Georgia Principles of Real Estate

Which of the following does a broker NOT have to keep for the GREC auditors? Select one: a. Listings b. Contracts c. Advertising copy d. Closing statements

Feedback (C) A broker does NOT have to keep advertising copy for the GREC auditors. A broker, however, does have to keep for 3 years (A) listing contracts, (B) sales contracts and (D) closing statements The correct answer is: Advertising copy

A salesperson obtained an offer to purchase with earnest money from a buyer. The seller and buyer made offers and counteroffers back and forth to each other for 10 days. With regard to the earnest money, the salesperson should: Select one: a. wait until acceptance of both parties to give the earnest money to the broker b. deliver the earnest money to the broker upon receipt of the money c. deposit the money in the seller's bank account due to the fiduciary responsibility owed to the seller d. hold the money personally for safe keeping

B) A salesperson must give earnest money to the broker immediately whether the offer has been accepted or not. The broker must deposit the earnest money in escrow promptly after acceptance of the offer. (A) A salesperson does not wait until acceptance - the broker gets the earnest money immediately. (C) All parties must agree on where the escrow funds are deposited. (D) The salesperson should never just hold onto the earnest money. The correct answer is: deliver the earnest money to the broker upon receipt of the money

After taking the pre-license class and passing the state exam, in applying for license, what type of documentation would be required? Select one: a. A Georgia driver's license b. A photo ID c. Personal references d. Letter about business background

B) Application to receive a Georgia real estate license must include a photo ID. (A) A Georgia driver's license is NOT required as some people may not drive but still want to sell real estate. (C) Personal references and (D) letters about business background are NOT required to receive a license. The correct answer is: A photo ID

A person passed a pre-license class and then took the state exam and failed. The person then gave, to a broker, the names of two friends who were moving out of state. The person later moved from the town. Would this person be entitled to a referral commission? Select one: a. No, this person cannot receive a referral but the broker can give them a nice gift b. No, this person was not licensed at the time of performing the act c. Yes, since this person completed the exam and gave the referral to their broker d. Yes, this person could receive a referral as long as it was not a commission

B) Compensation CANNOT be paid (even referrals) to unlicensed people. (A) Even a nice gift would be compensation and A broker had several branch offices. The correct answer is: No, this person was not licensed at the time of performing the act

All of the following are requirements for licensure of a salesperson EXCEPT: Select one: a. honesty, integrity and competence b. a credit report no more than 30 days old c. complete an approved salesperson's course d. obtain a Georgia Crime Information Center report

B) Credit reports are NOT required to obtain a real estate license in Georgia. (A) Honest, (B) completing an approved course and (C) obtaining a GCIC report are all required for licensure. The correct answer is: a credit report no more than 30 days old

Georgia's agency law is known as: Select one: a. BEAST (Brokerage Engagement Agreements in Sales Transactions) b. BARE (Brokerage Agreements in Real Estate) c. BRRETA (Brokerage Relationships in Real Estate Transactions Act) d. BEAR (Brokerage Engagement Acts in Real Estate)

(C) BRRETA is Georgia's agency law. The correct answer is: BRRETA (Brokerage Relationships in Real Estate Transactions Act)

According to a property management agreement, the duties of the manager include all of the following except? Select one: a. Promotion of the property. b. Maintain the property in a good condition. c. Prepare income taxes for the owner. d. Develop a budget by balancing income and expenses.

(C) Managers are NOT required to prepare income taxes for owners. The correct answer is: Prepare income taxes for the owner.

A seller and broker became embroiled in a commission dispute. What should the broker do? Select one: a. Take the complaint to the circuit court b. File a complaint with the GREC c. File a complaint with the local association of REALTORS® d. File a complaint with the attorney general

(A) Commission disputes are normally solved in court. (B) The GREC, (C) the local association of REALTORS® and (D) the attorney general do NOT get involved in solving commission disputes between licensees. The correct answer is: Take the complaint to the circuit court

According to BRRETA, a licensee is responsible, under certain circumstances, for disclosing facts known about the area surrounding a property. What is the extent, in miles, that this disclosure encompasses? Select one: a. 1 b. 2 c. 3 d. 5

(A) A licensee is responsible for disclosing facts known about the area within a one mile radius. The correct answer is: 1

At the time of listing, a broker noticed a crack in a wall that was covered by boxes. In showing the property the licensee would: Select one: a. inform the prospective buyer of the crack b. inform the prospective buyer of the crack only if they ask c. not tell the buyer as they are representing the seller d. move the boxes to allow the buyer to see it themselves

(A) A licensee must inform any prospective buyer of any material defects, such as a crack in the wall. (B) Disclosure is required of material facts whether the buyer asks or not. (C) Who an agent represents does not have anything to do with disclosure of material defects. (D) Just moving the boxes is not sufficient. The correct answer is: inform the prospective buyer of the crack

A salesperson was holding an open house. Which of the following would NOT be considered as an inducement to buy? Select one: a. Giving away pencils, magnets and balloons of minimal value to everyone b. Giving away trips to buyers if they purchase the property c. Giving gifts to buyers of $25 or less if they purchase the property d. Giving gift certificates to buyers if they purchase the property

(A) Giving away items of minimal value where a purchase is NOT required is allowed by state law Georgia. (B) Giving away trips, (C) gifts or (D) gift certificates ONLY IF the buyer purchases would be an inducement as is illegal. The correct answer is: Giving away pencils, magnets and balloons of minimal value to everyone

Which of the following are appointed by the governor? Select one: a. Members of the Georgia Real Estate Commission b. The Real Estate Commissioner c. Real estate instructors d. Georgia Real Estate Commission employees

(A) Members of the Georgia Real Estate Commission are appointed by the governor. The correct answer is: Members of the Georgia Real Estate Commission

A corporation set up a business to do office rental services. Which of the following acts could the members do without a real estate license? Select one: a. Handle the leasing of its own property b. Lease other companies' properties c. Procure tenants for other owners d. Receive referral fees from brokers but no actual commissions

(A) One can sell or lease one's own property without a license. A person CANNOT (B) lease other's properties, (C) procure tenants for others or (D) receive referral fees without a license. The correct answer is: Handle the leasing of its own property

A seller's listing expired on August 31st. On August 10th, another broker contacted the seller about listing the property when the current listing expired. Is this legal? Select one: a. No, because the first broker has a right of first refusal on the listing b. No, because the broker contacted the seller prior to the expiration date c. Yes, because a new broker can take over once the current listing expires d. Yes, because owners should have the right to choose whatever broker they want whenever they want

(B) A broker CANNOT contact a seller while the seller is currently under a listing agreement with a different broker. (A) A right of first refusal has nothing to do with a listing. This term refers to having the first opportunity to purchase if a property becomes available. (C) A new broker can take over when the listing expires but only if the broker had no contact with the seller. (D) This answer has no bearing on the fact that the broker CANNOT contact another broker's seller. The correct answer is: No, because the broker contacted the seller prior to the expiration date

A broker had an exclusive right to sell agency listing. In order to collect the commission, he must: Select one: a. prove he was the procuring agent. b. prove he was licensed at the time of sale. c. prove he had a ready, willing and able buyer that met the seller's terms. d. all of the above.

