional loan? A. $15.00 B. $15.50. C. $16.67 D. $17.00.

Blank

NON RECOURSE LOANS

Borrower is not held personally liable for the note. TYPICALLY made to REAL ESTATE SYNDICATES . ex REVERSE MORTGAGES

Improvement examples:

Buildings, fences, driveways, swimming pools and mobile homes when permanently attached.

An up front fee paid to the lender in exchange for a reduced interest rate, generally for the first one to three years, is referred to as:

Buydown - is a financing technique in which points are paid to the lender by the seller or builder that buys down the effective interest rate paid by the buyer-borrower - thus reducing the amount by the monthly for a set period of time.

A $25.00 fee shall be charged to a licensee (active or inactive) for failure to notify the Commission, in writing, of a change of address within: A. 7 days. B. 10 days. C. 30 days. D. 60 days.

A Georgia Real Estate Commission is composed of: A. Six members each of whom is appointed by the secretary of state, with the governor, and confirmed by the senate for a term of four years. B. Five members each of whom is appointed by the governor and confirmed by the senate for a term of six years. C. Six members each of whom is appointed by the governor and confirmed by the senate for a term of five years. D. Five members each of whom is appointed by the secretary of state and confirmed by the governor for a term of six years.

A bill of sale would be used to convey ownership of: A. Mineral rights. B. Air rights. C. Personal property D. Fixtures.

A blanket mortgage would most likely NOT be used in which of the following examples? A. A developer plans to buy 50 lots. B. A buyer wants to purchase a lot plus the adjoining lot. C. A buyer purchases a single unit in a condominium development. D. An investor is going to finance a subdivision.

A borrower takes out a loan that allows the monthly principal payments to be increased without penalty. This, the loan will be paid off more quickly. This loan would be considered a: A. Budget loan. B. Buydown. C. Growing-equity mortgage. D. Reverse-annuity mortgage.

A borrower would MOST LIKELY obtain the lowest monthly payment on which of the following loans: A. 9% interest rate and a 29 year term. B. 8% interest rate and a 20 year term. C. 8% interest rate and a 25 year term. D. 9% interest rate and a 25 years term.

A bowling alley is located on the outskirts of the city. The area was recently rezoned for commercial to residential use. Will this change affect the present operation of the bowling alley? A. Yes, they will have to relocate. B. Yes, to continue operating the bowling alley, a petition for a variance must be filed with the zoning appeal board. C. No, the bowling alley is considered a nonconforming use and can continue to operate. D. No, the bowling alley benefits the residential area.

A broker is marketing a listed property located in a predominantly Hispanic area. When advertising the property, which of the following would be permissible? A. Advertise only in Hispanic newspaper. B. Advertise for Hispanic buyers on;y. C. Advertise the property in a local newspaper. D. Advertise that the property is located in a Hispanic neighborhood.

A broker is paid a commission at closing by the principal and refuses to pay the salesperson their portion of the commission as agreed upon in their written affiliation agreement. If the salesperson licensee does not believe that the broker is meeting the terms of the agreement his or her recourse is to: A. File a complaint with the Georgia Real Estate Commission to collect the agreed upon fee. B. File an action with the Education Research and Recovery Fund. C. Go to the courts or other arbitrating bodies. D. File suit against the principal for the portion of the commission due to salesperson.

A broker listed a property for $175,000 with instructions that seller wanted at least $5,000 earnest money. The broker produced a buyer who offered the full listed price and included $3,000 earnest money check. If the seller did not accept the offer, would the broker be due a commission? A. Yes, the broker produced a buyer at the full listed price. B. Yes, earnest money is not required in a real estate contract. C. No, the broker did not produce a buyer that fulfilled the terms of the listing agreement. D. No, the earnest money must be paid in cash.

A broker listed a seller's property for $75,000. A customer told the broker they would make an offer for $73,000 but were willing to pay $75,000 if necessary. What should the broker do? A. Refuse to present the offer because it was less than the listed price. B. Present the offer and not mention the buyer was willing to pay $75,000. C. Present the offer ad inform the seller of the buyer's intent to increase the price. D. Hold the offer and tell the buyer the seller rejected it.

A broker lists a seller's property. A buyer makes a full price offer on the property. Can the broker accept the offer for the seller? A. Yes, the broker can bid the principal to any contract. B. Yes, only if it a full price offer. C. No, the broker is a special agent and may not bind the principal. D. No, this would create a dual agency.

A broker pays a salesperson on a commission plan and withholds federal income taxes, pays social security taxes and has a comprehensive medical plan available. Which of the following would BEST describe this relationship the salesperson has with the broker? A. Independent contractor and the broker would issue a W-2 form. B. Independent contractor and the broker would issue a 1099 form. C. Employee and the broker would issue a W-2 form. D. Employee and the broker would issue a 1099 form.

A broker received an offer to purchase in which the buyer asked the seller to carry a second mortgage for $5,000. The broker suggest to their seller to check the buyer's credit before carrying a second mortgage for the buyer. The broker was fulfilling their fiduciary obligation of: A. Loyalty. B. Obedience. C. Care. D. Accounting.

A broker receives more than one offer on the same property. The broker must: A. Present only the highest offer. B. Return the lowest offer. C. Present all signed offers. D. Accept the highest offer and reject all the other offers.

A broker should NOT disburse trust funds from a designated trust account under the following circumstances: A. Upon rejection of an offer to buy the real estate. B. Upon the withdrawal of an offer to buy real estate. C. Upon written consent of the buyer only to pay for a termite inspection. D. At the closing of the real estate transaction.

A broker working under an exclusive right to sell listing agreement appears to have found w willing and able buyer. The buyer is unable to obtain financing to purchase the home. Is the broker due a commission? A. Yes, the buyer signed a sales contract. B. Yes. under an exclusive right to sell listing if anyone buys the property the broker is due a commission. C. No, the broker did not produce a ready, willing and able buyer. D. No, the property did not go to closing.

A broker's listing expired and the 90 day protection period has ended. Several weeks later the broker finds a new ready, willing and able buyer. Is the listing broker due a commission? A. Yes, the buyer was ready, willing and able B. yes, if the seller accepts the offer C. No, the broker's listing agreement has expired D. No, the buyer did not buy within the protection period.

A broker, three (3) salesperson and an administrative assistant are going to form a real estate corporation. Which of the following would need to be licensed? A. Broker only. B. Broker and one salesperson. C. Broker and three salespersons. D. Broker, three salespersons and administrative assistant.

A builder gives a real estate broker verbal permission to find buyers for his new homes. Can the broker advertise the properties? A. Yes, only the consent of the owner is required. B. Yes, provided the builder's trade name is included in the advertisement. C. No, the broker must have written permission of the owner and said permission has a definite date of expiration. D. No, new home sales can only be advertised by the builder

A buyer and seller mutually agree to rescind their residential sales contract. If the buyer was secured by the lising broker, working under an exclisive rightt to sell listing,the broker might be entitled to: A. The earnest money. B. One half of the earnest money. C. The full commission. D. One half of the commission.

A buyer makes an offer on the seller's property. The seller changes the price and signs the counteroffer. Which of the following statements regarding this situation is INCORRECT? A. The original offer has been rejected. B. The original offeree is now the offeree/ C. The agreement is binding on both parties. D. The counteroffer is a new offer.

A buyer makes an offer to purchase the seller's property for $125,000. The seller makes a counteroffer of $126,000. In the counteroffer, the seller is the: A. Optionee. B. Assignor. C. Offerer. D. Offeree.

A buyer purchased a property from a seller and assumed the seller's existing loan. Several years later the buyer defaulted on the loan. if this was a standard loan assumption who would be liable to the lender for any deficiency judgment? A. The buyer only. B. The seller only. C. The buyer in primarily liable and the seller is secondary liable. D. Both the buyer and seller would be equally liable.

A buyer puts a down payment of $20,000 on an $80,000 house. The loan to value ratio would be: A. 25% B. 50% C. 75% D. 80%

A buyer signs an offer to purchase for $250,000 that requires the refrigerator remain with the property. The seller agrees to the price, but removes the stipulation about th refrigerator. The seller initials the change and signs the document. Which of the following is true? A. The offer has been signed by both parties and is considered a binding contract. B. The seller does not have right to change the original offer. C. The original offer by the buyer is terminated and the seller has created a new counteroffer. D. If the buyer rejects the seller's offer, the seller can accept the buyers's original offer.

A buyer wants to purchase a house as soon as possible and does not want to pay a loan origination fee.Which of the following loans would be BEST for the buyer A. VA loan. B. FHA loan. C. Loan assumption. D. Conventional loan.

A buyer wants to warranty against any unknown encumbrances against he is buying. The buyer should require: A. A quit claim deed. B. A survey. C. Title insurance. D. An appraisal.

A buyer's agent is helping a married couple find a home. The couple wants to take title so that if anything happens to either of them the remaining spouse would recover the deceased spouse's interest by the right or survivorship. The agent should advise them to: A. Take title as tenants by the entirely. B. Take title as joint tenants with th right or survivorship. C. Consult with an attorney. D. Consult with a title company.

A buyer's agent is showing their buyer a new home. The buyer asked the agent if the area had access to cable television. The agent knew cable was not presently available but access should be available by access should be available in the near future.. What should the agent tell the buyer? A. able is available. B. Cable will be available. C. Cable is not presently available but access might be available in the future. D. Cable will not be available.

A buyer's agent was showing property in a new subdivision. The agent informed the prospective buyer that the subdivision would have cable television. The agent has not verified this information, but assumed the developer would provide cable TV. The buyer purchased the property based on the agent's statement. The sales contract did not address the cable TV. and the developer did not provide it. Who could be held liable for damages? A. The cable TV company, because all new homes must have cable access. B. The developer, because it is included in the building costs. C. The agent,, because the statement was a misrepresentation. D. No one, because it was not stated in the contract.

A buyer's broker tells a client the property was on sewer without disclosing that this information was not confirmed. After purchasing the property, the owner discovered the property was not on sewer. Who could be held liable for damages? A. The seller, because it's the sellers responsibly to disclose all defects. B. The county, because all properties are requires to be on sewer. C. The broker, because the information was presented as being factual and was not verified. D. The broker, because the buyer should have the property inspected.

A buyer's earnest money check is not honored at the bank and returned o the listing broker. The listing broker should: A. Notify the buyer only. B. Deposit the check again. C. Tell the seller immediately. D. Let the transaction go through as earnest money is not required.

A commercial back will generally: A. Insure FHA loans. B. Guarantee VA loans. C. Make short term business loans. D. Make purchase-money mortgages.

A commission is usually earned by the listing broker when: A. The transaction closes and the deed is recorded. B. Any offer to purchase signed by the buyer and presented to the seller. C. An offer, meeting the listing terms, is signed by a ready, willing and able buyer. D. The seller signs an Exclusive Listing Agreement.

A contract that appears valid but may be rejected by one of the parties who acted under a disability is considered: A. Valid. B. Void. C. Voidable. D. Unenforceable.

A deed restriction in a subdivision prohibits fences. The city where the subdivision is located allows fences. A homeowner plans to put up a fence. A neighbor objects to their plans. The neighbor objects to their plans. The neighbor should: A. Do nothing since the government takes precedence over the deed restrictions in the subdivision. B. Do nothing since the owner has the right to fence the yard regardless of the deed restrictions. C. Apply for court injunction against the owner's plans since the deed restrictions take priority over the city because they are more restrictive. D. File a lis pendens as son as possible.

A father conveys his property to his son and then reserves that right to stay on that same property as long as the father remained alive. The father's interest in the property would be BEST referred to as: A. A remainder interest. B. A revisionary interest. C. A life estate. D. A free simple estate.

A father deeded a parcel of land to his son. There was deed restriction on the land restricting the use to agricultural only. Several years later the property is rezoned commercial. Can the son now use the property for a commercial use? A. Yes, but he needs to get a variance. B. Yes, the restriction is no longer valid. C. No, the restriction is still valid. D. No, unless a buffer zone is established.

A function of a property manager is the supervision of normal maintenance and repair to the property. Which of the following acts would most likely would require additional approval of the owner? A. Scheduling regular painting. B. Repair of the broken window. C. Renovation of tenant's unit D. Fix a broken air-conditioner

A general lien applies to: A. Only the owner's personal property. B. Only the owner's real property C. All the owner's real and personal property. D. None of the owner's real and personal property

A handicapped tenant wanted to make reasonable modifications of the existing premises at the tenant's expense. Under the Federal Fair Housing Law. the property manager could: A. Refuse to let the tenant make the modifications. B. Change the tenant a larger security deposit hat the other tenants. C.Require the tenant to restore the premises to it's previous condition at the tenants expense. D. Require the tenant to pay additional rent in advance than normally required.

A house with outdated plumbing, narrow hallways and a poor floor plan would MOST LIKELY suffer from: A. Physical deterioration. B. External obsolescence. C. Functional obsolescence. D. Economic obsolescence.

A land contract would be useful in which of the following situation? A. When money is available and the buyer has good credit . B. When the buyer can qualify for conventional financing. C. In a tight money market when it is difficult to qualify the buyer for conventional financing. D. The seller needs all cash at closing

A lender is using both a note and a mortgage when making a loan. What is similar about there documents? A. Both are non-negotiable instruments. B. Both are debt releasing instruments. C. Both are contracts. D. Both contain a defeasance clause.

A licensee has an assistant and has delegated activities such as prospecting, holding open houses and the other duties not directly involved in drafting a listing or sales contract. Does this assistant have to have a real estate license? A. No, as long as the assistant does not draft listing or contracts. B. No, only the person for whom the assistant is working needs to be licensed. C. Yes, conducting such activities would require a license. D. Yes, every person working for a licensed person must be licensed.

A licensee is questioned by an interested buyer whether the property was the site of a homicide or suicide and was the dwelling ever inhabited by a person infected with AIDS or the HIV virus. The licensee should: A. Answer both questions to the best of his/her knowledge. B. Respond by starting he/she is unable to answer either inquiry. C. Answer the question about the homicide or suicide to the best of his/her knowledge and state he/she is unable to answer the inquiry on AIDS. D. Answer the question about AIDS to the best of the his/her knowledge and state he/she is unable to answer the inquiry on a homicide or suicide.

A licensee receives more than one offer to purchase a seller's property. The licensee should: A Present only the highest offer. B. Reject the lower priced offer. C. Present all offers to the seller. D. Present the first offer and hold the offer until the seller decides.

A licensee represents a prospective buyer. The buyer requests to see a particular listed. property. Which of the following would be valid reason not to show the property to the buyer? A. The listing agent will no split the commission. B. The property is "for sale by owner" C. The buyer is not financially qualified to buy the property. D. the property is not in a suitable neighborhood.

A listing agreement (brokerage engagement) would be best described as an employment agreement between the: A. Broker and customer. B. Customer and client. C. Broker and the principal D. Principal and the salesperson.

A mailbox, flag pole and satellite antenna would most likely be considered: A. Encroachments. B. Emblements. C. Fixtures. D. Personal property.

A married couple bought property together in a residential community. They took title so that if either one died the survivor would automatically become a sole owner of the property. They took title as: A. Tenants in severalty. B. Tenants in common. C. Joint tenants. D. Community property.

A new airport is built near an existing residential subdivision. The loss of value caused by the unreasonable noise would be an example of: A. Physical deterioration. B. Functional obsolescence. C. External obsolescence. D. The principle of conformity.

A note which has equal monthly payments that include both principal and interest would be: A. Promissory note. B. Straight note. C. Amortized note. D. Term note.

A painter did some work on a owners's house and was not paid. The owner also owned several other properties in the same neighborhood. The painter would most likely file a mechanic's lien against: A. All the owner's real property. B. All the owner's personal property. C. The owner's property worked on by the painter. D. Both the owner's real and personal property.

A parcel of land is described using the following metes and bounds description: Starting at a point of beginning located at the southwest corner of Jones Road and Smith Road, thence south 310 feet, thence west 250 feet thence north 275 feet, thence east 200 feet. Would this be a valid description? A. Yes, it starts at a point of beginning. B. Yes, it contains direction and distances. C. No, it fails to return to the point of beginning. D. No, it fails to locate the point of beginning (P.O.B)

A percolation test is used to determine: A. The boundaries of a property. B. The market value for tax purposes. C. The ability of the soil to absorb and drain water. D. Toxic waste in the soil.

A person purchased a home in a residential subdivision and wanted to raise chicken in his backyard. Which of the following governmental rights would prohibit this activity? A. Building codes, because the contain the greatest number of restrictions for a city dwelling. B. Police power, because the police are responsible for deciding where all types a pets are allowed. C. Zoning ordinances, because they can regulate the types of animals allowed in each size. D. Building permits, because a permit is required to keep animals in residential areas.

A potential buyer requested the seller's agent not disclose their identity to the seller. Should the agent follow the buyer's instructions? A. Yes, the buyer;s identity is not required. B. Yes, the agent must follow the buyer's instructions. C. No, the agent has the duty to disclose this to the seller. D. No, this would be a violation of the anti-trust laws.

A property has a market value of $195,000 and is assessed at 50% of its market value. The tax rate is $52 per $1000 of the assessed rate. What is the real estate tax for this property? A. $975 B. $1,950. C. $5,070. D. $10,140.

A property is assessed at $80,000 of which $50,000 is allocated to the improvements and $30,000 to the land. The tax millage rate is 35 mills and would apply to: A. The improvements only. B. The land only. C. Both the improvements and the land. D. The improvements less the value of the land.

A property is selling for $2,500 per acre and is described as follows: "Beginning at a iron pin go 250' north; then 150'east, then 250' south, then 150' west to the point of beginning. The sales price is: A. $2,500. B. $2,000. C. $2,152. D. $37,500.

A property is under contract and the licensee learns of a previously unknown defect in the property prior to closing. Should the licensee make the defect know to the purchases even through it may void the contract? A. No, any defects discovered after the contract has been signed need not be disclosed. B. No, it is the buyer's responsibility of informing the purchases on any substantial changes in the property prior th closing. C. D.Yes, providing the change would have an effect on the appraisal value.

A property leased to a tenant was sold to a buyer. The lease had several months remaining but the buyer wanted to move in immediately? A. Yes, sale of the leased property will terminate current leases on the property. B. Yes, providing the rent had not terminate the current lease. C. D. No, the new owner would need to give the current tenant a 30-day notice to vacate.

A property manager was showing property in a twenty unit apartment complex to a prospective tenant in a wheelchair. The tenant wanted to rent a unit and make reasonable modifications to the premises, such as lowering all of the door handles. the landlord: A. Can refuse to rent to the tenant because it would lower the rental value of the unit. B. Must allow and pay for these modifications. C. Must allow the tenant, at the tenant's expense, to make the modifications, but can require restoration of the property by the tenant. d. Must allow the tenant, at the tenant's expense, to make the modifications but cannot require restoration at the end of the lease.

A property manager's compensation would most likely be based on all of the following EXCEPT: A. A percentage of the gross income. B. A percentage of the net income. C. The standardized fee in the market place. D. A fixed fee negotiated between the agent and the principal.

A property owner's fence extends beyond the property lines of the owner onto an adjoining neighbor's property. This would be considered an: A. Easement and disclosed in a spot survey. B. Easement and disclosed in a title search. C. Encroachment and disclosed in a spot survey. D. Encroachment and disclosed in a home inspection.

A prospective buyer of real estate gives a broker a cash deposit with an offer to purchase as evidence of their intention to complete the transaction. This deposit is known as: A. Down payment and the amount must be at least 10% of the sales price. B. Down payment and refunded when the contract is agreed upon bu both parties. C. Earnest money and the amount is negotiated between the parties. D. Earnest money and is essential to make purchase agreement binding.

A rea; estate licensee does a competitive market analysis for a seller to recommend a listing price for the real estate. Upon completion of the estimate, the agent meets with the prospective seller and refers to the estimate as an appraisal and suggests the property be listed at the appraised value. In this situation, was the licensee's actions correct? A. Yes, the market analysis should be given to the seller before listing the property. B. Yes, the appraisal will help the seller know the value of the property. C. No, the licensee should not have referred to the estimate as an appraisal. D. No, licensees cannot five opinions regarding the pricing of property.

A real estate agent sold a minority buyer a house in a predominately white neighborhood. Would this be a violation of the Fair Housing Law? A. Yes, this would be steering. B. Yes, this would be blockbusting. C. No, the agent fulfilled their brokerage duties. D. No, providing the house was owner occupied.

A real estate broker was hired to lease commercial properties. Each commercial lease was different based on the requirements of the parties. Which of the following is correct concerning this situation? A. The broker can draft each lease. B. The broker would most likely use preprinted commercial lease form and fill in the blanks. C. The broker should seek legal counsel to draft the leases. D. The lease agreement is not a contracted and can be drafted by either party.

A real estate firm opens a sales office to market new condominium units. Federal law requires the real estate firm to: A. Display the firm's real estate license. B. Display a plat map of the development. C. Display the HUD Fair Housing Poster. D. Display the public offering statement.

A real estate salesperson continually tells prospective clients that th commission rate his or her company charges is a "standard" or "prevailing" rate charged by all brokers in the area. In Georgia, this would MOST LIKELY be a violation of the: A. Federal antitrust laws. B. Seller's property disclosure statement. C. Fair Business Practice Act. D. Federal Fair Housing Law.

A rectangular parcel of commercial land container 6.12 acres. The frontage measured 420 feet, what is the depth? A. 127 feet. B. 389 feet. C. 635 feet. D. 930 feet.

A residential property had recently been rezoned commercial. The deed restriction prohibit commercial use of property. Would the owner be permitted to operate business from the property? A. Yes, the property is zoned commercial. B. Yes, zoning takes priority over deed restrictions. C. No, the deed restrictions are more restrictive and would take precedence over the zoning. D. No, private deed restrictions always take priority over public zoning.

A restrictive covenant which limits the use of real property in a subdivision is usually the result of: A. Government zoning. B. Eminent domain. C. Private deed restrictions. D. Police power.

A safely clause entitles the broker to a commission if one of the persons to who, the property was offered during the listing period decides to buy the property after the listing ends. The number of days in the safety clause is determined by: A. Agreement in the Seller's Property Disclosure Statement. B. Agreement in the listing contract. C. D the Georgia Real Estate Commission.

A salesperson completed a listing agreement which the owner signed. When should the salesperson furnish the owners a copy of the listing agreement form? A. After the listing broker has reviewed the form. B. After entering it into the multiple listing service. C. Upon securing the signature of the owners. D. When a written offer to purchase is presented to the owners.

A salesperson has enrolled in a 25- hour approved course two week prior to the one issuance of their original license. Due to the medical emergency to licensee is unable to complete the course within the one year required time period and their license lapses. Can the licensee reinstate the lapsed license? A. No, the licensee would have to start as an original applicant. B. No, the 25 hours must be completed within the first year of licensure. C. Yes,,if they produce a medical certificate of incapacitation and complete the course within six months of the lapsing of the license. D. Yes, by passing a new state licensing examination and completing the 25 hours of instruction approved by the Commission.

A salesperson obtains a listing on behalf of the listing company. If the salesperson leaves the listing company or becomes unlicensed during the listing, the listing would: A. Become an open listing. B. Automatically be terminated. C. Remain valid with the listing company. D. Have to be renegotiated with the owner.

A salesperson should show perspective buyers only properties that: A. Are listed with the salesperson's company. B. Offer the highest brokerage fees. C. That are financially able to purchase. D. Are compatible with their ethnic culture.

A seller has owner's title insurance. At closing if the buyer wants owner's title insurance, which of the following statements is correct? A. The buyer can assume the seller's policy. B. The policy runs with the land and the buyer would not need a new policy. C. The buyer would have to take out a new owner's title insurance policy. D. The premium for a new owner's title insurance policy would cover a period of one year.

A seller listed their house for sale on an "as is" basis. The seller disclosed to the listing agent that the plumbing was outdated and needed replacement. Later the seller discovered termite damage and notified the agent. If neither the seller nor the agent told a buyer about the damage., would the buyer be able to sue at a later date when the termite damage is found? A. No, because the property was sold on an "as is" basis. B. No, because the buyer has the right to get the property inspected prior to closing. C. Yes, because the agent did not disclose the damage to the buyer when it was discovered. D. Yes, because the seller is responsible to repair all defects on the property on an "as is" basis.

A seller listed their property on June 1. On August 10 the seller declares bankruptcy. On August 20 the broker brought a full price offer to the seller which was accepted. Is the broker entitles to a commission? A. Yes, the offer was for the full price. B. Yes, the offer was accepted by the seller. C. No, bankruptcy terminated listing. D. No, the buyer was not ready, willing and able.

A seller of the property is not a U.S. Citizen. Who would MOST LIKELY have the responsibility for the filing the tax information? A. Listing broker. B. Selling broker. C. Closing agent. D. Mortgage lender.

A seller sold a property for $185,000. The buyer assumed the seller's first mortgage of $122,364 and paid the balance in case. How much is the transfer tax? A. $185.00. B. $122.40. C. $62.70. D. $62.64.

A seller sold a property without disclosing that a third party might have a valid claim to the property. Has marketable title been conveyed by the seller? A. Yes, all claims are canceled at closing. B. Yes, the third party did not claim ownership at the time of transfer. C. No, because there is a potential cloud on the title. D. No, the seller violated the Statute of Frauds.

A seller's agent is showing property to a potential buyer. The buyer pointed out a minor defect in the ceiling. The salesperson should: A. Tell the buyer to contact the seller directly concerning the defect. B. Inform the buyer that practically all properties have minor defects. C. Inform the buyer they have the right to have the property inspected. D. Hire and inspector to determine if there are additional defects.

A tenant has a five year lease. The tenant dies after three years. Is the lease binding on the tenant's heirs? A. No, death of either party terminates a lease. B. No, leases are not inheritable. C. Yes, contracts pertaining to real estate are binding on the heirs of the deceased. D. Yes, only if the lease is a tenancy at will.

