Pool...

The purpose of the recorded records at the court house is to provide notice to all members of the community. This availability is called _________ ________ So when a deed is recorded, the purpose is to protect the owner's rights but also to provide notice to any buyer regarding any liens or attachments provided regarding the condition of the title of the property they are buying.

"Constructive Notice."

A duplex generates $1,400 rent for each of its two units per month. The property has been recently appraised for $350,000. What is this property's GIM?

$1,400 x 2 = $2,800 x 12 months -= $33,600; $350,000 / $33,600 = 10.4 GIM

What is the balance on an amortized loan of $110,000 after the first payment if the interest rate is 5.5% with a monthly P&I payment of $568?

$110,000 x .055 / 12= $504.17; $568 - $504.17 = $63.83; $110,000 - $63.83 = $109,936

Alex bought a condo for $110,750 and put $11,500 down. What would the intangible recording tax be?

$110,750 - $11,500 = $99,250 in new debt / 500 = $198.50 (round up to $199) x $1.50 = $298.50

Solve for the amount of monthly interest that is owed on an interest-only loan based on the following facts: Loan amount $115,000, annual interest rate of 7%?

$115,000 x .07 = $8,050 / 12 months = 670.83 ($671.00)

A real estate salesperson brings a buyer to a For-Sale-By-Owner transaction. The home sells for $120,000, and the seller agrees to pay a commission of 3%. The salesperson is on a 65% commission schedule with her broker. How much will the salesperson receive from this transaction?

$120,000 x .03 x .65 = $2,340

Assume a loan balance of $174,000, a monthly payment of $1,395, and an interest rate of 8%. On next month's payment, how much of the $1,395 will be applied to principal?

$174,000 x 8% / 12 months = $1,160; $1,395 - $1,160 = $235

A $400,000 loan has monthly interest-only payments of $2,600. What is the annual interest rate?

$2,600 x 12 =$31,200 / $400,000 = 7.8% per year

A homeowner receives a tax bill that includes an amount for the police district, taxed at $2.50 per $1,000, and the fire protection district, taxed at $1.80 per $1,000. How much does the taxpayer have to pay for these two items if the property's taxable value is $77,000?

$2.50 + $1.80 = $4.30 x 77 (thousands) = $331.10 (round to $331)

When every original license fee is received, of the funds received $________ from each license feeis allocated to fund the RE Education, Research and Recovery Fund. Funds received cannot be used for conducting research on ________ __________.

$20.00, computer hardware.

Kate bought a home for $210,000. However, all the town's jobs disappeared when the local factory closed. Kate sold this home one year later for $120,000. What was her percentage of loss?

$210,000 - $120,000 = $90,000 / $210,000 = .428 or 43%

Homeowner Elizabeth sold her house and had net proceeds of $266,000. Her adjusted basis in the home was $235,000. She immediately bought another house for $198,000. What was Elizabeth's capital gain?

$266,000 - $235,000 = $31,000 capital gain on the sold house

Broker Jim works on a flat 3% commission. He sells an in-house listing for $270,000 and also earns a $2,800 bonus from the listing client. What is owed Broker Jim?

$270,000 x .03 = $8,100 + $2,800 = $10,900

Jennifer wants to net $35,000 on her house. Her closing costs will be 7,500 plus a 7% commission. She owes $185,000 on her loan. What should the sale price be (round to the nearest $1,000)?

$35,000 ne + $185,000 loan payoff + $7,500 closing costs = $227,500 / .93% = $244,623.66 (Round to $245,000 sales price)

Fidelity Insurance is similar to a Performance Bond and any brokerage who handles more than ____________ in trust funds is required to carry a fidelity insurance policy. Any broker who handles less than __________ is exempt from the fidelity insurance requirement.

$60,000

A property sells for $620,000 two years after it was purchased. If the annual appreciation rate was 4%, how much did the original buyer pay for the property (round to the nearest $1,000)?

$620,000 / 1.04 / 1.04 = $573,224.85 (round to $573,000)

A 50-unit apartment building rented units for $200 per month. The annual gross income multiplier is 10. What is the value?

50 x $200 x 12 months = $120,000 annual income x 10 GIM = $1,200,000

Lamar sells another broker's $800,000 listing for $785,000 at a commission rate of 6.5%. Lamar has a 40% commission split with his broker. If there is also a 50% brokerage split, what commission will Lamar receive?

$785,000 x .065 = $51,025 x .50 = $25,512.50 x .40 = $10,205

Taxes on the property buyer Tamara is purchasing are $8,200, due on December 31. If the closing is set for June 29th, using the 365-day method, how much of the taxes will be credited to the buyer? (Assume it is not a leap year and the day of closing belongs to the seller.)

$8,200 annual taxes / 365 days = $22.46 per day; Seller's ownership is Jan 1 - June 29 = 180 days; 180 x 22.466 = $4,044 credit buyer.

Seller Frank receives an offer of $800,000 on a property he listed at $900,000. How much is the offer as a percent of the listing price?

$800,000 / $900,000 = 88.9%

Albert finally found a buyer for his five-plex and closing is set for August 8th. At closing, four of Albert's tenants have already paid their $987.50 monthly rent and one of the units remains unoccupied. What will the rent proration be assuming the 365-day method and that the closing day belongs to the seller?

$987.50 x 4 units = $3,950 / 31 = $127.419 per day x 23 days = $2,931

There are many ways that the title to a property may be considered "less than perfect." When this happens, the title is not a "clear title" but is said to have a "_________" on it. One way this can occur is when a relative, often a brother or sister, claims to have an interest in the property. Until the ________ is cleared away, the marketability of the title is greatly reduced because no buyer wants to pay for something that the seller may not completely own.

'Cloud'

A retail property valued at $710,000 earns $4,650 per month. What is the annual percent of return?

($4,650 x 12 months = $55,800) $55,800 / $710,000 = .07859 (7.9%) return

A rectangular survey township has six miles on each side. Within a township there are 36 sections which have one mile on each side. One mile is 5,280 linear feet. One acre has 43,560 square feet. 5,280 x 5,280 = 27,878,400 square feet / 43,560 square feet = 640 acres.

-

A former licensee who lost a license due to a criminal conviction may reapply for a license after __ years and the Commission has the option to grant the license - or not grant it.

10

A developer wants to develop a 25-acre subdivision. He figures that the streets and common area will take up about 35% of this overall area. If the minimum lot size is to be 25,000 SF, how many lots can the developer have on this property?

100% - 35% = 65%; 25 acres x .65 = 16.2 acres available to develop; 16.2 acres x 43,560 square feet = 707,850 square feet / 25,000 square feet per lot = 28.31 lots (28 lots)

A building has 15 apartments generating annual potential rent of $750 each month. Vacancy = 5% and annual expenses are $81,000. What is the Net Operating Income (NOI)?

15 x $750 x 12 x .95 = $128,000 - $81,000 = $47,250 NOI

It is NOT true that applications are kept on file for five (5) years. The retention period for applications is ________ years, and as much as (_______) years for investigative files.

15, 40

A new licensee, within one year - twelve (12) months - after receiving a license must complete a __-hour Post License Course and report to the commission its completion.

25

A building contains 50 one-bedroom units and 150 two-bedroom units. The one-bedroom units rent for $550 monthly; two-bedrooms rent for $675. The vacancy rate is 7 percent; operating expenses are estimated at 40 percent of effective gross income. There is an additional income of $2,000 from vending machines. What are the operating expenses of this building?

50 x $550 x 12 = $330,000; 150 x $675 x 12 = $1,215,000; $330,000 + $1,215,000 = $1,545,000 x 93% = $1,436,850 + $2,000 = $1,438,850 x .40 = $575,540

When a license has been lapsed for more than two years but less than five years the former licensee may request reinstatement and retake a ______ hour pre-license course. After ten years the former licensee must follow the procedure for __________ ______________

75, new applicants

What is 7/9 + 1/3?

9 / 3 = 3; 7/9 + 3/9 = 10/9

Assuming a licensee has competed the GA Post License Course during the first year of licensure, he will have gotten credit for _ hours and will only need to complete ___ hours of CE during the rest of the first four-year licensure period. For the second period and thereafter the requirement is __ hours of CE.

9, 27, 36

A common consequence suffered by a mortgagor in a foreclosure procedure is that the borrower's _______ rating is damaged for a significant period of time.

Credit

If Jessica purchases a property for $290,000, and borrows $200,000 she is said to have a LTV ratio of?

A $200,000 loan that is obtained to purchase a $290,000 property is a ($200,000 / $290,000 = 68.9% or 69%) LTV Ratio.

In a comparative market analysis, the subject property has 2 bedrooms, 2 baths, a 1/2 acre lot and a swimming pool. A $115,000 comparable has 2 bedrooms, 1 bathroom, no pool, a 1/2 acre lot, and a screened porch. The appraiser adjusts by $9,000 for the bath, $11,000 for the pool, and $5,800 for the porch. What is the indicated value of the subject?