(B) A broker who has an exclusive right to sell listing must prove he was licensed at the time of the sale in order to collect a commission. (A) (C) He does not have to prove these because he has an agreement with the buyer that gives him the exclusive right to sell the property, even if someone else finds the buyer. The correct answer is: prove he was licensed at the time of sale.

Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted the seller and told him he had a buyer moving in one month after the listing terminates and asked the seller to sign an agreement to take effect after the listing expires. This is: Select one: a. misrepresentation b. a violation of state law c. allowable as the listing would have expired d. considered commingling of listings

(B) A licensee cannot contact the seller directly or indirectly and then take a listing to take effect after the current listing expires. (A) This is not misrepresentation, rather a law violation. (C) This is only allowable if the seller contacts the broker without any direct or indirect solicitation. (D) Commingling of listings is not a valid term. The correct answer is: a violation of state law

An agency relationship would most likely exist between which of the following parties? Select one: a. Salesperson and seller b. Broker and salesperson c. GREC and brokers d. A listing broker and a cooperating broker

(B) A salesperson is normally considered to be a general agent of their broker. The broker is the agent for the seller, not the salesperson (A). There is no agency relationship between the GREC and brokers (C). A cooperating broker does not have to establish an agency relationship with the listing broker, such as when the cooperating broker is a buyer's agent only (D). The correct answer is: Broker and salesperson

A seller listed her property with an agent for $60,000 but told the agent she would negotiate the price. The agent told a buyer that the seller would negotiate the price. The buyer offered less than $60,000 which the seller rejected. Did the agent violate his obligation? Select one: a. Yes, this was misrepresentation to the buyer b. Yes, he violated his fiduciary obligation by telling the buyer the seller would negotiate as he did not have the seller's best interest at heart c. No, the salesperson gave adequate information to the buyer d. No, the salesperson was acting within the jurisdiction granted by the seller

(B) A seller's agent owes fiduciary obligations to the seller client. Here, the licensee hurt their own seller by representing the seller would negotiate. (A) This may have not been misrepresentation but it was not in the seller's best interest. With (C) & (D), nowhere in the questions is it noted that the seller gave authorization for the agent to disclose the seller would negotiate. The correct answer is: Yes, he violated his fiduciary obligation by telling the buyer the seller would negotiate as he did not have the seller's best interest at heart

A non-licensee practicing real estate for a fee is guilty of: Select one: a. fraud b. a misdemeanor c. a felony d. nothing

(B) A violation of the state license law, such as practicing real estate without a license, is a misdemeanor. A license law violation is NOT (A) fraud, (C) a felony or (D) nothing. The correct answer is: a misdemeanor

An agent was working with a buyer. The agent explained agency to the buyer and presented the buyer with an agency disclosure form as part of a sales contract for the buyer to sign. However, the buyer refused to sign. What should the agent do? Select one: a. Refuse to work with the buyer b. Inform the seller of the situation c. Make a note and give it to the broker to be kept in the files d. Refer the buyer to another agent

(C) If one refuses to sign an agency disclosure as part of a sales contract, the license law requires the broker to make a note and keep it in the files (A) The broker can still work with the buyer in this situation. (B) The seller does NOT have to be informed. (D) The broker does NOT have to refer the buyer to another agent. The correct answer is: Make a note and give it to the broker to be kept in the files

An unlicensed secretary is the only one in the office as all the licensees are out to lunch. Broker Carr from another company calls requesting information on a property. The secretary may: Select one: a. give him the sale price and address b. take his name and number to have a licensee return the call c. give any information necessary since it is another broker and not a member of the general public d. mail the broker the information

(B) An unlicensed secretary cannot give out real estate information; therefore, she must take a name and number and have a licensed agent return the call. (A) An unlicensed person CANNOT give out a sale price or address. (C) An unlicensed person CANNOT disclose this information to anyone, a licensed agent or a member of the public. (D) Just mailing the information does not change the fact that an unlicensed person cannot do this type of activity. The correct answer is: take his name and number to have a licensee return the call

A buyer wrote an offer to purchase for a $130,000 house. The buyer asked the salesperson if they could use the title to a speed boat as an earnest deposit. Would this be acceptable as an earnest deposit? Select one: a. Yes, as long as the boat is worth 5% of the value of the house b. Yes, as long as it is agreeable with the seller c. No, a boat can never be used as earnest deposit d. No, earnest money must be in the form of cash or check

(B) Earnest money can be anything as long as all parties to the contract agree; here, a speed boat would be sufficient if all parties agreed. (A) There is no percentage of value required for earnest money. (C) A boat or anything can be earnest money if all parties agree. (D) Earnest money does NOT have to be cash or a check. The correct answer is: Yes, as long as it is agreeable with the seller

A salesperson decided to sell her house. She did not want to list the house with her brokerage company. Instead, she wanted to sell her own house as a for-sale-by-owner. Which of the following items would the salesperson have to do? Select one: a. List with her own brokerage company since she is licensed under that broker b. Put in all advertising "seller holds a real estate license", including the yard sign c. Put in all advertising "owner-occupant", including the yard sign d. Use her brokerage contract forms even though she's selling the house herself

(B) If a licensee sells their own property and does not list with a brokerage company, then all advertising must say âeller holds a real estate license . There is no requirement for a salesperson to list property with their broker (A). Whether the property is owner-occupied or a rental does not have to be disclosed in advertising (C). The salesperson does not have to use her company contract forms in selling her own house (D). The correct answer is: Put in all advertising "seller holds a real estate license", including the yard sign

A broker had several branch offices. Which is true regarding the management? Select one: a. He would have to have direct supervision over the main office and branch offices b. An Associate Broker can have direct supervision over the branch office c. A salesperson must have direct supervision over the branch offices d. Each branch office must have a full-time broker who does NOT sell or list

(B) If one has the broker title in some fashion, then that person can supervise other licensees. So, an Associate Broker can supervise others in a branch office. (A) A broker can have direct supervision over the main office but hire a different person to supervise the branch office. (C) A salesperson CANNOT supervise other licensees. (D) The branch broker CAN sell or list as long as the branch broker still supervises the office. The correct answer is: An Associate Broker can have direct supervision over the branch office

A salesperson who is acting as agent of the seller only was showing a two bedroom house to a buyer. Which of the following facts must the salesperson disclose to the buyer? Select one: a. Times of the day the property may be shown b. Property is located in a flood plain c. Mortgage balance d. Commission they will receive

(B) Material facts, such as a flood plain, would have to be disclosed to any prospective purchaser. Things such as (A) times of day for showings, (C) mortgage balance and (D) commission receives are not required disclosures. The correct answer is: Property is located in a flood plain

A motel desk clerk was giving referrals to a real estate company and receiving $24 in compensation for the referrals. Does he need to be licensed? Select one: a. Yes, as he was a motel desk clerk b. Yes, since he was being compensated for the referrals c. No, because his main income comes from the motel d. No, because the referral was for less than $25