A tenant has an estate for years and vacates the property at the specific ending date. The landlord refuses to return the security deposit because the lessee did not give him notice. Is the landloard's action correct? A. Yes, an estate for years requires a 30 day notice B. Yes, an estate for years requires a 60 day notice C. No, no notice is required D. No, security deposits cannot be held for breach of lease.

A tenant has signed a written nine-month lease with a specific expiration date. This is MOST LIKELY which of the following leasehold estates? A. Estate (tenancy) from period to period. B. Estate (tenancy) at will. C. Estate (tenancy) for years. D. Estate (tenancy) at sufferance.

A tenant leases an apartment. The property is uninhabitable due to negligence of the landlord. The tenant vacates premises. Under which of the following actions could the tenant refuse to pay rent on the apartment? A. Adverse possession. B. Constructive eviction. C. Unlawful detainer action. D. Actual eviction.

A tenant leases the property on a year;y basis and could terminate the lease by giving the landlord a 60-day notice. This lease was MOST LIKELY a(n): A. Estate for years. B. Tenancy in common. C. Periodic estate. D. Estate at sufferance.

A tenant negotialtes a monthly lease which does not require a termination notice. What type of leasehold estate would this be? A. Tenancy at will B. Periodic tenancy C. Tenancy for years D. Tenancy in common

A tenant rented 1500 square feet of retail space for $14 per square foot per year. The tenant also agreed to 5% of their gross sales over $100,000. If the gross sales were $350,000, how much total rent did the tenant pay? A. $17,500 B. $21,000 C. $33,500 D. 38,500

A title search of the seller's property reveals a cloud on the title. To remover a possible claim or interest in the property the sellers should: A. File a lis pendens B. Sign a quit claim deed. C. File a quiet title actions. D. File a notice of non-responsibility

A well-maintained house in a deteriorating neighborhood of run down homes would MOST LIKELY suffer from: A. Physical deterioration. B. Functional obsolescence. C. External obsolescence. D. Appreciation.

After a broker takes a listing on a residential property, the owner instructed the broker NOT to show the property to buyers with children, The broker should do which of the following: A. Follow the seller's instructions. B. Include "no children" in all advertising. C. Inform the owner that the instructions violate federal law and that the broker must comply with the law. D. Add the "no children" stipulation to the listing agreement.

After a listing has been signed, the seller suggests that the listing saleperson not tell any prospects about the repair that had been made to the basement foundation. In this case, which is the best thing to tell a prospective buyer? A. Nothing, the broker should follow the seller's instructions and not discusss the repairs. B. The foundation has been successfully repaired and is no longer a problem. C. The basement foundation had some repair work done, but the buyer is entitled to have an inspection of the basement. D. Nothing, the broker represents the seller and cannot and disucss with the buyer and problems in the property.

After obtaining a listing, when requesting the seller's loan information from the lender, that written request should be signed by the: A. Salesperson. B. Listing broker. C. Seller. D. Listing broker and salesperson, jointly.

After the statutory period of time has been reached, what action would an adverse possessor file to claim title to the property? A. Partition action B. Foreclosure action C. Condemnation action D. Quiet title action

All members of the Georgia Real Estate Commission: A. Must place their license on inactive status while serving. B. Must have been actively licensed for at least Five years. C. Are appointed for a term of five years. D. Must have been residents of Georgia at lease three years.

All of the following are characteristics of a rectangular survey EXCEPT: A. The longer the description, the smaller parcel of land. B. It includes meridians and base lines. C. It starts at a point of beginning. D. It is good for identifying large parcels of land.

An agent obtained a six month listing on a house at a 7% commission. One month after obtaining the listing the property was totally destroyed by fire. In regards to the broker's listing the broker should: A. Change the advertising to read "vacant lot". B. Not show the house until it is rebuilt. C. Do nothing since the agency has been terminated. D. File a claim with the owner's insurance company for the commission.

An applicant for licensure with a criminal conviction shall be required to disclose the conviction to the Georgia real Estate Commission when: A. Making application for enrollment in a prelicensing course. B. Making application to sit for the state licensing examination. C. Making application for licensure. D. Making application to change license status from active to inactive.

An appraisal of a rental property would NOT be used for which of the following? A. To determine the property's insurance value. B. To set rental rates, C. To assure compliance with health and building codes. D. To determine a loan amount.

An inactive salesperson who receives security deposits on rental property they own: A. Must deposit those funds into a designated trust account maintained by their broker. B. Must deposit those funds into a designated trust account approved by their broker. C. Must maintain those funds in a designated trust account. D. May post a bond in lieu of maintained security deposits in a designated trust account.

An owner has a duplex rental house located on property zoned commercial. When appraised, the value was based on commercial use. Which of the following appraisal principles BEST describes this situation? A. Change. B. Conformity. C. Highest and best use. D. Supply and demand

An owner is refinancing their present home loan. The disclosure of the financing changes on the new loan would be covered under the: A. Statute of frauds. B. Federal Fair Housing Law. C. Truth in Lending Act/Regulation Z. D. Real Estate Settlement Procedure Act (RESPA).

An owner listed their property for $200,000 and instructed the agent not to present offers below $200,000. The agent receives a signed offer for $195,000. The agent should: A. Reject the offer because of the low price. B. Refuse to present the offer. C. Promptly present the offer to the seller. D. Hold the offer until the purchaser increases the price to $200,000.

An owner neglected to pay Spence Construction Company for the new airplane hanger built on a piece of her property next to her home. A. Yes, because the existence of the hangar benefits the airplane, thereby making the airplane legally attachable. B. Yes, because a mechanic's lien covers any property on the owner's possession. C. No, because a mechanic's lien in specific to only the real property being improved. D. No, because an attachment lien that includes air rights must be levied against the owner's property.

An owner of a life estate with a remainder interest desired to sell their interest. Which of the following statements is correct? A. A life estate interest cannot be sold. B. The remainderman would loose their interest if the property is sold. C. The buyer would receive the same interest the life tenant had. D. The remainderman would have to sign the listing.

An owner of commercial retail business is considering selling stock in the business. The owner contacted a real estate salesperson concerning the sale. The salesperson should: A. Contact an attorney to help the salesperson handle the sale. B. Have their broker handle the transaction. C. Inform the owner to contact an agent that has securities license. D. Personally handle the transaction.

An owner who cannot attend a closing want to delegate authority to another person to act on his or her behalf for signing deeds and other closing documents. The owner would MOST LIKELY execute a: A. Listing agreement. B. Quit claim deed. C. Power of attorney. D. Administrator's deed.

An owner;s right to ingress and egress their property would be: A. An encroachment. B. A license. C. An Easement appurtenant. D. An emblement.

An ownership interest in real property consisting of an individual fee simple interest in a commercial office or retail store and an undivided interest in common areas BEST describes? A. A cooperative. B. A planned unit development. C. A condominium. D. A real estate investment trust.

An undisclosed encroachment could render a title: A. Void. B. Valid. C. Unmarketable. D. Breached.

Annual taxes (Jan1-Dec 31) divided by 3665 days timer (X) the number of days owed or refunded: A real estate transaction closes on August 15. The annual taxes of $529.60 have been paid. At closing, the tax proration credited to the seller would be: A. $120.03. B. $168.30. C. $200.23. D. $202.20.

Baird conveys property to Carr for Carr's lifetime and designates Leslie to be the remainderman. Then Carr dies, what ownership interest would Leslie have the property? A. Leasehold Estate. B. Estate in reversion. C. Fee simple estate. D. Life estate.

Carr has an option to buy a property. If the option right has not been exercised within the stated time period, what action would Carr need to take to terminate the option? A. Sign a quit claim deed. B. Sign a sames contract. C. Nothing, as the option automatically expired. D. File a lis pendens.

Does the owner of the residential real property need a real estate license to sell,rent, or manage the property? A. Yes, this would be considered practicing real estate. B. Yes, if the owner owned more than one property. C. No, the license law would not apply. D. No, residential real estate is exempt from the real estate license law.

Fees collected by the Real Estate Commission are held: A. By the Real Estate Commission members. B. In the Commissioner's personal checking account. C. In the General Fund of the state treasury. D. In an interest bearing trust account.

If a seller refuses to see to a buyer under an enforceable contract of sale, the buyer can request a court to enforce the contract and make the seller deed the property. This action would be a : A. Suit to partition, B. Suit for damages. C. Suit for specific performance. D. Rescission.

If government zoning regulations conflict with the private deed restrictions, which would take precedence? A. Government zoning regulations. B. Private deed restrictions. C. The more restrictive would take precedence. D. Private deed restrictions if they were recorded before the zoning was enacted.

If there are any excess proceeds after the foreclosure sale, they are paid to the: A. Trustee. B. Beneficiary. C. Mortgagor. D. Mortgagee.

If there is no expiration date in a brokerage engagement and no authorized termination has occurred, how long will the engagement continue after the initiation of the engagement? A. Three months. B. Six months. C. One years. D. Two years.

In Georgia, which of the following brokerage engagements must be in writhing? A. Only engagements for longer than 90 days. B. Only seller's brokerage engagements. C. All exclusive brokerage engagements. D. Only buyer's brokerage engagements.

In a listing agreement the broker receives as commission all excess monies above the minimum sales price agreed on by the broker and seller. This would be considered: A. An open listing. B. An exclusive right to sell listing. C. A net listing. D. An implied listing.

In a listing agreement the fiduciary in the: A. Client. B. Customer. C. Agent. D. Principal.

In a loan assumption, the seller wants to be released from any future liability on the assumed loan. To accomplish this, a release of liability would be signed by: A. The new buyer assuming the loan? B. The seller who took out the loan. C. The lender who made the loan. D. Both the buyer and seller.

In a real estate loan, who signs the mortgage? A. Vendor. B. Beneficiary. C. Mortgagor. D. Mortgagee.

In a sale and leaseback arrangement the seller's fee simple estate is converted to a: A. Life estate B. Homestead estate. C. Leasehold estate (less than freehold). D. Fee simple defeasible estate.

In a sale of a vacant lot in a new subdivision in which the lots do no have recorded warranty deeds, a Georgia licensee would most likely obtain information to complete a short form legal description from: A. The seller's warranty deed. B. The security deed. C. A a recorded subdivision plat map. D. A Sukey.

In a sales contract the buyer receives equitable title to the property, this entitles the buyer to: A. Take possession of the property B. Assume the seller's loan. C. Sue for specific performance. D. Have the property rezoned.

In a sales contract the seller wanted the closing to take pace before the end of the year. Which clause should the sellr include in the contract to insure punctual performance? A. "Hold-harmless" clause. B. "Rescission" clause. C. "Time is of the essence" clause. D. "As is" clause.

In an option agreement to purchase price at which the property would be sold must be established: A. At closing. B. When the option is exercised. C. When the option agreement is created and signed. D.. Anytime during the option period.

In negotiating listing for her firm, a salesperson wanted to know if she had the authority to sign for her broker on the listing agreement. Where would the salesperson look to find the answer to this question? A. The Rule and Regulations. B. In the Salesperson's Course Study Guide. C. In the written agreement with her broker. D. On her real estate license.

In order to enforce a commission claim in Georgia, the first thing the broker must prove in court is: A. They were the efficient and procuring cause of sale. B. They had the authority to negotiate the sale and the seller promised to pay a commission. C. The broker and any sales associates involved in the transaction held valid real estate licenses at the time they earned the commission. D. There was a closing and the seller actually conveyed title to the buyer.

In the appraisal of churches, school and other special purpose properties the appraiser would MOST LIKELY assign the greatest weight to be: A. In come approach. B. Sales comparison approach. C. Cost approach. D. Gross rent multiplier.

In the appraisal process the last step is to" A. Determine the highest and best use. B. State the problem. C. Report the final value estimate. D. Gather the necessary data.

In the event of a foreclosure, the lender agrees not to terminate any leases signed after the mortgage was recorded. Which of the following mortgages clauses should be included in the mortgage? A. Defeasance. B.Acceleration. C.Non-disturbance. D. Subordination

In the marketing of a condominium unit, the real estate licensee tells the prospective buyer "that because of the demand for these units the price will double in five years." This statement by the licensee is: A. An acceptable practice in the marketing of residential condominium units. B. An example of a dual agency and need not be disclosed. C. A violation of the license law. D. Required to be in writing and made part of the real estate sales contract.

In which of the following circumstances could a contractor file a mechanic's lien on a property where work was performed? A. The contractor's truck was stolen at the job site. B. The contractor's tools were damaged on the job. C. Kitchen cabinets were installed by the contractor and payment was never received. D. If materials provided were used to improve another property.

In which of the following loans does the lender waive the right to a deficiency judgement (exculpatory clause) and the borrower is not held personally liable on the note? A. Open end. B. Straight. C. Non recourse. D. Conventional.

May a licensee still collect earned commissions directly from a previous broker if the licensee transfers to a new firm? A. N, the licensee forfeits all commissions when they transfer. B. No, the licensee can only be paid commissions by the new firm. C. Yes, provided both brokers agree in writhing to the expressed terms under the licensee shall be compensated by the former broker. D. Yes, the licensee earned the commission under the previous broker and can be paid directly by that broker.

On the sale of their property. the seller continues to make payments on their first loan and creates a new second mortgage with the buyer. The new second mortgage would be: A. An open end loan. B. A blanket loan. B. A blanket loan. C. A wraparound loan. D. A reverse mortgage.

Once a mechanic's lean has been paid, a written notice should be filed in the proper court. The written notice is generally called a(an): A. Attachment. B. Notice of completion. C. Satisfaction of lien. D. Notice of non-responsibility.

Private mortgage insurance (PMI) is calculated on the: A. Listed price. B. Sales price. C. Loan amount. D. Loan amount less earnest money.

RESPA requirements would apply to which of the following transactions? A. A buyer's loan assumption of a seller's existing loan. B. A transaction financed solely by a purchase-money mortgage taken back by a seller. C. A first mortgage to finance the purchase of a single family home. D. An installment contract (contract for deed) with a seller.

Real property is owner by Baird, Carr and Falk as tenants in common. If Carr dies intestate, to whom will hos ownership interest likely pass? A. Baird and Falk equally. B. Baird and Falk as joint tenancy. C. Carr's heirs. D. The state, by the law escheat.

Salesperson Boyd, a licensed salesperson currently on inactive status, plans to purchase a parcel of land. Before presenting the offer to the seller the salesperson must: A. Provide the real estate commission with a copy of the contract when the offer is accepted by the seller. B. Provide his broker that he is a licensed real estate salesperson. D. State in the offer the purpose for which the property is being purchased.

Sally's apartment lease has expired but the building owner agrees to let her stay in the apartment and pay the rent monthly. Sally most likely has a: A. Tenancy at sufferance. B. Tenancy for years. C. Periodic tenancy. D. Tenancy in common.

Security deposits collected from tenants and kept in the broker's designated rental trust account are credited to: A. The property manager. B. The broker. C. The tenant. D. The Owner

Several brokers have been retained by a developer to market properties in a new residential subdivision. Can each broker put their FOR SALE signs on the property? A. No, only one sign is permitted. B. No, this would be considered a dual agency. C. Yes, if each broker has written permission of the developer. D. Yes, if each broker has notified the Real Estate Commission in writing.

The Americans with Disabilities Act would apply to which of the following properties? A. A duplex house. B. A rental property without a handicap ramp by the front stairs. C. A shopping center without handicapped accessible restrooms. D. A residential apartment without handicapped parking spaces.

The Real Estate Education, Research, and Recovery fund has paid an aggregate amount of $45,000 on behalf of a licensee. Would the fund be liable for future acts of that licensee? A. Yes, after a 3-year period. B. Yes, after a 5-year period. C. No, the liability of the fund is terminated after $45,000 has been paid. D. No, unless the licensee pays the money back to the fund.

The Truth-in-Lending act (Regulation Z) applies to which of he following real estate loans? A. A commercial loan for a ten unit apartment building. B. A construction loan to build a single-family residence. C. A residential loan to a first time home buyer to purchase a single-family residence. D. An agricultural loan to purchase a farm.

The apparent age of a building based on present observed conditions is called: A. Chronological age. B. Actual age. C. Effective age. D. Real are.

The buyer and seller agree to split the closing costs of %1500. The seller agreed to pay $900. How much would this appear on the closing statement? A. Debit the seller $600. B. Credit the seller $900. C. Debit the seller $900. D. Credit the seller $900.

The buyer includes earnest money as part of an offer to purchase with the understanding the earnest money would be returned if the buyer is unable to qualify for a loan. Which of the following clauses should be included in the offer to reflect the buyers request? A. "As is" clause, B. "Time is of the essence" clause C. Mortgage contingency clause. D. Property sale contingency clause.

The commission rate on a sale of a property is MOST LIKELY determined by an agreement between: A. Seller and buyer. B. Broker and customer. C. Broker and client. D. Lender and broker.

The economic like of a property deals primarily with the property's: A. Appreciation. B. Depreciation. C. Profitability. D. Zoning.

The first corner to be surveyed using a metes and bounds method of legal description is called the: A. Data line. B. Section marker. C. Point of beginning. D. Principal meridian.

The functions of a property manager would most likely include all of the following EXCEPT: A. Knowledge of the types of insurance available. B. Maintaining good relations with tenants. C. Appraising the value of the building. D. Developing and operating budget.

The liability of the Real Estate Education, Research, and Recovery Fund for the acts of a licensee is terminated upon the payments from the fund in a aggregate amount of: A. $5,000 B. $15,000 C. $45,000 D. $1,000,000

The listing broker has an exclusive right to represent the developers in a new subdivision. the broker shows properties in the subdivision to prospective buyers who are not working with others agents and prepares offers for those who decide to buy. Which of the following statements best describes this situations? A. The buyers and the developers are represented by the listing broker. B. The buyer are represented by the listing broker. C. The buyers are not represented by the listing broker. D. The listing broker owes obedience to the buyers.

The main purpose of the Federal Housing Administration (FHA) is to: A. Build government approved houses. B. Make Loans on FHA approved properties. C. Insure loans on real property made by approved lending institutions. D. Purchase loans in the secondary market.

The method of land description that includes principal meridians, base lines and townships in called: A. Lot and block system. B. Metes-and-bounds description. C. Rectangular (government) survey system. D. A geological survey.

The owner is renting the vacant unit of an owner occupied duplex. The owner would be exempt from the Fair Housing Law if they: A. Advertised "for Catholics only". B. Refused to rent to someone based on race. C. Refused to rent to someone who was blind. D. Advertised "adults only, no children".

The owner of a condominium complex hired a broker to find buyers for the last two available units, the broker would be considered : A. Universal agent. B. General agent. C. Special agent. D. Dual agent.

The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to: A Regulate settlement costs and set the maximum interest a lender can charge the borrower. B. Provide the borrower with mortgage insurance. C. Inform buyers and sellers of all settlement costs in a residential real estate transaction. D. Standardize real estate settlement procedure to limit the number of non-federally related loans.

The purpose of the Truth-in-Lending Act (Regulation Z) is to: A. Set the maximum interest rate. B. Set the minimum interest rate. C. Inform borrowers the true cost of obtaining credit. D. Disclose to the borrower loan closing costs.

The salesperson's primary role at closing is to: A. Assist the closing attorney and refund the earnest money. B. Conduct the closing and deliver closing statements to all parties. C. Represent their broker and the broke's client. D. Pick up the commission check and deliver it to their broker.

The seller asked their broker the buyer's race. The broker respectfully refused to answer their request. Did the broker violate their fiduciary relationship with the seller? A. Yes, the broker must make all disclosures. B. Yes, the broker must follow the seller's instructions. C. No, discussion of race would be a violation of the fair housing law. D. No, discussion of race would be a violation of the statute of fraud.

The seller may tell the salesperson that he or she wants to end the listing agreement before the agreed upon expiration date because the company is not transferring them after all. Can the salesperson release the principal from the listing agreement? A. Yes, as long as any incurred expenses are paid by the seller. B. No, the listing agreement cannot be terminated prior to expiration. C. No, only the broker can release them from the contract. D. Yes, the salesperson ins acting for the broker.

The total obligations (living expenses) ratio on a conventional loan should not exceed: A. 28% of the purchaser's gross stable monthly income. B. 20% of the purchaser's after tax income. C. 36% of the purchaser's gross stable monthly income. D. 41% of the loan amount

Three real estate licensed salespersons and an associate broker want to form a new real estate company. Can the associate broker serve as the qualifying broker for the new firm and as an associate broker for their present firm? A. No, an associate broker can only work for one firm. B. No, an associate broker cannot become a qualifying broker. C. Yes, provided the associate broker notifies their current broker of the intended service. D. Yes, if the company has less than ten licensees.

To be eligible under the VA loan program, the minimum active service time during "wartime" is: A. 30 days. B. 60 days. C. 90 days. D. 2 years.

To prove title in Georgia, a chain ownership need only go back how many years? A. 14. B. 21. C. 50. D. 99.

Under RESPA, one requirement pertaining to the closing is that the lender must use a particular closing statement form developed by HUD. This form is known as: A. "Settlement Costs" booklet. B. Warranty Deed. C. Uniform Settlement Statement. D. Security Deed.

Under a listing agreement, the seller instructs the broker not to put a "FOR SALE" sign on the property and only advertise in the local multiple listing service. Is the permissible? A. No, a broker is required to put a "FOR SALE" sign on all listed properties. B. No, only the broker can determine the method of advertising. C. Yes, the client has the right to give instructions that are legal to the broker. D. Yes, the seller has the responsibility of marketing the property.

Under cooperative ownership the corporation is unable to make mortgage and tax payments because a few shareholders default on maintenance payments and the property and the property might be sold by court in a foreclosure suit. The results of the foreclosure action would: A. Destroy the interests of only defaulting shareholders. B. Make each shareholder responsible, including those who paid their payments. C. D. Destroy the interests of only the non-defaulting shareholders.

Under the Federal Fair Housing law, familial status would apply to: A. A single person. B. A married couple. C. Individuals under the age of 18 living with a parent. D. A married person 62 years of age or older.

Unused blank spaces in a preprinted "form" real estate sales contract may be filled in with an N/A (not applicable) in which case: A. All parties must initial, date and time. B. Approval is required. c. D. An amendment form would have to be signed by all parties.

What do liens and encumbrances have in common? A. They are both deed restrictions on real property. B. They both prevent transfer of title to real property. C. They both are claims or charges one person has on the real property of another, D. They are both rights or interests in real property by legal owner of the property.

What is the maximum repayment term on a VA loan? A. 20 years C. 30 years D. 40 years

What would be the best way to prevent leasing problems between the lessor and lessee? A. Require the lessee to include a larger security deposit. B. Have the parties verbally discuss any problems areas concerning the lease. C. Write any restrictions or requirements in the lease. D. Use only preprinted lease agreements.

When a licensee anticipates transactions involving real estate owned by that licensee, the law requires the licensee to: A. List the property with the broker holding the licensee;s license, B. Have earnest money checks made payable to the licensee owning the property. C. Notify their broker, in writhing, prior to entering into the transaction. D. Notify the Georgia Real Estate Commission within fourteen (14) days from the date of the contract.

When a member of the Georgia Rea Estate Commission vacates before the full term is served, the member is succeeded by a properly appointed person who shall serve for: A. A period to time determined solely by a vote of the Georgia Real Estate Commission that is based upon when the vacancy occurred. B. Less than the unexpired term of the member creating the vacancy. C. The unexpired term of the member creating the vacancy. D. Five years, because all successors are appointed for this term.

When appraising property in a competitive and open market, market value is: A. the highest price a property should bring. B. The lowest price a property should bring. C. The most probable price a property should bring. D. The avenger price a property should bring.

When computing the amount of capital gain, which of the following would NOT be an appropriate adjustment? A. Capital improvements. B. Depreciation. C. Homeowners' association fees. D. Closing costs and real estate commission.

When does an offer become a valid sales contract? A. When the offer is signed by the offerer. B. When the offer is signed by the offeree. C. When the acceptance of the offer is communicated to the offerer. D. When the earnest money is deposited.

When interest rates increase on residential home loans, which of the following is most likely to occur? A. New buyers would be looking for homes. B. Prices on residential properties would remain unchanged. C. Prices on residential properties would decrease. D. Prices on residential property would increase.

When leasing an apartment, which of the following classes of people are protected under the federal Fair Housing Law? A. A married couple. B. A divorced couple. C. A family with minor children. D. A senior citizen.

When listing a residential property a broker would primarily rely on which of the following to establish a realistic asking price? A. Income approach. B. Cost approach. C. Market data approach/CMA. D. Expired listing.

When making a loan, the lender would normally base the loan to value ratio on: A. The listing price or sale price, whichever is lower. B. The listing price or sale price, whichever is higher. C. The appraisal value or sale price, whichever is lower. D. The appraisal value or sale price, whichever is higher.

When qualifying a borrower for a loan a lender would consider the borrower's A. Martial status. B. Dependence on public assistance. C. Debt to income ratio. D. National origin.

When using a security deed in Georgia the borrower is the: A. Mortgagor. B. Mortgagee. C. Grantor. D. Grantee.

Whenever the qualifying broker of a real estate firm dies the firm must secure a new qualifying broker within: A. 10 days. B. 30 days. C. 60 days D. 180 days

Which form of ownership requires the unities of possession, interest, time and title? A. Severalty. B. Tenancy in common. C. Joint tenancy. D. Tenancy by the entirety.

Which of the following BEST describes payments on a term loan (straight loan)? A. Amortized B. Adjustable. C. Interest only. D. Interest and principal.

Which of the following best describes a fee simple estate? A. A leasehold interest in real property. B. Ownership of land that is good only for a person'd lifetime. C. The highest form of ownership one can hold. D. The right a tenant holds in property he or she has leased.

Which of the following deed is the most commonly used and offers the greatest protection to the buyer? A. Quit claim deed. B. Bargain and dale deed. C. General warranty deed. D. Special warranty deed.

Which of the following deeds provides the lease protection for the grantee and the least liability for the grantor? A. Special warranty deed. B. General warranty deed. C. Quitclaim deed. D. Bargain and sale deed.

Which of the following factors would affect the supply of real estate? A. Population. B. Employment. C. Labor force. D. Demographics.