A licensee who is helping a seller price the property for a listing will conduct a comparative market analysis (CMA). While an appraiser who employs the Sales Comparison Approach to Appraisal only considers sold properties the CMA put together by a licensee considers all recently sold, still listed and formerly listed similar properties near the subject property. An appraiser will only adjust the sold prices of comparable properties, never the subject property. He will subtract value when the comparable has more features than the subject and add when there are less features. In this case, the comparable has one less bathroom and no pool but does have a screen porch. So the adjustment calculation is: ($115,000 + $9,000 for the bath + $11,000 for the pool - $5,800 for not having a porch resulting in an indicated value of $129,200)

A lender is charging 2.75 points on a $275,000 loan. The borrower must therefore pay the lender an advance amount of?

A point is one percent (1%) of the LOAN AMOUNT (not the price) that is paid up front when a loan is obtained. A point can also be regarded as on eighth of a percent of the interest rate (a 6 and 7/8 % rate reduced by paying three points up front will be a 6 and 4/8 % rate or 6.5%). So... ($275,000 x 2.75 points will cost $7,562.50 or $7,563)

How many acres are there in the W 1/2 of the S 1/2 of the SW 1/2 of a section of land?

A rectangular survey is composed of Townships. A Township has 36 square miles, each one of which is called a Section. Each one-square-mile Section contains 640 acres. To determine the acreage in a plot of land described as the W ½ of the S ½ of the SW ½ of the Section one can do it mathematically as: 2 x 2 x 2 = 8 and 640/8 = 80 acres Or more visually: 640 / 2 = 320; 320 / 2 = 160; 160 / 2 = 80 acres

A licensee as an agent is someone who has signed a brokerage services agree, has a client and who has "________." This means he or she has to be Accountable for any property (money, real estate) of the client in which the agent controls; act with Care and diligence; be Obedient to the clients' lawful instructions; be Loyal to the client's interests above those of anyone else and Disclose or give notice of all information that will help the client while keeping confidential all information that might harm a client. A licensee who has not signed a brokerage services agreement has to be fair and honest with all parties.

ACOLD

A contractor planning to build a new apartment complex, needs to be sure that the architect drawing the plans has consulted the ____ _____ ___ to include the latest rulings and avoid any potential fines.

ADA (Americans with Disabilities Act)

AIDA is an acronym used in Marketing and Advertising to describe a common sequence of events. The events follow the order _______ _______ ______ ________ Moving from action-to-action, one loses some percentage of prospective customers....

ATTENTION, INTEREST, DESIRE, ACTION. I drove here in an 80,000 dollar BMW.

An ____________ _____________ _____________ (ARM) contains an escalator clause that allows the interest to adjust over the loan term as market rates of interest rise and fall.

Adjustable Rate Mortgage

Zoning is a set of rules and regulations designed primarily to control the use of property. ___________ Zoning means a zoning in which, zoning regulations such as conformity to architectural and landscaping requirements are imposed to preserve the aesthetic features or values of an area.

Aesthetic

If a borrower obtains an interest-only loan of $112,500 at an annual interest rate of 6%, what is the monthly interest payment (rounded to the nearest $1)?

An INTEREST ONLY loan is also called a "Straight Loan" with payments consisting only of interest and all principal due with the final loan payment. The calculation for monthly payments is Total Debt x Interest Rate / 12 months...so...$112,500 x .06 / 12 = $562.50 ($563)

What is an intangible tax?

An intangible tax is charged at a closing when there are newly borrowed funds. Assumed loan balances are not taxed a second time.

The base rate of interest is one cost but to determine the true coast one must add the loan origination charges and other factors. When blended together and spread over the cost of the loan the new and higher rate is called the __________ ___________ __________ or _ _ _

Annual Percentage Rate or APR

When a property has been on the market for a long period of time; when the buyer and the seller are not related; when both parties have a good knowledge of the property's condition; when neither is under undue pressure, the agreement they reach is referred to as an _____-________ transaction.

Arms-Length

A borrower obtained a $10,000 loan term loan with 16.5% interest paid yearly. A $1,000 principal payment was to be paid with each yearly installment. What would be the amount of principal and interest payment for the second year.

Beginning balance $10,000 reduced by $1,000 with first year's payment resulting in a $9,000 balance for year two. $9,000 x .165 = $1,485 interest plus $1,000 principal = $2,485

All money that belongs to clients or customers must be deposited in the B______ T________ F______ as soon as possible (ASAP) after receipt.

Brokerage Trust Fund

A lender provides a loan where the payment includes the taxes and insurance in addition to the principle and interest. This is referred to as a __________ ___________ Loan

Budget Mortgage

Legislation that states that commercial emails must offer an opt-out option and cannot have a deceptive subject line is the ____-_______ Act.

CAN-SPAM

When a Florida broker holds a nonresident Georgia license he ____________ maintain an account in Florida if he also has an account in Georgia.

CANNOT

The clause used to safeguard the broker from unscrupulous buyers or sellers, who would take the broker's generated leads, but then buy or sell the property once the listing agreement has expired in order to avoid paying the commission to the licensee is known as a ___________

Carryover Clause

The chronology of successive owners of record of a parcel of real estate is known as the _______ of Title.

Chain

Aleatory contracts are agreements, commonly used in insurance policies in which the parties involved do not have to perform a particular action until a specified "________ __________" occurs. Events covered are those which cannot be controlled by either party, such as natural disasters, like floods or hurricanes, and/or death.

Chance Event

The Roberts carry a property insurance policy which covers 70% of the replacement cost of their insurable property, valued at $360,000. They have an 80% co-insurance requirement in the policy. If the family incurs a $290,000 loss, what amount will the Roberts recover?

Co-insurance is a requirement by the insurance company that the property be insured to the appropriate value. There is a penalty for not complying with this requirement. In this proble4m the property was insured for 70% while the Co-insurance requirement was 80%. To calculate the penalty figure both numbers and then divide to calculate the payment ratio. $290,000 x .70 = $203,000. $290,000 x .80 = $232,000. $203,000 / $232,000 = 87.5% $290,000 x .875 = $253,750 recovered rather than $288,000 (80% x $360,000 value).

Dain and Sheryl's home sold for $751,150. They owe $657,900 on their mortgage. What will their net be after they pay $24,500 in expenses and a 6.8% commission?

Commission = ($751,150 x .068) = $51,078,20 $751,150 Price - $657,900 Mortgage - $24,500 Costs - $51,078 Commission = $17,672 Net Proceeds

Adding a new porch to property will also add to the property's market value. This is an example of the __________ principle of value.

Contribution

When a property is restricted, and the ownership is dependent (conditioned) on a particular use as set forth in a deed, the condition will remain in effect no matter how many times the property is sold. But any _________ (promises) between the parties can be changed by agreement of the affected property owners.

Covenants

A Speculator buys land expecting it to grow in value over time with no effort on his part. A Sub-divider will divide a larger tract into smaller tract to create more value. A __________ will add improvements such as fences, streets, utilities and buildings.

Developer

Real property that is transferred according to someone's last will and testament is known as a _________ and the beneficiary is a __________. Money is a Legacy and the beneficiary is a Legatee. Personal Property is a bequest.

Devise, Devisee

An office building has $66,000 of net income and sold for $550,000. What was the rate of return?

Divide the Net Operating Income by the Value. $66.000/$550,000 = .12 or 12%

The inheritance protection of _________ (female) and ________ (male) Rights that apply only to married couples have been largely supplanted by community property laws and elective share laws.

Dower, Curtesy

The National Environmental Policy Act of 1969 was passed to create the Environmental Protection Agency (____).

EPA

An ________________ is a physical intrusion on another's property, an encumbrance that is often discovered by a survey. An ______________ is not recorded and is not part of a chain of title.

Encroachment

Anything of the neighbor's that extends across a property line, such as a fence, or a portion of a building or even a part of a garden, without the owner's permission, is an _____________

Encroachment.

The ________ ___________ _________ __________ prevents lenders from discriminating against race, color, religion, national origin, sex, marital status, age or dependency on public assistance in the granting of credit to consumers.

Equal Credit Opportunity Act

Every real estate office must have displayed at all times a poster called the _____ _____ _____ _____ to state that the business requires its agents to provide equal opportunity to all in buying and leasing housing.

Equal Housing Opportunity Poster

While a foreclosure is in process and before the sale, the mortgagor (borrower) has an ___________ __________ to step up and pay the loan to stop the lender's foreclosure process. After the sale has been completed the former owner (borrower) then has a ________ _________ to redeem his or her property (for a period of time depending on local law).

Equitable Right, Statutory Right

An ________ _________ to Sell Listing means only one agent can market the property. Exclusive Agency means one agent but the owner can sell, too. ______ ________ means multiple agents and the owner can market the property.

Exclusive Right, Open Listing

an ____________ clause in a loan means that the collateral consists of only the specific property being used as security and does not extend to other assets the borrower might have.

