RE GA Test

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

$1,700

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

18, provided she has a high school diploma or equivalent

What age must a broker applicant be to qualify for a broker's license?

21

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

25 hours of post-licensing education

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

30 days

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

36 hours every four years

Who's responsible for the proper management and recordkeeping of trust accounts?

A broker or qualifying broker of a brokerage firm

What type of tax can a Georgia county charge real estate licensees who don't have an office in that county for doing business there?

A gross receipts tax

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

A notary public

What is a binder?

A written outline of the sales transaction

Georgia licensee Chloe is writing some ads for her broker to review. Per Georgia's fair housing laws, which of the following terms is unacceptable to use in real estate advertising?

Able-bodied

In Georgia, what must be filed for the eviction process to begin?

An affidavit

Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a security deed. What rights does she have to redeem her property?

Andrea can cure the default and reinstate the loan.

Joanne and John, an interracial married couple, are working with Andy, a real estate professional, and are looking for a new home. Joanne and John find a property they like in a neighborhood with a homeowners association and covenants, conditions, and restrictions. The couple decides to make an offer. Which of the following is Andy's responsibility in this situation?

Andy must follow the same rules, regulations, and ethical behaviors he would with any other clients, and promote the best interest of his clients.

Loretta is an unlicensed assistant. Which of the following tasks is she permitted to perform for her broker?

Assemble closing documents.

How old must a broker be in Georgia?

At least 21

According to the Georgia marketable title acts, the statutory limit is 50 years. Marketable title legislation ______.

Automatically quiets any title claims after a certain amount of time

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

Being available during the agent's regular working hours to visit properties

Which of the following is FALSE about GREC's members?

Broker members may continue to practice real estate during their term on the commission.

Business brokers in Georgia can seek credentials such as all of the following EXCEPT ______.

Business Intermediary Endorsement (BIE)

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

But it's rarely used

In Georgia, what does due diligence mean in a real estate transaction?

Buyers will thoroughly investigate the property while retaining the right to terminate the sales contract if the results are unsatisfactory.

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

Calculate commissions for team members.

Where are option contracts on multiple properties commonly seen?

Commercial properties

Independent contractor agreements define the terms of the working relationship. What do these terms include?

Compensation and responsibilities

What's required to reinstate a license that has been lapsed for more than five years?

Completing pre-licensing courses, successfully passing the state exam, and paying all required application fees

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

Confidential information won't be provided to the opposite party.

Phil is a Georgia qualifying broker. He may do all of the following activities EXCEPT ______.

Delegate trust account supervision to his assistant

Before Georgia consumers may apply for relief from the recovery fund, what must they do when they receive a judgment against a licensee for wrongdoing?

Exhaust other legal remedies.

What will cause a Georgia real estate license to lapse?

Failing to complete the 36-hour continuing education requirement within four years

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

Family status

When the Georgia attorney general's office finds that the investigation's evidence has legal grounds, the office will either propose a consent settlement for the commission to review and approve or ______.

File a notice of hearing with the Office of State Administrative Hearings

Sheila was subject to a GREC disciplinary hearing and a final decision was made. She has 30 days to ______.

File an appeal

GAFLA prohibits which of the following?

Financing of credit insurance

Of the following, what is the main distinguishing feature between a mortgage, a deed of trust, and Georgia's security deed?

Foreclosure process

Augusta licensee Francois's seller client, Mavis, tells him that she does not want to sell to anyone who is Hispanic. Which of the following describes Francois's responsibilities?

Francois should take time to educate Mavis about fair housing laws.

The Georgia attorney general serves as the legal counsel for all state agencies. Which entity does the attorney general represent in real estate license law matters?

GREC

Henrietta lost escrow funds when she attempted to purchase a home four years ago. She learns about the GREC complaint process from her cousin, and decides to pursue a formal complaint. What will become of her complaint?

GREC won't investigate the complaint because it was filed too late.

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?

Georgia Fair Business Practices Act

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

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

Licensee Doris is moving to Savannah and wants to transfer her license to a firm there. Her broker in Atlanta may/must do any of the following EXCEPT ______.

Hold her license until she repays all the money she owes

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

Hourly, salaried, or per activity

When discussing brokerage compensation policies, brokers must disclose ______.

How brokers representing other parties will be paid

All of these EXCEPT one depict licensee Claudia's adherence to Georgia license laws. Which one does NOT?

In an addendum to a listing agreement, Claudia guaranteed her seller client that she'd sell his condo in two months or buy it herself.