Which of the following facts about a seller's property should a listing salesperson disclose to a potential buyer? A. The seller's reason for selling. B. The seller's original purchase price. C. A special assessment tax is about to be levied on the property. D. The seller is anxious to sell.

Which of the following forms of ownership is available only to married couples and provides rights of survivorship? A. Tenancy in common. B. Community property. C. Tenancy by the entirety. D. Tenancy for life.

Which of the following is NOT a purpose of the Truth-in-Lending Act (Regulation Z)? A. To give borrowers meaningful information with respect to the cost of credit. B. Disclosure of the annual percentage rate. C. To set maximum interest rates. D. Provide the borrower the limited right to rescind or cancel a credit transaction.

Which of the following is Not an essential element of value? A. Transferability. B. Utility. C. Desire. D. Scarcity.

Which of the following is a characteristic of a graduated payment loan and generally NOT found in a traditional level payment loan? A. Simple interest rate. B. Prepayment penalty. C. Negative amortization. D. Adjustable inter rate.

Which of the following is a feature of an alienation clause in a loan agreement? A. The lender can call the whole note due a payable upon non-payment by the owner. B. The borrower can prepay the loan without penalty. C. If the borrower sells the property, the lender may declare the unpaid balance on the note due and payable. D. It makes assumption of the loan possible by another borrower without the lender approval.

Which of the following is a function of property manager? A. Filing income tax reports. B. Investing security deposits. C. Supervision of property maintenance. D. Appealing property tax assessments.

Which of the following is an example of police power? A. The government is taking private property to build a public school. B. A covenant restricting the use of the land. C. Zoning of private property by the government. D. The reversion of abandoned private property to the government.

Which of the following items would a licensee most likely give a seller when getting a listing and also prior to closing? A. Seller's Property Disclosure Statement. B. Seller's loan information form. C. Seller's Estimate Costs of Sale Worksheet. D. HUD Uniform Settlement Statement

Which of the following lenders would MOST LIKELY have a major portion of their assets in real estate loans on single family residential housing? A. Federal Housing Administration (FHA). B. Mortgage brokers. C. Savings associations. D. Insurance companies.

Which of the following parties would be eligible to obtain a guaranteed VA loan? A. Children of retired veterans. B. Grandchildren of retired veterans. C. Windows of veterans whose deaths were service related and who have no re-married. D. Windows of veterans whose deaths were service related.

Which of the following relationships would be considered a general agency? A. A broker representing a buyer. B. A broker representing a seller. C. A broker managing an owner's rental property. D. A listing broker working with a customer buyer.

Which of the following rights would a buyer receive in a land contract ( contract for deed)? A. Survivorship. B. Redemption. C. Possession. D. Laches.

Which of the following situations would be considered a dual agency? A. A salesperson and employing broker splitting a sales commission. B. Brokers from two offices splitting a sales commission. C. A broker acting for both the buyer and seller in the same transaction. D. A broker acting for the seller cooperating with another broker acting for the buyer.

Which of the following statements about a judgement lien is TRUE? A. A judgement lien has a specific parcel of land as security for the debt. B. A judgement lien applies only to real property. C. The judgement covers only property located within the country where the judgement is recorded. D Judgement are enforced through the issuance of a satisfaction.

Which of the following statements about a quitclaim deed is INCORRECT? A. It can be used to transfer whatever interest the grantor may have in the property. B. It can be used to release whatever interest the grantor may have in the property. C. It warrants the grantors title and possession. D. It is commonly used to quiet a cloud on the title

Which of the following statements best describes "blind advertising"? A. Failure to give the property's address. B. Failure to give the owner's name. C. Failure to state the advertiser is a real licensee. D. Failure to disclose defects in the property.

Which of the following statements best describes the effect on mineral rights when the land is sold? A. They always transfer with the sale of the land. B. They cannot be divided and sold separately from the land. C. They automatically transfer to the buyer unless specifically excluded in the deed. D. They must be specified in th sales contract to pass with the sale of real property.

Which of the following statements is NOT true? A. A salesperson may be licensed under only one Georgia broker. B. Newly licensed salespersons may commence work in real estate only after their brokers have received their licenses. C. A salesperson may be licensed under a second broker if the salesperson pay the prober fees. D. A salesperson must have a written agreement with their broker concerning their financial arrangements.

Which of the following statements is a feature of a the following statements about FHA loans on residential property is true? A. Qualification for a FHA loan are based on the borrower's net income. B. The lender pays for FHA protection on the loan. C. The maximum loan amount on a property is based on the purchase price or the FHA appraisal, whichever is less. D. The borrower is not required to make a down payment.

Which of the following statements regarding the federal Fair Housing Law is TRUE? A. It applies to commercial property. B. Aggrieved persons under the law should file a complaint with the FHA. C. It prohibits discrimination in the selling and renting of residential housing. D. It prohibits discrimination based only on race,religion and national origin.

Which of the following transactions has the highest loan-to-value ration (LTV)? A $70,000 down; $80,000 loan. B. $20,000 down; $60,000 loan. C. $10,000 down; $90.000 loan. D. $15,000 down; $85,000 loan.

Which of the following typed of depreciation is generally considered incurable? A. Functional obsolescence. B. Physical deterioration. C. External obsolescence. D. Accrued depreciation.

Which of the following will make direct loans to home buyers? A. Federal Housing Administration (FHA) B. Federal National Mortgage Association (Fannie Mae) C. Farm Service Agency (FSA) and Farmers Home Administration (FmHA). D. Department of Housing and Urban Development (HUD).

Which of the following would LEAST likely be included in a property management agreement? A. Description of the property to be managed. B. Property manager's compensation. C. Rental rate per unit. D. Manager's periodic reports.

Which of the following would NOT be based on the borrower's loan amount? A. Loan origination fee. B. Lender's title insurance. C. Survey. D. Intangibles taxes.

Which of the following would be classified as real property? A. Annual crops currently growing. B. Book shelves installed by the owner. D. A counter top microwave oven purchased bu the owner.

Which of the following would be considered a fixture? A. A pasture on a farm. B. A pond on a farm. C. A fence on a farm. D. A farm tractor.

Which of the following would be considered a latent defect in the property? A. A house that needs to be painted B. Carpet that needs to be replaced C. A water leak in a wall covered by paneling D. A bathroom faucet that drips water

Which of the following would be considered ownership in severalty? A. One property owned by several persons. B. Several properties owned by two persons. C. One property owned by one person. D. Several properties each owned by several people.

Which of the following would determine a seller's net proceeds at closing? A. The buyer's credits minus the seller's debits. B. The buyer's credits minus the buyer's debits. C. The seller's credits minus the seller's debits. D. The seller's credits minus the buyer's debits.

While a licensee is showing a property to a prospective buyer, the licensee tells the prospective buyer the property has a "fantastic view." Would the prospect be likely to successfully use that statement as a basis for a legal complaint? A. Yes, because it would be considered a misrepresentation. B. Yes, because it is illegal for a licensee to use nonfactual extravagant statements. C. No, because this statement would be considered puffing and not grounds for a misrepresentation. D. No, because as long as a prospect has seen a property where are no grounds for any later complaints.

Why should a real estate licensee do a neighborhood analysis? A. To determine the neighborhood racial balance. B. It is required in a listing agreement. C. It will help the agent determine an estimate of the value of the property. D. It is used to locate the property boundaries.

You're a new real estate salesperson writing a sales contract for the purchase of commercial property. The buyer wants to exchange company stock for the property. If you are unable to use a preprinted form sales contract you should: A. Attempt to draft an entire new contract. B. Consult a real estate attorney. C. Consult your broker. D. Consult the buyer's attorney.

a buyer signed a contract to buy a house for $100,000. To obtain a larger loan for the buyer the broker submitted a false contract to the lender for $110,000. Is the broker's action legal? A. Yes, in the buyer agreed. B. Yes, the loan would be based on the appraisal. C. No, this would be considered fraud. D. No, this is an example of redlining.

the occupancy level of an apartment building exceeds 95%. The property manager should consider: A. Renovating the vacant apartments. B. Spending more on advertising. C. Increasing the rent. D. Increasing the security deposit.

under a listing agreement which of the following is a fiduciary responsibility of the listing broker? A. Determining if the seller has a marketable title. B. Advertising the property at a price less that th listed price. C. Advertising the seller the buyer is willing to pay more than the are offering. D. Disclosing the buyer's race and national origin

Which entity is a HUD entity? A DIF B OTS C Ginnie Mae D Fannie Mae

C Ginnie Mae Created by congress in 1968 and is a part of the Dept of Housing and urban Development (HUD)

The best way for a RE Broker to terminate a contract is by: A. Assignment B. Renunciation C. Performance D. Lapse of time

C. Performance (read the question - what is the BEST way...)

A broker wants to charge her clients a flat fee for her commission, so that no matter what price a home sells for, the broker will receive the same amount of compensation. Which of the following must occur before the broker can make such arrangements? A. Special permission must be granted by the state legislature. B. There must be a history of such a compensation plan in the area C. The clients must be given a choice between a percentage commision plan and the broker's proposed plan. D. Clients must agree to the arrangement

A broker would most likely NOT be entitled to a commission under an exclusive right to sell listing if the property was sold: A. By the seller. B. By the listing broker. C. By a selling broker. D. By a sheriff at a foreclosure sale.

A business in which one person owns the entire business and reports all profits and losses directly on his or her own income tax return would be a: A. Corporation. B. Limited liability company. C. Partnership. D. Sole proprietorship.

A buyer orders a termite inspection and termite damage to the structure is found. Who is responsible to correct the existing damage? A. The buyer ordered the report and would pay for inspection and any damage found. B. The buyer would pay for damages and the seller would pay for the inspection. C. The seller would pay for the damages and the buyer would pay for the inspection. D. The party specified in the sales contract.

A buyer sued a real estate salesperson for fraud in a real estate transaction and received a judgement in the amount of $15,000. The salesperson owns a cabin in Georgia valued at $10,000, free and clear. For the buyer to file a claim against the Real Estate Education, Research, and Recovery Fund he must: A. Inform the Real Estate Commission about the property the sales person owns so the Commission may take legal action. B. File a lien on the property in the amount of $10,000. C. Present the judgement to the Real Estate Commission for $ 15,000. D Have a property levied upon,and file a claim against the Real estate Education, research, and Recovery Fund for the balance remaining to satisfy the judgement.

A buyer wants to buy a house and fence the backyard for her dog. She tells a listing agent her plans and is shown several properties y that agent. The agent finds a property the buyer likes and the buyer makes an offer that is accepted. After closing and moving into the property, she find out here are deed restrictions in the subdivision that prohibit fences. Which of the following is true? A. The seller is liable for not telling the buyer and the fence restriction. B. The buyer is solely responsible for checking out deed restrictions before buying the property. C. The agent represented the seller and had no duty to notify the buyer of the restrictions. D. The agent knew of the buyer's intended use and should have notifies the buyer of the restrictions.

A buyer's agent is showing a prospective buyer a residential house built in 1972. The property is approximately one acre, adjacent to a creek. The neighborhood is predominately Catholic and located new a shopping center. The agent should advise the buyer to investigate all of the following EXCEPT: A. If the property is located in a flood plain. B. If the property has lead-based paint. C. If the property is on sewer. D. If the neighborhood is predominately Catholic.

A church would be classified as which of the following types of property? A. Residential. B. Commercial. C. Industrial. D. Special purpose.

A condominium owner's association would be responsible for maintaining and regulating all of the following EXCEPT: A. The swimming pool. B. The parking areas. C. Pool tables in the recreation room. D. Repairs within an individual unit.

A general warranty deed is presumed to have been dilivered if the deed is: A. Signed by the granor B. signed by the grantee C. recorded by the grantor D. recorded by the grantee

A general warranty deed would most likely include all the following covenants EXCEPT: A. Covenant of seisin B. Covenant of quiet enjoyment. C. Covenant of further assurance. D. Covenant of restricted ownership.

A house sells for $100,000 and the buyer obtained an $80,00 conventional loan. The borrower paid a $4,000 discount. How many discount points were charged by the lender? A. 2 B. 3 C. 4 D. 5

A lender makes a real estate loan and charges discount points. Which of the following statements BEST describes the loan discount? A. It can only be paid by the borrower. B. It can only be paid by the seller. C. It reduces the lender's return on the loan. D. It can be paid by either the borrower or the seller to the lender.

A licensed salesperson wishes to perform real estate brokerage services as a full time employee of an unlicensed developer. In order to provide brokerage services to such an unlicensed party, the licensee must: A. Put their license on inactive status. B. Notify their broker in writing as to their intent and obtain written approval from their broker. B. Notify their broker in writhing as to their intent and obtain written approval from their broker. C. Work through a listing agreement established between the salesperson and unlicensed developer. D. Surrender their license entirely before beginning work for the unlicensed party under an exception of the license law.

A licensee a preparing to draw up an offer in which the purchaser will finance a portion of the purchase price. Which of the following does NOT need to be included in the method of payment section? A. Loan amount. B. Interest rate. C. Term of loan. D. Name of the lender.

A licensee who seeks to activate a license which has been on inactive status for a period of 3 1/2 years shall be required to complete Commission approved courses of at least: A. 6 hours prior to activations. B. 12 hours prior to activating. C. 18 hours prior to activating. D. 24 hours prior to activating.

A listing broker receives a $220,000 offer on a property they have listed. Before presenting the off to the sellers the broker receives a second offer from another buyer for $225,000. The broker's course of action would be to: A. Tell the second buyer there is already an offer on the property, but if the sellers refuses it, he will present their offer. B. Present the offers to the sellers in the order they were received. C. Let the first offer expire without presenting it and then present the higher second offer. D. Present both offers to the sellers and tell them they have the right to accept whichever one they choose.

A married couple asked a licensee how they should take ownership to a property they are building. The licensee should recommend the consult: A. A real estate broker. B. A lender. C. A title company. D. An attorney.

A married couple want to acquire ownership of property together without the right of survivorship. Which of the following forms of ownership would accomplish this? A. Estate in severalty. B. Joint tenancy. C. Tenancy by the entirety. D. Tenancy in common.

A minor signed a written sales contract to purchase a parcel of property from an adult seller. After the contract was signed, the seller learned the buyer was a minor and declared he contract void. Is the seller's action permissible? A. Yes, the agreement is void because the buyer is minor. B. Yes, the buyer violated the statute of frauds by not disclosing their age. C. No, the agreement is binding on both parties and cannot be voided by either party. D. No, in this situation only the minor may void the agreement.

A non-possessor y property interest that allows one or more persons to use the land of another for a specific purpose would BEST describe: A. A lease. B. Am easement. C. An encroachment. D. A license.

A person claiming a mechanic's lien must file a notice of lien without a certain period of time: A. Before the work has started. B. After the work has begun. C. Before the work is completed. D. After the work is completed.

A person has been in possession of a property for a log time without the owner's consent. That person's rights have been determined to supersede those of the see simple owner. This method of acquiring title to real property is an example of: A. Escheat. B. Homestead. C. Eminent domain. D Adverse possession.

A person owns a car, boat and farm land. If a judgement were issued against the person, which of the properties could the lien be placed on? A. Only the farm land. B. Only the car. C. Only the boat. D. The car, boat and farm land.

A private subdivider records a clause in a subdivision plat stating that all residential dwellings in the subdivision must have a minimum of 2000 sq. ft. on the main floor. This clause would be considered: A. A violation of the Federal Fair Housing Laws. B. A building code. C. A zoning ordinance. D. A deed restriction.

A property manager could legally do which of the following? A. Collect a higher security deposit to persons with support animals. B. Rent only to single female tenants. C. Refuse to rent to families with children. D. Question potential tenants to determine their ability to pay rent.

A property manager is responsible for: A. Finding a buyer for the property at a reasonable market value. B. Only maintaining the owner's property. C. Only leasing the owner's property. D. Maintaining the owner's property and making sure the property earns income.

A property owner has defaulted on his mortgage and the lender has filed a foreclosure action to have the property sold to satisfy the lien. If the property has several liens, which of the following would have first priority? A. A three year old mortgage lien for $96,000. B. A one year old judgement lien for $8,000. C. A mechanic's lien of $1,200 for work stared six months ago. D. A special assessment tax lien for $500 levied one year ago.

A purchaser in a real estate sales contract transfers her right to buy the property to another person. This would be considered: A. A breach on contract. B. An assumption. C. A novation. D. An assignment.

A sales contract is signed by the buyer and seller. Before closing the buyer's licensee learns about a title claim on the seller's property. In this situation, the buyer's licensee should: A. Ignore the claim because it will be covered by title insurance. B. Inform both parties the closing cannot occur. C. Advise the buyer to rescind the contract. D. Contact the seller's agent and suggest the seller contact an attorney concerning the title claim.

A salesperson is responsible for all the following activities during preparation for closing EXCEPT: A. Notifying the buyer and seller of the date, time and place of the closing. B. Contacting the buyer and seller bout bringing any additional required closing documents to the closing. C. Taking the earnest money refund check, prepared by the broker, to the closing official. D. Preparing all of the documents that will be used at the closing.

A seller hires a broker to find a buyer for their apartment building. The agreement signed would be: A. A purchase and sale agreement. B. A property management agreement. C. An option agreement. D. A listing/agency agreement.

A seller is presented with two separate offers from different buyers at the same time. If she is anxious to sell the property, the best advice would be to: A. Accept bother offers. B. Reject both offers. C. Counteroffer to both buyers. D. Accept one offer and makes a backup offer on the other.

A seller listed the property with a broker. During the listing period the seller found his own buyer and refused to pay the broker a brokerage fee. The broker successfully sued the seller, which of the following types of listings did the broker most likely have? A. Open listing. B. Net listing. C. Exclusive agency. D. Exclusive right to sell.

A statue of fraud requires that lease agreements: A. Provide some form of security deposit to be held by the landlord. B. Cannot be assigned or subleased by the tenant. C. For one year or less to be in writing to be enforceable. D. For more than one year to be in writing to be enforceable.

A subdivider records a declaration of restrictions to be used in the development of a subdivision. Which of the following deed restrictions would NOT be enforceable? A. All properties must be used for residential use. B. All residential dwelling must have a minimum of 1400 sq. ft. on the main floor. C. Structures cannot be higher than 40 feet. D. All residents must be of the same national origin.

A tenant leased property from an owner with a promise that the tenant would be obligated to purchase the property at a set price in the future. This type of arrangement would be described as a: A. Net lease. B. Gross lease. C. Lease option. D. Lease purchase.

After and offer is accepted the buyer's $5,000 earnest money check is deposited into the broker's designated trust account. The buyer needs $250 of the deposited funds to pay for the termite inspection. Can the broker pay for the termite inspection from the deposited funds? A. No, the trust can only be applied towards the purchase price. B. No, funds in a designated trust account can only be disbursed at closing. C. Yes, upon securing a written agreement signed by the buyer. D. Yes, upon securing a written agreement signed by all parties having an interest in the trust funds.

After the sales contract has been signed by all parties the seller decides that he wants to stay in the house for thirty days after the closing. The licensee should do which of the following? A. Change the contract and have all parties initial the change. B. Change the contract and have only the seller initial the change. C. Secure an oral agreement from the buyer to honor the seller's wish. D. Have the parties sign a modification/amendment agreement and attach it to the sales contract.

All "For Sale" signs must be removed from the property within how many days after termination of the listing agreement? A. 14 days. B. 30 days. C. 90 days. D. 10 days.

All of the following are characteristics of an agency relationship EXCEPT: A. It is initiated by the principal. B. Common and statutory laws control the relationship. C. The agency generally creates a fiduciary relationship. D. The agency is between a client and customer.

All of the following are essential elements of a valid contract EXCEPT: A. Legally competent parties. B. Offer and acceptance. C. Consideration. D. Contingency clause.

All of the following are requirements of valid deed EXCEPT: A. A legal description of the property. B. Words of conveyance. C. The signature of the grantor. D. Having been recording in public record.

All of the following will terminate an exclusive right to sell listing agreement EXCEPT? A. Death or insanity of the principal or agent. B. Expiration of the listing period. C. Bankruptcy of either party. D. The seller accepts an offer from a ready, willing and able buyer.

All of the following would be legitimate reasons for refusing a residential listing EXCEPT? A. The seller wants an unreasonable price for the property. B. The property is not in the firm's geographical service area. C. The firm deals only in commercial properties. D. The property is located in a minority area and would be difficult to market.

An active licensee purchases rental property. Which of the following should the licensee do first? A. Advertise the property in the broker's name. B. Deposit any security deposits into a designated trust account. C. Insert a clause into any rental agreement disclosing their licensed status to the other person. D. Notify his or her broker in writing that he or she owns rental property which they plan to lease.

An applicant for a salesperson's license in Georgia must: A. Have attained the age of 21 years. B. Furnish evidence of completion of 60 hours of instruction in a course approved by the Commission. C. Be a citizen of the United States. D.Be a high school graduate of the holder of certificate of equivalency.

An appraiser in estimating a value of a residential property. When using comparable properties to determine the value of the subject property, the appraiser would MOST LIKELY give the greatest consideration to: A. The highest priced comparable. B. The lowest priced comparable. C. The average price of the com parables. D. The comparable most like the subject property.

An inactive licensee buying property for herself must always: A. Advise fer broker with a written letter of intent. B. Maintain a copy of the contract for seven years. C. Be represented by a licensed broker. D. Clearly disclose her licensing status in the sales contract.

An interest in real property must be recorded to: A. Comply with state real estate laws. B. Comply with federal tax codes. C. Establish the basis for state transfer tax. D. Provide constructive notice.

An investment property valued at $350,000 has a capitalized rate of 6%. If the capitalization rate increases of 7% and the new income remains unchanged, which of the following statements is CORRECT concerning this situation? A. The investment risk is lower. B. The net income would increase. C. The value would increase. D. The value would decrease.

An odder does not contain a specific expiration date. Unless withdrawn, the courts will usually declare that the offer should remain open for: A. 10 days. B. 30 days. C. One year D. A reasonable time.

An owner listed a rental property with a broker and indicated the counter top microwave oven would be included. However, the current tenant had purchased the oven and had not agreed to sell it. Would the microwave oven belong to the new buyer at closing? A. Yes, it is a fixture. B. Yes, the seller listed it with the house. C. No. the oven is the real property of the tenant. D. No, the seller did not own the oven.

An owner listed their property with a broker. The owner informs the broker he is selling because of a serious financial condition. What should the broker tell potential buyers? A. The seller is probably willing to accept less than the listed price. B. The seller is anxious to sell. C. If the property is foreclosed, you might bid on it at public sale. D. Do not discuss the seller's financial condition with any buyers without the seller's consent.

Anny broker who provides community association management services must be covered by a fidelity bond or insurance policy if the funds they collect, maintain or control exceeds: A. $15,000 B. $25,000 C. $45,000 D. $60,000

At its regularly scheduled first monthly meeting of the calendar year, the Commission shall select fro its members by secret ballot: A. A Real Estate Commissioner. B. Only a Chairperson. C. Only a Vice Chairperson. D. Both a Chairperson and a Vice Chairperson.

Baird submits an offer to buy a house, giving the seller twenty four hours in which to make a decision. Under which of the following circumstances would a contract be created? A. The seller waits more than twenty four hours before deciding to accept the offer. B. The seller makes a counteroffer to Baird with the seller's initials next to a new proposed closing date. C. The seller accepts the offer only to discover the Baird has just died. D. The seller accepts Baird's offer as presented and notifies him of the acceptance within the time specified

Before attempting to show a property listed in the multiple listed service by another company, a salesperson should: A. Notify the Georgia Real Estate Commission. B. Call the seller and request permission. C. Call the multiple listing service. D. Call the listing company.

Before attempting to show a property listed in the multiple listing service by another company, a salesperson should: A. Notify the Georgia Real Estate Commission. B. Call the seller and request permission. C. Call the multiple listing service. D. Call the listing company.

Before the Commission shall censure a licensee or before revoking or suspending a license,it shall: A. Impose a fine not to exceed $5,000. B. Refund any fees paid by the licensee. C. Submit a report to the Attorney General. D. Provide for a hearing for the license holder.

Can a broker deposit earnest money and security deposits into an interest bearing trust account? A. No, the law requires that it be deposited into a non-interest bearing trust account. B. No, earnest money must be held by the seller or builder. C. Yes, providing the broker notifies the Georgia Real Estate Commission of the location and name of the account. D. Yes, providing all parties to each transaction specifically agree inn writing who is to receive any interest earned prior to depositing the funds.

Can a seller terminate their agency agreement with the listing broker before the stated expiration date? A. No, only the listing broker can terminate the agreement B. No, agency agreements cannont be terminated by either party prior to the expiration date C. Yes, only with prior approval of the listing broker D. yes, but the seller could be liable to the agent for damages

Due to poor market conditions a seller sold his property for considerable less than the listed price. Could the seller lower the broker;s commission to make up for the loss? Yes, since the commission rates are negotiable they can be changed at any time by the broker or seller. B. Yes, the loss that the seller took would be shared by the broker a lower commission rate. C. No, the rate of commission is set by the state's real estate commission and cannot be changed. D. No, once the commission rate has been negotiated and agreed upon it cannot be changed unless bother parties agree.

Formula: Buyer's new loan amount divided by 500=number of five hundred dollar increments (rounded up to nest whole number) times (x) $1.50= Intangibles tax. Calculate the intangibles tax on a property with a sales price of $87,500 with a new 30 year, 90% conventional loan. A. $78.70. B. $87.50. C. $236.25. D. $237.00.D

Formula: Buyer's new loan amount times (X) interst rate= one year's interest, divided by 360 days= one day's interest, times (X) number of days owed based on calendar month: Closing is January 10. The purchases is taking out a $70,000 loan at 9% interest. How much prepaid interest is due at closing? A. $207.12. B. $210.00. C. $224.38. D. $227.50.

Formula: Sales price divided $100=number of hundred dollar increments (rounded up to the next whole number) times (X) $.19=transfer tax. EXCEPTION: If the purchaser assumes the seller's existing loan the taxable amounts is the difference between the sales price and the loan assumed. What is the amount of the transfer tax to be paid if the sales price of a house is $92,560 and the new loan is $70,500? A. $70.35. B. $70.40. C. $92.56. D. $92.60.