(B) Receiving any kind of compensation for referrals does require a license. (A) The fact that he was a motel desk clerk is irrelevant. (C) Where his main income comes from is not important; rather, his compensation for referrals triggered obtaining a license. (D) The dollar amount does not make any difference as the clerk must be licensed to receive referral fees. The correct answer is: Yes, since he was being compensated for the referrals

Which is true regarding the findings of the Georgia Real Estate Commission? Select one: a. All findings of the GREC are secret and confidential b. The GREC could publish the name of the licensee and the status of the license c. If a licensee is found guilty, the GREC could NOT impose a penalty d. If a licensee is found innocent, the licensee would be free of all civil and criminal penalties

(B) The GREC can publish the name and status of the licensee. (A) The findings are NOT secret and confidential. (C) The GREC can censure; revoke or suspend a license. (D) The licensee would not necessarily be free of all civil and criminal penalties just because the GREC found the licensee innocent. The correct answer is: The GREC could publish the name of the licensee and the status of the license

An agent showed a property. After writing an offer and presenting it, the seller accepted it. What date must be listed on the contract? Select one: a. Showing the property b. When any signatures or initials are obtained c. Only the date of writing the offer d. Presenting of the offer

(B) The date of the final agreement must be in every contract, either by specific acknowledgment or the date of last signature or initial. (A) The showing, (C) date of writing or (D) presenting does not specify the final acceptance date. The correct answer is: When any signatures or initials are obtained

A person is applying for a license who earlier was found guilty of embezzlement. Which is true? Select one: a. He could NOT sit for the exam b. He could NOT take the schooling c. He could receive a suspended license d. The GREC may later refuse to issue him a license

(D) One who has been guilty of felony violations may be denied a license. This person can (A) take the exam, and (B) the schooling. (C) There is no such thing as receiving a suspended license. The correct answer is: The GREC may later refuse to issue him a license

Which of the following criteria is NOT a requirement of an applicant for a salesperson's license? Select one: a. Be at least 18 years of age b. Furnish evidence of completion of at least 60 hours in a salesperson's course or courses of study approved by the commission c. Be a high school graduate or the holder of a certificate of equivalency d. Pass a real estate examination administered by or approved by the Commission

(B) To hold a salesperson's license in Georgia one must furnish evidence of completion of at least 75 hours of study approved by the commission (not 60 hours). The applicant must be at least 18 years of age; be a high school graduate or holder of a GED and must pass a real estate exam administered by or approved by the Commission. The correct answer is: Furnish evidence of completion of at least 60 hours in a salesperson's course or courses of study approved by the commission

Which of the following activities would be a violation of the Georgia License Law? Select one: a. Opening a trust account with the broker's own money b. Depositing trust account funds in the broker's personal account c. Depositing trust account funds in the trust account d. Opening up a separate trust account for each office

(B) Trust or escrow funds must be deposited into an escrow account, NOT a broker's personal account. (A) A broker can use their own funds to open the trust account - the money is for service charges, etc. and must be clearly identified as such (C) A broker must deposit trust account funds in the trust account - this is the way the funds are supposed to be handled. (D) A broker does NOT have to have a separate trust account for each office. The correct answer is: Depositing trust account funds in the broker's personal account

A licensed salesperson is looking for a home for herself. She is interested in a home listed with another company. If she wishes to purchase the home, she must: Select one: a. write the offer and deliver the offer to the seller herself b. ask her broker to write the offer for her and then deliver it to the listing broker c. include in the offer the fact that the buyer is a licensed salesperson d. write the offer herself but need not disclose her identity since the seller may ask for more money when they realize the buyer is a professional

(C) A licensee must disclose in writing any ownership the licensee will have in the purchase. (A) Writing and delivering does not change the fact of the full disclosure. (B) Having the broker write the offer does not matter. (D) The seller must be informed that the buyer is a licensee in writing in the contract regardless of how this may affect negotiations. The correct answer is: include in the offer the fact that the buyer is a licensed salesperson

A licensed salesperson put an ad in the paper for the sale of his own house. When would he need to inform prospects that he is an agent? Select one: a. Only when he signs the contract b. Only when prospects call c. In the ad itself d. Only at closing

(C) A licensee, in selling his own house, must put in notice of licensure in all advertising. (A) He must also note the license in the contract, but not only there - the ad must also contain the disclosure. (B) Only when prospects call is too late, as well as (D) at closing. The correct answer is: In the ad itself

According to BRRETA, if a broker practices designated agency: Select one: a. the broker is in direct violation of BRRETA. b. the broker is, by definition, practicing disclosed dual agency. c. the broker is not, by law, practicing disclosed dual agency. d. the broker must co-op the sale with another brokerage firm.

(C) According to BRRETA, the broker practicing designated agency is not, by law, practicing disclosed dual agency. (A) (D) The broker is not in violation of BRRETA and does not have to co-op the sale with another brokerage firm. The correct answer is: the broker is not, by law, practicing disclosed dual agency.

A buyer makes an offer on a property with some earnest money now and some to follow later. What should the licensee do? Select one: a. Pay the difference ahead of time to the broker personally b. Encourage the seller to take the smaller amount of earnest money only c. Write the offer as is with the extra earnest money to follow later d. Not present the offer until the extra earnest money is received

(C) An offer can allow for earnest money now and some to follow later; this should be noted on the contract. (A) The broker does NOT have to pay the difference. (B) The seller should not be encouraged either way on the earnest money; that is the seller's decision. (D) A license should not wait to present the offer until later. Offers should be presented as soon as possible. The correct answer is: Write the offer as is with the extra earnest money to follow later

A seller agreed to pay a broker a commission of $5,500 if the broker sold the property for up to $97,000. Any sale price amount over $97,000 would also be for the broker to keep. Would this type of listing be allowed under the Georgia License Law? Select one: a. Yes, because commissions are always negotiable between seller and broker b. Yes, because a flat fee combined with a bonus commission is allowed c. No, because net listings are illegal in Georgia d. No, because flat fees are illegal in Georgia

(C) Any type of listing whereby the broker receives all money over a certain price is a net listing as is illegal. Commissions are negotiable but net listings are illegal (A). Flat fees are allowed but not in conjunction with a net listing (B) and (D). The correct answer is: No, because net listings are illegal in Georgia

A secretary of a real estate company has passed the state exam but not yet received her license. Which of the following activities could she do? Select one: a. Give out information on listings to the public b. Pass out business cards with her name on it c. Give another agent in the office an address of a listing d. List but not show property

(C) Giving another agent in the office an address for a listing is not an activity that requires a license. (A) Giving information to the public, (B) passing out business cards and (D) listing property are all activities which require a real estate license. The correct answer is: Give another agent in the office an address of a listing

A salesperson told a buyer that the air conditioner would stay with the house. However, he had NOT checked it out with the seller. After closing, the seller took the air conditioner. Which would happen? Select one: a. He would have to pay for the air conditioner b. The GREC would automatically revoke his license c. The GREC can take disciplinary action or dismiss a complaint if filed d. The buyer would have to look to the seller for relief