Exculpatory

Any applicant for a license who have a criminal history must provide the Commission with the appropriate data so the Commission's investigator can get an ______ _______.

FBI Report

An ____ loan insures the borrower for about 20% of their loan amount while a ___ loan guarantees a portion of the loan amount. This encourages lender to have a higher Loan to Value (LTV) ratio.

FHA, VA

To try to ensure Fair Housing Compliance and make sure that the brokerage agents understand the law, the brokerage policy and procedures manual should contain a section on _______ ________.

Fair Housing

t/f: the Seller must attach an inspection report to a listing contract.

False

t/f: an applicant for a license in Georgia has 12 months to apply for a license.

False. Licenses must be obtained within three (3) months and then the licensee has twelve (12) months to complete the 25-hour Post License Course.

While FNMA (__________), GNMA (_________) and FHLMC (___________) ARE all organizations that "warehouse" loans for the lending industry - ROBBIE MAC is NOT!

Fannie Mae, Ginnie Mae, Freddie Mac

The U. S. Constitution's _______ Amendment mentions the right to property. The Founding Fathers upheld the economic view of property. They believed that private property ownership, as defined under common law, pre-existed government. The state and federal governments were the mere contractual agents of the people, not sovereign lords over them. All rights, not specifically delegated to the government, remained with the people-including the common-law provisions of private property.

Fifth

A borrower earns $8,000/month and makes credit card and car note payments of $900. A conventional lender requires a 30% income ratio. What monthly amount for housing expenses (principal, interest, taxes, insurance) will the lender allow this person to have in order to qualify for a conventional mortgage loan?

In applying for a loan a lender will only allow a potential borrower to count a certain amount of his income as available to pay the loan. In this case the income ratio is 30% of allowable income. $8,000 x .30 = $2,400 total payments allowed - $900 other debt payments = $1,500 income available to pay for a conventional loan.

What would be the correct advertising information when a real estate broker is selling his own property?

For Sale by Owner-Broker. Call Hahn Realty at 321-7788.

Because the money paid to a licensee who is an independent contractor is not subject to deductions for taxes, the brokerage will send the IRS a Form ________ at year-end reporting the commission gross income paid the contractor during the year. The contractor will receive a copy to use when preparing taxes.

Form 1099

When a person has control of property with a full bundle of rights, and there is no way to know when his ownership will end, he is sometimes referred to as a freehold tenant, but the terminology used is a __________ Estate. When a tenant has limited rights of ownership under a lease, the lease will have a definite termination date and the term used is a _________ Estate. Between the two is something referred to as a life tenancy - a person who has a Life Estate that has limited rights like a tenant and an unknown term length. Because the end of the term is unknown, a life estate is also a freehold estate.

Freehold, Leasehold

The primary purpose of a deed is to transfer title from a seller to a buyer. The seller who believes he is transferring "marketable" title without any problems will sign and deliver a _______ _________Deed. A seller who only wants to warrant no problems during the period of time he owned the property will provide a Special or _______ ________ Deed. A seller who does not want to guarantee anything will simply sign a _______ _______ Deed.

General Warranty, Limited Warranty, Quit Claim

When a consumer or client (not another licensee or a relative of the accused licensee) is financially damaged by the actions of a licensee, he or she can file, through the court a claim against the ______ _____ ______ _______ ____ __ ______ _______for reimbursement up to certain limits.

Georgia Real Estate Education, Research and Recovery Fund

Some of the properties in every community are exempt from real estate and other property taxes. These include churches, schools, and other not-for-profit organizations as well as _________ ________ ________, such as the Department of Transportation building.

Government Owned Buildings

All six members of the Georgia Real Estate Commission are appointed by the

Governor of GA

___________ is the market rate fee that is charged a borrower to be able to use someone else's money. It is usually earned (during the term of the loan) before being paid but can be paid in advance (discount points)

Interest

When a taxing entity initiates an assessment, the assessment creates an _____________ Tax Lien.

Involuntary

A buyer will receive a water bill for an estimated $30 at the end of the month. At closing, the seller has used an estimated $24 of the water. What should appear on the closing statement?

It is unusual to prorate utility bills but just to do the math, here's the solution: Debit (charge) the seller and Credit (pay) the buyer the unpaid $24 because the buyer will have to pay the full bill later.

Depending on the ___________ a mechanic's lien may be treated as any other lien as far as priority date of filing is concerned, or it may receive special treatment with regard to priority. This may involve using either the date that the mechanic's work began on the property or the date the mechanic's work was completed.

Jurisdiction

An item permanently attached to real property, such as a fence, is included in the definition of real property. There are three slightly different descriptions of property. First there is unimproved dirt and plants, called ______; then there is land plus improvements such as fences and buildings called ______ _______; then there is real estate that includes non-physical interests, such as easements and restrictions, called ______ _________.

Land, Real Estate, Real Property

When a home owner has received a deed transferring title which contains a full bundle of rights (Exclusive right to occupy, right to enjoy without interference and right to waste destroy or sell/lease) he is said to have _____ _______. A person who is buying property under a land contract or contract for deed and has occupancy and enjoyment rights but hasn't received the deed yet, has ________ Title.

Legal Title, Equitable

A person who holds a Life Estate is also referred to as a ______ Tenant because the term for which he/she can control property will only exist for his or her life. After the death of the person who is the "measuring life" (either the life tenant or someone else under the term "pur autre vie") of a Life Estate, the ownership will either revert to the "grantor" (of the life estate) or will be passed on to a "remainderman."

Life

In order to determine how to calculate the property tax rate to provide enough revenue to cover a community's budget, the county and local government needs to (1) assess all properties (2) derive a taxable value by subtracting any exempted property values from the total assessed values and (3) divide community's budget by the taxable value. The _______ rate that is derived is used to multiply against the value of a property to determine that particular property's tax owed.

Millage

Reassessing the tax classification for a single property is called "spot assessments" and _______ allowed unless a material use of the property is changed.

NOT

When an owner does not occupy a property as his primary residence it will _______ be his homestead

NOT

A contract requires a willing buyer and a willing seller, each of age, sane, under no pressure and unrelated. They both have to understand the terms of the contract the same way. There has to be good and/or valuable consideration. If there are contingencies (Title search, survey, physical inspections, and financing availability) that are not fulfilled, the contract is subject to possible rescission by either party. In that case the contract will be declared _____ and _____

NULL AND VOID

Whenever a property owner engages a licensee to list property for sale where the commission is not a pre-set percentage or simple dollar value but will be all funds than remain after the owner receives a certain amount the arrangement is called a ______ ________ and is illegal.

Net Listing

___ ________ are illegal. It may occur when an owner sets a minimum amount that he wants to receive from the sale of the property and lets the broker have as commission whatever amount is received above the set minimum net proceeds.

Net Listings

Under Georgia Law would language in a lease that required all tenants to waive all rights to their security deposit be enforceable?

No.

Beginning at the NW corner of the intersection of Pine & 675, thence north 950 feet, thence west 380 feet, thence south 950 feet, thence southeast 380 feet. Is this an acceptable metes and bounds description?

Note the last direction - southeast (Not East). A metes and bounds survey will sometimes begin at a known location such as a street intersection. That is called the Commencement Point. Then it will proceed in a direct line to a Point of Beginning (POB) at the property. It will then proceed to measure around the property's perimeter until it returns to the POB and "closes." If it does not return precisely to the POB there is a problem with the survey documentation.

If a seller prepaid the taxes of $4,400 and the closing is set for May 19, using the 12-month /30- day method what will the buyer owe the seller as prorated taxes?

Notice that the taxes have already been paid by the Seller. Find the daily taxes: ($4,400 annual / 360 = $12.22 per day) Find the number of days from the beginning of the tax year (assume January 1) through the May 19 closing (assume that day is paid by the seller): (4 months x 30 days + 19 days = 139 days) To find the seller's cost multiply the daily tax rate by the days ($12.22 x 139 = $1,698.89 or round to $1,700). Subtract the seller's cost from the amount prepaid to find the amount owed the seller by the buyer as a refund. ($4,440-$1,700 = $2,700).

Retailer Blake owns a commercial store front lot that he wants to sell. The lot is 1/2 acres. The agent informs Blake he can get $15 per square feet for the lot. What total price should Blake list the property for?

One acre = 43,560 square feet / 2 = 21,780 x $15 = $326,700

How many discount points are required to increase the percentage yield on a mortgage from 6% to 7.5%?

One point is equal to one percent of the loan amount OR 1/8 of a percent of rate. So to increase the interest yield to the lender to 7.5% from 6% (1.5 x 8) would require payment of 12 points (12% of the loan amount) when the loan was made.

A property had an area of 920 square yards with a 40-foot frontage. What was the depth of the lot?