In Georgia, a landlord must give the tenant 60 days notice before terminating a tenancy: A. At sufferance. B. For a definite term. C. For years. D. At will.

In Georgia, a married couple could hold title to real property together as: A. An estate in severalty. B. Community property. C. Tenant by the entirety. D. tenancy in common.

In Georgia, in the conveyance of real property, which of the following legal descriptions will take priority over all other forms? A. Street address. B. Government survey. C. Short form, if recorded in public record. D. Metes and Bounds.

In Georgia, which of the following types of ownership is NOT recognized? A. Joint tenancy. B. Life estate. C. Tenancy in common. D. Tenancy by entirety.

In a capitalization process, which of the following would NOT be used? A. Potential annual gross income. B. Allowance for vacancy and collection losses. C. Annual operating expenses. D. Replacement costs.

In a metes and bounds land description, which of the following statements is INCORRECT? A. It states at a well-marked point of beginning. B. It is used to describe irregular shaped parcel of land. C. Trees ad iron pins can be used as monuments to mark the boundaries. D, Deed measurements prevail over the actual measurements between monuments.

In a property management agreement on an apartment complex, which of the following duties would NOT be required of the property manager? A. Collection of rents from tenants. B. Maintaining the property. C. Budgeting expenses. D. Provide legal advice to the owner.

In completing an offer to buy or sell real property in Georgia, the offer must include all of the following EXCEPT: A. A description of the property involved. B. Date of closing. C. Any special stipulations the offer requires. D. An earnest money deposit bu the offerer.

In order to qualify for a broker or associate broker's license, an applicant must: A. Be a U.S. citizen. B. Be a resident of a State of Georgia. C. Have attained the age of 21 years and have serves actively for two years as a licensee. D. Have attained the age of 21 years and have serves actively for at lease three years of the five years immediately preceding application.

In the process of planning a new subdivision, which of the following steps would a subdivider do first: A. Complete plat maps of the subdivision. B. Create a land development plan. C. Obtain governmental approval and record the plat-map. D. Check out the comprehensive plan created by the local government.

It is good practice to take the legal description from the seller's warranty deed when you get the listing. If the seller does not have a copy of his or her warranty deed, it may be found at the county courthouse. In locating the seller's deed in the record room of the courthouse your first point of reference would be the: A. Plat map. B. Deed book. C. Plat book. D. Grantor-grantee insex

The Federal Housing Law exempts which of the following activities? A. Financing of residential housing B. Appraisal of housing C. Real Estate brokerage services D. Renting of an owner occupied building with no more than four units

The agency established to stabilize the economy by regulating the flow of money and interest rates in the market place is the: A. Department of Housing and Urban Development (HUD). B. Federal National Mortgage Association (FANNIE MAE). C. Government National Mortgage Association (GINNIE MAE.) D. Federal Reserve System (FED),

The appraisal principle that a home would maintain it's highest value in a neighborhood of similar homes is called: A. Highest and best use. B. Contribution. C. Substitution. D. Conformity.

The federal Fair Housing Act is administered by the: A. Department of Health and Human Services. B. Georgia Real Estate Commission. C. Federal Trade Commission. D. Department of Housing and Urban Development (HUD).

The federal Lead-Based Paint Hazard Reduction Act requires which of the following? A. Buyers must be given five days to check for lead hazard.B. All residential housing built prior to 1978 must be tested for the presence of lead-based paint prior to listing. C. A "Protect your family from lead in your home" pamphlet must be advertised to all prospective buyers, but not tenants. D. Sales contracts and leases on dwellings built prior to 1978 must include a lead-based paint disclosure form.

The lender in using a deed of trust (trust deed) to secure a loan. The lender is referred to as the: A. Mortgagor. B. Mortgagee. C. Trustor D. Beneficiary.

The original license of a salesperson shall be delivered or mailed to: A. A real Estate Education Research and Recovery Fund. B. The salesperson to hold. C. The salesperson's broker for delivery to the salesperson. D. The real estate broker for whom the licensee is acting and shall be kept in the custody of such broker.

The purchase price is $70,000. The purchaser is to pay $4,200 down and obtain a new conventional loan at 9%. The loan would be consider a: A. 70% loan. B. 80% loan. C. 90% loan. D. 95% loan.

The safety (protection) clause in an exclusive right to sell listing protects the broker's commission rights for what time period after expiration of the listing? A. Thirty (30) days, as stated by law. B. Ninety (90) days, which is standard in all listings. C. The same amount of the time as the listing contract. D. A reasonable period of the time negotiated between broker and principal.

To insure that a minimum balance of $1 million is maintained in the real estate education, research, and recovery fund the Commission, in addition to the license fees, may assess each licensee and amount not to exceed: A. $100 per year, to be paid each year. B. $100 per year, to be paid upon renewal of license. C. $30 per year, to be paid each year. D. $30 per year, to be paid upon renewal of license.

Under Regulation Z (Truth-in-Lending Act), advertising concerning consumer credit would require additional disclosures if it includes which of the following "trigger terms"? A. Compare our reasonable rater" B. "FHA financing available" C. "Small down payment OK." D. "Only 5% down."

Unless renewal fees are paid before the renewal date, a licensee's individual license will expire on: A. January 1 of the next year. B. The licensee's birthday. C. The issue date of the license. D. On the last day of the month of the licensee's birthday.

Upon being issued and original salesperson's license, each salesperson shall be required to furnish to the Commission, within one year of the issuance of a license, evidence of satisfactory completion of a course of study approved by the Commission. Which of the following courses would meet this requirement? A. A 6-hour course. B. A 12-hour course. C. A 24-hour course. D. A 30-hour course.

What is the maximum period of time a licensee can put their license on inactive status? A. Two years. B. Three years. C. Four years. D. Indefinitely, as long as renewal fees are paid

What is the single most important economic characteristic of land? A. Immobility. B. uniqueness (non-homogeneity). C. Scarcity. D. Location.

When a licensed salesperson goes to work for a broker, the Georgia Real Estate license law requires them to enter into a written: A. Listing agreement. B. Sales agreement. C. Dual agency agreement. D. Affiliation agreement.

When budgeting expenses which of the following items would the property manager consider a fixed expense? A. Roof repairs. B. Decorating C. Capital improvements. D. Real estate taxes.

When doing a market analysis, the source of the BEST comparables would be: A. Expired listing. B. Current listing. C. Tax appraisals. D. Recent sales.

When doing the market analysis worksheet, the first step is to: A. Make the necessary adjustments to the comparable properties. B. "Weight" the adjusted sales price of the comparable properties. C. Find three to five comparable propertied that have sold within the past six months. D. Obtain complete information on the subject property.

When doing the sales comparison approach, the comparable has a fireplace. The subject property has a fireplace. The subject property does not have a fireplace. Which of the following adjustments should be made? A. The subject property should be adjusted upwards. B. The subject property should be adjusted downwards. C. The comparable property should be adjusted upwards. D. The comparable property should be adjusted downwards.

When estimating the gross living area (GLA) of a residential property which of the following area would most likely be included? A. Finished basement. B. Heated garage. C. Covered deck. D. Upstairs bedrooms.

When filing their federal income tax return, homeowners may deduct from their gross income: A. Hazard insurance premium. B.Homeowners association, fees. C. Special assessment taxes. D. Loan prepayment penalties.

When showing a buyer residential properties, a licensee could take into consideration the buyer's A. Race. B. National origin. C. Religion. D. Marital status.

When showing a seller's property a buyer's agent would have to disclose all of the following to the buyer EXCEPT? A. The seller is getting a divorce. B. The house appears to need repairs. C. The property appears to be over priced. D. The neighborhood is predominately Catholic.

When using the cost approach to estimate the value of a property, which of the following would MOST LIKELY be used? A. The current income and capitalization rate. B. The loan amount needed to build the improvement at current price. C. The estimated current cost of constructing the improvement plus appreciation. D. The estimated current cost of construction the improvement less depreciation.

When using the income approach to arrive at the estimate of the property's value the capitalization rate would be divided into the: A. Annual gross income. B. Annual effective gross income. C. Annual total expenses. D. Annual net operating income.

When writing an offer to purchase the licensee does not have a sufficient legal description of the property and substitutes the phase "Legal Description to be attached". Is the action acceptable? A. Yes, as long as u adequate description is attached later. B. Yes, a legal description is not required in a contract. C. No, only the broker can write offers to purchase. D. No, the Commission and the courts require an adequate description be included in the offer.

When writing sales contracts, a salesperson should consult with an attorney when: A. The preprinted form contract does not clearly set forth the agreement terms. B. The seller requests a legal opinion of a buyer's offer. C. The legal description is not available. D. His or her broker has specifically instructed him or her to do so.

Which branch of the government would most likely determine a property's assessed value for real estate tax purposes? A. Federal. B. State. C. City. D. Local county or township.

Which of the following agreements would be considered void? A. A contract that is contingent upon an appraisal. B. A verbal lease for six months. C. A sales contract that contains a mistake. D. A sales contract signed by an unauthorized person.

Which of the following contracts would be considered a unilateral agreement? A. A lease for over six months. B. An exclusive listing for six months. C. A sales contract closing in six weeks. D. An option agreement which expires in six months.

Which of the following factors would most likely increase demand and prices of residential properties in a given area? A. Higher interest rates on home loans. B. An increase in the number of listed properties. C. An increase in the property taxes. D. The opening of a larger manufacturing plant.

Which of the following is NOT a legitimate reason for a broker or sales associate to refuse a listing? A. The seller states an unreasonable list price for the property. B. The property is not in the firm's geographical service area. C. The property type is not handled by the firm. D. The owner's minority status would make the property difficult to sell.

Which of the following is NOT required in a legally sufficient description of real property? A. Country and state. B. District and land lot. C. Section or Militia District. D. Street address of property.

Which of the following is a physical characteristic of land? A. Destructibility. B. Mobility. C. Scarcity. D. Uniqueness. (non-homogeneity).

Which of the following is considered a voluntary lien? A. Real estate tax lien. B. Judgement lien. C. Mechanic's lien. D. Mortgage lien.

Which of the following is requirement of an independent contractors relationship between a broker and a salesperson? A. The salesperson must earn 50% or more of his/her annual income from real estate transactions. B. the broker is required to withhold federal and state income taxes. C. The broker must provide benefits such as health insurance and worker's compensation. D. The salesperson must enter into a written agreement with the broker.

Which of the following is true about prepayment penalties on VA and FHA loans? A. FHA loans require a prepayment penalty of 2% of the loan balance. B. Va loans require a prepayment penalty of 2% of the original loan amount. C. Both FHA and VA loans require a prepayment penalty of 2% of the outstanding loans balance. D. Prepayment penalties are not permitted on FHA or VA loans.

Which of the following must be included in a valid real estate sales contract? A. Brokerage commission. B. Street address. C. Earnest money. D. Consideration.

Which of the following parties would be exempt from the real license requirements? A. An auctioneer selling property at an auction for another party for compensation. B. A forester selling a parcel of timberland for another party for compensation. C. A person promoting the sale of real estate through listing in a publication and receiving a listing fee. D. An attorney in fact under a duly executed power of attorney to convey real estate from an owner or lessor.

Which of the following persons exhibit one of the requirements necessary for an applicant to qualify for a salespersons license? A. The applicant is seventeen years old. B. The applicant has completed at lease 60 hours of instruction in a salesperson's course approved by the Commission. C. The applicant has completed the tenth grade. D. The applicant holds a certificate of equivalency.

Which of the following persons would a Georgia Real Estate License Law apply to? A. An attorney fact under a duly executed power of attorney to convey real estate from the owner or lessor. B. A licensed practicing attorney acting solely as an incident to the practice of law. C. Ant person acting as a trustee in a bankruptcy. D. A real estate licensee employed on a full-time basis by the owner of the property for the purpose f leasing such property.

Which of the following statements about a limited partnership is CORRECT? A. All the partners are general partners. B. The limited partners are liable for all debts of the partnership. C. The limited partners are involved in the running of the partnership. D. A general partner is responsible for the limited partnership.

Which of the following statements about options is true? A. The optionee is obligated to purchase the property. B. If the option is not exercised the consideration must be refunded. C. An option is bilateral agreement. D. The optionee (buyer) can decide not to exercise the option.

Which of the following statements about personal property is INCORRECT? A. Personal property includes things that are movable. B. Personal property includes chattels. C. Title to personal property is transferred by way of a bill of sale. D. Person property includes fixtures.

Which of the following statements about the Georgia Real Estate Commission is INCORRECT? A. It shall be composed of sex members, each appointed by the Governor and confirmed by the Senate. B. One member shall have no connection with the real estate industry C. Five of the members shall be real estate licensees. D. The commission is composed of six real estate licensees plus the real estate commissioner.

Which of the following statements concerning a mechanic's lien is INCORRECT? A. The lien is to secure payment for work and materials that become a permanent part of the improvement. B. It must be filed within a statutory period of time. C. Enforcement could require a court action to foreclose the lien through sale of the property. D. The priority of the lien is usually determined by the recording date.

Which of the following statements is TRUE regarding the Federal Fair Housing Law? A. In the 1968 Supreme Court case of Jones vs. Alfred H. Mayer Company, the court nullified the Civil Rights Act of 1866. B. Complaints filed with HUD will preempt state laws concerning discrimination. C. It applies to commercial and industrial properties. D. Aggrieved persons may file a complaint with HUD within one year of the discriminatory act.

Which of the following statements is a feature of a FHA 203 B loan? A. The loan would be guaranteed by HUD. B. The maximum loan term is 20 years. C. The borrower can obtain a 2nd mortgage to pay the down payment. D. An approved FHA appraiser must appraise the property.

Which of the following statements is correct concerning the sale of property located in a registered historic district with a historic structure? A. The property cannot be sold by the original owner. B. The property cannot be condemned by the government. C. The property must conform to the present local zoning ordinances. D. Demolition to he historic structure would require a building permit.

Which of the following statements regarding an option agreement is INCORRECT? A. The optionee can buy the property at a definite set price within the specified time. B. The owner can sell the property to someone else while the option is in effect, but the purchaser would buy the property subject to the option. C. The option can be assigned by the optionee. D. An optionee's consideration must be returned if the option is not exercised.

Which of the following would NOT be a component of a fully amortized, adjustable-rate mortgage? A. Interest rate index. B. Interest rate caps. C. Adjustment period. D. Balloon payment.

Which of the following would NOT be a violation of the Georgia License law? A. Falsifying a document used in a real estate transaction. B. Failing to advise your broker in writing when buying or selling property for yourself. C. Failure to give a copy of a signed offer to the purchaser. D. Failure to put a street address in a legal description.

Which of the following would NOT be covered under RESPA? A. A VA loan to purchase a single family residence. B. A FHA loan to purchase a single family residence intended to be sold to Fannie Mae (FNMA). C. D. A loan assumption on a single family residence.

Which of the following would a seller's agent NOT have to disclose to potential buyer concerning the listed property? A. The house is built on a landfill. B. The house had been damaged by fire several years ago. C. The property is located on a flood plain. D. The house had not been inspected by a home inspector.

Which of the following would be considered an appurtenance? A. Trade fixtures installed by a tenant. B. A portable gas grill. C. A farmer's growing crops. D. A furnace installed in a house.

Which of the following would be the BEST example of a buffer zone? A. A park between two residential subdivisions. B. A park between two commercial properties. C. A single family property between two commercial properties. D. A park between a residential subdivision and an industrial park.

Which of the following would be the BEST example of external obsolescence? A. A house with a poorly maintained yard. B. A house with peeling paint on the outside. C. A house with a poor floor plan. D. A house located next to an industrial plant.

Which of the following would be the BEST response for a licensee to make to a seller who stipulates that their house in not to be shown to minority prospects? A. "I will try to do my best, but I will have to show it to someone id they request i.t" B. "Don't worry, I can show them other listed minority properties." C. "Under these conditions, I will have to charge a higher fee." D. "Licensee must comply with the license laws. I cannot accept the listing under circumstances."

Which of the following would give the buyer a high initial equity investment in a property? A. Longest mortgage term. B. Shortest mortgage term. C. Small down payment. D. Large down payment.

Which of the following would most likely NOT be included in a residential lease? A. Legal description of the leased premises. B. Term of the lease. C. Copy of the rules and regulations. D. Copy of the Uniform Residential Landlord and Tenant Act.

Which of the following would terminate a listing agreement with a seller? A. Death or loss of license by the listing salesperson. B. An offer rejected by the seller. C. A mechanic's lien in placed on the listed property. D. Sale of the property.

Wich of the following is an appurtenance? a. Trade Fixture b. A portible gas grill c. A farmer's growing Crops d. A furnace installed in a house

A home owner decides to take advantage of the tax advantage of home ownership - he therefore itemizes deduction including all of the following except: A. Mortgage Interest B. Property Taxes C. Interest and Mortgage Origination Fees (points) D. Hazard Insurance Premiums

D. Hazard Insurance Premiums

Each of these is a method of acquiring legal title to real property except: A. Descent B. Quitclaim Deed C. Eminent Domain D. Novation

D. Novation (is the term used for substitution of a new party and/or new terms to an existing obligation

Which statement does NOT describe an owner's title insurance policy? A. The premium is paid once only - at time of issue B. The policy may not be transferred C. Damages are paid from any defect in title not listed as an exception D. The policy is issued for an amount equal to the unpaid balance of the mortgage loan

D. The policy is issued for an amount equal to the unpaid balance of the mortgage loan (this describes a LENDERS title insurance policy)

Which of the following deaths on a property should never be disclosed?

DEATH DUE TO HIV/AIDS

All of the following must be disclosed when listing a property except:

DEATH ON THE PROPERTY DUE TO NATURAL CAUSES

Broker B has signed a Buyer Representation Agreement with his clients. As a Buyer's agent he must disclose all of the following except:

HIS BUYERS ABILITY TO MAKE A HIGHER OFFER

An appraiser is using the Market Data Approach to determine the value of a residential property. All of the following are true except:

HIS COMPARABLES SHOULD NOT BE MORE THAN ONE YEAR OLD

EXCULPATORY CLAUSE

HOLD HARMLESS CLAUSE. EXCUSES A PARTY FOR INJURIES TO ANOTHER

Origination Fee

Have NO IMPACT on Interest rate

For a Ltd Partnership to register as a RE Broker with the DBPR, the LTD Partnership must:

Have all General Partners who will deal with the Public Licensed as Active Brokers

When Money Supply is Limited

Interest Rates are HIGH and qualifying buyers can be difficult

When Money Supply is plentiful

Interest Rates are LOW and qualifying buyers is much EASIER.

Simple Interest

Interest on home Loans is usually computed as Simple Interest and is paid in arrears

When evaluating the economic characteristics of real estate one would consider ?

Investments to the land tend to be long term

Open Mortgage

Is a Mortgage that can be paid back at any time without a Prepayment penalty

Purchase Money Mortgage

Is a creative Financing technique that developed when interest rates are high. Note if SELLER finances a portion of the purchase price, he records the note and will be in 2nd LIEN POSITION IF SELLER FINANCES THE ENTIRE AMOUNT, he records the note and will be in a FIRST LIEN POSITION. ALSO KNOWN AS TAKE BACK MORTGAGE

Chattels

Is personal property and runs with the land

Term of the Loan

Is the Length of time the borrower has to repay the lender. The longer the term, the lower the monthly payment

Principal

Is the Loan Balance

Interest

Is the charge for the use of the money. Interest is what a borrower pays when a loan is negotiated and it is what is EARNED when his/her money is lent to other people- such as Interest on a Certificate of Deposit or a Savings Account

If an item of personal property is attached or used with the land in a way that considers it part of the real estate:

It becomes a fixture and is automatically conveyed to the buyer with the land.

A GA broker has a prospective buyer who wants to buy land in FL in order to build 200 luxury condos. The GA broker contacts a FL broker to help find suitable land. Together they work with the buyer who ends up buying a 60 acre tract for $550,000 and they evenly divide a 10% commission. What can be said about this transaction?

It is a violation of sec 475.25 FS for a licensee to share a commission or pay a fee to a person not properly licensed under 475FS and to practice without a valid and current FL license.

A developer wishes to sell several parcels of vacant land that are encumbered by a blanket mortgage. A broker lists the parcels for $25,000 per lot. A buyer enters into a contract to purchase one of the lots for $24,000. After contacting the lender, the broker learns that in order to release the lot from the blanket mortgage, the lender requires payment of $30,000. What can be said about the brokers part in this transaction?

It is fraudulent and dishonest dealing by trick, scheme, or device for a licensee to knowingly sell or offer for sale any property covered by a mortgage that also covers other property sold, unless the particular property offered for sale may be released from the mortgage any time before foreclosure sale on payment of an amount less than the remaining amount due from the purchase after the sale.

When did Real Estate start thriving in the U.S.?

It was thriving in the U.S. long before the Industrial Revolution

Erosion

Loss of Land through a GRADUAL NATURAL PROCESS

Forfeiture

Loss of Ownership of a property because of a VIOLATION of a Deed Condition

Method for establishing real or personal property

MARIA: method of attachment, adaptability, relationship, intention, agreemnts

An appraiser has been asked to determine the value of an old house in an up and coming neighborhood. What method would he be most likely to use to provide the most accurate and reliable result?

MARKET DATA APPROACH

A property is surveyed to determine a legal description. The surveyor works from a point of beginning, and measures terminal points and angles. What method of land description is he using?

METES AND BOUNDS

Is MIP(MORTGAGE INSURANCE PREMIUM) required for fha loans ?

MIP Is required for all FHA loans

Who is required to obtain a Florida Loan Originators (MLO) license?

MLO's who are not employed by a federally agency regulated lender (example: employee of national bank who arranges mortgage loans for bank customers)

Who could be considered an intermediary between the borrower and the lender?

MORTGAGE BROKER

Which of the following is the best definition of market value?

MOST PROBABLE PRICE

Is a person who contracts to buy a tract of land obligated to accept another if they are similar?

No.

Is a simple street address adequate to legally identify a parcel of land?

No.

The uniqueness of land and its inability to be substituted is know as ?

Non homogenity

Because each parcel of land is unique it is said to be:

Non-homogeneous.

Define meridian:

North to south line on a compass.

Principle meridians are?

North-South longitude lines which intersect with East-West latitude lines.

Tenancy by the entirety is ?

Ownership by married couples, equal partners, conveyance requires 2 signatures. Does not have right of survivorship. Not recognized in Georgia.

EXPRESS CONTRACT

PARTIES HAVE AGREED TO ENTER INTO CONTRACT ORALLY OR WRITTEN

In preparing an appraisal, which of the following would have the least impact on the appraisers estimate of value?

PHYSICAL DETERIORATION

Private Mortgage insurance(PMI) is calculated on what ?

PMI is calculated on the loan amount.

What does the term "modular" refer to?

PREFABRICATED HOUSING

Plants which are naturally grown and require annual cultivation are called:

Perennial plants or fructus naturales.

Once minerals are removed from the earth they become:

Personal property.

Once severed from the land perennial plants become:

Personal property. Before being severed they are real property.

A riparian owner may also divert water from the waterway for:

Personal use such as irrigation.

Who is exempt from the licensing law requirement ?

Persons operating under a duly executed power of attorney to convey property is exempt from licensing requirement.

A metes and bounds description must have a definite:

Point of beginning.

Which government restriction on ownership represents the broadest power of government to limit the rights of property ownership?

Police Powers gives the right to impose laws, statutes, and ordinances to protect the public health, safety and welfare and represents the broadest power of the government to limit rights of ownership

What are the bundle of rights ?

Possession, control, enjoyment, and disposition

The bundle of legal rights:

Possession, enjoyment, control, disposition.

During its regular monthly meeting, the Commission modified several license fees and broker advertising requirements. These actions will be reflected in changes to:

Rule 61J2

A one half acre parcel of land in Manhattan, NY is worth considerably more that a one half acre parcel in White Plains, NY. This is an example of:

SCARCITY

One of the property owners in a subdivision is violating the deed restrictions. What can the other property owners do to get him to comply?

SEEK AN INJUNCTION FROM THE COURTS

A signed employment agreement is necessary to:

SUE FOR COMMISSION

The owner of an apartment complex plans to be away for a full year. He arranges for a tenant to take care of the complex and to act as his representative during the absence. The tenant is to be given a free apartment and $150 per week for his services. Is this legal?

Salaried employees of an owner of an apartment community who work in a leasing capacity are exempt from licensure - but the tenant can use only legally approved lease forms during the owner's absence

a big Challenge specific to Residential Real Estate Industry?

Sale of Distressed Properties

The practice of leasing or selling air rights is increasingly important because of:

Scarcity and high cost of land.

The value of every commodity is influenced by it's

Scarcity.

What 3 rights go with real property and are called appurtenances?

Surface rights, subsurface rights and air rights.

Riparian rights allow the owner to use the water for:

Swimming, boating, and fishing.

Mary and John are married with grown children. Both are intestate. If John dies and Mary becomes the owner of their home, what type of ownership did they have?

TENANCY BY THE ENTIRETY

John and Mary are co-owners of a property. John has 60% interest in the property and Mary has a 40% interest. What type of freehold estate do they have?

TENANCY IN COMMON

A buyers agent has helped her buyers find a property. The sellers have installed a fountain in the courtyard and the buyers have stressed to their agent that they want the fountain to be included in their purchase. What should the buyers agent do to ensure that her clients get the fountain?

THE AGENT CAN INCLUDE WORDING IN THE BUYERS OFFER THAT INDICATES THAT THE FOUNTAIN IS INCLUDED IN THE SALE.

At a recent social gathering several real estate brokers from the neighborhood were overheard discussing commission rates and attempting to come to an agreement on a way to communicate their rates to one another. What is true about this conversation and any resulting action on their part?

THE BROKERS ARE IN VIOLATION OF THE SHERMAN ANTI-TRUST ACT

A commercial property is sold for cash without inspections. After closing the buyer discovers environmental problems on the property. Who would be liable for the cleanup?