(C) If a licensee misrepresents an item, such as the air conditioner, then the GREC can take disciplinary action or dismiss. (A) There is no law that says the salesperson would HAVE to pay for the air conditioner. (B) The GREC can only revoke a license after a hearing (D) The buyer does not have to look only to the seller for relief as the salesperson made the misrepresentation. The correct answer is: The GREC can take disciplinary action or dismiss a complaint if filed

A real estate deal fell through with the buyer and seller disputing what to do with the earnest money. The buyer and seller went to court to settle the matter. What should the listing broker do with the earnest money? Select one: a. Keep part of the earnest money for his commission and give the rest to the buyer b. Give the earnest money to the seller due to the fiduciary relationship c. Pay the earnest money to the court for disposition d. Split the earnest money between the buyer and the seller

(C) If there is a dispute between the buyer and seller regarding the earnest money, a broker should let the court make the final decision. (A) The broker cannot keep earnest money unless all parties agree. Here, there is a dispute. (B) In a dispute, the seller does not get the money; all parties must agree. (D) The broker does not decide to split the money in a dispute. That is for the court to decide. The correct answer is: Pay the earnest money to the court for disposition

An unlicensed person worked for a real estate company. The unlicensed person showed a friend a home listed by C the real estate company. The friend purchased the home and the unlicensed person is asking for a 2% real estate commission. Can the broker of the real estate company pay the 2% commission? Select one: a. Yes, as this would be lower than the normal amount paid to a licensed agent b. Yes, as the employee was acting only on company listings c. No, as the employee was unlicensed d. No, as an employee cannot be compensated over and above the normal salary

(C) Only licensed agents can receive compensation regarding a real estate transaction. (A) A lower rate than normal doesn't make any difference; this person was NOT licensed. (B) An employee status makes no difference. (D) The employee issue again makes no difference, only having a license makes a difference in getting paid. The correct answer is: No, as the employee was unlicensed

An attorney who is not a real estate licensee gives referrals to a real estate company. Can the attorney receive a referral fee from the licensee? Select one: a. Yes, if it is the standard fee paid to the lawyer's firm b. Yes, because the attorney does not actually sell the real estate c. No, as the attorney does not have a real estate license d. No, as an attorney cannot receive referrals by law

(C) Real estate compensation or referrals can only be shared from broker to broker. The unlicensed attorney cannot receive a fee from the broker. (A) A standard fee does not make any difference. (B) Whether the attorney sells or refers does not matter. A real estate license is required to receive any type of compensation. (D) An attorney CAN receive referrals if the attorney also has a real estate license. The correct answer is: No, as the attorney does not have a real estate license

A broker listed a property for $87,500. While showing the property, a buyer remarked that $84,500 is what the buyer would like to offer for the property. The broker told the buyer that the seller will not accept anything less than $86,500. Did the broker do anything illegal under the Georgia License Law? Select one: a. No, because the broker tried to persuade the buyer to increase their offer by $2,000 b. No, as the seller can always reject the offer or make a counter-offer to the buyer c. Yes, as the broker must present the offer without any regards for the list price d. Yes, as the broker cannot disclose to the buyer that the seller will take anything less than the list price

(D) A broker can only offer the property on the terms that the seller has authorized, which is the listing price. Telling a buyer that the seller will take less than the list price is also a breach of the fiduciary relationship the broker has with the seller. (A) and (B) both are law violations as the broker can only offer the property for sale based on the listing terms. The broker must present all offers and always keep in mind the list price of the seller (C). The correct answer is: D.) Yes, as the broker cannot disclose to the buyer that the seller will take anything less than the list price

A salesperson is selling their personal home as a for sale by owner. What must be in the ad? Select one: a. Salesperson's name and telephone number b. Salesperson's and Broker's name and telephone number c. Broker's name and telephone number only d. Disclosure that the salesperson is licensed

(D) A licensee selling property that is unlisted must have disclosure of the license in all advertising. (A) The salesperson's name and number, (B) the salesperson's and broker's name and number and (C) the broker's name and number are allowed to be in the ad, but disclosure that the owner is a licensee is what MUST be disclosed in the ad. The correct answer is: Disclosure that the salesperson is licensed

A licensed salesperson, in renting a house the salesperson owns, could advertise in which of the following manners? Select one: a. 3 bedroom ranch for rent--541-3567 b. 3 bedroom ranch for rent--$375 per month--541-3567 c. 3 bedroom ranch for rent--Carr Realty--541-3567 d. For rent by owner--Landlord holds a real estate license--541-3567

(D) All advertising on property owned or being rented by a licensee must disclose of the license. (A) (B) do not mention that the owner is a licensee. (C) The property was not listed with the brokerage company, so this would not be allowed. The correct answer is: For rent by owner--Landlord holds a real estate license--541-3567

Broker A received an offer of $189,000 on a $200,000 listing. After the seller gave the offer to his attorney to review, another offer for $176,000 came in. What should the broker do? Select one: a. Present the offer as a backup b. Do not present because it was not for full price c. Wait until the first offer is acted upon d. Present the offer immediately

(D) All offers must be presented to the seller until an offer has been accepted and has been communicated to all parties. Here, no offer has yet been accepted. (A) This second offer is not a backup as the first offer has not been accepted. (B) All offers must be presented to the seller regardless of price. (C) A licensee should present the offer immediately, not wait until the first one has been acted upon; the second offer may be more beneficial to the seller. The correct answer is: Present the offer immediately

A salesperson was involved in a transaction that consisted of a 6 month lease and an option to purchase. Which of the following statements best describes how the salesperson should handle the documents? Select one: a. Fill in the lease but not the option b. Send the documents to an attorney and have the attorney prepare the forms c. Fill in the option but not the lease as the lease was for 6 months or less d. Fill in both the lease and the option on standard forms and take to the broker for review

(D) An agent can fill in the blanks on standard forms that have been approved by attorneys - the broker always needs to review. (A) Filling in just the lease but not the option is not valid as they both can be filled in on standard forms. (B) A licensee does not have to send the forms to an attorney as standard forms have already been approved by an attorney. (C) The time frame of the lease does not make any difference. The correct answer is: Fill in both the lease and the option on standard forms and take to the broker for review

Two brokers made an oral agreement to split a commission. After closing, one refused to pay. The other filed a complaint with the GREC to get it settled. Which is true? Select one: a. The GREC will settle the dispute at the next monthly meeting b. The GREC will make recommendations as to who should get the commission but will NOT make the final decision c. The GREC may revoke the license of the broker who withheld the commission falsely d. The GREC will NOT enter into any dispute over commissions between licensees

(D) The GREC's role is to protect the public, not solve commission disputes between licensees. Therefore, the GREC does not get involved at all, thus making (A), (B) and (C) all false answers. The correct answer is: The GREC will NOT enter into any dispute over commissions between licensees

The Real Estate Research, Education and Recovery Fund may only make payments based on judgments to: Select one: a. brokers. b. salespeople. c. the Commissioner. d. non-licensees.

(D) The Real Estate Research, Education and Recovery Fund is a state regulated fund, created to help reimburse losses to non-licensees when a court has found a real estate licensee guilty of misrepresentation or fraudulent acts. The fund does not pay out to brokers; salespeople or the Commissioner. The correct answer is: non-licensees.

