Real Estate GA state practice exam

What phrase or words are required on a deed and are considered an "act of conveyance"?

"Hereby conveys"

The Real Estate Education, Research, and Recovery Fund should maintain a balance of at least what amount?

$1 million

How many days does a Georgia licensee have to appeal a decision that was the result of a hearing?

30

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

A broker or qualifying broker of a brokerage firm

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

A calendar year of 365 days

In Georgia, which of the following contracts doesn't have to be in writing to be enforceable?

A lease that is for one year or less

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

Alienation

The Georgia Residential Mortgage Fraud Act targets _________.

Anyone involved in the mortgage lending process who willfully misrepresents information

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

As the closing of the real estate transaction

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

Authority to negotiate the contract

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

Which of the following is an eligibility requirement for a community association manager in Georgia?

Be a member of the community association or a community association manager licensee

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

Business Intermediary Endorsement (BIE)

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.

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

Comes to an agreement in writing with the broker

Where are option contracts on multiple properties commonly seen?

Commercial properties

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

Compensation and responsibilities

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

Craig

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

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

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

Entire Agreement, Modification and Assignment

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

Foreclosure process

To whom does Georgia's real estate commissioner report?

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.

What's true about the right of redemption in Georgia?

Georgia law doesn't provide a right of redemption after foreclosure except in cases of tax sales.

What must Georgia's governor do in order to remove a commission member from GREC?

Give notice and a hearing opportunity to the member.

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

Genevieve, who's taking a pre-licensing course, works as an unlicensed salaried employee at a Decatur brokerage. She's very good at bringing in new clientele, and the broker wants to reward her for her commitment to the firm. What do we know about this situation?

If the broker compensates Genevieve for her referrals to the firm, he'd be paying an unlicensed individual for referrals, which is prohibited under Georgia law.

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 of the following is true about the Georgia Fair Housing Law?

It essentially mirrors the federal Fair Housing Act.

What's true about the extension clause in Georgia's brokerage agreements?

It extends the agreement term if a binding contract that falls through for any reason.

What makes a binder a valid contract?

It's in writing, signed by all parties, and communicated to the offeror.

Kate allowed her license to lapse two and a half years ago. What does she need to do to reinstate her license?

Kate will need to complete all required continuing education as well as pay all applicable fees for her license to be reinstated.

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

Which lenders are covered by GAFLA?

Loan brokers, servicers, and purchasers or assignees

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.

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

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

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

Only ministerial tasks

What option does a Georgia licensee have when a notice for a hearing has been received?

Reach a settlement with the commission, halting the hearing process.

Which clause in the deed of trust and Georgia's security deed is the equivalent of the defeasance clause in the mortgage?

Reconveyance

Kristin is going over an exclusive buyer brokerage agreement with potential buyer client Beau. Which of these is NOT a feature of the agreement?

Resolve issues and disagreements

Macon licensee Gloria's license has been lapsed for six years. What must she do to reinstate it?

Retake the pre-licensing course, successfully pass the state exam, submit an application, and pay all required application fees.

In Georgia, offer to purchase, purchase agreement, and purchase contract are all names for the ______.

Sales contract

Sarah signed an Exclusive Buyer Brokerage Engagement Agreement with Macon licensee Tony. She finds and ends up buying a single family house sold by property owner Damien, who has stated from the beginning that he won't work with agents or pay agent commissions. How will Tony be compensated?

Sarah is responsible for paying Tony's commission.

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

Sell his dad's house under a power of attorney.

An investigation found evidence that suggests Emmie may have violated Georgia license law and a hearing has been scheduled. What are Emmie's rights at the hearing?

Subpoena witnesses and documents.

Forms provided by the Georgia Association of REALTORS® cover all of the following situations EXCEPT ______.

Tenants looking solely for rent-to-own situations

Matthew is taking the necessary step to obtain his real estate license in Georgia. When he's completed the education and examination requirements, which entity will issue Matthew his real estate license?

The Georgia Real Estate Commission

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.