THE BUYER, THE SELLER, THE BROKER AND ALL IN THE CHAIN OF TITLE WHO CONTRIBUTED TO THE PROBLEMS.

Mary, a single woman, has no children. She owns real property and dies intestate. What happens to her real property?

THE COURT WILL APPOINT AN ADMINISTRATOR AND IT WILL BE DISTRIBUTED TO HER HEIRS BY THE LAW OF DESCENT.

What is the advantage to the borrower of a VA loan?

THE GUARANTEE ON THE VA LOAN IS FREE

What is the least important factor for licensee preparing a CMA?

THE INFORMATION FROM EXPIRED LISTINGS OF UNSOLD PROPERTY IN THE AREA.

A builder is very successful and active in a new subdivision. Homes in the subdivision are selling well, and the builder is making a good profit on the sales. Two new builders arrive and begin to sell in the same subdivision. All experience a lower level of profit. This demonstrates which principle of appraisal?

THE PRINCIPLE OF COMPETITION

A single property is regulated by building codes, zoning and deed restrictions. The rules are in conflict with one another. Which must the property owner obey?

THE PROPERTY OWNERS MUST OBEY WHICHEVER RULES ARE THE STRICTEST OR MOST LIMITING.

The local government needs your land to build a new high school. They have the right to take your land for the public good. This is called:

THE RIGHT OF EMINENT DOMAN

A seller shows his property with ceiling fans. After closing when the buyer enters the house the ceiling fans have been removed and the wires are hanging from the ceiling. Which statement best describes this situation;

THE SELLER CANNOT TAKE THE FANS BECAUSE BECAUSE THEY ARE FIXTURES.

A property has lead paint in the interior and on the exterior. Which of the following statements is true?

THE SELLER HAS NOT DUTY TO REMEDIATE LEAD, SIMPLY TO DISCLOSE IT.

A broker has a listing on a property. The seller has accepted an offer from the buyer, but the transaction fails to close. Under which of the following conditions would the broker be eligible for a commission?

THE SELLER HAS REFUSED TO CLEAR UP A CLOUD ON THE TITLE AND THE PROPERTY CAN NOT BE TRANSFERRED TO A BUYER.

For what group of buyers would the ARM be the least desirable?

THOSE ON A FIXED INCOME

What is the purpose of an Environmental Impact Statement?

TO DETERMINE THE EFFECT OF A PROPOSED PROJECT ON THE COMMUNITY

Under a condominium ownership, individual unit owners have what form of ownership in the common elements ?

Tenancy in common

A tenant's lease expired Nov 30. He continued to occupy the premises and to mail his monthly rent payment to the landlord on the date due prior to the expiration of the lease agreement. The tenant is a:

Tenant in Sufferance

Baird, carr and falk are co owners of a residential house on a lake. Baird sells her 50% interest to able. Baird, Carr , and Falk owned the property as ?

Tenants in common

A buyer gave an earnest money deposit of $5,000 together with an offer with the provision of finding suitable financing. The seller accepted the offer. Two weeks later the buyer advised he was unable to obtain financing and asked for a return of his earnest money deposit. The broker made the surprised Buyer and seller aware of fine print in the contract for sale that entitled the broker to the earnest money deposit in the event the transaction did not close. What could be said about this transaction?

The $5,000 deposit should be returned to the buyer (A provision providing for the broker to retain the deposit would have had to been disclosed and agreed to by both the buyer and seller

A broker received an offer and earnest money deposit on Thurs 7/10 at 930AM. The owner of the property will not be in town until Weds 7/16, to consider the offer. The broker's next normal banking day will be Mon 7/14, however he has a large safe built into the wall of his office. FREC requires the broker to:

The broker must deposit the earnest money deposit in escrow by the end of the 3rd business day following receipt of funds - therefore, the broker must deposit these funds by the close of business on Tues 7/15

A broker receives conflicting demands from the buyer and the seller, The broker properly notifies the FREC and requests an EDO. However, before the order is issued the buyer and seller sue one another. What must the broker do in this situation?

The broker must notify the FREC within 10 business days

A son who was not a licensed RE agent assisted his father in finding buyers for his father's lots. The son received no money but the father agreed to give the son a lot, free and clear, after he provided buyers for 5 lots. The son found full time employment before finding the 5th buyer and so did not earn his free lot. What could be said about this arrangement?

The son and the father both violated 475FS for intent - an unlicensed individual may not perform RE Services for compensation (anything of value)

Affordable Housing Tax Credit

To help lack of federal tax incentives to help lower-income individuals purchase affordable housing

In the formula for determining the tax rate for a government taxing unit, the approved budget - non-property tax revenue is divided by what?

Total Assessed Value - exemptions

All of the following are properly described by the word improvements except ?

Trade fixtures

Severance and the removed tress are personal property

Tress growing on the property are cut down by the owner this process is called

True or false: Air rights may be leased or sold separately.

True

True or false: An owner's right's theoretically extend infinitely into space.

True

True or false: Only licensed surveyors can officially prepare a survey.

True

The most common method used by appraisers to estimate building reproduction costs is the:

Unit Comparison Method (ltd to small uncomplicated structures like single family homes & small office buildings)

A FL Broker wants to register an office located in NYC as his principal RE Office. May he do so?

Yes, the Broker's principal office may be located outside the state as long as the broker's escrow account is maintained in a FL institution

A buyer purchased a property for $100,000 and made $20,000 worth of capital improvements to property. Several years later, the owner sells the property for $150,000. The sale would result in a: A. $30,000 capital gain. B. $20,000 loss. C. $70,000 capital gain. D. $50,000 capital gain.

A property is listed for $210,000. The seller's loan balance of $100,000 is to be paid at closing. Closing cost are estimated at $2000 and the seller agrees to pay a 6% commission. If the property sells for $200,000, what will be the net proceeds to the seller? A. $86,000. B. $92,000. C. $98,000. D. $100,000.

Closing is January 21. The purchaser is taking out new $70,000 loan at 11% interest. How much prepaid interest is due at closing? A. $213.89 B. $235.28 C. $427.78 D. $449.17

Upon the final payment of a contract for deed, the buyer should receive

a deed.

General liens

a judgement, decendant's debts, inheritance taxes, corporation franchise tax

Savings and Loans

a) Specialize in LONG TERM, Single Family Home Loans b) May offer Conventional, FHA or VA mortgages

Insurance Companies

a) Specializes in LARGE SCALE, LONG TERM LOANS that Finance COMMERCIAL and INDUSTRIAL properties b) MAY require KICKER or Participation Financing in the Loans they Negotiate

If the investor is in the 33% income tax bracket, how much will a tax credit of $2,000 save the investor in taxes?

a. $2,000.00

How much would you pay for the right to receive nothing a year for the next 10 years and $300 a year for the following 10 years if you can earn 15 percent interest?

a. $372.17

How much would you pay to receive $50 in one year and $60 in the second year if you can earn 15 percent interest?

a. $88.85

For all except very high loan-to-value conventional home loans the standard payment ratios for underwriting are:

a. 28 percent and 36 percent

Mortgage banking companies:

a. Collect monthly payments and forward them to the mortgage investor.

Which of the following is not an operating expense associated with income producing (commercial) property?

a. debt service

What term best describes the maximum price a buyer is willing to pay for a property?

a. investment value

The purchase price that will yield an investor the lowest acceptable rate of return:

a. is the property's investment value to that investor.

The overall capitalization rate:

a. is the reciprocal of the net income multiplier.

Which of the following forms of ownership involve both limited and unlimited liability?

a. limited partnerships

The process of land build up from water-born rock, sand and soil is called:

accretion

Session

accretion, natural force

many buyers are having trouble...

acquiring the financing they need to make a real estate purchase

Boot

addition over exchange, not tax free

Desk cost

all expenses divided by people lin office

Conformity

all homes the same

What amount invested at the end of each year at 10 percent annually will grow to $10,000 at the end of five years?

b. $1,637.97

How much would you pay for the right to receive $80 at the end of 10 years if you can earn 15 percent interest?

b. $19.77

If the property's NOI is expected to be $22,560 operating expenses $12,250, and the debt service $19,987, the debt coverage ratio (DCR) is approximately equal to:

b. 1.13.

Assume a retail center can be purchased for $5.5 million. The center's NOI is expected to be $489,500. A $4,000,000 loan has been requested. The loan carries a 9.25 percent fixed contract rate, amortized monthly over 25 years with a 7-year term. What will be the property's (annual) debt coverage ratio?

b. 1.19

A real estate investment is available at an initial cash outlay of $10,000, and is expected to yield cash flows of $3,343.81 per year for five years. The internal rate of return (IRR) is approximately:

b. 20 percent.

The maximum loan-to-value ratio for an FHA loan over $50,000 is approximately:

b. 98 percent.

A characteristic of a partially amortized loan is:

b. A balloon payment is required at the end of the loan term.

A jumbo loan is:

b. A conventional loan that is too large to be purchased by Fannie Mae or Freddie Mac.

Lease provisions that grant the tenant the right, but not the obligation, to do something generally result in:

b. A higher base rent.

The Institute of Real Estate Management (IRM) awards which of the following designations?

b. CPM.

The tax-benefits associated with installment sales are:

b. Captured exclusively by the seller.

Due-on-sales clauses are included in commercial mortgages primarily to protect lenders from:

b. Default risk.

Which of the following statements is most accurate?

b. Joint ventures decrease the amount of equity capital the developer/borrower must invest in the project.

Existing leases:

b. Must be considered more carefully when valuing a multi-tenant office building than valuing an apartment complex.

When the tenant pays a base rent plus some or all of the operating expenses of a property, the result is a:

b. Net Lease.

Assume an income-producing property is priced at $5,000 and has the following income stream (year 1, $1,000; year 2, -$2,000; year 3, $3,000; and year 4, $3,000). Would an investor with a required rate of return of 15 percent be wise to invest at the current price?

b. No, because the project has a net present value of -$1,954.91.

An income-producing property is priced at $600,000 and is expected to generate the following after-tax cash flows: Year 1: $42,000; Year 2: $44,000; Year 3: $45,000; Year 4: $50,000; and Year 5: $650,000. Would an investor with a required after-tax rate of return of 15 percent be wise to invest at the current price?

b. No, the NPV is -$148,867.

The most typical adjustment interval on an adjustable rate mortgage (ARM) once the interest begins to change is:

b. One year.

Taxable income from the rental of actively managed depreciable real estate is classified as:

b. Passive income.

Savings banks are now virtually indistinguishable from:

b. Savings and loan associations.

Warehousing refers to

b. Short-term loans made by commercial banks to mortgage bankers.

With an expense stop clause:

b. The landlord is responsible for operating expenses up to a specified level, above which increases in operating expenses become the obligations of the tenant.

When a property is sold for less than its remaining book value, its depreciation (wear and tear) was:

b. Underestimated.

The equity dividend rate:

b. expresses before-tax cash flow as a percent of the required equity cash outlay.

As a general rule, using financial leverage:

b. increases risk to the equity investor.

Present value:

b. is the value now of all net benefits that are expected to be received in the future.

The net present value of an acquisition is equal to:

b. the present value of expected future cash flows, less the initial cash outlay.

Footing

base where foundation is

A mortgaged property can be sold without the consent of the mortgagee and

be conveyed by the grantor's making a deed to the grantee.

Ceiling joice

beams parallel for the celing

An owner who seeks a mortgage loan and offers three properties as collateral will give a

blanket mortgage.

Re-conveyance deed

borrow against your home, second on your home

Hard money

borrow money against home

Building residual

building value

Subject to

buy home subject to loan, seller retains liability on loan and property

Money purchase deed

buying a home on time, never see the money

Who responsible if something gets broken

buying broker

When did cities boom?

by the beginning of 20th century

A property sells for the full listed price of $250,000. The seller has a loan balance of $150,000 and agrees to pay a 6% real estate commission plus $2,500 for closing costs. The net proceeds to the seller will be: A. $250,000. B. $150,000. C. $82,500. D. $85,000.

A tenant leased a 4000 square foot building and agreed to pay $10 per square foot plus 5% if the gross scales. The total rent for the year was $80,000. What were the gross sales? A. $400,0000 B. $450,000. C. $800,000 D. $850,000

What is the present value of $500 received at the end of each of the next three years and $1,000 received at the end of the fourth year, assuming a required rate of return of 15 percent?

c. $1,713.37

Given the following information, what is the required equity down payment? • Acquisition price: $800,000 • Loan-to-value ratio: 75% • Up-front financing cost: 3%

c. $218,000

Given the following information, what is the required equity investment due at closing? • Acquisition price: $800,000 • Loan-to-value ratio: 75% • Financing cost: 3%

c. $218,000

In 2007, you purchase a small office building for $450,000, which you financed with a $337,500, 25-year, fixed-rate mortgage. Up-front financing costs total $6,750. How much of this expense could be written off against ordinary income in 2007?

c. $270

If a landowner purchased a vacant lot six years ago for $25,000, assuming no income or holding costs during the interim period, what price would the landowner need to receive today to yield a 10 percent annual return?

c. $44,289.03

What percent of the rental income from residential property must be derived from the leasing of units occupied by tenants as housing?

c. 80 percent

On a level-payment loan with 12 years (144 payments) remaining, at an interest rate of 9% percent, and with a payment of $1,000, the balance is:

c. 87,871.

What is the IRR, assuming an industrial building can be purchased for $250,000 and is expected to yield cash flows of $18,000 for each of the next five years and be sold at the end of the fifth year for $280,000?

c. 9.20 percent

The requirement of a real estate manager to act in the best interests of the landlord when dealing with a tenant is termed:

c. A fiduciary responsibility

Conforming conventional loans are loans that are:

c. Are eligible for purchase by Fannie Mae and Freddie Mac.

Remodeling and rehabilitation:

c. Are expected to add value to the property.

As a tenant, you wish to turn over all rights and responsibilities of your unexpired lease term to a new tenant. By doing so, you are:

c. Assigning your leasehold interest.

Double taxation is most likely to occur if the commercial properties are held in the form of a(n):

c. C Corporation

Which of these lenders is most likely to provide a construction loan?

c. Commercial Bank

Lender's yield differs from effective borrowing costs (EBC) because:

c. EBC accounts for additional up-front expenses that lender's yield does not.

Which of these loans is a life insurance most likely to invest in?

c. Large office building loan (nonconstruction)

Which of the financial firms is most likely to invest in a large, long-term mortgage loan on a shopping center?

c. Life insurance company

Real Estate Syndicates traditionally have been legally organized most frequently as:

c. Limited Partnerships

Special Allocations of income or loss are available if the form of ownership is a(n):

c. Limited Partnerships

With regard to double taxation, distributions, and the treatment of the losses, general partnerships are most like:

c. Limited Partnerships

The asset manager is NOT responsible for:

c. Making maintenance decisions.

The numerator of the standard housing expense (front-end) ratio in home loan underwriting includes:

c. Monthly principal, interest, property taxes, and hazard insurance.

Both the owner and the manager may be better off if management's compensation were based on a percentage of the property's:

c. Net operating income.

The tenant is responsible for paying property taxes and insurance in a:

c. Net-net lease.

Lockout provisions are primarily intended to reduce the lender's:

c. Reinvestment risk

The following are necessary for a lease to be valid, except:

c. Tenant's contact phone number, or address, in the event of an emergency.

For non-real estate corporations, which of the following is not a potential advantage of a real estate sale-leaseback?

c. The firm benefits from property appreciation that occurs after the sale- leaseback.

Which statement is false concerning the limited partnership of ownership?

c. The limited partners cannot enjoy tax benefits but the general partners can.

Demolition of an existing property on an urban site will likely occur:

c. When the site value, assuming a new use, exceeds the value of the site under its existing use, plus the cost of demolition.

The operating expense ratio:

c. expresses operating expenses as a percent of effective gross income.

Corporation ownership

commissioner is head, act in severalty, double taxation, stock in personal property

Take out loan

construction loan, for person that buys the constructed loan

Fair Credit Reporting Act

consumer protection law that regulates the disclosure of consumer credit report by consumer/ credit reporting agencies and establishes procedures for correcting mistakes on one's credit record

Who uses the "unit in place" method for estimating replacement cost for a building

contractor

Surrender means

conveyance, surrender property back to landlord after lease

Alienate title to real property

conveys the title

Real estate investment trust

corporate commissioner, must have 100 people

Depth table

cost per front foot

Replacement cost approach

cost to replace building, might be cheaper items

Cost base

cost: 100k - unadjusted, adjusted cost - 100k plus 10k improvements

Abstractive judgement

court allow someone to make payments to fully pay off debt with interest

Writ of execution

court sells property to settle debt

In the sale of a 60 year old house, the seller is unable to provide written proof of title because the courthouse records were destroyed by fire. The seller could established ownership and perfect his title through: A. A condemnation proceeding. B. A foreclosure action. C. An appraisal by a certified appraiser. D. Prescriptive (color of title),

Which of the following persons exhibit one of the requirements necessary for an applicant to qualify for a salespersons license? A. The applicant is seventeen years old. B. The applicant has completed at lease 60 hours of instructions in a salesperson's course approved by the Commission. C. The applicant has completed the tenth grade. D. The applicant holds a certificate of equivalency.

What is the present value of the following series of cash flows discounted at 12 percent: $40,000 now; $50,000 at the end of the first year; $0 at the end of year the second year; $60,000 at the end of the third year; and $70,000 at the end of the fourth year?

d. $171,835.94

How much will a $50 deposit made today be worth in 20 years if the compound rate of interest is 10 percent?

d. $336.37

The maximum loan-to-value ratio on a VA guaranteed loan is:

d. 100 percent.

Which of the following financing structures provides for 100 percent financing?

d. Complete (land and building) sale-leaseback

The typical anchor tenant in a neighborhood shopping center is a:

d. Grocery store.

Home equity loans typically:

d. Have tax-deductible interest charges.

Private mortgage insurance (PMI) is usually required on _____ loans with loan- to-value ratios greater than _____ percent.

d. Home, 80 percent.

Which of these is not typically a responsibility of a property manager?

d. Income tax analysis.

If a mortgage is to mature (i.e. become due) at a certain future time without any reduction in principal, this is called:

d. Interest-only mortgage.

Which of the following best describes the taxation of gain and losses from the sale of Section 1231 assets?

d. Net gains are taxed as capital gains; net losses are taxed as ordinary income.

10. Which of the following statements is false?

d. Net passive losses can be used to offset dividend income from a REIT stock.

A real estate investment trust generally:

d. None of the above

In recent years, the mortgage banking industry has experienced:

d. Rapid consolidation.

Using financial leverage on a real estate investment can be for the purpose of all of the following except:

d. Reduction of financial risk for the leveraged investment.

A mortgage that is intended to enable older households to "liquify" the equity in their home is the:

d. Reverse annuity mortgage.

The reduced importance of certain institutions in the primary mortgage market has been largely offset by an expanded role for others. Which has diminished and which has expanded?

d. Savings and loan associations; mortgage bankers.

The internal rate of return equation incorporates:

d. initial cash outflow and inflow, and future cash outflow and inflow.

Ratio analysis:

d. serves as an initial evaluation of the adequacy of an investment's cash flow.

Mortgage companies

deal with discounted loans, seek out loans from institutional lenders, represent other lenders who lend money

When mortgage interest is paid in arrears on a loan assumption is prorated, the amount up to the date of closing is:

debited the seller and credited to buyer READ THE Q

Net income

deduct management, utilities, cost, everything except depreciation

Estate for years

definite duration

When a valid grand deed is prepared, title passes when it is

delivered

Earnest money deposit

deposit made by the potential homebuyer to show that he or she is serious about buying the house

Variances

exceptions to zoning

Who do mutual recognition agreements apply to?

exclusively to nonresidents licensed in other jurisdictions

Escrow is complete when it is drawn and..

executed

After contracting to sell and unless otherwise specified, the seller is responsible for:

existing liens (the seller is usually required to remove any liens or encumbrances to the title)

The income capitalization approach to value requires collection of data pertaining to:

expected future expenses (the income approach is based on present value of income - info regarding expenses is nesc to calculate projected net operating income)

Fictitious business name duration

expires dec. 31st after 5 years

Delinquency

failure to make mortgage payments when due

Operating expenses

fixed expenses, variable expenses, reserves for replacements

Tenancy at will

hotel, as long as you want

Highest and best use

how long building will bring in money, creates the highest proffit

Construction loan

interim financing, use land as collateral to build home,

A state in which a mortgage conveys title to the lender is

known as a title theory state.

Deed

legal document conveying title to a property

For income tax purposes, the term "adjusted sales price" means the sale price of a home:

less allowable fix-up and selling expenses (sale price minus selling expenses)

Interest when borrowing from broker

less than 2 yrs 5%, 2-3 yrs 10%, 3 or more 15%, fill out loan broker statement

Cost approach

library, civic center, sets upper limit

Voluntary lien

lien placed on property with consent of the voluntary act of the owner is a voluntary lien

A state in which a borrower retains title to the real property pledged as security for a debt is a

lien theory state.

Lis pendens

litigation pending, stops person from selling everything before you get to court

The VA total monthly obligations ratio is determined by dividing the total monthly

obligations by the gross monthly income

Occupation

occupying an area, for 5 yrs the easement can not be stopped, pertinent - easement will continue to next owner

Title insurance

on a one time basis to ensure there are no liens on the property, protects against forgery, no protection against unrecorded liens,

Escrow account

once you close your purchase transaction, you may have an escrow account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.

Tax free exchange

one like property for another, cannot be primary residence

Fee simple absolute

own a building or property that has no restrictions or covenants against the property

Option

owner of the option is optionee

Tenancy in severalty refers to

ownership by one person

A conventional life estate conveys to the life tenant ?

ownership for the tenants life

Estate

ownership interest of an individual in real property = sum of total real property and personal property owned by an individual at time of death

Blockbuster and panic selling

panicing some to sell their house

Down Payment

part of purchase price of a property that buyer pays in cash doesn't finance with a mortgage

Estate at sufferance

pay after lease is over but remain in residence

Adverse posession

pay taxes on property that was not yours for 5 yrs, then you can take property through quiet title (court)

When an agency expires because all parties have done what was agreed upon, it is said to have been terminated by

performance.

The money for making FHA loans is provided by

qualified lending institutions.

What are the useful asset life for residential and non-residential income property?

residential = 27.5 years Non-res/income = 39 years

Fee simple defeasible

restrictions or limitations on property, no 2 story homes

Any broker who places money or other valuables into an escrow account MUST:

review, sign, and date the monthly reconciliation statements

Bundle of rights

right to use, dispose, borrow

Gross multiplier

sale cost divided by monthly rent, number of months to cover cost

VA loans

same as FHA, no govt guarantee, need an impound account, no prepayment penalty, only provide 100k but can buy any home

A mortgage is usually released of record by a

satisfaction piece.

Guaranteed loan

security endorsement, has endorsement on license

Embelments

sell a grove, but retain emblement right to go back and pick fruit, one time thing and must be in writing

Conditions

sell property on condition that you don't sell alcohol on property

Request for notice of default

send to loan company after someone assumes the loan, protects the holder of the second

Unlawful detainer

served by owner to evict someone

State housing act

sets minimum construction requirements, enforced by local officials

County tax assessor

sets the reate but does not collect, assessments made annually or when home sold,

Commission split discrepancy process

settle personally, arbitration, court

What is a "Tax Shelter"?

shielding income or gains from payment of income taxes

Steering

showing someone homes that are only people with the same race

Severalty ownership

single person ownership

The real taxable value of a Florida resident's home will NOT be known until the:

total existing exemptions are subtracted from the current assessed value

Baird leases store space to carr for a restaurant. Carr installs his ovens, booths, counters, and other equipment. These items are considered to be ?

trade fixtures

What is used for selling business

transferred with bill of sale

Types of specific liens

trust deed, mechanichs lien

A trust is a legal arrangement in which title to property is held for the benefit of a third part by a ?

trustee

Who signs the trust deed which is used as security for the loan

trustor

Trust deeds parties

trustor - person buying home (can pay back fees for 90 days), trustee - given permission by beneficiary to file trust deed

Tenancy in common

two people own it, unequal ownership but have equal rights, each can sell or convey their portion

General partnership

unlimited liability

Recovery fund

up to $100,000 or series of $20,000, loose your license until paid off with interest

Packaged mortgage

use home and individual property together as collateral

Blanket encumbrance

used by subdivider, helps them borrow money to build homes, partial release clause as lots are sold

Conversion

using someone elses money

Unimproved lot

vacant lot

Regression

value down because of surrounding area

Progression

value up because of surrounding area

Land contract

vendor sells to vendee, installment sales contract, agreement to convey, does not release title until loan paid, vendee has equitable title, need to borrow money against property because don't have title, vendee name on title, creates cloud on title

Deed that does not need to be recorded to be enforceable

voluntary deed

Gratuitous agent

one who acts for a principal but does not receive a fee (seller's agent who sets up financing package for buyer)

Private mortgages - non institutional

operate as loan correspondence, needs to borrow money, re-sell loans, mortgage broker must have license, mortgage banker does not need license

Fannie Mae does not:

originate new loans - it recycles capital by purchasing loans previously made by primary lenders

Sqft

outside dimensions minus garage and porch

All of the following terms refer to water rights except:

PRIOR APPROPRIATION

Situs

Peoples's preference for one area over another, based on a number of factors such as convenience and scenic beauty.

A veteran has received a certificate of eligibility for $40,000. He signed a contract to purchase a home for $155,000. The CRV on the property is $153,000. The bank wants a 75/25 ratio. How much cash does the buyer need to purchase the property?

$2,000

The DBPR auditors conducted a routine check of a broker's escrow accounts. Office records reveal that the broker had made 22 sales during the time period checked and that only two of the sales had closed with appropriate disbursements totaling $9000. Binder deposit receipts showed the broker had collected an overall total of $88,000. in binder deposits. Total compensation earned by all 22 sales amounted to $58,500. The brokers account balance at the time of the audit was $20,400. What can be said about the findings of the audit?