According to a community association management agreement, the duties of a property manager include all of the following except? Select one: a. Collecting, controlling, or disbursing funds. b. Maintaining a fidelity bond on each association when managing more than $60,000. c. Oversee the day-to-day operations of the association. d. The agreement must be made by a CAM licensee.

(D) The agreement does not have to include that it was made by a CAM licensee. (A) (B) (C) The duties of a property manager would include all of these. The correct answer is: The agreement must be made by a CAM licensee.

ABC developers advertise, "For rent to anyone including those who are handicapped." May they advertise in this manner? Select one: a. No, this is a violation of Federal Fair Housing laws. b. No, this discriminates against the handicapped. c. Yes, it is exclusive to those who are handicapped. d. Yes, it is inclusive of everyone including the handicapped.

(D) You may advertise this way because it is inclusive of everyone including the handicapped. It is informing the public that these facilities are handicapped equipped. The correct answer is: Yes, it is inclusive of everyone including the handicapped.

The maximum amount that may be obtained through the Recovery Fund for the acts of one licensee is: Select one: a. $25,000 b. $45,000 c. $75,000 d. $1,000,000

C) The maximum amount that may be obtained through the Recovery Fund for the acts of one licensee is $75,000 regardless of the number of transactions involved. It is not $25.000; $45,000 or $1,000,000. The correct answer is: $75,000

The Georgia Real Estate Commission is comprised of: Select one: a. four members. b. five members. c. six members. d. seven members.

C) There are six members comprising the GA Real Estate Commission. The correct answer is: six members.

A person who is licensed in another state applies for a license in Georgia. The GREC learned that the applicant Did NOT have a high school diploma nor a GED. Which of the following is true regarding the issuance of a license? Select one: a. The applicant could NOT get a license because of the lack of a high school diploma or a GED b. The applicant could receive a Georgia license c. The applicant would be required to take additional pre-license education d. The applicant would be required to take additional continuing education

A) A high school diploma is a requirement of licensure in Georgia so (B) is incorrect. (C) Taking additional pre-license or (D) continuing education is not required. The correct answer is: The applicant could NOT get a license because of the lack of a high school diploma or a GED

A buyer and seller, neither of which is under contract with the broker, ask a broker to write a contract for them. What should the broker do? Select one: a. Refuse to do anything because he is not their broker b. Refuse to do anything unless he gets a commission c. Perform his normal services and charge his usual fees d. Perform his normal services and not charge a fee

A) A licensee can only fill in forms for those for whom the licensee is an agent. Here, the licensee cannot write the contract as there is no agency relationship with either party. (B) Getting paid commission does not matter. (C) Performing normal services and charging a fee or (D) not charging a fee does change the fact the licensee cannot fill in forms when not acting as an agent. The correct answer is: Refuse to do anything because he is not their broker

How long does a salesperson have to deliver earnest money to the broker? Select one: a. Immediately b. 2 banking days c. 5 banking days d. 10 banking days

A) A salesperson must deliver earnest money to their broker immediately. (D) There is not a set number of banking days to deliver the earnest money. The correct answer is: Immediately

Broker escrow accounts may be used for: Select one: a. security deposits for rentals leased by the broker. b. normal costs of operating the company. c. secretarial salaries. d. paying for required license renewals to the state.

A) Broker escrow accounts are opened for monies held for someone else such as security deposits for rentals leased by the broker. Normal operating expenses; secretarial salaries and renewals for licenses would NOT be held in an escrow account. The correct answer is: security deposits for rentals leased by the broker.

A person may receive continuing education credit if: Select one: a. the classes were received from an out of state school that has been approved by the GREC b. the person attended a minimum of 80% of the scheduled class time c. they had carried over accumulated hours from a previous licensure period d. they were an instructor receiving credit for a course in which they had personally taught

A) Classes for continuing education will count if the classes have been approved by the GREC; out of state makes no difference. (B) 100% attendance is required for continuing education credit. (C) Continuing education hours may NOT be carried over from one period to the next. (D) Instructor issues are not testable. The correct answer is: the classes were received from an out of state school that has been approved by the GREC

Which of the following is a Georgia statute related to antitrust? Select one: a. FBPA b. RESPA c. Reg Z d. Truth-In-Lending

A) Georgia Fair Business Practices Act is a Georgia statute primarily directed at deceptive advertising practices. RESPA; Reg Z and Truth-in-Lending are all Federal. The correct answer is: FBPA

If you are turned down for a license, what would be your most reasonable course of action? Select one: a. Request a hearing before the GREC b. Request a hearing before the Real Estate School you attended c. Request a hearing before the local Board of REALTORS® d. Request an investigation by the attorney general

A) If a person is rejected for licensure, the person may appeal to the GREC. (B) The real estate school the student attended does not issue licenses (C) The Board of Realtors is a trade group and has nothing to do with licensure. (D) The attorney general does not get involved in these situations. The correct answer is: Request a hearing before the GREC

If your license is inactive you must: Select one: a. renew every four years to avoid cancellation of the license b. wait 2 years before reactivating c. take the required continuing education courses after reactivating d. take the exam again in order to reactivate

A) One must renew every four years, even if the license is inactive, or the license will be cancelled. (B) wait 2 years to reactivate is incorrect, (C) take continuing education hours after reactivating is only if you place your license active (D) a licensee does not have to take the test. The correct answer is: renew every four years to avoid cancellation of the license

The GREC, in investigating a licensee, may: Select one: a. issue subpoenas for all records relevant to the complaint b. petition the attorney general for an injunction to keep the licensee from leaving the state c. make the licensee submit to a polygraph examination d. subpoena out of state residents who were involved in the transaction

A) The GREC may issue subpoenas for records regarding a complaint against a licensee. (B) The GREC CANNOT try to keep a licensee from leaving the state, (C) make a licensee submit to a polygraph test or (D) subpoena residents from out of state. The GREC can subpoena people and records in Georgia only. The correct answer is: issue subpoenas for all records relevant to the complaint

The Sherman Antitrust Act has as one of its purposes to: Select one: a. prohibit conspiracy in the restraint of trade. b. guarantee businesses some protection from federal income taxation. c. prohibit kickbacks in regard to providing settlement services. d. guarantee non-business consumers some protection against hidden credit costs.

A) The Sherman Antitrust Act prohibits conspiracy in the restraint of trade. (B) (C) (D) It has nothing to do with income taxation, kickbacks, or hidden credit costs. The correct answer is: prohibit conspiracy in the restraint of trade.