One square yard is 9 square feet. 920 square yards x 9 square feet = 8,280 square feet / 40 feet of frontage = 207 feet of depth

The typical home loan is secured by a mortgage or a deed of trust. The repayment of the loan is "amortized" over a period of time with payments that include both Principal and Simple Interest. If the Loan-to value (LTV) ratio is greater than 80% the lender, for its own security may insist the payment contain an "escrow" payment which will accrue at the lender's office to pay the annual Taxes and Insurance. That is why an amortizing home loan payment is often referred to as containing ______ But there are other payments that are not included in the _______ payment, such as the monthly utility bills.

PITI, PITI

When an owner who is a joint tenant or a tenant in common wants to sell her portion or the property ownership and exit the relationship, but the other owners won't cooperate, she may have to file a ____________ in civil court to have the property sold to the highest bidder.

Partition Suit

A __________ ___________ is created, and its members appointed to be responsible for approving developers site plans, subdivision plans, and to make sure that zoning ordinances in a community are properly enforced.

Planning Commission

_________ is a term used when merging a lot with an adjacent property with the result that the larger property has more value.

Plottage

A metes and Bounds survey basically describes the perimeter of a tract of land. Its legal description contains angles and distances. It begins at a reference point, moves to a _____ ______ ______; traverses the perimeter of the property and returns to the _.

Point of Beginning

Several items could be prorated at a closing but the most common time to be prorated is __________ Taxes.

Property

When an appraiser has completed all of the relevant calculations and comparisons involved in the three approaches to value, he will not average the numbers, he will consider all numerical and conditional factors available in his analysis and ___________ the numbers to estimate the value of the subject property.

RECONCILE

A property manager who does not negotiate leases and is primarily responsible for maintenance does not need a license. A property manager who markets the property, shows the property and negotiates leases must have a ________ _______ _________

Real Estate License

The _______ _______ ______ _______ ______ ______ (RESPA) prohibits lenders from taking kickbacks or unearned fees.

Real Estate Settlement and Procedures Act

A lender that restricts the number of loans in certain areas of a community because of its racial or ethnic make-up, or the lender's poor collection record in the neighborhood is referred to as ____________.

Redlining

While a brokerage can often have both sides of a transaction, the sales commission from a sales transaction is usually divided between a licensee (the brokerage) whose agent has the listing and a licensee (another brokerage) whose agent brings the buyer to the listing. The seller's representative's position is called the listing side and the buyer's representative's position is called the selling side.

Repeat question.

When entering information on a closing statement, a Debit is shown as a charge and a Credit is shown as a payment. The sales price of a property would be a debit to a buyer and a credit to a seller. The remaining mortgage balance would be a debit to the seller.

Repeat.

There are six members on the Georgia Real Estate Commission. Five have licenses and one does not. That seat is so the unlicensed public will have _________on the Board.

Representation

The homeowner receives (rather than pays) monthly payments. The debt accumulates as the payments are received. __________ ____________ work best for older people who have 100% equity (no debt) on their property and need a steady income.

Reverse mortgages

Joint Tenants have what is called a _______ of Survivorship. If a Joint Tenant dies the surviving Joint Tenants automatically acquire the deceased ________ per stirpes. Each receives a prorata share of the deceased property.

Right, interest

There are several terms for water rights for owners of property whose land abuts a river or a lake or ocean. If the water is large enough and deep enough for commercial boats, the property owner owns the land only to the "high water mark" of the river or lake/ocean. The government (the state) owns the bottom and the public has a right to use the water for transportation. Water rights along a river are called _________ Rights. Water rights on a lake or ocean are called _________ rights. If the water is just a shallow creek, each property owner owns to the middle (the thread) of the creek.

Riparian, Littoral

In a real estate transaction the __________ has the responsibility for filling out the property condition disclosure statement.

SELLER

The Internal Revenue Service has a set of rules that will determine whether a licensee is an employee of the brokerage or an independent contractor. The process is called a ________ ________ _________.

Safe Harbor Test

Most Landlords require tenants to provide a deposit as a safeguard against default or damage to the property. The deposit remains the property of the tenant until the lease expires, must be kept in a separate federally insured ______ ________ ________ ________, and returned to the tenant after departure, with a written exclamation for any deductions.

Security Deposit Trust Account

A rectangular survey is composed of Townships that are square tracts of land six miles on each side. A township then is divided into 36 Sections which are square tracts of land one mile on a side. One mile is 5,280 square feet. So - 5,280 x 5,280 = 27,878,400 square feet. An acre is 43,560 square feet so one Section has (27,878,400 / 43,560 = 640) acres.

See Backside.

Any statement that earnest money is required or must be a certain amount or percent of the sale price to have a valid contract is FALSE. Earnest money is not required at all to make a contract binding. Earnest money is merely a way for the buyer to say to the seller, "Please consider my offer. I am serious about wanting to buy your property."

See previous side. This isn't a question.

The death of either the selling broker or buyer does NOT usually terminate a listing. The death of the _______ or the _________ broker will terminate the listing

Seller, listing

Ownership in ________ can be described as ownership of a single property by a single person or entity.

Severalty

If all or some of the brokerages in a particular community agree to charge the same commission rate (price-fixing) or to allocate to certain brokerages exclusive areas (market allocation), in providing brokerage services to the community, that would be an illegal activity, a violation of the ________ _______-_____ _______.

Sherman Anti-Trust Act

The principal balance of a loan is $360,000. The monthly principal and interest payment will be $2,160 per month for 30 years. How much interest will be paid over the term of the loan?

Sometimes a problem is simpler than it looks. In this case the Principal amount of the repayment will be $360,000. The remainder will be interest. There will be 30 years (360 Months) of $2,160 payments. So... $2,160 x 360 = $777,600 in payment - $360,000 principal = $417,600 interest.

Whenever an agent attempts to guide a client to or away from a particular part of the community or property, perhaps because they have children or are of a particular race, it may be with the best of intentions, but can be defined as _________ which is a violation of the FAIR HOUSING LAWS.

Steering

The law of ______________ and _______________ applies to money. The more there is the cheaper it costs - interest rates drop. . The less money available the higher the interest rates.

Supply and Demand

When a new manufacturing plant opens nearby and is offering 1,000 new, high-paying jobs, the likely increase of the area's real estate values will reflect the principle of _________ and ____________.

Supply and Demand

Government-owned buildings are usually classified as ____________ Real Estate.

institutional

A couple living together who are not married but are co-owners of the residential property are most likely Tenants in Common. They can own equal or unequal portions of the property. It is possible, however, if they have P.I.T.T. they are Joint Tenants with a right of __________.

Survivorship

A couple living together who are not married but are co-owners of the residential property are most likely ______ in _________. They can own equal or unequal portions of the property. It is possible if they have P.I.T.T. they are Joint Tenants with a right of survivorship.

Tenants in Common

One of the necessary elements of a contract is consideration. The "Quid Pro Quo" or "_________ ________ _________." It can be valuable consideration, such as money, or it can be good consideration, such as services, which can be considered as valuable. But for a contract to be enforceable, it needs to be in ________ and there must be consideration.

That for Which, writing

The ____________ __ _________ ___ ____________ __________(____) regulates Ginnie Mae (GNMA) and Freddie Mac (FHLMC)

The Department of Housing and Urban Development (HUD)

Emma's property is assessed at $650,000. Her property qualified for a $50,000 homestead tax exemption and was appraised at $800,000. What is the taxable value of Emma's property?

The assessed value of a property is usually only a portion of its appraised value, and the amount is usually determined by the state government. But some properties have partial or total exemptions depending on their use (farm or family home, perhaps). In this case the Assessed value is $650,000 and the exemption is $50,000 so the taxable value is $600,000. The appraised value is not needed to answer this question.

Homeowner Dean owns the northwestern 1/8 of the northeastern 1/2 of the southwestern 1/8 of Section 31. How many acres is that property?

The rectangular survey was first introduced in this country when Thomas Jefferson was the Secretary of State. It is French in origin. It was only used as the USA expanded into the "western lands," and not in the thirteen original colonies (Virginia was one). It is composed of Townships that are square tracts of land six miles on each side. A township has 36 sections which are square tracts of land one mile on a side. One mile is 5,280 square feet. So 5,280 x 5,280 = 27,878,400 square feet. An acre is 43,560 square feet so one Section has (27,878,400 / 43,560 = 640) acres. There are several ways to divide and calculate areas in a Section: 8 x 2 x 8 = 128; 640 acres / 128 = 5 acres or NW 1/8 of NE 1/2 of SW 1/8 of Section 31 5 40 80 640 Section 31 = 640 acres 1/8 of Section 31 = 80 acres 1/2 of 80 acres = 40 acres 1/8 of 40 acres = 5 acres

Salespeople are often called upon to provide comparable sales, and current listings to a seller who wants to list a property for sale. What is this called?

This is called a CMA or Competitive Market Analysis.

A property's value is $125,000 and its land value is $10,000. Assuming a depreciation term of 35 years, what is the amount of annual depreciation?

Total value $125,000 - $10,000 land = $115,000 improvements / 35 years = $3,286 annual depreciation.