$88,000 collected - $9000 disbursements = $79,000 trust liability (but he only has $20,400 in the account). Violations of 475.25 FS pertaining to proper handling of escrow funds is punishable by suspension or revocation

Littoral rights are ?

(1) A land owner's claim to use water in large navigable lakes and ocean's adjacent to his or her property. (2) The ownership rights to land bordering these bodies of water up to the high water mark.

FHA loan features

(Federal Housing Administration) (1) Low down payment (2) No max income/earning limitations (3) Fixed-rate loans available (4) Maximum loan amounts vary by country

FHA

(Federal Housing Administration) =agency of Housing and Urban Development that insures residential mortgage loans made by private lenders

Ginnie Mae (GNMA)

(Government National Mortgage Assocation)= provides fund to lenders for making home loans, but diff. from Fannie Mae in that it provides funds for gov't loans (FHA and VA)

PITI

(Principal, interest, taxes, and insurance) = if you have an "impounded" loan, then your monthly payment to the lender includes all of these and probably includes mortgage insurance as well. If you don't have an impounded account, then the lender still calculates this amount and uses it as part of determining your debt-to-income ratio

Collateral

- In a home loan, the property is the collateral. - Borrower risks losing the property if the loan is not repaid

Green Homes

- according to National Association of Realtors and National Association of Home Builders, green homes may have a competitive advantage over traditional homes when it comes to home sales

In Georgia, a broker engaged by a seller shall disclose to all parties with whom the broker is working all material facts about the physical conditions known within how many miles of the property ?

1 Mile

640 Acres=

1 Square Mile

A section that contains 640 acres is how many miles ?

1 Square Mile

CHARACTERISTICS OF FHA LOANS

1) Every county has a maximum FHA lending limit 2) ONE TIME upfront MIP wh can be financed, 1/2 % is added to the monthly payments 3 ) MIN DOWN PAYMENT- borrower must have cash. Down Payment may be a gift, but it can not be a LOAN 4) Interest rates are negotiable, FHA DOES NOT SET income limits for borrowers 5 ) DISCOUNT POINTS are paid by the BUYER or SELLER 6) NO PREPAYMENTS 7) max Origination fee is 1% 8) If FHA LOAN IS assumed- new buyer must meet FHA qualifying guidelines 9) When loan is assumed, lender will issue a Certificate of Reduction to verify the existing balance

Three distinct characteristics that make land different from anything else that can be owned:

1) Immobility 2) Non-homogeneity 3) Indestructibility

Estate For Years or TENANCY FOR YEARS

1) LEASE with a DEFINITE time period or specified Beginning and Ending Date. 2 ) Could be less than a YEAR 3) No NOTICE TO TERMINATE THE ESTATE 4) A tenant who remains in possession after expiration is considered a HOLDOVER

What four economic characteristics make land a unique commodity?

1) Location 2) Improvements 3) Fixed Investments 4) Scarcity

What two methods of describing land are used in Georgia?

1) Metes and bounds 2) Recorded plat

What are the three formal methods of legally describing land?

1) Metes and bounds 2) Rectangular Survey 3) Recorded plat

In a Warranty Deed- The Covenant of Quiet Enjoyment means

1) No one will come along to claim ownership of the property 2) Grantor must compensate the grantee if any later claims of ownership turn out to be valid

FEDERAL FAIR HOUSING ACT APPLIES TO

1) Rental Property 2) Vacant Land Sales 3) Single Family Sales

PRIMARY MORTGAGE MKT INCLUDES:

1) Savings and Loans 2) Mutual Savings Bank 3) Commercial Banks 4) Insurance Companies 5) Mortgage Bankers 6) Mortgage Brokers 7) Credit Unions 8) Pension Funds

What three tests do courts use to further determine whether or not an item has become personal property?

1) Will removal cause damage? 2)If the item is removed is it equally adaptable to another building? 3) What is the legal interest of the person who attached the personal property?

Characteristic of VA LOANS

1) on a 1 to 4 family dwelling that will be OWNER OCCUPIED 2) AMT of loan is determined by LENDER 3) LIMIT on how much the VA will guarantee 4) a VA LOAN is ASSUMABLE NOTE IF a NONVETERN ASSUMES LOAN, original borrower remains LIABLE for the LOAN

Foreclosure

live for 1 yr after, if deficiency judgement - you pay taxes and can stay in home, trustor is still owner

Current Trends - 3 primary types of distressed home sales

1. Short Sales 2. Foreclosures 3. Deeds in lieu of foreclosure

Broker

= Agents who bring two parties together for a transaction and earns a fee - Most REALTORS are "agents" who work under a "broker"

BPO

= Broker Price Opinion - To estimate the likely selling price of a real estate property

Cloud on title

= Conditions revealed by a title search that negatively impacts a real estate title

FHA requires borrowers to pay:

1/12th of estimated property taxes with each monthly payment (must escrow property taxes and hazard insurance)

Land project time for right of recession

14 days

Bond Market

= Daily buying and selling of 30-year treasury bond

Date Supreme Court prohibited racial discrimination

1968

How long to send a good faith estimate after loan docs signed

3 days

Lease termination

3 days notice to pay rent

Homeowners policy

3 general categories of risk Policy shd include 1) Protection against Destruction of the PREMISES 2) Injury to others on the premises 3) THEFT of PERSONAL PROPERTY of the homeowners or family members.

Broker and salesperson musk keep contract agreement for

3 years

RIGHT OF FIRST REFUSAL

RIGHT OF A PERSON TO HAVE FIRST RIGHT TO PURCHASE OR LEASE PROPERTY WHEN THE OWNER IS READY TO SELL OR LEASE

Township

36 square miles

Assumption of the Mortgage

3rd party assumes the MORTGAGE and becomes LIABLE for debt. Should the new buyer default, that buyer is PRIMARILY LIABLE for debt and ORIGINAL Borrower is SECONDARILY LIABLE

Hip roof

4 sided

How long does a buyer have the right to cancel a transaction after executing the purchase offer when delivery of the disclosure statement is by mail?

5 days, (3 days in person)

In the government survey system of legal description, a "check" is subdivided into "townships" that measure:

6 Miles Square

How many mile intervals do range lines run in?

Fannie Mae (FNMA)

= Federal National Mortgage Association, a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds

Buydown

= Financing technique to reduce the monthly payments for the first few years of a loan - Funds in form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing monthly payments

Capitalization

= Formula for converting net income into an indication of value = (Net income / capitalization rate of return) = value

1 township

640 acres

In a rectangular survey system a section contains ?

640 acres

Trust deed not time period before prepayment is allowed

7 years

Convertible ARM

= ARM (Adjustable-Rate Mortgage) that allows the borrower to change the ARM to a fixed-rate mortgage

HAFA in 2010

= Home Affordable Foreclosure Alternatives - helps homeowners who are unable to retain their home under HAMP (Home Affordable Modification Program) by simplifying and streamlining the use of short sales and deeds in lieu of foreclosures

Bridge Loan

= Loans obtained by homeowners who haven't yet sold their previous property, but need to close on a new purchase

A FHA loan would be considered a (n): A. Conventional, insured loan. B. Conventional, uninsured loan. C. Unconventional, insured loan. D. Unconventional, guaranteed loan.

Personal property is classified as either:

A chattel real or a chattel personal.

All of the following are fixtures except:

A GARDEN BENCH

Worker Compensation Coverage

A condominium property manager hires a full-time maintenance person. While repairing a water leak on the roof the maintenance person is injured. The claim for medical or hospital payments would be covered under the association's.

Property is transferred by ?

A deed

How does the metes and bounds method describe land?

A detailed description of each boundary line.

Define a plat of survey:

A drawing or map showing the actual survey of a parcel of land.

A person wants to ensure that the ownership of real property can be willed to her children. Which of the following forms of ownership would the person want o take ?

A fee simple estate

A chandelier attached to the ceiling in a sellers house would be ?

A fixture

Answer: D. At 8%, the annual interest on $13,400 is $1,072 or $89.33 per month. Total payments of $3,752 divided by the monthly payment equals forty-two months.

A straight note for $13,400 was executed at 8% annual interest. If the borrower actually paid $3,752 in interest, how many months did he take to pay it off? A) 32 B) 36 C) 39 D) 42

Littoral rights refer to:

A landowner's rights to a navigable waterway.

Local governments require that a plat of survey be prepared by:

A licensed surveyor.

after a licensee is issued an administrative complaint, has signed the election of rights indicating no dispute and requests an informal hearing; how much prior notice MUST be given the licensee/respondent for that hearing?

A licensee/respondent MUST be given at least 14 Days notice of a hearing

Answer: B. Start with the loan balance of $21,000, and multiply it by 11% to get the annual interest paid of $2310. Divide that number by 12 to get the monthly interest amount of $192.50. Subtract that amount from the total principal and interest payment of $571.80 =$379.80 principal paid on June 1st in arrears for the month of May. Subtract $379.30 from the prior loan balance of $21,000, for a total of $20,620.70, and 1% of that is 206.

A loan with a balance of $21,000 prior to the June 1 payment was figured with interest at 11% annually and monthly principal and interest payments of $571.80. There was a 1% pre-payment penalty. The owner paid the June 1 payment and then paid off the balance of the loan. What was the pre-payment penalty? A) $204 B) $206 C) $210 D) $215

If mineral rights are separated from ownership of the rest of the property the person who acquires them must have:

A means of extraction.

What is a rectangular survey(Government survey system) ?

A method of legally describing the surface of the land based upon a grid system formed by principal meridians baselines ranges lines and township lines

The point of beginning is usually identified in relation to:

A permanent point of reference or a standard benchmark.

The right to use water in states where water is scarce is secured by:

A permit.

A permanent attachment is either:

A product of nature or a man-made object.

When participating in interstate land sales a broker must provide the buyer with:

A property report

A line of townships running north to south is called:

A range.

Lots and Blocks System

A recorded subdivision plat maps, which shows the location of undivided lots in a subdivision.

Define easement:

A right to cross or otherwise use someone else's land.

Whenever land is sold during the growing season:

A sales agreement should state whether the crops are to be transferred with the land.

The law of capture allows:

A well drilled on one's property to extract oil or gas from adjoining property.

To answer whether or not an item has become personal property, courts usually first look for:

A written agreement that establishes the intent of the parties.

Which of the following documents is considered a security instrument? A. Promissory note. B. Mortgage. C. Warranty Deed. D. Security deposit.

Which activity is not a real estate service? A. Mortgaging property B. Advertising Property C. Renting Real Property D. Auctioning Real Property

A. Mortgaging property

Which statement is true with respect to a closing statement? A. The balance due the seller is paid by the closing agent B. The balance due the seller is paid directly by the buyer

A. The balance due the seller is paid by the closing agent (the Closing Agent prepares and distributes the appropriate checks)

A real estate broker must comply with

Agency law and state's real estate licensing laws

which requirement is not a requirement to hold a FL RE License? A. US Citizenship B. 18 years of age or older C. High School Diploma or GED D. Social Security Number

A. US Citizenship

A broker has written permission to represent both the seller and the buyer as a dual agent. Under these circumstances, which of the following duties of an agent would be the easiest for him to fulfill?

ACCOUNTING

All of the following are hazardous substances that a licensee should be aware of except:

ACRYLIC PAINT

Which of the following is an example of an involuntary, statutory specific lien?

AD VALOREM TAX LIEN

An agent has acted without authority to do so. His principal has found out about the actions and accepted them. What kind of agency does this describe?

AGENCY BY RATIFICATION

What is the difference between and easement and a lien?

AN EASEMENT IS A RIGHT IN LAND AND A LIEN IS NOT.

Which of the following actions on the part of the Federal Reserve would tighten the money supply?

AN INCREASE IN THE RESERVE REQUIREMENT

Mortgage yield or effective interest rate

APR, interest plus amount you paid in points,

Which of the following statements regarding tenant improvements (TIs) is the least true in the context of commercial real estate leases?

Actually, both b. and d. are equally untrue.

Accretion

Adding Land through Natural processes

Earlier permits establish priority in using:

Adjacent water, and go with the land when ownership is transferred.

Two Owner-Developers both have active RE Broker licenses. Together they hire a CPA who is not licensed to supervise the overall development of a large tract of land they are jointly developing into a sub-division. Although the CPA is not experienced in selling RE, he is n excellent business man and as a result manages to exceed the first 18 mo's sales projections. As a reward for his achievement the owner-developers agree to pay the CPA a bonus of 15% of the amount in excess of the first 12 mo's sales projections. This transaction can best be described as:

All 3 have violated 475 FS: Salaried employees of business entities who sell, exchange, or lease real property for their employer are exempt from licensure, providing they are not paid a commission or compensated on a transactional basis.

Strict Foreclosure

Allows lender to foreclose on the property after appropriate notice has been given to the delinquent borrower and the proper papers have been filed in court. NOTE : A DEFICIENCY JUDGEMENT IS NOT ALLOWED.

Buydown Mortgage

Allows the borrower to buy down the interest rate, thus REDUCING the Monthly Payment for a number of years. To buy down the interest rate, the borrower must pay interest in advance.

Answer: A. An appraisal is the process that APPRAISES the value of a property. Don't confuse this with a survey, which measures boundaries and land areas; or an assessment, which imposes TAX on something. A lien is a financial encumbrance.

An estimate of the value of something, usually a property, is known as: A) an appraisal. B) an assessment. C) a survey. D) a lien.

The law assures an individual who acquires mineral rights of:

An implied easement.

Trade Fixtures are ?

An item of personal property attached to the land or building leased by a tenant who uses the item in a trade or business.

The doctrine of lateral support means:

An owner can not reconfigure their land in a way that will cause erosion of a neighbors land.

Inform the owner to contact an agent that has a securities license

An owner of a commercial retail business is considering selling stock in the business. The owner contacted a real estate saleperson concerning the sale. The salesperson should:

The owner of a house wants to fence the yard for her dog. When the fence is erected, the fencing materials are converted to real estate by ?

Annexation

APR

Annual Percentage Rate = % figure that shows the true annual cost of a loan

Who may order a final order of summary suspension of a brokerage license?

Any final order listed as a result of a hearing for final summary suspension must be issued by the DBPR Secretary or appointed designee

What is an Allodial System ?

Any individual who has the means can acquire rights of ownership and our government protects these rights

Tenant has the right to remove trade fixtures at:

Any point before the lease expires, provided it can be removed without damage.

An improvement or artificial attachment is:

Anything that is a product of human planning and is affixed to the land with the intent of being permanent.

Which methods is most appropriate in estimating value in the following examples? Apartment Building Hospital Single Family Dwelling Raw land

Apartment Building = Income Approach Hospital = Cost Approach Single Family Dwelling = Sales Comparison Approach Raw Land = sales comparison or market approach

Which full-time employees of government agencies evaluate real property for taxing purposes?

Appraisers apply the 3 approaches to value and arrive at a fair and reasonable valu

An owner who holds easement over another person's land is said to have:

Appurtenant easement.

Property taxes from the previous year become delinquent when?

April 1

"For Sale" signs must be moved from the property no later than: A. The day of the expiration of the listing. B. Ten days after the expiration of the listing. C. Thirty days after the expiration of the listing. D. A reasonable time after the expiration of the listing.

A Contract must include the purchase price and method of payment, including the amount of earnest money, if any. If no definite purchase price exists, the contract: A. Purchase price would be established by the lender's appraisal. B. Must clearly established the criteria for calculation of the price. C. Purchase price would be the same as the listing price. D. Purchase price would be established at closing.

A borrow has a fully atomized, level payment, fix rate loan. Which of the following statements best describes the loan payments? A. The payments are applied to the interest only. B. The payments are applied to both the interest and principal with the principal portion of the payments increasing with each payment and the interest portion decreasing. C. The payments are applied to both the interest and principal with the interest portion of the payment increasing with each payment and the principal portion decreasing. D. The last payments is a balloon payment.

A broker and a seller signed a standard listing agreement. Under the terms of this listing the broker would be appointed to perform all of the following acts EXCEPT: A. Attempt to find a ready, willing and able buyer for the real property. B. Sell, trade or convey title to the real property. C. Place a "For Sale" sign on the property and market the property. D. prepare a data sheet with information about the property to give to prospective purchasers.

A broker had a buyer agency agreement with a buyer. The broker finds the buyer a home listed with another broker. Can the buyer's broker receive a commission from the buyer and share in the commission from the listing broker. A. Yes, if both brokers are members of the multiple listing service. B. Yes, with prior written consent of all parties. C. No, listing brokers cannot share commissions with selling brokers. D. No, brokers can only collect one fee in a real estate transaction.

Zoning restrictions would mist likely regulate which of the following? A. Landscaping of residential property. B. Lot size. C. Heating equipment. D. Fire safety standards.

the Georgia Real Estate Commission must investigate the actions of a licensee when: A. They receive phone complaints about any licensee's real estate activities. B. They receive a sworn written request for investigation of a licensee concerning acts that occurred within the last three years. C. They receive a sworn written request for investigation of licensee concerning acts that occurred withing the five years. D. Disputes occur between licensees and their broker.

which of the following factors would have the greatest effect on a property's market value? A. Age of the improvements. B. Location of the property. C. Real estate taxes. D. Size of the lot

The mortgage must include which of the following? A. Due on Sale Clause B. a Legal Description C. a Granting Clause D. the Mortgagee's signature

B. a Legal Description

A broker is exempt from all but one of the following notice requirements regarding conflicting demands. Which one? A. A sale of HUD owned property using a HUD contract B. A dispute over escrow funds related to a property inspection C. A buyers cancellation of a residential condominium within the allowable time D. A buyers inability to secure financing for the purchase according to the terms of the contract

B. A dispute over escrow funds related to a property inspection - all the others are exempt

John leased space in a building and installed bookcases and ceiling fans in that space. His lease will soon expire. What will happen to the bookcases and fans?

BECAUSE THEY HAVE BEEN INSTALLED, THE BOOKCASES AND FANS ARE FIXTURES AND HAVE BECOME PART OF THE PROPERTY. HE MUST LEAVE THEM BEHIND.

The primary survey line running east and west in the rectangular survey system is the ?

Baseline

Why did you get involved in real estate?

Because I truly enjoy working with people. I was working in high-end retail prior to this. I have a passion; my passion is to be able to make people build a home out of the property that they purchase from me

Define a parcel of land:

Begins at the center of the Earth, (subsurface), then passes through and includes the Earth's surface - plus extends into space.

Ownership of real property items must be transferred with a:

Bill of sale.

A broker has a listing on a vacant lot measuring 100 feet wide and 175 feet deep at a listing price of $250 per foot. The commission in the listing agreement is 10%. If the property sells for the full listed price, what will be the broker's fee? A. $2,500. B. $4,375. C. $1,750. D. $1,000

Blank

A commercial lot that measures 100' by 160' sold for $20,000. A similar lot is located in the same area and measures 100' by 200'. What is the most likely selling price of this lot? A. $20,000. B. $25,000. C. $30,000. D. $38,000.

Blank

An apartment complex property manager could refuse to rent to a tenant based on: A. Race. B. Sex. C. Financial status. D. Familial status.

Blank

A RE Assoc of ABC Realty finds a piece of property while on vacation listed by XYZ Realty. He sells the property to his friend and XYZ pays the Sales Assoc a 10% commission. What can be said about this transaction?

Both the Assoc and the XYZ Broker have violated FL RE Licence Law (The sales assoc can only be compensated by his employer broker - XYZ must pay the selling commission to ABC brokerage who will then distribute according to its arrangement with the sales assoc)

An unlicensed out of state resident referred a prospective buyer to a Tampa Florida broker. The Tampa broker reimbursed the out of state resident for his out of pocket expenses associated with the referral. What can be said about this transaction?

Both the out of state resident and the Tampa Fl broker have violated CH 475 because it is illegal to pay an unlicensed person for performing real estate services.

Real Property Ads and Yard Signs MUST include the name of the:

Brokerage Firm

A common limitation placed on air right's:

Building height limitations.

which of the following duties would be a fiduciary responsibility of a listing broker? A. Disclosing to the buyer that the seller is getting a divorce and is anxious to sell. B. Purchasing the property if it is not sold within the listing period. C. Disclosing to the seller the buyer is willingness to offer a higher price or better terms. D. Disclosing to the purchaser that the property was recently appraised lower than the listed price.

The statutory creation of a condominium requires certain basic items of legal documentation, one of which is not: A. Declaration B. Articles of incorporation C. Common elements agreement D. Bylaws

C. Common elements agreement

What are an agents duties to his principal?

CARE, OBEDIENCE, LOYALTY, DISCLOSURE, ACCOUNTING AND CONFIDENTIALITY

LIQUIDATED DAMAGESS

COMPENSATION PAID IF ONE PARTY BREACHES THE CONTRACT

AMBIGUITIES

CONSTRUCTED AGAINST THE WRITER OF THE CONTRACT

An appraiser has been asked to determine the market value of a home significantly older than all the other homes in the neighborhood. What approach should he use?

COST APPROACH USING REPLACEMENT COST

Undersupply of Money

Can cause a RECESSION

Baird and Carr purchased property as joint tenancy. Baird dies and wills his property to his wife. Who would receive Baird's interest under joint tenancy ?

Carr

Chattels personal are items like:

Cars, boats, furniture, clothes, stocks, money, & tools.

Natural changes in the flow of a waterway may:

Change the owner's boundary.

Personal property is also known as a:

Chattel.

Mineral rights are the rights to such things as:

Coal, oil, gas and ores.

Commercial Real Estate Lending

Commercial real estate market is still in the midst of a serious financial crisis

In the cost depreciation approach to estimating value, land value is commonly estimated by:

Comparable Sales Analysis is typically used for vacant lots or for valuing a site as though vacant

The master plan developed by planning commissions to manage local growth and preserve living conditions is called the:

Comprehensive Plan

Owners that sell the surface rights and retain mineral rights are said to be:

Concurrent owners.

Homestead Act of 1862

Congress passed it to give citizens 160 acres for every adult in the household

What can be said about construction loans with respect to the RESPA?

Construction loans, except those intended for conversion into permanent loans, are exempt from RESPA

Adjustable Rate Mortgage ( ARM )

Contains a ESCALATION CLAUSE that allows the interest to adjust over the loan term

Stocks =

Corporation, Shareholders

COFI

Cost of Funds Index - Determine interest rate changes for certain adjustable-rate mortgages - Weighted average cost that's calculated

Oversupply of Money

Creates Inflation

A broker learns that a neighbor might be selling their house and proceeds to secure potential buyers without the knowledge and consent of the owner. Would the broker's action be in violation of the license law? A. No, this would be considered an open brokerage agreement. B. No, but he could not advertise the property. C. Yes, the broker is acting in dual capacity. D. Yes, this would be considered an unauthorized offering.

A broker may refuse to release a salesperson's license under which of the following circumstances: A. When the salesperson owes the broker money. B. When the salesperson refuses to turn over broker's keys, listings, or other property. C. When the salesperson is in the process of negotiating a sales contract. D. Under no circumstances.

real estate brokers may price property in the normal course of real estate brokerage activities without being registered, licensed or certified by the Georgia Real Estate Appraisal Board. However, real estate licensees must NOT describe their activity as: A. Pricing property. B. Listing property. C. Marketing property. D. Appraising property.

when appraising a vacant lost an appraiser would likely consider? A. Annual net income. B. Replacement costs. C. Depreciation. D. Highest and best use.

when estimation the value of a property using the income approach, which of the following would NOT be considered and operating expense? A. Property taxes. B. Insurance costs. C. Maintenance. D. Debt service.

Judgement

final decree of the court which enables the judgement creditor to have the property sold or payment of the judgement

A property owner has installed a chain link fence on his property. He has received an official notice requiring the removal of this type of fence.This fence is most likely a violation of:

DEED RESTRICTIONS OR DEED COVENANTS

FHA

DOES NOT NEGOTIATE LOANS , FHA insures loans , loan is backed by the government

If the fed decides to sell securities through open market bulk trading, the resulting affect to the money supply would be:

Decrease in the $$ supply - when the fed sells securities it hold the money - thus less $$ on the street

When may a home owner deduct Mortgage Origination Fees (Points)?

Deductible only in the year they are paid

Name three things that require legal descriptions:

Deeds, leases, and contracts.

The clause in a mortgage that ensures that the mortgage cannot be foreclosed so long as all payments are current and other conditions are fulfilled is the:

Defeasance Clause

If closure is impossible, the legal description is:

Defective.

Changes in technology, land use, and productivity cause changes in:

Demand and scarcity.

In the bundle of rights which right allows the owner to sell or will their property ?

Disposition

The FREC is obligated to notify which agency when it takes disciplinary action against any licensee of that agency?

Div of FL Condominiums, Timeshares and Mobile Homes

Tax cycle

Due Nov. 1 - delinquent Dec. 10, Due Feb. 1 - delinquent April 10, fiscal year starts July 1, Jan 1st lien put on home, 5 yr period then state can sell house, escheat to the state

IMPLIED CONTRACT

ENTER INTO CONTRCT

EXCLUSIVE AGENCY BUYER AGENCY

EXCLUSIVE CONTRACT BET BUYER AND AGENT. HERE THE BROKER IS ENTITLED TO PAYMENT only if the broker locates the property purchased by the buyer. HERE the buyer can find suitable property WITHOUT THE OBLIGATION to PAY THE AGENT.

Condominium ownership also involves air rights because:

Each owner owns a block of airspace.

Baselines are?

East-West latitude lines.

A land's situs is constantly changing due to:

Economic, governmental and social influences.

Crops harvested each year are called:

Emblements or fructus industriales.

REFINANCE

Equity may be withdrawn but the borrower will have only ONE LOAN on the property

What type of loan is FHA ?

FHA is considered an unconventional insured loan

Absorption Rate

Estimate of how quickly homes have SOLD in the neighborhood within the past year,

Bernard signs a listing that guarantees the listing broker a commission payment if the sale is effect by any licensed agent. This is:

Exclusive Agency Listing

Who is responsible for low cost housing

FHA

A builder is using inferior siding and paint in an effort to construct affordable housing. This would be an example of:

FUNCTIONAL OBSOLESCENSE

True or false: An investor will primarily look to the architectural merits of a building to determine its feasibility as an investment.