A broker was retiring and placing her license inactive. What BEST describes what happens to her only salesperson? Select one: a. The salesperson can send her license to the GREC and be assigned to a different broker b. The broker can send the salesperson's license in and the salesperson can associate with another broker within one month c. The salesperson can continue to work there although the broker will not be active d. The salesperson may be appointed a temporary broker by the GREC and continue to run the office

B) If a broker goes inactive, the salespeople must transfer to an active broker within one month. (A) The broker must send in the salesperson's license, not the salesperson herself. (C) A salesperson CANNOT work without being under a broker's supervision. (D) Temporary Brokers are not appointed by the GREC. The correct answer is: B.) The broker can send the salesperson's license in and the salesperson can associate with another broker within one month

A broker started a real estate company wanting to use the name ABC Realty. What is true regarding this situation? Select one: a. The broker must file a request with the GREC b. The broker must file a request with the secretary of state c. The broker cannot do this as only real names are allowed d. The broker can do this if no one in the area objects

B) In order for a broker to use a trade name, a request and approval must be given by the secretary of state. (A) The broker must send a copy to the GREC, not file a request. (C) Real names or trade names are allowed in Georgia. (D) Others in the area objecting have no bearing here. The correct answer is: B.) The broker must file a request with the secretary of state

Which of the following is not true of the Commissioner? Select one: a. He or she is a full time employee. b. He or she may hold an active real estate license c. He or she is appointed by the GREC. d. He or she serves as the chief executive officer of the Commission.

B) The Commissioner may NOT hold an active real estate license. He or she is a full time employee and is appointed by the GREC serving as the chief executive officer of the Commission. The correct answer is: He or she may hold an active real estate license

The authorities are investigating a violation of the law by a licensee. Which could happen? Select one: a. The local association of REALTORS® could revoke or suspend his license b. The Georgia Real Estate Commission could revoke or suspend his license c. The Georgia Real Estate Commission could impose criminal penalties d. The Attorney General could impose criminal penalties

B) The GREC could take disciplinary action against the licensee. (A) The local association of REALTORS® does not issue licenses. (C) (D) Only the court can impose criminal penalties. The correct answer is: The Georgia Real Estate Commission could revoke or suspend his license

A person decides to place their license inactive. Which of the following statements would be true? Select one: a. Their license would stay with their last broker of record b. Their license would be held by the GREC c. There is a fee charged for the licensee to go inactive d. While inactive, the licensee can only receive referral fees

B) The GREC holds all inactive licenses. (A) An inactive license does NOT stay with the original broker. (C) There is not a fee to go inactive. (D) One cannot receiver any compensation, including referrals, while inactive. The correct answer is: Their license would be held by the GREC

If an applicant is turned down for a license, the GREC must notify the applicant: Select one: a. orally stating the reasons b. of their right to a hearing in accordance with the Georgia Administrative Procedure Act c. in writing within 10 days d. of their right to appeal the decision to their local board of REALTORS®

B) The GREC must tell the refused applicant of the right to a hearing in accordance with the Ga. Administrative Procedure Act It must be done in writing, not (A) orally. (C) However, there is not a specific time limit. (D) The local association of REALTORS® has nothing to do with the license. The correct answer is: of their right to a hearing in accordance with the Georgia Administrative Procedure Act

A person finished a pre-license class on February 1. That person took the state exam on June 1 but failed the exam. By what date must that person pass the exam and apply for license? Select one: a. July 1 b. There is no date to apply by c. September 1 d. One year from February 1st

B) There is no date to apply by, so (A) (C) and (D) are all incorrect. The correct answer is: There is no date to apply by

Which of the following meets the minimum requirements to be eligible to take the Georgia Real Estate Salesperson's exam? Select one: a. 17-year-old with a General Education Development (GED) certificate. b. A 17-year-old who meets all the education requirements of the license law. c. An 18-year-old who meets all the education requirements of the license law. d. None of the above.

B) To meet the minimum requirements to take the Real Estate Salesperson's exam the student must be at least 17 years old and meet all of the education requirements of the license law. (A) A 17 year old with a GED without meeting the education requirements would not qualify to test. (C) One must be at least 18 years old to get a sales license, but can qualify to take the state exam at 17 years of age. The correct answer is: A 17-year-old who meets all the education requirements of the license law.

A person passed the test and became a salesperson. However, she wanted to open up her own office. Which of the following acts would enable her to do so? Select one: a. Open up an escrow account b. Obtain her broker's license and meet the requirements of the GREC c. Open up an office d. Enroll in an approved broker school

B) To open a broker's office, one must obtain a broker's license and satisfy any conditions of the GREC. A person with just a salesperson's license CANNOT (A) open an escrow account or (C) open an office. (D) Just enrolling in a broker's class doesn't guarantee a broker's license will be issued. The correct answer is: Obtain her broker's license and meet the requirements of the GREC

A female salesperson was talking with a friend at lunch. The friend mentioned that she was looking to possibly buy some real estate. The salesperson then told the friend that her own property was currently for sale. The friend then decided to purchase the salesperson's property. The salesperson would have to disclose of the license to the friend: Select one: a. in writing prior to closing as verbal disclosure of the license had been given at the lunch meeting b. verbally only c. in writing prior to the signing of the contract d. verbally and in writing prior to the contract

C) A licensee, in buying property, must disclose in writing in the contract of the license. Verbal disclosure (A) (B) (D) does not satisfy the license law. The correct answer is: C.) in writing prior to the signing of the contract

A person has passed their state examination but has not yet received a license. Which of the following could that person NOT do? Select one: a. Place "For Sale" signs on a newly-listed property b. Type advertising copy c. Give the address of a listed property to a buyer d. Deposit money into a broker's escrow account

C) A person who has NOT received a license CANNOT give information to members of the public regarding real estate. An unlicensed person may do anything an unlicensed support person could do, which could include (A) placing for sale signs on properties; (B) type advertising copy and (D) deposit money into escrow. The correct answer is: Give the address of a listed property to a buyer

A husband, wife and mother-in-law were looking at possible houses to buy with a real estate agent. They asked the agent how they should take title to a property. The BEST response for the agent would be: Select one: a. joint tenancy b. tenancy in the entireties c. to have them consult an attorney d. to have them consult the broker of the office

C) Always recommend buyers consult an attorney as far as how to take title to a property. (A) Joint tenancy and (B) Tenancy in the Entireties are ways to take title, but an attorney should advise, not the agent. (D) The broker should not advise on how to take title - rather, see an attorney. The correct answer is: to have them consult an attorney

A person finished the pre-license school on July 31, 2011. After taking and passing the state examination on December 15, the applicant applied for a license on January 20, 2012. Could this person receive a license? Select one: a. No, because the applicant had taken the school in a different calendar year from applying for license b. No, because it had been over 6 months from the time of completing the school and applying for license c. Yes, because the applicant applied for the license within 12 months of passing the state examination d. Yes, because the applicant applied for the license within 60 days after passing the examination

C) Applicants have 12 months to apply for licensure from the date they pass the state exam. (A) The different calendar year makes no difference. (B) There is no deadline between finishing class and applying for a license. (D) The applicant has 12 months to apply-not 60 days. The correct answer is: Yes, because the applicant applied for the license within 12 months of passing the state examination

A broker may act as a dual agent in which circumstance? Select one: a. If the seller is aware of it b. If the buyer is aware of it c. If both seller and buyer give prior informed consent d. Under no circumstances

C) Dual agency is allowed in Georgia only if all parties agree up front. (A) Just the seller or (B) buyer being aware is not enough. The correct answer is: If both seller and buyer give prior informed consent

A broker and a non-licensee went together to buy a piece of property. What is the minimum that the broker must disclose to the seller? Select one: a. Nothing since the broker was only a part owner b. The exact percentage of the broker's interest in the property c. The broker would have an interest in the property d. The broker was acting as a middle-man in the transaction