A home sold for $375,900. The buyers obtained a mortgage for $305,750. What will the transfer tax be on this sale?

Transfer taxes are calculated against sales, not loans, Multiply the sales price by 1/10th percent to determine the tax: $375,900 x .001 = $375.90

A beneficiary trust is an arrangement where a Trustors asset is transferred, to benefit someone over time. A _________ is charged with managing the Trust. A living trust is set up while the person establishing the trust (the Trustor) is alive. A ________ trust is one that is set up and becomes effective only after the Trustor has died.

Trustee, Testamentary (think last will and TESTAMENT for when you die.)

A rental house has monthly gross income of $3,000. A suitable gross income multiplier derived from market data is 13. What estimated sale price (to the nearest $1,000) is indicated?

Unlike the GRM a Gross Income Multiplier deals with annual income to determine the value of an income producing property. $3,000 x 12 months = $36,000 annually x 13 GIM = $468,000 in value.

A small apartment building has a NOI of $40,000, interest expense of $14,000 and annual depreciation of $6,000. Assuming a 30% tax bracket, what is its income tax liability?

When calculating income tax on a commercial property the owner is allowed to deduct interest and depreciation from the Net Operating Income before calculating the taxable income. ($40,000 NOI - $14,000 - $6,000 = $20,000 Taxable Income x .30 tax rate = $6,000 taxes due

Good Springs has a tax base of $90,000,000 and a budget of $1,100,000. What is the tax rate in terms of mills?

When the tax base (taxable value of the property in a community) is divided into the budget required to operate the local government a tax rate is derived, based on mills. A mill is one tenth of a cent. So it is expressed like this. One mill is .001; ten mills is .010; and one hundred mills is .100. So... $1,100,000 / $90,000,000 = .0122 or 12.2 mills.

A tenant who has signed a lease usually has the right to exclusively occupy and use the property covered by the lease. This interest that the tenant has in the landlord's property, which exists for a definite period of time, is called an Estate for ______ (even though it may be only six months)

Years

When there is a written lease that is for a definite period of time, the tenant is said to have an Estate for ______. But when a property owner and a tenant enter into an agreement where there is no minimum or maximum term stated, and the tenant can leave whenever he wants to or the owner can cancel the agreement whenever he wants to it is a Tenancy at ______

Years, Will

Can a GA licensee who moves to another state obtain a GA Nonresident license? Once obtained, how can the GA Nonresident license be lost? Can a Nonresident licensee also have a reciprocal Georgia license?

Yes. Violating GA License Laws. Yes.

A subagent is an "______ of an _______." When a listing agreement is signed a seller does have the right to reject the use of a sub-agent by the agent who is obtaining the listing from the seller.

agent, agent

Contracts require both parties to perform the agreed tasks or duties. If a party to a contract ___________ his obligations the other party can terminate the contract (or can sue for specific performance.) A tenant who fails to pay rent has abandoned his duty and the landlord can terminate the lease and evict the tenant. A landlord who fails to make repairs has abandoned his duty and the tenant can terminate the lease.

abandons

Whenever a licensee is showing property to prospective purchasers an appointment needs to be made so the owner/seller of the home can not only straighten the property but actually plan to be _________ from the property while it is being shown.

absent

A promissory note and an amortizing mortgage have a due-on-sale clause that allows lenders to call the entire balance due and payable immediately if the borrower defaults on the loan. It is called an __________ ___________.

acceleration clause

A rectangular survey with Townships Ranges, Sections, Meridians and Base Lines is an _________ method of legal description

accepted

An offer is not a contract until __________ by a seller without making a change and notification to the offeror of the acceptance. If an offeror regrets the offer and wants to withdraw he can __________ the offer assuming the seller has not already accepted it.

accepted, revoke

Every brokerage must maintain an __________ __________to detail all receipts and deposits received from others that are under the control of the brokerage. Salespersons and Associate brokers must deliver all client funds received to the managing broker.

accounting system

A rent roll is a listing of occupied units in an apartment complex and the amount of money each is currently paying or will be required to pay in the future. It is a useful tool to help determine the _________ _________ income for the property, a number that is important to estimate value.

annual rental

A lien is a notice to the public filed of record at the county courthouse that the title to a property is encumbered or clouded by a debt or other __________, which is an attachment of a right or benefit by someone other than the owner.

appurtenance

Ad Valorem Taxes are based on the __________ _________ of the real property. The calculation involves multiplying the appraised value by an assessment rate to derive the assessed value and then multiplying the assessed value by a tax rate - a percentage which will vary depending on the local jurisdiction. (Example: Property Value = $400,000 x Assessment Rate of 30% = $120,000 (Assessed Value) x Tax Rate of 35 mills (.035) x $120,000 Assessed Value = $4,200 Annual Property Taxes

assessed value

A listing agent represents sellers while a selling agent represents _______.

buyers

When an attractive offer (for interest rates, or for a product) is advertised but the prospect who attracted by the offer and responds but is sold something more expensive, the tactic is called _____ and ________.

bait and switch

A rectangular survey has townships and ranges. The numbering of townships is between _________ that run east-west and the numbering of ranges is between ____________ that run north-south.

baselines, meridians

If a broker commits a violation involving his brokerage trust funds his license might be suspended; fined $1,000 or ordered to make periodic trust account reports but he will NOT ____________!

be imprisoned

A written ____________ brokerage services agreement will set forth that a licensee represents a client in exchange for a promise of compensation for (selling), (buying), (leasing), (managing) real property for the client.

bilateral

A _________ Mortgage is secured by more than one property. The loan on lots in an still-to-be-developed subdivision might be covered by a blanket mortgage. A single unit in a condominium complex would not be "covered" by a _____________ mortgage.

blanket

A licensee, who owns several pieces of rental property on which he collects and holds security deposits, CANNOT post a _______ in _______ of depositing the client's money in a trust account,

bond in lieu

If a licensee finds that the seller is refusing to pay an earned commission, the licensee needs to report the situation to the ___________ (because the commission is actually due the brokerage) so the brokerage can sue the seller for breach of contract.

broker

Two reasons to have a caravan to tour homes that are for sale: (1) Allow the ____________ __________ to view as many properties as possible and (2) to get feedback in the form of written evaluations and suggestions for improving the ____________ of the property.

brokerage agents, attractiveness

Zoning calls for defined areas that allow particular uses of property. Sometimes a use such as residential will be allowed next to a use such as industrial or manufacturing. In that event, to fulfill the objective of zoning, which is to "protect the people" a more moderate use will be allowed between the two zoned areas, called a _______ ________

buffer zone

Most licensees are independent contractors which means they are self-employed, working under a contract as agents for a real estate brokerage, with a managing broker who is responsible for the brokerage agents. No income tax is deducted, no workman's compensation insurance is provided. The agents will have to pay their own ________ _________ and a self-employment tax.

business expenses

When a property that has been listed for sale is destroyed by a tornado, the __________ _______ between the licensee and the owner is destroyed as well.

listing agreement

Whenever a licensee chooses to go inactive he or she cannot conduct any activities or receive any money. He _________ continue and/or complete those transactions he started before his inactivation.

cannot

A safety, or protection clause in a listing, also called a __________ clause, will allow a broker to claim a commission, after the listing has expired, if the owner sells directly to a person the broker or one of the broker's agents introduced to the property during the listing period. The protection period may be for any agreed period (30 days: 90 days; six months) of time after the expiration.

carryover

In order to qualify as a living space, a newly constructed home must be inspected by the local municipality's building inspector to make sure it was constructed in accordance with the local building codes. If it passes inspection the property will be issued a _______ _________ __________.

certificate of occupancy

When an old property seems to be newer and in better condition than it should be because it has been constantly maintained and remodeled, in valuation terms its _____________ age is greater than its effective age.

chronological

Even though license law is strict about handling trust funds and requires procedures for disbursement, if a ______ ____ orders that trust funds be disbursed, the broker must follow the directions of the ____________

civil court

While the rights to an option contract can usually be sold by the optionee to someone else before exercising the option the optionee cannot use the property before executing _________ the contract.

closing

A form of public land use control are ________ that regulate building construction.

codes

An investor might decide to purchase a commercial rental property rather than a residential rental property because ______________ tenants generally are easier to deal with than _____________ tenants.

commercial, residential

The term ____________ refers to mixing clients' or customers' funds with brokerage operating funds or with a licensee's personal funds. It is illegal and can result in revocation of a license.

commingling

When a licensee has a listing to market a property and has produced a ready, willing and able buyer who has agreed to pay what the seller has asked, and the seller decides to back out of the deal, the agent's brokerage has still earned and is due the _______

commission

A real estate license is required whenever a person wants to manage one or more property owned by others in return for __________

compensation

Even though a mobile home, not attached to the land, may not be classified as real property, a property _____________ _____________ is usually required to be made by the owner when it is offered for sale.