False. Investors primarily look to the past and potential of the property to determine it's feasibility as an investment.

The rectangular survey system was originally designed to provide a:

Faster and more simple method.

Freddie Mac (FHLMC)

Federal Home Loan Mortgage Corporation=stockholder-owned corporation chartered by Congress that keeps money flowing to mortgage lenders in support of homeownership and rental housing

All nationally chartered banks must be members of:

Federal Reserve System

Who has jurisdiction over truth in lending

Federal trade commissoiner

The risk associated with an investment's ability to provide sufficient funds to pay operating costs is referred to:

Financial Risk - AKA Operating Financial Risk

Define standard benchmarks:

Fixed points, set in place by the US Geological Survey, that reference each other by distance and direction.

Define real property:

Fixed property usually land or buildings.

The owner owns to the center of the waterway, but does not have an exclusive right to use water that:

Flows past their land.

Which valuation method is least applicable for owner-occupied, single family residences?

Income capitalization approach (owner occupied property is not income producing)

The process whereby a person holding a claim against property can have the property sold to pay the claim is

Foreclosure

Failure to remove a trade fixture before the lease expires causes the tenant to:

Forfeit rights to the improvement.

Which of the following is the best example of a buffer zone?

GARDEN APARTMENTS BETWEEN SINGLE FAMILY HOMES AND RETAIL SHOPS

Public offering statement

Georgia Time Share Act requires developers of timeshare projects make disclousres to prospective buys of all materal facts about the property including the buyer's right to rescind the contract within 7 days

TANDEM PLAN

Ginnie Mae also works with FANNIE MAE in Secondary Market Activities when MONEY IS TIGHT. The tandem Plan provides that Fannie Mae can purchase HIGH RISK- LOW YIELD LOANS at FULL MARKET RATES and GInnie MAE will guarantee payment and absorb the difference between the low yield and current market prices. NOTE GINNIE MAE PURCHASES 1) FHA 2) VA 3) and certain Rural Development Loans

The seller informs the broker that he wants single agency representation. The broker must:

Give the seller the single agent notice (before or at the time of entering into a listing agreement)

What is the rectangular survey system also known as?

Government Survey System

Most airspace is subject to:

Government controls.

Curable functional Obsolescence results in a change in value that is:

Greater than the cost to cure the defect (if correction results in greater added value than the cost to correct, the defect is curable)

VA LOAN

Guarantees loans to LENDERS and does not directly negotiate loans

A broker has listed a seller's property. The seller travels extensively and would like the broker to have the authority to accept a full price offer if he receives one. The seller's lawyer prepares a limited power of attorney authorizing the broker to accept any offer for at least list price. Once the broker has the authority to accept a full price or better offer for the seller, what is his agency role with the seller?

HE IS A GENERAL AGENT

A property owner receives a notice that his land is in an improvement district. What does this mean?

HE WILL RECEIVE AN ADDITIONAL TAX BILL

A broker owes customers:

HONESTY AND FAIRNESS

A member of the board of directors of RE Corp "A" is also the owner and broker of RE Corp "B". What can be said about this relationship?

He may serve in a non-brokerage capacity for RE Corp A and be an active broker with RE Corp B

Construction Loan

Here the borrower receives the money in stages called draws and makes periodic payments of interest. When the construction is complete, the borrower must have secured long term financing and will pay off the principal balance. Used to fiance the erection of IMPROVEMENTS on LAND

Under condominium laws (horizontal property acts), the owner of each unit ?

Holds a fee simple title to the unit

An exclusion of capital gain from the sale of a principal residence is allowed when?

Homeowner must occupy the residence for at least 2 years (however, a pro-rated exclusion may be applied when a move is due to change in health, or employment)

Which of the following is the best example of puffing?

I THINK THIS IS THE BEST FLOOR PLAN AVAILABLE FROM THIS BUILDER.

The fact that an individual must go to the land describes which of the characteristics of land?

IMMOBILITY

An appraiser has been hired to appraise a commercial office building that is fully leased. What approach to appraisal will he have to use to determine his opinions of value?

INCOME APPROACH

RESPA

IS a FEDERAL ACT that requires that Lenders disclose to both BUYER and SELLER all settlement costs on federally related mortgage loans, and first and second liens for the purchase or refinancing of 1 to 4 family dwellings NOTE RESPA DOES NOT APPLY TO a LAND CONTRACT ; PURCHASE MONEY MORTGAGE where the seller is solely financing the property or transaction where the BUYER IS ASSUMING the sellers EXISTING LOAN and the lender charges less than $50 for the assumption

Define a legal description:

Identifying the location of a parcel of land in a manner that distinguishes it from all others.

OPERATING FUNDS

If BROKER is Engaged in PROPERTY MANAGEMENT- Operating Funds are used to maintain or repair a property or to run Credit Checks and to Screen PROSPECTIVE TENANTS.

Riparian Rights

If River is Navigable, owner owns to the edge of the River OR to the Mean High Water Mark If River is Non Navigable, Owner owns to the CENTERLINE of Water

A joint tenancy with the right of survivorship may be created when ?

If it is specified in the deed

What does the Rectangular Survey System use instead of physical objects to locate properties?

Imaginary lines.

Land includes the surface, subsurface and air above and is described as:

Immobile, permanent and non-homogeneous.

What are the physical characteristics of land ?

Immobility, Non Homogeneity( no two lands are exactly the same), and indestructibility.

Define appurtenances:

Improvements, natural attachments, and all rights of ownership.

Another economic characteristic of land that impacts it's value are:

Improvements.

Metes and Bounds

In Georgia, in the conveyance of real property,this legal description will take priority over all other forms.

Personal Property

In cooperative ownership, the stock of a cooperative owner is treated as

The sale of securities in a real estate cooperative Limited partnership

In the following transactions a licensed real estate saleperson be required to obtain a securities license

OPEN BUYER AGENCY AGREEMENT

In this NONEXCLUSIVE contract with the agent, the buyer can enter into similar agreements with any number of agents. The agent WHO FINDS THE SUITABLE PROPERTY will be Compensated.

Both joint tenancy and tenancy by the entirety ?

Includes the right of survivorship

A licensed real estate broker and his wife jointly owned a two-person corporation for profit registered with the DBPR as an active real estate brokerage firm. The wife was registered as an officer of the corporation but had never qualified to be licensed. The broker and his wife mutually agreed to a divorce, and the court awarded the wife the profitable real estate corporation as part of the property settlement. The wife retained her married name, and her husband organized a new brokerage firm. Can the wife continue to operate the brokerage firm?

It illegal for the wife to continue to operate the firm; Rule 61J2-5.015 states: "No registration shall be issued to the corporation or licenses to any officer or director, unless the corporation shall cause to register, and biennially renew the license of at least one active officer

Government National Mortgage Association ( GINNIE MAE )

It is OWNED BY THE GOVERNMENT and is a division of the Department of Housing and Urban Development ( HUD ) NOTE GINNIE MAE Specializes in HIGH RISK and Special Assistance Programs- such as Housing for the ELDERLY. GINNIE MAE has a mortgage -Backed Securities program that sells GUARANTEED certificates to Investors

When removal of personal property results in material damage to the real estate or the item itself:

It is a fixture regardless of intent - unless the party removing the fixture repairs the damage.

Define trade fixture:

Item of personal property which tenant attaches to the land which is used for a trade or business.

Appurtenance is ?

Items that go with the land to successive owners. (trees, buildings, or ownership rights)

What are chattels ?

Items the seller can loan into the van when moving after the sale. Cara, boats, furniture, clothes, stocks, money .

When do property taxes become a lien?

January 1 every year

If two or more persons have undivided interest in real property, which estate may NOT be created unless specific wording in the deed provides for right of survivorship? A. Joint Tenancy B. Tenancy in common C. Tenancy by the entireties D. Tenancy at will

Joint Tenancy - A true joint tenancy cannot be created unless specific wording in the deed conveying the property provides for survivorship

Estate frm Period to Period/ Estate from Year to Year/ PERIODIC TENANCY

LEASE WITH A INDEFINITE TIME PERIOD. LEASE AUTOMATICALLY RENEWS UNTIL PROPER NOTICE to terminate is given.

ESTATE AT WILL

LEASE gives Tenant the right to possess the property with the consent of the landlord for a UNCERTAIN TIME PERIOD. Lease can be terminated at any time by Landlord or Tenant.. NOTE DEATH of EITHER PARTY TERMINATES the lease

SUIT FOR SPECIFIC PERFORMANCE

LEGAL ACTION TO ENFORCE THE PERFORMANCE OF THE TERMS OF CONTRACT

Although land is indestructible it's value can be reduced by:

Lack of proper care and maintenance.

A Contract For Deed grants the buyer equitable title without a deed. It is also called:

Land Contract Installment Sale Contract

Payment of taxes is easily enforced because:

Land is readily available to be sold.

Mineral rights go to the new owner when:

Land is sold.

Real Estate is ?

Land plus things that are attached to the land by nature or man made buildings. (trees, buildings)

Real estate includes:

Land, products of nature, man-made improvements plus legal rights of ownership.

Dower

Legal Life estate that a wife has in the real estate of her deceased husband is

A sales assoc's license expired 20 months ago. What must she do to again work as a RE Sales Assoc?

Licensees who have been involuntary inactive for more than 12 but less than 24 mo's are required to complete a 28 hours of a Commission prescribed education course

Usury Laws

Limit the Maximum Interest Rate that a Lender can charge on certain types of loans. NOTE: USURY LAWS DO NOT SET THE INTEREST RATES; THEY ESTABLISH THE MAXIUM RATE THAT CAN BE CHARGED. IN TIMES OF EMERGENCY- The Federal Govt can set aside Usury Laws

The purpose of Save Our Homes amendment is to:

Limit the amount of increase in assessed value of homesteaded property

A recorded legal document that gives constructive notice that an action affects title to a parcel of real property is called:

Lis Pedens

Open-end Mortgage

Loan that can be re-opened and Borrowed against after Some of it has been paid down. Ex You can Borrow $150,000 via a mortgage loan with an agreement in place that after you pay some of it down, You can BORROW BACK up to the the $150,000 limit AGAIN

Two tracts of land may be identical in all physical aspects but because of:

Location they can never be the same.

What are the economic characteristics of land ?

Location( situs), Improvements, fixed investments, and scarcity

First Time applicants for the Homestead exemption must be filed by what date in order to get the exemption for the current year?

March 1

Cooperative Ownership

Mary purchases ten shares of stock in the Oceanview Retirement Corporation, entitling her to a proprietary lease on apartment 428 and use of the common element. This is an example of:

The VA Loan Guarantee is referred to as:

Maximum Entitlement

REALITY OF CONSENT

Means the Contract was entered into without duress, menace , misrepresentation or fraud. The law protects a person who has been tricked or forced into entering a contract. CONTRACT IS VOIDABLE BY THE INNOCENT PARTY.

The length of a boundary line is usually measured in feet but other measurements may be:

Meters or rods.

What type of land descriptions are used in Georgia ?

Metes and Bounds and lot and lot and block

What method is not only the most time consuming but the most authoritative?

Metes and bounds method.

The method of describing land the uses degrees, feet, and mouments is known as the ?

Metes and bounds system

The system of legal description that defines a parcel of land tracing its perimeter is the ?

Metes and bounds system

Personal property can be distinguished by:

Mobility.

Reversion interest ?

Owner of a fee simple interest transfers an interest which, when terminated, reverts back to the owner. For example, Green conveys a fee simple defeasible title to Smith whereby, should Smith ever divorce Green's daughter, title would revert back to Green.

The ends of a boundary line side of a parcel of land are marked by:

Monuments.

What served as the primary method of describing land before surveys and modern technology?

Monuments.

The FL Time Share Act applies to time share plans consisting of: (7P3)

More than 7 time share periods over at least a 3 year period

Chattels real are items like:

Mortgages, leases, contracts to purchase and options.

Can a property owner give a sales associate or broker a power of attorney to draft a lease?

NO - only attorneys may draft leases for others

John has a loan with equal regular payments of principal and interest. Long before the debt is satisfied, the balance is due in a payment substantially larger than all the others. This is best described as a:

PARTIAL AMORTIZED LOAN

Regulation Z regulates all of the following except:

NON REAL ESTATE LOANS GREATER THAN $25,000

All of the following pledge property as security except:

NOTE

Which of the following instruments is the promise to repay a debt?

NOTE

A property at 123 Main Street has been listed by Mary, a sales licensee at ABC Realty for several weeks. Last week, Mary died. What effect will Mary's death have on the listing agreement?

NOTHING

A property owner has a gas station on his land. The zoning committee changes the zoning to R-1. What must the property owner do?

NOTHING-HIS PROPERTY IS AUTOMATICALLY CONSIDERED A NON-CONFORMING USE.

A broker sold a home for $150,000. The broker then, at the request of the buyer and seller, prepared a second contract at $180,000 to present to a mortgage company. Can the broker legally do this?

No - it is illegal to enter into a dual contract for the purpose of securing a larger loan

A real estate co is the exclusive representative of the developer of a new subdivision. The RE Co's sales staff will temporarily work out of a mobile home that the developer placed on the property until the model home is completed. Transactions will be closed at the main office. Doe the RE Co need to register the the mobile home as a branch office?

No - the mobile home is a temporary shelter and therefore not considered to be a branch office (as long as transactions are not being closed there).

A surveyoy can measure boundaries in either a clockwise or counter clockwise direction from the north to south meridian but:

Not in both directions on the same plat.

How long do FL Statutes allow a member to serve on the FREC?

No more than 2 consecutive 4 Year terms

Are real estate and real property technically the same?

No, but they are used interchangeably most times.

Is mortgage insurance required on a VA loan ?

No, mortgage insurance is not required on a VA loan

In a limited partnership, can a limited partner be held liable for more than the extent of their investment ?

No, the liability cannot exceed their initial investment

Can a parcel of land have an exact replica?

No.

Can land be considered personal property?

No.

Does a legal directory require a legal description?

No.

Where can you expect to find PMI?

ON A HIGH LTV CONVENTIONAL LOAN

NOVATION

ONE CONTRACT IS SUBSTITUTED FOR ANOTHER CONTRACT WIHT THE INTENT TO DISCHARGE THE OBLIGATION OF THE ORIGINAL CONTRACT. RELEASE OF OBLIGATION FROM THE ORIGINAL CONTRACT

INDEMNIFICATION CLAUSE

ONE PARTY AGREES TO COMPENSATE ANOTHR FOR LOSS OR DAMAGE

UNILATERAL CONTRACT

ONLY ONE PARTY OBLIGATED TO PERFORM

Define artificial monuments:

Objects like concrete markers, iron stakes, roads, walls, or fences.

Define natural monuments:

Objects like rocks and trees.

Define real estate:

Objects which are immovable and identified with a specific place.

Subject to Mortgage

Original borrower remains LIABLE for the debt, even if the third party buyer defaults. If a default occurs, the buyer LOSES the PROPERTY and the original borrower has a FORECLOSURE on his Credit Report and possibly a deficiency judgement

Which of the following is not corporeal property?

Outdoor billboard

Ownership in severalty is ?

One owner can sell, will, leave, or transfer property. Sole owner can be a single individual or a corporation.

When someone buys a home, what is described in the deed?

Only the surface of the land.

The term "procuring cause" is most significant in which type of listing?

Open (in an open listing the broker who is the procuring cause is the only broker entitled to compensation)

What are 3 deductions from taxable income on investment property?

Operating Expenses Financing Expense Depreciation (key to sheltering income from taxation)

Non amortized Loan

Periodic Interest payments are made to the Lender, but nothing is applied to the principal balance. These loans are called TERM MORTGAGES or Straight Mortgages. Ex is a CONSTRUCTION LOAN

Standard benchmarks are considered the most reliable reference marks because of:

Permanence and accuracy.

The intent of the Legislature with respect to FL's laws regulating professionals and occupations is to:

Permit any Qualified person to engage in any profession regulated by the State of Florida

Remainderman

Person who becomes the owner of property at the end of a life estate. the remainderman has fee simple

Chattels is considered what ?

Personal Property

Trade fixtures are considered ?

Personal Property

Property ownership is governed by two different bodies of law depending on whether they are:

Personal or real property.

What are Fructus industrials or emblements ?

Personal property, in which the sales agreement should clearly state whether or not the crops are to be transferred with the land. ( Crops that are harvested each year, corn, wheat, soybeans, tobacco etc.)

Are emblements real or personal property?

Personal property.

A mortgage clause NOT usually found in a VA or FHA mortgage is the:

Prepayment Penalty Clause

Immobility allows local government to use land as a:

Primary source of taxation.

All home loans have 4 major components (not PITI)

Principal Amount Interest Rate Loan Term Monthly Payment

An owner has the right to use navigable waters only to the extent that:

Private use does not interfere with public use.

Margin

Profit charged by lender and added to index to determine the interest

What are principal meridians and baselines further divided into?

Range lines and township lines, which form a grid system.

Are trade fixtures chattels real or personal?

Real

Tenancy in common is ?

Property owned by two or more people, undivided fractional interest. It requires the unities of possession, title, time and interest. It does not have the right of survivorship.

Fixtures are ?

Property that was once personal property but has become real (built in appliances, wall to wall carpet, major plumbing fixtures) MARIA

Federal National Mortgage Association ( FANNIE MAE )

Provides Liquidity and Stability in the housing Market by purchasing mortgages from Lending Institutions that Negotiate Loans that meet Fannie Mae guidelines Run by the Federal Government and the Federal Housing Finance Agency ( FHFA)

Each section out of the 36 sections each township is further divided into:

Quarters or other fractions.

Which type of deed will prevent the grantor the BEST assurance of no future liability?

Quitclaim Deed Read the question - here it deals with the GRANTOR

Zone R-1A probably refers to:

R usually designates "residential property"

M.A.I. refers to which professional group?

REAL ESTATE APPRAISERS

A buyers agent has helped a buyer find a home. The buyer has expressed concern about the possible presence of radon. What should the buyers agent recommend to the buyer in this case?

RECOMMEND AN INSPECTION FOR HAZARDOUS MATERIALS

You have recently purchased property in an area regulated by zoning. It has come to your attention that you have a zoning violation on the property. What should you do?

REQUEST A VARIANCE FROM THE ZONING BOARD.

CONTINGENCY

REQUIRES THE COMPLETION OF A CERTAIN ACT OR PROMISE BEFORE THE CONTRACT IS BINDING

Fixtures is considered ?

Real Property

A real estate licensee who is representing a tenant in a commercial rental wants to share part of her commission with the tenant. Can she do this legally?

Real estate licensees may share their commission with a party to a lease agreement, provided it is disclosed to all interested parties

What are fructus naturales ?

Real property that automatically go with the land ( Shade trees, shrubbery, or perennial plants)

Minerals on or below the Earth's surface are considered:

Real property.

Riparian Rights

Refer to River, or supply water to land or crops

TRuth in Lending

Regulation Z- requires that Lenders disclose the true cost of Credit expressed as an APR . Covers ALL 1 to 4 family Real Estate Financing for residential borrowers who are natural persons but not loans that are used for 1) BUSINESS 2) COMMERCIAL 3) AGRICULTURAL 4) PERSONAL PROPERTY CREDIT TRANSACTIONS involving more than $25,000

One result of the current tax law is that homeowners are not required to do what with the sales proceeds in order to claim the exclusions?

Reinvest the sales proceeds in a new residence

If a monument used as the POB is destroyed or removed, it can be re-established by:

Relying on the benchmark.

Baird conveys a life estate to her grandson and stipulates that upon her grandson death the estate will pass to her son in law. The son in law has a ?

Remainder Interest

Define severance:

Removal.

If a tenant replaces a landlord's fixture with a new fixture without permission, it becomes a:

Replacement fixture and belongs to the landlord by accession.

A sales Assoc receives a binder check made payable to him. What should the sales assoc do?

Return the check and request the buyer make a new check payable to the RE Assoc's broker

Rights included in the ownership of land with a stream, river, or lake within it's boundary lines or on it's border are called:

Riparian rights.

Appurtenance

Run with the land

LAND CONTRACT

Seller/Vendor agrees to finance the sale of the property. Seller retains title to property until the final payment. NO MORTGAGE is involved .

A land owner's right to drill can be:

Separated by the rest of the property and sold or leased separately.

Personal property can become real property and back through:

Severance.

Air rights, surface rights, and subsurface rights may be:

Severed from the full rights of ownership.

An active broker accompanies her husband, who is an active duty member of the military, when he is stationed in San Diego, CA for 5 years. She is not active in RE during those 5 years. What must she do to obtain a current FL Broker's license within 6 mo's of her husbands discharge?

She need not complete anything - a member or members spouse of the US Armed forces who at the time of entry into those armed forces has an active FL license in good standing is exempt from all renewal requirements while on active duty and for six-months thereafter when the military duty is out of state.

In a rectangular survey, normally the longer the legal description the ?

Smaller the parcel of land

Lenders will often use what type of deed to convey property to a new buyer that has been taken through foreclosure?

Special Warranty Deed (because the lender only assumes title responsibility for the period the title was in the lenders name)

What do township lines running at 6 mile intervals parallel on both sides of each baseline form?

Squares six miles on each side.

A land owners right to extract and use underground water varies by:

State.

Structural pest control reports are obtained from

Structural Pest Control Board

if a tenant legally subrogates or subordinates the rental space, it means the tenant has:

Subleased the lease

Courts do not allow any parcel of land to be:

Substituted for another.

Appurtenances go with the land and all:

Successive owners.

Avulsion

Sudden Loss of Land through Natural processes Such as EARTHQUAKES

Who is responsible for providing a lead paint disclosure?

THE SELLER

Your property borders a non-navigable waterway and you have riparian rights. You have built a 10 foot pier at the water's edge. How do measure your property?

TO THE MIDDLE OF THE WATERWAY

ASSIGNMENT

TRANSFER OF RIGHTS/DUTIES FROM ONE CONTRACT OR FROM ONE PERSON TO ANOTHER

Which of the following is not a duty of an agent?

TRUST

To determine the correct amount of property tax for a property, multiply the tax rate by the:

Taxable Value of the Property

The clause in a mortgage in which the lender waives the right to a deficiency judgement against the borrower and the borrower is relieved of personal liability is:

The Exculpatory Clause

When The Federal Reserve requirements are decreased:

The Money Supply grows, thus DECREASING Interest rates.

If a legally sufficient complaint has been filed, investigated and found valid, the next step in the complaint process is:

The Probable Cause Panel will determine if Probable Cause exists

The broker of record for a real estate co is working with a buyer as a buyer's single agent. The buyer becomes interested in a property listed by the brokerage as a transaction broker. What can be said about this arrangement?

The RE Co cannot be a transaction broker for one party and a single agent for the other party - the buyer would have to agree to transition to a transaction broker relationship

The Rural Housing Service does what?

The Rural Housing Service offers direct loans and other services to farmers, rural residents and communities

Authority to physically evict a delinquent tenant from rented property is vested in:

The Sheriff - at the time the sheriff executes the writ of possession or any time thereafter, the landlord or the landlord's agent may remove any personal property found on the premises to or near the property line

Qualifying Ratio

The amount of Money a borrower can pay for a Mortgage loan is determined by the Qualifying Ratio

The most important objectives of the federal TIL Act are to ensure disclosure of finance charges and:

The annual percentage rate

Land residual

land value

A buyer is considering making an offer to purchase a 50-unit beachfront time-share development from the seller. The buyer and seller have requested that a licensed RE assoc act as single agent representative for both of them. What can be said about this request?

The arrangement is in violation of 475 FS because for an individual to represent both the buyer and seller as a single agent is a dual agent relationship and illegal in the St of FL (in a nonresidential transaction where both the buyer and seller have assets of at least 1mm, the buyer and seller may request that the broker designate One licensee in the firm to be single agent for the seller and ANOTHER licensee a single agent for the buyer

If life estate is sold

The buyer would receive the same interest the life tenant had.

For a property to be held in tenancy by the entirety is must be ?

The co tenants must be lawfully married husband and wife

Define bearing:

The compass direction from one point or monument to another.

Define point of beginning:

The corner of property where the survey begins.

Define a call:

The description of each side of the property including distances and bearings.

What does "metes" refer to in the metes and bounds method?

The distances around the border of a property.

In states where water is scarce:

The doctrine of prior appropriation applies to the riparian owner.

Define deed:

The document used to transfer ownership of real property.

The surface of the earth extending down to the center and upward to the sky

The extent of an owner's rights in land would include

Limited Liability Company

The following business organizations offers the members the limited liability offered by corporate ownership and the tax advantages of a partnership.

Selling Stock in a Real Estate Corporation

The following transactions would most likely require a real estate licensee to have a security license.

Real property

land, affixed, easements,

In a limited partnership who runs the business ?

The general partner

Homestead Rights

The homeowner may be allowed certain protection from judgments of creditors as a result of the state's

An implied easement means:

The individual has the right of access to extract the minerals provided there is no agreement to the contrary.

To determine whether or not an item has become personal property look to the intent of:

The intent of the person who installed the item.

When a tenant forfeits rights to an improvement it belongs to:

The landlord, by accession.

What does "bounds" refer to in the metes and bounds method?

The landmarks or monuments that determine the direction of each side.

If a person such as a trespasser attaches personal property to the land of another it belongs to:

The landowner.

What is law of capture ?

The law which allows a well drilled on one property to extract oil or gas reserves from under adjoining properties.

Should a borrower of an FHA insured loan default

The lender would foreclose on the property and if the purchase price at foreclosure does not cover the amount due to the lender, then FHA WOULD PAY FOR DIFFERENCE

A lic RE assoc conducted an appraisal for a fee. The FREC found the licensee to be in violation of the Uniform Standards of Professional Practice. What penalty may the FREC impose?

The licensee is subject to suspension or revocation of her RE license

Define the right of lateral support:

The natural support of the adjoining land must not be damaged by efforts to extract minerals.