C) Even if only a co-owner, a licensee must disclose in the contract that the licensee will have an ownership interest in the property. (A) Being a part owner does not change the disclosure laws. (B) The exact percentage of ownership is not a requirement, only that the licensee will have some type of ownership. (D) The broker was NOT a middle-man, rather a purchaser. The correct answer is: The broker would have an interest in the property

What Georgia law is broad in scope (no actual transaction must occur to be in violation), and deals with price fixing and other anti-trust type of activities? Select one: a. Sherman Anti-Trust b. Regulation Z c. UDTPA d. FBPA

C) Georgia Uniform Deceptive Trade Practices is a law that deals with price-fixing and other anti-trust activity. It allows more people to file complaints on a wider range of violations. (A) (B) Sherman Anti-Trust and Reg. Z are both Federal laws. (D) FBPA deals primarily with deceptive advertising. The correct answer is: UDTPA

Which would require a license? Select one: a. An attorney transferring real estate for a client b. An auctioneer employed by an owner c. A property manager actively leasing and selling for a real estate company d. An owner transferring his own property

C) Managing real estate for others is an activity which requires a license. (A) An attorney, (B) an auctioneer employed by the owner and (D) an owner transferring his own property are all exempt from having to have a license. The correct answer is: A property manager actively leasing and selling for a real estate company

Someone sells real estate for another for a fee without a license. What could the GREC do in this case? Select one: a. Revoke the license b. File criminal penalties against the violator c. Issue a cease and desist order and impose a fine up to $1,000 a day d. Ask the attorney general for a restraining order to stop the person from acting as a licensee.

C) The GREC can issue a cease and desist order and impose a fine up to $1,000 a day (A) There is no license to revoke. (B) This is a misdemeanor violation, not a criminal violation. (D) The attorney general does not get involved with initial violations of the Georgia License law. The correct answer is: Issue a cease and desist order and impose a fine up to $1,000 a day

Which of the following items could the GREC require of a person before issuing a license? Select one: a. A driver's license b. The person must be a resident of Georgia c. Georgia Crime Information Center report d. U.S. citizenship

C) The GREC requires a Georgia Crime Information Center report before a license is issued. (A) A driver's license is not required as some people may not drive; those folks can still obtain a real estate license. (B) People residing in other states can obtain a non-resident license. (D) U.S. citizenship is NOT required to obtain a license but the lawful presence notarized affidavit must be submitted for licensure. The correct answer is: Georgia Crime Information Center report

Which of the following activities would be allowed under the Georgia License Law? Select one: a. A broker allowing an unlicensed secretary to take a listing b. A broker allowing an unlicensed secretary to show listed property c. Allowing a salesperson to close a transaction without broker supervision d. Allowing a salesperson to accept earnest money with an offer on behalf of the broker

D) A salesperson must give any earnest money received with an offer immediately to their broker. (A) and (B) Listing and showing property requires a license. (C) A salesperson can only close a transaction under the direct supervision of their own broker. The correct answer is: Allowing a salesperson to accept earnest money with an offer on behalf of the broker

A branch office under a principal broker: Select one: a. would have to have its own set of licenses b. would operate under its own broker's license c. would operate under a duly appointed salesperson d. would operate under the principal broker's license

D) All licensees, including those in branch offices, operate under the principal broker's license. (A) The branch would NOT have its own set of licenses, (B) operate under its own broker's license or (C) operate under a salesperson. These three would be state law violations. The correct answer is: D.) would operate under the principal broker's license

Which of the following statements about antitrust activity is true? Select one: a. Antitrust violations require an overt act or agreement. b. Antitrust activities are only controlled through federal laws. c. Antitrust violations must be prosecuted under the Georgia Antitrust Act. d. Antitrust activities endanger business competition.

D) Antitrust activities endanger business competition. (A) Antitrust activity can stem from an inappropriate conversation with 1 or more competitors, even when no agreement is reached. (B) and (C) Federal law and Georgia law both deal with antitrust violations. The correct answer is: Antitrust activities endanger business competition.

A licensee decided to buy a property that the licensee had listed. Which of the following must the licensee do in orderto purchase from the principal? Select one: a. Pursue the purchase of the property after waiting 30 days to see if the property will sell b. Pay full list price for the property c. Have a third party purchase the property and transfer it to the licensee at a later date d. Disclose to the seller that the licensee will have an ownership interest in the property

D) Any licensee who purchases property must disclose in the contract of the license. (A) Waiting 30 days has no bearing. (B) Although maybe a good idea, the state law in Georgia does not require a licensee to pay full price, even if it is their own listing. (C) Having a third party purchase without full disclosure of the licensees intent would be a violation of the state law. The correct answer is: Disclose to the seller that the licensee will have an ownership interest in the property

Which statement is correct about earnest money? Select one: a. If the purchaser's earnest money is less than required by the seller, the salesperson should not submit the offer to the seller. b. If the purchaser offers a cash earnest money deposit, the salesperson should refuse to accept it. c. Earnest money is required by law in order to have a binding contract. d. Earnest money may be anything of value.

D) Earnest money can be anything of value if agreed upon by all parties. (A) All offers to buy, even when less than required by the seller must be presented. (C) Earnest money is not required in order for a sales agreement to be binding. The correct answer is: Earnest money may be anything of value.

Georgia's law that is focused on deceptive advertising is: Select one: a. an anti-trust law. b. Regulation Z. c. UDTPA. d. FBPA.

D) Georgia Fair Business Practices Act is primarily directed at deceptive advertising. (A) an anti-trust law is an incorrect answer because it is non-specific and does not name a specific law. (B) Reg Z is a federal law. (C) UDTPA is a GA law that deals with price-fixing. The correct answer is: FBPA.

A buyer signed a contract and gave the broker $5,000 in earnest money. The offer was accepted by the seller and the earnest money deposited into the broker's escrow account. The buyer, however, needed $250 to pay for an appraisal. Could the broker take $250 from the escrow account and give it to the buyer? Select one: a. No, the earnest money can never be used for anything other than the down payment b. No, unless the seller provides written agreement c. Yes, provided written authorization is received from the buyer d. Yes, provided written authorization is given by all parties to the contract

D) Money can be taken out of escrow to pay for expenses only if all parties to the contract agree. (A) Earnest money is not just for the down payment, although that is typical. (B) Authorization from the buyer or (C) seller is not enough as all parties must agree as to the disposition of earnest money. The correct answer is: Yes, provided written authorization is given by all parties to the contract

Sam, a FSBO, advertises his property for sale by saying "for sale to Cuban buyers only." May he advertise in this manner? Select one: a. Yes, as long as he does not own more than two homes at once and there is not a real estate firm involved in the transaction. b. No, no one can ever discriminate on race according to Jones v. Mayer. c. Yes, any FSBO is exempt from Federal Fair Housing laws. d. No, individuals are not exempt from discriminating in advertising.