condition disclosure

After the term of the listing or buyer agency agreement has expired or has been terminated, the licensee still owes a duty of ___________ to the former client for any material information that might damage the former client.

confidentiality

A _____________ loan is usually a higher risk than a residential loan.

construction

A ____________ is someone owns a home, who wants to buy a home or who is renting a home. A __________ is someone who has merely expressed an interest in either buying or selling a home or a third party that the licensee is assisting without having a written bilateral brokerage services agreement or working with on behalf of a principal. A ________ is a principal, someone who has signed a written bi-lateral brokerage services agreement with a licensed brokerage.

consumer, customer, client

When a rental property has a defect that can be repaired through non-structural maintenance or rehab, like by replacing rusty pipes with PVC pipes, it is called ____________ _______________.

corrective maintenance

If a property is subject to special tax assessments it is being additionally taxed because it is receiving some special benefit. If it happens to be sold at a foreclosure sale, after payment of (1) the _______ of the sale, including the advertising, the attorney fees, and any trustee fees (2) any owed _______ assessments are collected, then regular unpaid property taxes and then the next lien in priority.

costs, special

When a property is sold on the courthouse steps because the borrower failed to pay the loan, the first item to be paid is the _____ of the sale, including advertising, attorney fees and trustee fees. Then any outstanding property ________ are paid. Then the liens against the property, ranked in order by filing date, until the money is exhausted. If there happens to be any money left over it will be paid to the debtor.

costs, taxes

The level of government that is charged with collecting taxes on real property is the ________ or _______ (city or town), not the state or federal government.

county or local

In a Title Theory state, for the lender, an advantage of a non-judicial foreclosure is the process is quicker since they do not have to go through the _______.

courts

When two people want to simply exchange one property for another, the person who handles the details for a fee must have either a _______ _____ license or a ___ license

real estate, law

Among other requirements, to be valid a deed must be delivered to the grantee by the grantor - and accepted by the grantee - during the grantor's life. A ____ that has been recorded in the public records is presumed to have been delivered to the buyer.

deed

A tax certificate is used to collect delinquent taxes by "selling the tax lien" to someone who will most likely simply collect interest when the property owner finally does pay the taxes. But if the property owner doesn't pay the taxes, after a stipulated period of time has passed, the person who bought the certificates (and who has been paying the taxes) will receive a ______ to the property.

deed

When entering information on a closing statement, a _______ is shown as a charge and a _________ is shown as a payment. The sales price of a property would be a debit to a buyer and a credit to a seller. The remaining loan balance would be a debit to the seller.

debit, credit

The seller had agreed to mediate the radon gas problem in his basement within 31 days. It has been 31 days and he still has not addressed the issue. The current status of the sales contract is that I the seller has _________

defaulted

Any listing contract, buyer agency agreement, or property management agreement must have a _______ _______ date and no provision for an automatic renewal.

definite termination

Most property managers prepare regular reports for owners. An important part of a property management report is the number of ___________ accounts.

delinquent

When a broker appoints one of his agents to serve the seller and one to serve the buyer they are called ________ agents and the broker is a ________ agent.

designated, dual

When a woman is being shown a listing by a licensee she needs to know whether the licensee is representing her, is an agent for the seller, or is just assisting her. That's why agency __________ laws exist.

disclosure

Telling a prospective buyer or tenant that a property is not for sale or rent when it is not only untruthful it may be considered a ___________ activity.

discriminatory

Any funds received by a salesperson or associate broker from a real estate transaction, even if it is a gratuity or bonus for a job well done, needs to be delivered by the agent to his or her broker for __________

distribution

A typical residential septic system for a property outside of the community's sewer system will have a __________ ___ for treating effluent and an underground septic field for the distribution of the treated effluent. Typically, at least an acre of property per home is required for an individual septic system to provide ample room for the distribution field.

distribution box

There are some exemptions to the requirement of being licensed to sell real estate. An owner, a trustee or an executor of an estate ______ ______ have to have a real estate license to have the legal authority to sign a contract to sell property that is owned by the estate.

does not

When a client signs a consent form it contains the following: That the broker will be representing two clients whose interests could be different or even adverse, that the agent will disclose all known adverse material facts to all parties, and that the engagement has been read and understood. But the document does NOT say the client must consent to the ________ __________

dual agency

When a person owns property in FEE SIMPLE, they have the right of exclusive occupancy (keep everyone else off); the right of enjoyment without interference; and the right to waste, destroy or sell the property. A fee simple owner does have the right to grant an easement to someone to cross the property or use the property. A fee simple owner _______ condemn his own property.

easement, cannot

An __________ is a recorded right to cross or use someone else's property. There are several ways it can be terminated: By agreement of the parties, by abandonment for a specified period of time under state law, or by merger - which means one of the property owners buys the other's property. The sale of one of the properties, either the encumbered property or the appurtenant (benefiting) property would NOT terminate the ___________.

easement, easement

A safety device in all homes that meet standard community building codes will have an _____ ______ _____ ______ which will stop the flow of electricity if there is a sudden increase in electricity that may cause danger to the property.

electric circuit breaker switch

eminent domain is the power of the government to acquire privately owned property for use by the public, after paying a fair price. The owner of the property may object to having his land taken but in the end the government does NOT have to have the owner's permission to ____ the property.

eminent domain, take

An employing broker must give a copy of the __________ agreement, including any modifications, to every one of his or her employees and licensee contractors.

employment

The powers granted the lender in the promissory note and mortgage which are filed of record as a lien against the title is one of the means of ________ the lien against the property.

enforcing

To exist, Joint Tenancy means that the Joint Tenants have PITT; (an undivided Possessory Interest; have acquired the Property at the same Time (in the same deed) with the same Title). If a Joint Tenant dies the remaining owners automatically receive an ______ portion of the decedent's share (Right of Survivorship). Depending on what agreement exists between joint tenants, a joint tenant has the right to sell his __________ interest in a property. When sold, however, the buyer will be a Tenant in Common with the remaining owners who will still be Joint Tenants.

equal, undivided

An __________ _________ is sometimes used to increase or decrease the taxes collected for a particular area. For instance, if an area is substantially wealthier than another area the assessed value for the wealthier might be increased by an equalization factor by 25%. Then, when the overall property tax rate is used, the result is higher property taxes for that area than in a less wealthy area.

equalization factor

If one of the brokerages licensees represents the buyer and another represents the seller in the same transaction, it would be referred to as an __-________ sale.

in-house

When a homeowner fails to pay his home loan as promised, the loan documents and the mortgage have provisions to allow the lender to begin a judicial foreclosure proceeding. The decision to begin the foreclosure process is determined by the lender after attempting to collect from the borrower. The borrower then has an ____________ right of redemption by paying the debt completely before the foreclosure reaches the stage of a public sale. After the sale the debtor has a __________ right of redemption, usually for a year, to come back and redeem his ownership by paying the debt and all costs related to the sale.

equitable, statutory

An escrow account ledger would contain names of all parties to a transaction, the amount of _________ ____________ the sponsoring broker received, and the date the broker received the funds.

escrow funds

A site analysis on residential property is conducted by an appraiser to try to _____________ of the property's highest and best use.

estimate

he most common definition of when market value occurs is the moment a buyer and a seller agree on a price after an arms-length negotiation. An appraiser's job is to ________ market value, so he checks first to see that the negotiation leading to the contract was fair. Then he uses the three approaches to appraisal to try to support the contract price the buyer and seller agreed upon.

estimate

If a licensee believes he is being approached by a fair housing tester he should treat them equally and not violate any ____ ________ laws.

fair housing

Licensees must be careful to not use words that indicate discrimination or might be interpreted as discrimination against a Fair Housing Act protected category. For instance, while age is not a protected category under Fair Housing, using the phrase "mature persons" might be interpreted as denial of families with children. This is discrimination based on __________ ____________

familial status

Owners of condominiums that are part of a high-rise building actually own a _______ ________ interest in an airspace and have a tenancy in common interest in the common elements of the building or complex.

fee simple

Members of the Georgia Real Estate Commission are appointed by the Governor and serve _______ year terms.

five

When a property is for sale but the debt is greater than the market value, sometimes the lender will agree to a short sale and take less than is owed on the property to avoid ____________.

foreclosure

All renewal deadlines for licenses are set for the last day of the licensee's birth month every _____ full years. (The first renewal period may be longer, depending on when the license was obtained).

four

A strict foreclosure usually occurs only if the value of the property is less than the debt owed. The lender files suit asking a court to order the borrower to pay the mortgage debt by a certain date or the lender will automatically gain ____ ______ to the property.

full title

The loss of value of an improvement due to functional inadequacies, often caused by age or poor design is called ____________________ ________________.

functional obsolescence

Five of the six members of the Georgia Real Estate Commission have licenses. One is an unlicensed member of the

general public

A _________ lease for a commercial rental property means that the rent paid to the landlord will cover everything...the rent, the utilities, the taxes, insurance, common area maintenance, building repairs and janitorial services. A net lease for a commercial property means that the rent is all that the tenant owes but the tenant is required to pay the utilities, the taxes, insurance, common area maintenance, building repairs and janitorial services. Anything in between is called a modified gross or modified net lease.