What is "Taxable Value"?

The non-exempt assessed value that is determined by subtracting the applicable tax exemptions from the assessed value

Home Equity Loan

The original Loan is in the FIRST LIEN POSITION and the Home equity loan is in the SECOND lien position.

Prohibit utility meter reader on the property

The owner's bundle of legal rights would not include the right to.

With regard to taxes; what is the "Adjusted Basis"?

The owner's original costs plus buying expenses and capital improvements

The phrase bundle of rights refers to ?

The ownership of real property

The worth of an investment in land is determined by:

The period of time that the improvements remain economically useful.

What is severance ?

The process by which an item of real property becomes personal property.

Define economic life:

The return on the worth of investment that will be realized over a period of time.

In mining operations, adjacent landowner's are protected by:

The right of lateral support.

Real property refers to the right to:

The right to own land and the attachments on it.

What are bundle of rights ?

The rights and interest the owner has in the object.

Property rights include:

The rights and interests the owner has in an object.

The Doctrine of Correlative Rights allows:

The riparian owner to use only a reasonable share of water during periods of short supply.

An owner of a life estate with a remainder interest desired to sell their interest they buyer would receive ?

The same interest the life tenant had

Blue Sky Laws

The state laws designed to protect the public from fraudulent practices in the promotion and sale of these securities are called.

A buyer orally agrees to purchase a sellers home, gives the seller a down payment and the buyer moves into the home. Why is this an enforceable contract?

The statute of frauds mandates real estate contracts be in writing with the following 2 exceptions: (1 )buyer has paid part of the purchase price AND takes possession or makes improvements (2) if both parties have fully performed all of the terms of the oral agreement.

Define situs:

The sum of all the economic factors of a property's location which influence it's value.

A prospective tenant wants to install a ramp at the front door and handrails in the bathroom of a bungalow cottage. What can be said about this?

The tenant may make the modification at her own expense (sec 760.23 FS prohits landlords from refusing to allow a tenant with a disability to make reasonable modifications to a res dwelling at the tenants own expense

Airports, industrial plants and recreational facilities influence:

The values of surrounding properties.

The level at which percolating water is found beneath the Earth's surface is called:

The water table or ground water level.

A husband and wife owned a homesteaded property. The husband also owned investment property in severalty. The husband died testate and left his investment property to his sister. What claim(s) does the wife have on these two properties?

The wife may file for an elective share (30%) of the investment property in addition to having 100% interest in the principal residence

Why isn't it necessary to describe the improvements in a deed?

They are considered part of the realty.

What are tenements?

Things permanently attached to the land, physically, or legally immovable by law.

Which of following is an example of puffing?

This house has the most beautiful decor of all my current listings.

A FL broker has multiple licenses. She is an active broker with two different companies. A sales assoc for CO 1 procures a listing and a sales assoc for CO 2 procures a buyer who has entered into a contract to purchase a condo. What can be said about this relationship?

This is a legal arrangement because two separate RE Co's are involved.

A Florida broker purchased some raw acreage and developed it into several hundred building lots. The FL broker contacted an AL broker and offered him $150 for every prospect he sent to FL who bought a lot. What can be said about this arrangement?

This is a perfectly legal arrangement; it is legal to pay an out of state broker a referral fee - providing the out of state broker does not come to FL and practice RE

Buyer and seller have entered into a RE contract. The broker neglected to enter a closing date on the contract. What can be said about this contract?

This is a valid and enforceable contract (although a closing date is desirable, it is not a required element to make a RE contract enforceable - if nesc the courts may interpret the closing to be accomplished in "a reasonable period of time")

A sales assoc is frustrated with a buyer who uses him to drive the buyer around and then makes an offer on property through another broker. To help "tie" the buyer to the sales associate, he requires the buyer to deposit $500 with the real estate co to show intent of purchase through the re co. If the buyer buys then the $500 will be paid towards the earnest $ deposit. If the buyer does not purchase through the re co then the buyer forfeits the $500. What can be said about this arrangement?

This is perfectly legal but the $500 is a trust fund and buyer paid fees must be placed in the brokers escrow (trust) account

An ownership interest that is based on annual occupancy intervals is a ?

Timeshare

Answer: C. Licensing and other requirements provide a "base level" of protection against losses due to mishandling. Nonetheless, to protect associations, the law requires fidelity insurance once the $60,000 threshold is crossed.

Thomas Balkan is a community association manager who does NOT carry fidelity insurance. Under what circumstances is this allowable? A) If he never handles more than $25,000 at any one time. B) If he never handles more than $45,000 at any one time. C) If he never handles more than $60,000 at any one time. D) If he never handles more than $75,000 at any one time.

Define tenements:

Those things which are permanently attached to the land and are immovable by law.

Define navigable waters:

Those waterways designated by the government as navigable on a federal survey map - and are open to the public.

When measuring the gross area the appraiser measures the:

UNDER ROOF, INCLUDING UNFINISHED SPACES

Destroy the interest of all shareholders including those who have paid their payments

Under cooperative ownership the corporation is unable to make mortgage and tax payments because a few shareholders default on maintenance payments and the property might be sold by court order foreclosure suit.

Define percolating water:

Underground water not confined to a specific waterway.

Loan with no down payment

V.A.

A married couple purchases property and takes title as Tenants by the Entirety. All of the following are true except:

WHEN ONE SPOUSE DIES THEIR SHARE WILL PASS TO THEIR HEIRS INCLUDING BUT NOT LIMITED TO THE SURVIVING SPOUSE.

Ownership of land also includes what two rights?

Water rights and mineral rights.

SECONDARY MORTGAGE MKT

Were created to provide a ROLLOVER of FUNDS to the Primary Secondary MKT. NOTE Loans can not be sold on the secondary market unless they conform to the secondary market guidelines. IMPT: A Non Conforming Loan is one that DOES NOT MEET SECONDARY MKT SPECIFICATIONS. LOANS that are purchased by the secondary mkt are pooled ( packaged ) and SOLD to Investors in the form of MORTGAGE BASED SECURITIES ( MBS ) Investors purchase PASS -THROUGH PARTICIPATION CERTIFICATES that entitle the Holders to pro-rata shares of all Principal and Interest Payments on the pool of Loans assets

The rectangular survey system is primarily used in what states?

Western & Midwestern.

An investor must consider how long a property will be economically useful and:

What the return on the worth of investment will be over time. (Economic life.)

Adaptability to the real property

When determining if an item is a fixture the court would take this into most consideration

Terminate deposit receipt

lapse of time, rejection of offer, death

Syndicate is ?

When two or more people join to make and operate a real investments

Answer: C. Saving and Loans and Commercial Banks both have large investments in this area of financing. Who has more has fluctuated over the past 10 years, but currently Savings and Loans have the greatest investments in first mortgages on single family residences.

Which non-governmental organizations have their greatest investment in first mortgages on single family residences? A) insurance companies B) commercial banks C) savings and loans D) Federal Housing Administration

Answer: A. Regulation Z (Truth In Lending) creates a disclosure device only, and does not establish any set interest rates or required charges for credit such as closing costs or broker's commissions.

Which of the following must be disclosed to be in compliance with Regulation Z (Truth in Lending)? A) the cost of credit B) closing costs C) the tax bill D) broker's commission

Less than freehold estate

leasing or renting personal property

Pension Funds

Work through Mortgage Bankers and Mortgage Brokers in REAL ESTATE FINANCING

Listing agreements do not have which requirement?

Written Form - Listing Agreements MUST Have: Definite Expiration Date Description of the Property Fee Commission Charged

Can a VA loan be used twice ?

Yes if the veteran has paid of all prior VA mortgages or obtained a release from the lender

A contractual relationship where an individual must act in the best interests of a principal when dealing with a third party is termed:

a. An agency relationship.

A RE Assoc indicates on his business cards he is a "Realtor" however, his membership dues have not been paid to his local board in 2 years and his membership has lapsed. Can the FREC discipline him for using the "Realtor" logo on his business cards?

Yes, the FREC can fine him a $300 citation for misrepresenting he is a Realtor and current member of FAR

A landlord owns a duplex and collects rent on her own behalf. Is she required to maintain deposits and advance rents in compliance with the FL Residential Landlord and Tenant Act?

Yes, the landlord must account for rental deposits regardless of the number of rental units and regardless if the landlord is the owner.

Can a metes and bounds description have more than four sides?

Yes.

Can the quality and type of neighboring homes in a residential neighborhood affect the value of an individual home?

Yes.

Can the value of a parcel of land be affected by improvements made on adjoining properties?

Yes.

What is the main difference between Zoning and Master Planning?

ZONING LAWS ARE IMPLEMENTATION AND MASTER PLANNING IS A PROCESS.

Virginia

__________ is regarded as a "title theory" state, meaning that in any property transaction involving a mortgage, or creditor and lender relationship, the creditor generally holds title to the property.

Roof having two slopes on all four sides, with lower steeper than upper is..

a mansard roof

Escheat

a person can not receive title to real property this way, because it is reversion to the state

If a property is leased for an indefinite period of time; the tenants interest in the property is said to be:

a tenancy at will

The RESPA does NOT require that:

a uniform settlements statement be used for closing construction loan unless it is intended for conversion into a permanent loan

Mortgage Brokers

a) DO NOT LEND THEIR OWN MONEY b) BRING BORROWERS and LENDERS TOGETHER and are PAID A PERCENTAGE of the Money borrowed

Commercial Banks

a) Have historically Specialized in SHORT TERM LOANS ( Such as Home Improvement Loans, Mobile Loans and Commercial Loans b) Have become MORE ACTIVE in the negotiation of Long Term RESIDENTIAL LOANS

Mortgage Bankers

a) Lend their own Money and Money of Investors b) ORIGINATE Loans and package Mortgages, THEN SELL the package to Investors and CONTINUE to SERVICE them after they are SOLD

Mutual Savings Banks

a) Located primarily in the NorthEastern US b) State Chartered , Owned by their depositors and ORIGINATE FHA or VA LOANS

Credit Unions

a) Provide a Source of Funds of Funds for their Members

What is the implied first year overall capitalization rate?

a. 9.5 percent

Probably the greatest contribution of FHA to home mortgage lending was to:

a. Establish the use of the level-payment home mortgage.

The dominant loan type originated by most financial institutions is the:

a. Fixed-payment, fully amortized mortgage

The dominant loan type originated and kept by most depository institutions is the:

a. Fixed-payment, fully amortizing mortgage. (Note, while this answer has traditionally been correct, the sharp increase in adjustable rate loans since about 2004, could alter the correct answer to b. Adjustable rate mortgage.)

In shopping center leases, rents are typically quoted on the basis of what type of area occupied by the tenant?

a. Gross leasable area.

Which of the following mortgage types has the most default risk, assuming the initial loan-to-value ratio, contract interest rate, and all other loan terms are identical?

a. Interest only loans.

Consider a 30-year, 7 percent, fixed rate, fully amortizing mortgage with a yield maintenance provision. Relative to this mortgage, a 10-year balloon mortgage with the same interest rate and yield maintenance provisions will primarily reduce the lender's:

a. Interest rate risk.

The best method of determining whether to refinance is to use:

a. Net benefit analysis.

A lease in which the tenant pays a rent based in part on the sales of the tenant's business is known as a:

a. Percentage lease.

The annual percentage rate (APR) was created in:

a. The Truth-in-Lending Act of 1968

For tax purposes, a substantial real property improvement made after the initial purchase is:

a. Treated like a separate building.

Income multipliers:

a. are useful as a preliminary analysis tool to weed out obviously unacceptable investment opportunities.

A drawing of the front and side views of a home in a subdivision is know as..

an elevation sheet

A freehold estate is

an estate of uncertain duration

A buyer makes a written offer on a seller's property. The seller makes a counteroffer. which seller accepts. The listing broker conveys the buyers written acceptance to the seller. At this point, the offer becomes what?

an express contract (written = express, verbal = parol)

A person who has some rights to land, but no all the possessory rights, has

an interest in land.

The owner may sell the property without paying a commission in

an open listing.

A speculator can tie up land to await value enhancement, without obligating himself through the use of

an option.

Encumbrance

anything that affects or limits the fee simple title to a property, such as mortgages

Regulation Z

applies to consumer loans, loans w/ finance charges and paid in more than 4 installments, and creditors who extend credit on a continuing basis. (not personal property transactions)

Ms. Goffer wants to buy James' house and assume the 3 percent mortgage. James should

ask the lender for a novation to substitute Goffer.

What is a finance charge under the truth-in-lending law and must be included in disclosure statement

assumption fees

An owner has a five acre parcel of property and purchases a tract of land one mile square adjoining the five acre tract. If the owner wishes to sell both parcels for $1,200 an acre, the approximate selling price would be: A. $726,000. B. $774,000. C. $786,000. D. $906,000.

Attachment

legal seizure of property to force payment of a debt

What is the effective gross income multiplier?

b. 6.11

If an investor is a "dealer" with respect to certain real estate, then that real estate is classified (by the IRS) as being held:

b. For sale to others

The most profitable activity of residential mortgage bankers is typically

b. Loan servicing.

With a mezzanine loan

c. the borrower's promise to pay is secured by the equity interest in the borrower's limited partnership or limited liability company.

An escrow agent is authorized to

call for funding of the buyer's loan

Attachment

cameras, lighting, equipment in house that they can use to make payment, can be used for 3 years

1911 street improvement act

can come in and put a road and make you pay

Homestead

can file before a judgement, must reside on premesis, only one property, not protection for trust deeds or taxes, terminated when home is sold, not terminated when you move

City or State controls contstruction rules

city

Assemblage

combining two properties

Injunction

condition that it could not be used as a dance hall

On the following loan, what is the best estimate of the effective borrowing cost if the loan is prepaid in six years? Loan: $100,000 Interest rate: 7 percent Term: 180 months Up-front costs: 7 percent of loan amount

d. 8.7 percent.

Potential sub-prime borrowers include persons who:

d. All of these.

Which of the following statements is true about 15-year and 30-year fixed- payment mortgages?

d. Assuming that they can afford the payments on both mortgages, borrowers should choose a 30-year mortgage over an otherwise identical 15-year loan if their discount rate (opportunity cost) exceeds the mortgage rate.

Which of these ratios is an indicator of the financial risk for an income property?

d. Both a and b, but not c

Currently, which type of financial institution in the primary mortgage market provides the most funds for the residential (owner-occupied) housing market?

d. Commercial banks

Amortization

determines monthly payments

Private restrictions

developers usually put in restrictions, ex. can't build more than 3,500 sqft

Margin

difference b/w the interest rate and the index on an ARM(adjustable rate mortgage)

When the broker is unable to convince the property owner that the current market value is the price at which the property should be listed, the broker should:

diplomatically decline to accept the offer as an unrealistic price will attract few prospects in relation to the carry costs (MLS fees, advertising, etc)

Subdivision

divide into 5 or more lots, EIR, must be advertised in entirety

Easement parties

dominant tennant - person using someone elses property, serviant tenant - person being used

Adjustable rate mortgages (ARMs) commonly have all of the following except:

e. Inflation index.

Under current federal income tax law, what is the shortest cost recovery period available to investors purchasing residential rental property?

e. None of the above.

Physical or economic life shorter

economic life shorter

When mortgaged real estate is being exchanged and mortgages will be assumed by new owners, the ___________ for both properties should be evaluated to determine whether the exchange is a fair trade.

equities

Who reports the sale of a single family residence for taxes

escrow

Estates of indefinite duration

estate of inheritance, fee simple estate

An ____________________ is required when the mortgage is sold to an investor.

estoppel certificate

how much is a square foot in Manhattan?

even with prices down to 15 -20%, prices run about $1,600 a square foot in Manhattan

Joint tenancy

everyone takes title at same time, all own equal amounts and equal posession, right of suvivorship (if someone dies other owners take portion), can sell portion which becomes tenancy in common with other two

CA fair housing

for discrimination (misdemeanor), 60 CA days to file, 180 civil act days to file

Community property

for husband and wife

Down zoning

from commercial to residential

Tax on gross earnings

gain minus revenue

Commercial banks

general purpose lenders

Eminent domain

get property through condemnation

Deed in lieu of foreclosure

give deed back to vendor in lieu of loan

Life estate

give property to son for his life, retain right until you die, take care of property and pay taxes, after son dies it goes back to dad, can give to someone for someone elses life

Pest control

given to who pays for it, file with state board, best to get before escrow

Appraisal

good for specific date

Discount Points

gov't loans, meaning FHA and VA loans - "Points" paid in addition to 1% loan origination fee. A "point" is 1% of the loan amount

Effective gross income

gross scheduled income - loss of rents or vacancies

Syndication

group of people no more than 100

A conventional mortgage is not

guaranteed by ANY government agency.

Improved lot

has a building

Insulation R rating

higher the rating better the insulation

Will

holographic will - handwritten, succession - given to wife or husband,

Equity

homeowner's financial interest in a property= difference b/w the fair market value of the property and amount still owed on its mortgage and other liens

Toxic report

if gas tank found

Alienation clause

if you convey property to someone else, the lender can call the note

Acceleration clause

if you get behind on payments, do not pay insurance

Grant deed

implies that the property has not been given to someone else and that they are telling the truth

Encroachment

improvement that intrudes illegally on another's property

Lease

in writing if more than 1 yr, moving in shows acceptance

Deed

in writing, property described, capacity, delivered, accepted, acknowledged before recorded,

Annexation ?

incorporation by joining or uniting

Plottage

increase in price by combining properties

# of first time buyers

increasing due to incentive of $8,000 credit. as the market recovers, he or she will realize very strong returns on his or her investment

Estate of inheritance

indefinite duration

What type of lender makes up the largest source of junior mortgage loans

individual lenders or private lenders

Mechanics lien

install but never pay, 60 days to file after notice of completion, 90 days to file after construction if no notice of completion filed

Installment note

installment note - amortized loan pay interest and principle

Institutional lender examples

insurance companies, commercial banks, savings and loans

FHA

insurance for lenders, don't make loans, no acceleration clause, no prepayment penalty, funds through institutional lender

A term mortgage is characterized by

interest-only payments until maturity.`

Escrow

item of value, money, or documents deposited with a 3rd party to be delivered upon the fulfillment of a condition

Assignment of rents

loan company can get direct rental payments if owner is not making loan payments

A recorded subdivision plat is used in the ?

lot and block system

Assessment taxes

made by front foot

Private lenders

make the largest source of secondary loans

Pool comparison

market data or substitution,

Descrimination

misdemeanor, state, federal, HUD

Company dollar

money left over after commission split

Warehousing

mortgage company holds multiple loans to be sold

Mortgage

mortgagor - owner who borrows money, 4yr statue of limitations

Conventional loan

most expensive, private mortgage insurance

Savings and loans

most money for homes

Insurance companies

mostly commercial loans

Real estate office manager

must be a licensed real estate person for 2 of last 5 years

Cal Vet

must take out life insurance policy, after final payment vendor will receive title, govt gets bonds through bond issue, least expensive loan

Trust deed

negotiate the note for the contract

Income approach

net income converted to value,

Escrow

neutral third party, under corporations commission, cannot extend escrow without written consent, buyer only gets keys from owenr

Blind advertisement

no APR, or no broker or salesperson

Easement in gross

no dominant tenant or servient tenant, it is not appurtenant to any land, it is not an encumbrance on real property

Quit claim deed

no warranties, possible claims, mechanics liens

Condominium is an ownership form,

not an architectural style.

With respect to appraisals; a licensed real estate broker may:

not appraise property that involves a federally related transaction unless the broker is also a licensed or state certified appraiser

Inclusion of an acceleration clause on a negotiable note would have have what affect on its negotiability

not have any effect

Warranty deed

not used in california, give you my word

Periodic tenancy

period to period, no definite end date

Assumption

person pays seller small amount and assumes loan responsibility

Trade fixtures

personal property used for specific profession

Chattel

personal property, borrowing against personal property

Mortgage means

pledge, used to secure a debt

A mortgage note or bond provides legal evidence of a personal debt and also:

pledges all the assets of the debtor (a Note is a Promise to repay and makes the borrower personally liable for the obligation. The mortgage note serves as evidence of the debt for which the mortgage on the property is security. If security is insufficient to cover the indebtedness, the holder of the note can obtain a deficiency judgement against the debtor

Satisfaction means

pledging to give personal property to secure a debt

Blind pool

pool of money until a time when it can be used to buy property

Unadjusted cost

price of the home

Accession

property left after a lease, tables, chairs, etc. becomes property of owner

Specific lien

property tax, mechanics, trust deed, against specific home

Receipt for deposit

purchase contract and receipt, actual offer, offorer - buyer, down payment or prom note

Special assessments

put a new road in front of you, when assessed they look at front foot,

Subordination clause

puts you in a secondary position

Lease provisions

quiet enjoyment, deposit can not be non-refundable, assignment of rent - person take place of renter, sublease - rent portion of place

Land contract - how to get name off title

quit claim deed

Government protection of inflation

raise interest rates, restrict how much money banks can lend

Progressive tax

rate changes depending on how much you make

Loans from savings and loans may be secured by mortgages on

real estate and mobile homes.

Regulation that the employment agreement between broker and agent be in writing is made by

real estate commissioner

Freehold estates

real property

Notice of non-responsibility

recorded prior to work being done on home, posted around

Value

relationship between thing desired and the purchaser, utility-scarcity-demand-transferability

For tax purposes, the installment sales method:

relieves the seller of paying tax on a gain not yet collected (gain to be reported only as payments are received - with each payment treated as part profit and part recovery of investment)

Reproduction cost

reproduce exact same building

People exempt from having a license

resident manager, selling own property, attorney, acting under power of attorney, receiver in bankruptcy or foreclosure

Holder in due course

someone sells a bad note to someone

General lien

someone takes you to court and has judgement against you, against every property you own

Appurtenance

something annexed to another thing which may be transferred incidental to it

Encroachment

something that extends into neighbors property

What is the easiest approach to appraisal when computing the replacement cost of a building

square foot method

Straight note

straight - interest only note

Promissory notes

straight, installment note

Bearing

supports the outside wall

Ridgeboard

tallest peak of the house with board

Impounds and reserves

taxes, etc. paid out of this

Expenses that are fixed

taxes, loan interest, insurance

prepayment penalty

that certain funds be due and payable if the loan is paid off or conveyed before it matures

A Sales Assoc helped a buyer locate a home and the buyer made an offer to purchase. The buyer gave the RE Assoc a binder deposit payable to a title co. What must the Sales Assoc do?

the Sales Assoc who prepares the contract shall indicate the name, address and tel# of the title co

The customary method of accounting to parties in a RE transaction regarding all expenses is by:

the closing statement

A life estate pur autre vie is one in which

the duration of the life estate is based upon the duration of the life of someone other than the life tenant.

What is "Just Value"?

the fair and reasonable value based on objective valuation methods for property tax purposes

An owner with rights to navigable waters owns to:

the high/low watermark or to the bank of the waters depending on the state.

The higher the capitalization rate...

the higher the risk

A broker has appointed two sales associates to be designated sales associates in a real estate transaction. CH 475 FS does not require:

the transaction to be a residential sale (designated sales agents may be used on nonresidential transactions only) buyer and seller must each have $1mm min in assets and designated sales assoc have the duties of single agent, including disclosure requirements

The holder of a promissory note is called..

the payee

In an open listing,

the seller is not legally required to notify other agents in the case of sale by one of the listing brokers.

when a buyer takes property subject to the existing loan who is liable for the loan

the seller retains the liability

Terminate easement

through merger, court, non-use for 5 yrs

Public restrictions

through zoning and constructions

abstract of title is most similar to

title search

Tax base

what you paid for the house

Objective value

when appraisers give value

Escheat

when property and/or an estate is transferred to the gov't b/c its owner has died without a will or an heir to his or her state. Transferred property can be claimed back by relatives through the court system

What is the difference with regard to title between a purchase money mortgage and a contract for deed?

with a Contract for Deed the seller retains title until the buyer has made all the mortgage payments

The broker MUST give a copy of the written listing agreement to the seller:

within 24 hours after the seller signs the agreement

What would be required to cause a property to be sold to satisfy a judgement

writ of execution

A legal order by the courts to satisfy a judgement of the debtor would be.

writ of execution; it is used when the court sells the property to satisfy the debt

Depreciation

yes - building rented, no - land, straight line - 5% per year, double declining - 10% each year, Sum of digits - quickest depretiation 5/15,

Economic/social obsolescence

zoning, freeways

Police power

zoning, restricting, control or seizing land, building codes or ordinances, rent controls

Tingnan ang lahat ng mga set ng pag-aaral

possible help/practice exams 2

Kaugnay na mga set ng pag-aaral

SIMULATED TEST QUESTIONS - PRACTICE EXAM 3 - (please feel free to submit edits/corrections to Mike!)

MIE330

Biology Chapter 13 TEST

Script Final/DILDO

Supply Chain Final

Final exam Digital and social media

Administrative Procedures: Chapter 12

Week 2 meds

ELA Final Study Guide

History 111- Test #1

Geography Chapter 2

Care Considerations exam 4

Bus Policy & Stategy Exam 2 (1-25)

Exam #2 322 MC

Nuclear and particle atom

MATH - Practice Exam

Chapter 27--Seedless Plants Homework

Joints Classifications

1-14, 1-15

Google Applications

*possible help/practice exams 2*

Kaugnay na mga set ng pag-aaral

SIMULATED TEST QUESTIONS - PRACTICE EXAM 3 - (please feel free to submit edits/corrections to Mike!)

MIE330

Biology Chapter 13 TEST

Script Final/DILDO

Supply Chain Final

Final exam Digital and social media

Administrative Procedures: Chapter 12

Week 2 meds

ELA Final Study Guide

History 111- Test #1

Geography Chapter 2

Care Considerations exam 4

Bus Policy & Stategy Exam 2 (1-25)

Exam #2 322 MC

Nuclear and particle atom

MATH - Practice Exam

Chapter 27--Seedless Plants Homework

Joints Classifications

1-14, 1-15

Google Applications

possible help/practice exams 2