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

The brokerage's name as it appears on the license

Who's the mortgagee in a mortgage?

The lender

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

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

What's required of a licensee who receives trust funds from a client?

The licensee must turn the trust funds over to their broker as soon as practically possible.

When a mortgage is sold, what happens?

The note is endorsed and the mortgage is assigned.

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 the complaint investigation process, a "respondent" is ______.

The person accused of a violation

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

The public

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

There's no one standard form for the sales contract.

Which of these depicts a Georgia licensee committing a common real estate violation?

Tim includes an automatic renewal clause in his listing agreements in case his seller clients' properties don't sell by the end of the original listing agreement.

What is the trustee's role when a deed of trust is used to secure property for a loan?

To hold legal title to the property on behalf of the beneficiary until the loan is repaid

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

Transaction broker

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

Transfer the security deposits to the new owner

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

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

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

Whichever party it belongs to based on the agreement terms

When is dual agency allowed in Georgia?

With both parties' consent

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

an affidavit

Who's the mortgagor in a mortgage?

borrower

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

broker

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

lease terms

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

In a deed of trust, who is the trustee?

neutral third party

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

notary public

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

Delegate trust account supervision to his assistant

What is the primary focus of the Fair Housing Division?

Eliminate housing discrimination

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

Offering different terms, conditions, or privileges for certain people

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

power of sale

Some exchanges of business interests may not require ______.

real estate license

When advertising is placed on a property using the Internet and the information has changed, the ad must be updated or removed within how many days of being placed?

30 days

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

50 years

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

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

What's required before an individual can perform real estate services for others for a fee, or for compensation of any kind?

A real estate license issued by GREC

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?

Alienation clause

What does the Exclusive Buyer Brokerage Engagement Agreement state about dual agency?

Buyers don't have to consent to dual agency.

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.

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.

Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank?

Deliver the deed to Frank, his agent or attorney, or the title company issuing the title

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

Discrimination

Regarding their employment classification, unlicensed assistants in Georgia are most often ______.

Employees

Which activity requires a license?

Explaining terms to a client

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

New construction multifamily dwellings in Georgia must provide basic accessibility to people with disabilities. This applies to which of the following?

Ground floor units in a 10-unit building with no elevator

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

Have written consent from all brokers involved.

Jaqueline is the qualifying broker for a bustling firm in Avondale Estates, and she has many salespeople to oversee. The firm's licensees' advertisements must be done under her name as it appears on her license. What else is required?

Her supervision and approval

Which of the following is true about GREC's licensing authority?

It may revoke individual or firm licenses.

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.

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

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

Note with deed of trust

Which of these statements is true regarding counter-offers?

Once a counter-offer has been made, the prior offer is cancelled.

Which of the following tasks is a closing attorney's responsibility?

Order title work

Which is NOT a focus of Georgia's Fair Housing Division?

Providing financing for diverse housing communities

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.

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.

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

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

Statutory right of redemption

What does "exclusive" mean in the Exclusive Buyer Brokerage Engagement Agreement?

The buyer agrees to work with only one broker.

What happens once the buyer and seller both sign the sales contract and acceptance of the last offer is communicated to the offeror?

The contract becomes legally binding.

How does Georgia license law define real estate?

The land and all those items that are attached to it, such as improvements on, above, or below the ground

Why is a fiduciary relationship between Georgia brokers and their clients not required?

The state attempts to protect brokers from an unreasonable legal standard.

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

The successful completion of 60 hours of brokerage coursework

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

The transfer tax is .001 (.1%) of the sales price, so $215,000 x .001 = $215.

What may happen to Georgia licensees who haven't paid back disbursements made on their behalf from the real estate education, research, and recovery fund?

Their license will be suspended until they pay back disbursements and interest.

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______.

promissory note

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

seller

In Georgia, which of the following closing costs is usually paid by the seller?

transfer tax

In Georgia, deception, fraudulent behavior, or any other unethical behavior used as a means to obtain business is known as ______.

unfair trade practice