gross

Asbestos is a powdery mineral found in older building materials such as sheetrock and insulation and even some glue that holds mirror pans on a wall. It is a __________ _____________ when airborne.

health hazard

An unlicensed assistant can't show listings, hold open _______, negotiate deals or be paid a sales ________ for doing so...

houses, commission

Violating zoning laws is an _______ use of property. Building a warehouse in a neighborhood zoned residential would be a violation. Zoning laws can also regulate what kinds of animals can be kept on a property.

illegal

When a licensee transfers from a managing broker to a new managing broker (yes, permitted by law) the listing contracts that the licensee had obtained while at the former brokerage stay at the former brokerage, unless transferred ____ _________ to the new brokerage, with permission of both the former broker and the new broker.

in writing

Because lender's work with ratios related to income and the agreed upon sales prices, a major form of fraud is reporting an incorrect price to a lender. For instance, if there are repairs to be made and the seller doesn't have the money, a buyer and a seller will sometimes agree to report a higher sales price to the lender, so the lender will loan more money to the buyer to give to the seller at closing. Then after the closing the seller will give the buyer the extra money to make the repairs. This is called __________ fraud.

intentional

A good agent communicates weekly with listing clients about activity and inquiries regarding the client's property. When there has been no _________ for a week, the client needs to know that as well

interest

When a property goes on the auction block for failure to pay taxes a buyer at the auction receives a tax certificate allowing him to apply for a tax deed after a certain period, if the defaulting owner of the property ultimately fails to pay the taxes in the time allowed. If the owner does come back and pay the delinquent taxes, the buyer of the certificate will have earned ___________ on his payments.

interest

While most trust accounts are not _______-________ accounts due to the short duration that the funds are in trust, a buyer or a seller, or either, can instruct a broker to place earnest money or other trust funds in a separate _________-________ account.

interest bearing, interest bearing

A section of the Truth in Lending Law, called Regulation Z, has only to do with advertising the lending or financing terms related to a real estate transaction. It does not enter into basic contract law nor does it set ________ _______.

interest rates

A factory requiring federally-mandated reductions in carbon emissions will cost the owner additional investment expenses and have the result of reducing the return on the _________ for the owner.

investment

A property manager with a written management agreement is and agent and as an agent he has to work in his client's best interest. This will of course mean protecting the property, maintenance and repair, collecting rents, etc. But the primary management responsibility is to generate as much ________ _________as possible.

investment profit

There are both voluntary and involuntary liens. Property taxes are _________. A judgment lien is involuntary. A mechanic's lien is involuntary. A mortgage is a ________ lien.

involuntary, voluntary

A broker _______ required to share commissions with a cooperating broker in a transaction unless there is an agreement between the brokerages or a unilateral contract offer has been made to other brokerages.

is not

A title search and a tile report (or opinion of title) ___ ________ a factor in making an appraisal of value or preparing an appraisal report.

is not

Many people think that earnest money is required "to make a contract legal." Earnest money ______ ______ required in order to have a valid contract. Earnest money is traditionally offered by a buyer to induce (or convince) the seller that the buyer is serious (in earnest) about wanting to buy the property.

is not

If a licensee is not satisfied once a hearing has been held and a decision rendered, the case is entitled to a ______ _______

judicial review

A public entity can employ Eminent Domain to acquire private property FOR PUBLIC USE, not to then sell to another private owner for private use. But PUBLICLY OWNED property that has been acquired through Eminent Domain can be _________ to a private entity for a use that the public will have access to, and the right to enjoyment such as a sports complex or entertainment center.

leased

A contract allowing a person to deal in cocaine sales on a property would be VOID because to be valid, a contract must have a __________ _________ and without a legal purpose neither party can legally enforce performance under the contract.

legal objective

A ________ is simply revocable permission for the temporary private use of someone's property. A ticket to a sporting event being held on private property would be a license.

license

Representing the Real Estate Industry is NOT a purpose of the Georgia Real Estate Commission. One of its purposes is to protect the public through the ________ and ________ of licenses.

licensing, regulating

A _________ is filed against title as a claim. For example, when a loan secured by a mortgage is obtained, a document is filed by a lender at the county courthouse as a _________ to give public notice of the "cloud" on the title to the property being used as security. Whenever a title search is conducted to find if the title is clear, the ___________ will be discovered and reported.

lien

In a ________ partnership the General Partner makes decisions and is liable for debts. Limited Partners cannot participate in the management decisions and are only liable for the money that they have invested.

limited

Two common forms of written contracts that are very important to a licensee are (!) a written __________ ___________ between a seller and the licensee's brokerage setting forth the terms under which the licensee will act as an agent, with the seller as a client, to market the seller's home and (2) a written __________ _______ agreement between a prospective buyer and the licensee's brokerage setting forth the terms under which the licensee will act as an agent with the buyer as a client to search for, offer, negotiate, assist in engaging services such as inspectors and lenders and close the purchase of a home.

listing agreement, buyer agency

Ever since the late 1990's there has existed a common formal agency relationship between licensee's and buyers and between licensees and Tenants. The licensee representing the seller is usually called the "________ agent" and the licensee representing a buyer (or a tenant) is usually called the "_______ agent."

listing, selling

A recorded plat method, also called the ______ ______ _____ _____ ______, is used to describe properties in residential, commercial, and industrial subdivisions

lot block and plat system

When a property is legally described using the "____, _____ and ______" method it is probably in a subdivision and the plat is recorded at the courthouse. Only the lot's boundaries will appear on the plat. A purchaser will want a "location survey" that shows not only the boundaries where all the improvements are located so he can see if there are any encroachments.

lot, block, and plat.

A property that is valued so much above the typical market price (such as a multi-million-dollar home) may require special advertising in media that reaches beyond the local market, such as _______ or TV media in major markets to broaden the size of the area for prospective purchasers.

magazines

If a buyer client wishes to withdraw from a contract and get his earnest money returned the salesperson must refer the issue to the __________ ____________ for a decision.

managing broker

An agent must disclose to his buyer client __________ ____________ about the property that a reasonable person needs to know. An example might be that the air conditioner is 13 years old

material facts

A building that has retail on the ground floor, offices on the next ten floors and condos on the next ten floors and a restaurant at the top is a _______-___ ______________

mixed-use development

A brokerage is required to reconcile its trust (escrow) accounts on a _________ basis.

monthly

On occasion, when buyer cannot produce the entire agreed-upon sales price, the seller will accept an arrangement where the buyer can move in and make ___________ ____________. A contract setting forth the terms of the arrangement is signed by both parties but there is no closing and title is not transferred until the full price is paid. This is called an Installment Contract or a Contract for Deed.

monthly payments

When a neighbor violates a deed restriction or a zoning violation, it only takes one other __________ to enforce the ordinances, covenants or restrictions by bringing an action in a court of law.

neighbor

A ____ _________ allows a tenant more control over expenses - to make repairs, manage utility usage, shop for cheaper insurance and otherwise save money.

net lease

A ___-__________ foreclosure means that the lender has a right to sell the debtor's property without having to go through a long legal foreclosure process. This is because the lender's trustee is holding the title to the property under a Deed of Trust, or Trust Deed, given to the trustee by the debtor to secure the debt. The loan documents contain a "Power of Sale" clause, allowing the lender to place the property on the market for sale if the borrower defaults.

non-judicial

AN example of negligent misrepresentation is an intentional __________ of a material fact. For example. a buyer asks if a property has radon gas in the basement. The agent says there is none when he knows there is a radon problem.

nondisclosure

Earnest money is a good faith deposit and is usually intended to be part of the purchase price when the sale is closed. If the seller is paying a commission to the broker, and the settlement statement indicates this disbursement, it is possible to disburse the earnest money to the brokerage as part of the commission. But it is _______ ______ that a buyer would authorize earnest money to be used as part of the brokerage commission.

not true

Contacts required the parties on both sides to know what they are agreeing to. A listing agreement is a contract. If a party to the contract is later proven to have been insane when signing the contract, the contract is __________ ______________

not valid

Offers must be accepted without a change in order to be a contract between an offeror and an offeree. When any change is made to an offer, the offer is extinguished, becomes _____ and ______ and is no longer binding on the original offeror. The document, as altered, becomes a new offer, perhaps with handwritten changes initialed by the offeree (who now becomes the offeror of the new offer). If the original offeror (now the offeree) accepts the changes by initialing them, the document, with approved changes, becomes a new offer. If it is further changed the process starts all over again.

null and void,

There is a difference between a right of first offer and a right of first refusal. A person who has wanted to buy a property may get the right to make the first ________, whereas a person who has the right to take accept or refuse a deal that the seller has already gotten has a right of first _______.

offer, refusal

A duty that is NOT applicable to either residential apartment or condominium managers is seeking ______ to purchase the property.