D) No one is exempt from discriminating in advertising unless they qualify as a private club, religious organization, or all elderly housing. (A) It does not matter how many homes are owned; (B) no one can discriminate based on race but Cubans are a Nationality, not a race. (C) FSBO's are not exempt from all Federal Fair Housing Laws. The correct answer is: No, individuals are not exempt from discriminating in advertising.

In order to keep a license on inactive status, one must: Select one: a. take the exam again and pay a renewal fee b. wait two years before reactivating c. take the required continuing education and pay a renewal fee d. renew every four years and pay a renewal fee

D) One can remain on an inactive status but must renew every four years and pay the appropriate fees. One does NOT have to (A) take the exam again, (B) wait two years before reactivating or (C) take continuing education. The correct answer is: renew every four years and pay a renewal fee

Broker Falk had a listing. Broker Carr found a buyer for Broker Falk's listing. A salesperson could close the transaction if: Select one: a. he was under the direct supervision of the listing broker b. he was under the direct supervision of his broker who was also the listing broker c. he was under the direct supervision of a broker who was NOT his broker d. a salesperson can NOT close a transaction, only attorneys can close them

D) Only an attorney can close a transaction in Georgia so (A); (B) and (C) are all incorrect. The correct answer is: a salesperson can NOT close a transaction, only attorneys can close them

A citizen phoned the GREC with a complaint on a licensee. The GREC sent him a form to fill out. However, he never followed up the complaint in writing. What would the GREC do? Select one: a. The GREC must follow up an oral complaint b. The GREC can NOT act on an oral complaint c. The GREC must ignore the complaint d. Even though he did not put it in writing, the GREC may investigate anyway at their own discretion

D) The GREC can ALWAYS investigate, even if the complaint was not put in writing. (A) The GREC can follow up on an oral complaint, but does not have to. (B) The GREC CAN act on an oral complaint and investigate. (C) The GREC does not have to ignore an oral complaint, but rather can investigate if deemed appropriate. The correct answer is: D.) Even though he did not put it in writing, the GREC may investigate anyway at their own discretion

Two brokers got into a fight over a commission. They appealed to the GREC to get it settled. What will the GREC do? Select one: a. Report it to the Attorney General who will notify the GREC as to the correct actions to take b. Report it to the local association of REALTORS® who will notify the GREC the correct actions to take c. The GREC will only seek to negotiate the problem if asked by the brokers in writing d. The GREC will NOT get involved in any commission disputes between licensees

D) The GREC is charged with protecting the public, not arbitrating commission disputes among real estate agents. (A), (B), and (D) The GREC does NOT get involved in solving commission disputes. Commission disputes can be solved by agreement, court, mediation, etc. The correct answer is: The GREC will NOT get involved in any commission disputes between licensees

A person who had been convicted of a felony 10 years ago was turned down for license. If he still desired a license, what is his next course of action? Select one: a. File a new license application with the Georgia Real Estate Commission b. Request a hearing before the Attorney General c. Make a personal appeal to the Governor d. Request a hearing before the Real Estate Commission

D) The GREC is where a person appeals a denial for license. (A) the student would not file a new license application (B) the attorney general or (C) the governor does not hear appeals regarding licensure. The correct answer is: Request a hearing before the Real Estate Commission

The minimum balance that must be maintained in the real estate education, research, and recovery fund is: Select one: a. $250,000. b. $500,000. c. $750,000. d. $1,000,000.

D) The balance maintained in the fund must be $1,000,000 or higher at all times. If the balance falls below that amount all licensees may be assessed additional fees up to $30.00. The balance amount is not $250,000; $500,000 or $750,000. The correct answer is: $1,000,000.

How are the members of the Georgia Real Estate Commission chosen? Select one: a. Appointed by the Commissioner & approved by the Governor b. Appointed by the Governor and voted in by the active commissioners c. Appointed by the Senate and confirmed by the House d. Appointed by the Governor and confirmed by the Senate

D) The members of the Ga. Real Estate Commission are chosen by the Governor and confirmed by the Senate. The correct answer is: Appointed by the Governor and confirmed by the Senate

A handicap person wants to rent a home that has steps to the front door. What best describes the situation? Select one: a. A landlord must, at his or her expense, install a ramp for accessibility. b. The tenant can, at their expense, install the ramp and leave it there after the lease is expired. c. Only the landlord can install the ramp because it is his/her property, and can require the tenant to pay for it. d. The tenant can, at their expense, install the ramp and must remove it at the end of the lease.

D) The tenant can, at their expense install the ramp but must remove it at the end of the lease. The landlord must allow reasonable modifications to allow handicapped persons an equal opportunity to use and enjoy the property. The correct answer is: D.) The tenant can, at their expense, install the ramp and must remove it at the end of the lease.

A person in Georgia attended a pre-license class, passed the state test and received a license. After a few months, the licensee decided to place their license on an inactive status. Two years later, the licensee decided to reactivate their license. What must the licensee do in order to reactivate? Select one: a. Do nothing, as two years automatically reinstates a license to active status b. Attend a pre-license class for their type of license and apply to the GREC within 90 days c. Attend a pre-license class for their type of license and apply to the GREC within 6 months d. Take the required continuing education for the past two years and then apply to the GREC

D) To activate the license all required continuing education hours for the past two years must be taken before applying (A) Two years does NOT automatically reactivate a license. (B) and (C) An inactive licensee does not have to repeat the Prelicense course and apply to the GREC for a new license . The correct answer is: Take the required continuing education for the past two years and then apply to the GREC

A salesperson pre-qualified a buyer and took personal information at that time. The salesperson then showed the buyer several homes. Prior to showing the homes the salesperson had the buyer sign an agency disclosure form. Did the salesperson do anything wrong? Select one: a. Yes, the salesperson should never show a house without qualifying the buyer b. Yes, the salesperson should have disclosed their agency prior to taking personal information c. No, the salesperson disclosed their agency prior to showing any properties d. No, the salesperson should disclose their agency only if asked

Feedback (B) Agency disclosure is required whenever personal or financial information is obtained from a seller or buyer. (A) Although showing a house without qualifying a buyer may not be a good business practice, it is not a direct violation of the license law. (C) The salesperson did NOT disclose agency prior to the showings. (D) Agency disclosure is a requirement under the license law. The correct answer is: Yes, the salesperson should have disclosed their agency prior to taking personal information

A seller and broker entered into a 30 day listing agreement to market a commercial property. One week later, the seller was dissatisfied with the broker's activities and contacted another broker about selling his property. The seller signed a new listing agreement with the new broker that took effect when the old listing expired. Which is true regarding the agreements? Select one: a. Since all brokers work together, a new listing agreement is not necessary b. The new broker can begin marketing the property the day after the old listing expires c. The new broker must notify the previous broker that they will not receive a referral fee d. The seller must notify the first broker of the fact that he will not renew his listing and then the new broker may begin marketing the property

Feedback (B) As long as the seller contacts the broker, the new broker can take a listing that begins the day after the current listing expires. (A) A broker cannot try to sell the property without a listing agreement. (C) There is no requirement for notification to the previous broker. (D) The seller does NOT have to notify the first broker of the non-renewal. The correct answer is: The new broker can begin marketing the property the day after the old listing expires