questions to study

Which of the following is a requirement to obtain a broker's license?

An applicant for a broker's license will need to complete an additional 60 hours of coursework and pass an exam prior to obtaining a broker's license.

Who's the mortgagor in a mortgage?

Borrower Plain English for the mortgagor is "borrower." This is because the borrower establishes the mortgage as a security instrument for the loan.

A certification program is offered through Applied Measurement Professionals, an affiliate of the Georgia Real Estate Commission and Appraisers Board (GREC). Once completed, you'll have earned a designation as a ______.

Community Association Manager

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

Credential Accreditation is available through a variety of state and national associations, such as the Certified Business Intermediary credential given by the International Business Brokers Association.

Which of the following terms describes the actions that are required to effect a transfer of title by deed?

Delivery and acceptance Delivery and acceptance are the actions that are required to effect a transfer of title by deed.

What must Georgia associate brokers do in order to work independently as brokers?

Disassociate with their broker and inform GREC of their decision. Georgia associate brokers have the same required training and licensure as brokers do, so they need only disassociate with their broker, inform GREC of their decision, and follow all required steps to create their own brokerage.

A licensee must notify GREC of a conviction of a crime ______.

Immediately -- A licensee is required to notify GREC of a conviction of a crime immediately. The license will be revoked within 60 days, unless the licensee requests a hearing.

Jacob, a broker in Chattanooga, Tennessee, wants to practice real estate in Georgia occasionally with Georgia broker Deb. But he doesn't want to obtain a Georgia license. Which of these rules applies?

Jacob and Deb will enter into a written agreement that specifies how Deb will split commissions with Jacob. Non-resident licensees must enter into a written agreement with a Georgia broker that specifies how commissions will be split. The agreement will be kept on file for three years.

What provisions are standard when any security instrument is used but are included in the promissory note rather than the security instrument?

Late charge - Late charges that will apply if the borrower doesn't pay on time are a standard part of the promissory note.

In a deed of trust, who is the beneficiary?

Lender -- The beneficiary is the lender; the trust is held by a neutral third party on behalf of both the borrower and the beneficiary.

Kathy mistakenly duplicates reporting an asset on her mortgage loan application. Is she in violation of Georgia's Mortgage Fraud Act?

No, because it wasn't an intentional misrepresentation. GRMFA covers only intentional misrepresentation of information.

Lacey works for a government agency as an office space location specialist. Her role is to gather information and locate office space for government agencies. Does she need a real estate license?

No, government employees are an exception to the real estate license requirement. Employees of government agencies acting for their agency are exempt from licensure.

What occurs after an investigation if the Georgia attorney general finds reason for disciplinary action?

Notification that the licensee is to appear at a hearing The hearing notice will be sent to the licensee being investigated for the violation of Georgia license law.

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

Notify his broker in writing and disclose his intentions to the seller. If a brokerage is listing a property that a licensee affiliated with that brokerage wants to purchase, the licensee must notify the broker in writing and disclose his intention to the seller.

In Georgia, what can a broker do for a buyer customer, as compared to a client?

Only ministerial tasks

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

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

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

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

In Georgia, a real estate license may not be needed in the exchange of business entities or interests as long as ______ is/are not part of the transaction.

Real property interests In Georgia, unlicensed business brokers and any of their associates are not permitted to broker business sales if those sales involve transferring interests in real property, such as ownership or leasehold interests.

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

Security deed - The security deed is the primary security instrument used in Georgia

Business brokerage in Atlanta is hopping, and Azra would like to get into the field. But she doesn't have a real estate license. What are her options?

She can broker transactions that involve business entities themselves and no transfer of real property. Per Georgia rules and regs, Azra can broker transactions that involve business entities themselves as long as no transfer of real property is part of the transactions.

Georgia licensee Estella is the qualifying broker for a firm that's incorporated. Which of the following must be true about her?

She's an officer of the corporation. In a Georgia firm that's structured as a corporation, the qualifying broker must be an officer of the corporation.

Tagger has made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid?

Sign the note, mark it "Paid in Full," and return it to Tagger. When the note has been paid off, the holder must sign the note, mark it as paid in full, and return it to the maker. The satisfaction of mortgage is recorded with the county land office, removing the associated lien from the property.

Which clause of the sales contract says that the contract is the one and only contract between the parties?

The Entire Agreement, Modification and Assignment section says the contract is the entire and only agreement between the parties.

As a real estate licensee in Georgia, if you advertise or otherwise market using lies, deceit, misrepresentations, fraud, or other unethical practices, what are you in violation of?

The Georgia Fair Business Practices Act focuses primarily on deceptive advertising. Georgia license law 43-40-25 also addresses deceptive trade practices in real estate.

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

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

Albert wants to sell his house to his cousin, who's willing to assume his FHA loan. What clause in Albert's mortgage requires him to obtain the lender's permission to do this?

The alienation clause requires the property owner to obtain lender permission for a buyer to assume the loan, or risk having the loan accelerated.

Per the independent contractor agreement, who owns the photos and brokerage listings if the licensee is the one who secured them?

The broker

Per the independent contractor agreement, who owns the photos and brokerage listings if the licensee is the one who secured them?

The broker - Per the independent contractor agreement, these are the property of the broker, even if secured by the licensee.

There are two parties to the Georgia security deed. Who are they?

The lender and the borrower -- Georgia doesn't have a neutral third party to serve as a trustee, so the two parties to Georgia's security deed are the lender and the borrower.

How long does a broker have to record a lien after a commercial property commission goes unpaid?

The lien must be recorded within 90 days of the date the commission should've been paid.

Who holds the promissory note while it's being repaid?

The obligee -- The lender is the obligee who holds the note while it's being repaid. If the note is transferred, the new owner becomes the obligee and note holder.

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

The seller is legally able to deliver good and marketable title to the buyer at closing. The Warranty of Title guarantees that the seller is legally able to deliver good and marketable title (i.e., ownership with no uncertainty) to the buyer at closing via a general warranty deed (unless the contract specifies another type of deed).

What can be said about a designated agent's duties?

They're the same as a single agent's duties. A designated agent and a traditional single agent both owe the same duties to their clients.

Which type of broker performs ministerial acts for parties to a transaction but doesn't represent a client?

Transaction broker - A transaction broker doesn't represent any of the transaction parties, but instead performs ministerial acts on their behalf.

Your broker has received an earnest money check from you for a transaction. Where should this check be deposited?

Trust funds must be held in accounts separate from personal and business funds to be in compliance.

Community Association Manager

acts on behalf of a broker to manage one or more community associations and provide only community association management services.