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

Incomplete repairs

Which service providers are exempt from GAFLA provisions?

Insurance providers

Gina is buying a condo in Tybee Island. Unless otherwise negotiated, which of the following closing costs will she pay?

Intangible tax

A consumer filed a complaint against Vivian for providing professional real estate services without a license. What initial action will GREC likely take against her?

Issue a cease and desist order.

What's the purpose of the Transfer and Assignment clause in the purchase agreement?

It permits either party to assign interest in the contract to another person who will perform the contract's terms.

Why is the recording of a deed so vital?

It protects new owners from former sellers claiming they still own the property.

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

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

Marty receives his Georgia real estate tax bill on May 1. What's the period of time covered by this tax bill?

January 1 of the current year through December 31 of the current year

Representing the sales price on a home as an amount greater than what it actually sold for is considered ______.

Kiting

Gina's mortgage payment arrives late one month. What language in the promissory note allows the lender to charge her a fee as a result?

Late charge provision

What's the name of the clause in a promissory note where this language appears: "If the Note Holder has not received the full amount of any monthly payment by the end of ______ calendar days after the date it is due, I will pay a late charge to the Note Holder"?

Late charge provision

There are several essential elements to a deed. Which of the following must be included in a deed?

Legal description

In a deed of trust, who is the beneficiary?

Lender

Aside from your name, what else must be included on every page of your website, according to GREC's rules?

License status and license number

A Georgia broker is responsible for verifying the ______ of a non-resident licensee when entering into a written agreement with that licensee.

Licensure

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

March 11

In Georgia, which of these people must obtain a real estate license before performing real estate activities?

Mickey, who's going to earn a flat fee of $1,000 for representing his cousin in the sale of her home.

Which of the following actions is a violation of unfair trade practices law?

Misrepresenting the facts about the reasons for a price decrease

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

Mutual agreement

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.

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

No, because of the number of units.

Paula provided her seller client, Amy, with a property disclosure form. Amy didn't claim any known structural or mechanical defects. One of the visitors at Paula's open house was a plumbing contractor who had repaired some pipes in the house and knew there was a major underlying problem. He was very upset that the issue wasn't disclosed. Is Paula legally liable for providing fraudulent information?

No, licensees are not responsible for providing false information if they didn't know it was false.

Similar to the deed of trust, the security deed contains a clause that allows lenders to foreclose on and sell the property non-judicially if the buyer is in default. What is this clause?

Power-of-sale clause

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

Qualifying broker

The mortgage, security deed, and the deed of trust are ______ that pledge property as collateral for a loan.

Security instruments

In Georgia, who owns the property on the day of closing?

Seller

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

She must receive her license and post it on her office wall.

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.

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

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

Krista is obtaining a loan to buy a home. Her loan agreement consists of one document called a note and one called a deed of trust. What's the role of the note?

States who owes money to whom, how much, and how it will be repaid

Provided other requirements are met, a non-resident licensee from which of these states isn't required to hold a Georgia license to practice real estate in Georgia?

Tennessee

In Georgia, which of the following actions would most likely result in the Georgia Real Estate Commission denying a license to an applicant?

The applicant was convicted of a felony five years ago.

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

The broker

Who's the mortgagee in a mortgage?

The lender

When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage?

The lender executes and records a satisfaction of mortgage and returns the note to the borrower.

What would happen if a licensee fails to complete the 25-hour post-licensing requirement within the first year of receiving her license?

The license will lapse.

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

The licensee's telephone number

What's the difference between a Georgia exclusive and a non-exclusive buyer's agreement?

The only difference is whether the buyer is working with one broker or multiple brokers.

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

The original owner

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

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

The Real Estate Education, Research, and Recovery Fund exists for the benefit of whom?

The public

What is a statutory right of redemption?

The right of a borrower to redeem the property by paying amounts owed plus costs, even after the foreclosure sale

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

The successful completion of 60 hours of brokerage coursework

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

There is no statutory right of redemption

Valdosta licensees Ken, Sharon, and Kate dislike a lender in town and agree to direct business away from that lender and discourage their clients from using it. Which Georgia unfair trade practice act does this violate, if any?

This violates the Georgia Uniform Deceptive Trade Practices Act.

GREC will investigate a complaint if that complaint occurred within how many years?

Three years

How many years must a Georgia broker retain sales contracts?

Three years

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

Time is of the Essence

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

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

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

Transaction broker

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

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

When is dual agency allowed in Georgia?

With both parties' consent