offers

Someone who feels they have been discriminated against whether regarding employment, or fair housing, has _______ year(s) to file a complaint with HUD.

one

While most apartments and rental homes are leased on an annual basis, a ground lease might be for as much as 99 years and a Hotel lease is typically for _________ _______.

one day

Two important factors that will determine the potential for a rental property to generate income are (1) its ability to attract tenants and (2) the amount of __________ _____________.

operating expense

All licensees who are entering into an agency relationship should provide a written disclosure at the first substantive contact with a potential client what _______ _________ (if any) the licensee has with either the property, the buyers, the sellers, or any other situation which might affect the agent's ability to be unbiased when providing service.

personal interests

In construction, the term "__________" refers to the slope of the roof.

pitch

The type of construction most used in the construction of residential homes is the _______-______ method.

platform-frame

Building Codes dictate(s) the minimum and maximum pressures allowed for _____________ _________.

plumbing fixtures

When there is a "______ of ______" provision in the loan or trust deed document, a non-judicial foreclosure can force the sale of the liened property without a foreclosure suit.

power of sale

The advantage of a VA loan compared to a traditional mortgage is the VA does not allow ________ ____________ to be charged if a veteran pays off a loan early.

prepayment penalties

Because a lender is in the business of earning money by charging interest, the longer the loan term the greater the income. So a borrower who pays the loan off earlier than the scheduled pay-off date sometimes has to pay a ____________ _____________.

prepayment penalty

The most common changes made to listing agreements are the _______ and extensions of the term of the listing.

price

Government's offer homestead tax exemptions to homeowners in order to allow tax relief on an owner's _________ __________.

principal residence

When a brokerage advertises all of its listed properties in the Saturday newspaper the marketing approach is called ___________ marketing.

product

To avoid trouble with discriminatory advertising licenses should write the ads from the perspective of all ____________ classes

protected

Stated intent is important. Refusing to rent to a handicapped lawyer for being a lawyer or to a student with small children because she is a student, no matter what race, color, national origin, or gender, is not a violation of Fair Housing, because lawyers and students are not _________ __________

protected categories

A licensee should show sellers, near the end of a listing presentation, a blank copy of the ___________ agreement to help them become more familiar with the upcoming transaction.

purchase

Students and Licensees need to at least memorize the seven basic categories of protection against discrimination. The history begins with The Civil Rights Act of 1866 - the basic law affecting discrimination by RACE in the use or occupancy of any kind of real estate, including land, commercial and residential. Then, conversely, the Supreme Court case known as Plessy V. Ferguson, which, in 1896 established the ruling that "separate but equal" was okay. It wasn't repealed for sixty years until passage of The Civil Rights Act of 1964. Then Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) was passed, which prohibited discrimination in the sale, rental and financing of dwellings based on r______, r_______, or national _______

race, religion, origin

Because the majority of City and County revenue comes from __________ _______ ______, when property values fall, revenue for local governments also falls.

real estate taxes

In order to change from one brokerage to another the licensee needs to merely get the current managing broker to sign a _________ _________ and send it to the commission.

release form

In order for an offer to become a contract and be binding on the parties, notice (verbal or written) to the offeror that the offer has been accepted by the offeree (without any changes) is __________.

required

Failure of property owners to enforce property and use __________ in a timely manner is a way of terminating a restrictive covenant.

restrictions

When a borrower defaults and the lender begins foreclosure he/she has a _______ __ _________ to halt the foreclosure process by paying the delinquency.

right of redemption

Posting virtual tours can be a valuable and effective sales tool but it does bear some risk as the details of the property can also be seen by dishonest people who may plan to ___ the homeowner.

rob

When a broker lists a property, and then decides to buy it for herself, then still collects the agreed-upon commission she is guilty of _______-__________!

self-dealing

Typically, a licensee's duty to the brokerage is to work to promote and _____ the broker's listings

sell

Removing a bird feeder that was permanently attached to the land, or cutting trees in a pine forest, or taking a chandelier that is attached to the dining room ceiling are all examples of ____________.

severance

Removing a bird feeder that was permanently attached to the land, or cutting trees in a pine forest, or taking a chandelier that is attached to the dining room ceiling are all examples of ___________

severance.

In 1974, Congress passed the Community Development Act to include prohibition of housing discrimination based on the S______ of an individual. The Fair Housing Act (Title VIII) was then amended in 1988 (effective March 12, 1989) by the Fair Housing Amendments Act, which expanded the coverage to prohibit discrimination based on D_______ or on _______ STATUS (presence of children under age of 18, and pregnant women). While Federal laws recognize the seven basic categories, some states have added other categories, such as SEXUAL ORIENTATION and ELDERLINESS (age) to their individual state Fair Housing Laws.

sex, disability, familial

When a licensee has a listing for a particular property with instructions to market that property for sale or lease, the licensee is a ________ agent. When a licensee has the authority to manage, lease or sell any of a client's real estate properties, the licensee is a _______ agent. But when a licensee has a power of attorney that allows him to make decision for another individual as if he were in fact that individual, the licensee is a ______ agent.

specific, general, universal

A managing broker should hold _________ ___________ and/or sales meetings to make sure all agents and clerical help are given and hear the same information.

staff meetings

A new agent may have to pay monthly fees to the brokerage for desk space, land-line telephone as "__________ costs" because the new agent hasn't generated any money to the brokerage yet.

start

When a person owns a Co-Op Apartment, they don't own real estate. They own ________ in a corporation that owns the property where the apartment is located. As stockholders in the corporation they own what is called a "____________ Lease" that entitles them to use a particular apartment in the building. If they want to sell their apartment they are selling the stock in the corporation and their proprietary lease goes to the new owners.

stock, proprietary

If a loan is arranged where the loan is to be paid off completely over a set number of years and each monthly payment contains the amount interest due for the previous month and a portion of the principal balance the loan is said to be an amortizing loan. The Latin word "Amort" means to kill and the objective is to "kill the debt", a little each month. But if the payments don't completely eliminate the debt and NW the payment contains only interest and none of the principal is due until the end of the term as a balloon payment, the loan is called a "_______ loan"

straight

If a property owner does not pay the taxes for a property by the date set for being "delinquent," the property can be sold at auction to collect the taxes. In that case the winning bid gets a _____ _______, but not possession of the property, until a period of time has elapsed, allowing time for the original owner to redeem the property by paying taxes and interest on the amount owed. If the taxes are not paid by the delinquent owner within the allowed redemption period the person holding the ____ _____ becomes the owner.

tax deed

If the managing broker dies or loses his/her license, the Real estate Commission may appoint a __________ to bridge the gap until a new managing broker is found or to close any transactions that are pending.

temporary

If the license of a managing broker is revoked, all listings and buyer agency agreements are also ____________ because, no matter who the listing salesperson was, he/she had obtained the listing for the brokerage.

terminated

A will is an amendatory instrument that can be changed at any time during the maker's lifetime. A will only takes effect after the _________ death.

testator's

A gross rent multiplier (GRM) is used to determine the value of rental property by multiplying the monthly rent by the GRM. If the Value is known and the GRM is known, then the monthly rent can be calculated. $295,000 / 135 = $2,185 monthly rent

this isnt a question idiot

Any salesperson who wants to get a broker's license, in addition to taking a broker prelicense course and passing a broker license exam, and being 21 years old must have been licensed as a salesperson for NOT five years but at least _______ of the five years preceding application.

three

When the phrase _________ is of the __________ is included in a contract it means that the dates and times in the contract must be rigidly adhered to with no slack. (5:00 PM doesn't mean 5:15PM). If there are no dates and times in the contract it means "As expeditiously as possible."

time, essence

When a seller transfers title to his property to a buyer under a general warranty deed, he is warranting that the title is good and marketable and has no defects. But to further assure and protect the buyer (and the buyer's lender) the seller will often have to buy _______ insurance to guarantee that the buyer will not lose his money if the title turns out to be defective.

title

Items attached as a fixture when installed by a tenant in a commercial rental space, that are used for trade or business, such as a grill in a restaurant, and that can be easily removed without damage to the property, are called _________ fixtures, even though they are permanently attached, can be removed.

trade

The mortgage broker or the loan officer don't evaluate credit for approval of loans. The analysis of the extent of risk assumed in connection with a loan is done by a specialist at the lender and is known as __________.

underwriting

It seems obvious but one of the ways suggested to make a home more attractive to potential buyers would be to open all drapes and let the light of day in before the open house begins. An agent is not helped by telling the neighbors to stay away; showing a home that looks too "lived in" or one where pets are roaming around inside. If a home is _________ it is very helpful to have it "staged with rental furniture."

vacant

A contract, to be valid, has to have an offer and an acceptance that are exactly the same. The parties have to have the ability to contract (of age and sane) and there must be either good or ________ consideration. If one of the parties does not comply with the terms of the contract as written, they can be declared in ________ of the contract and may not only lose their rights but be subject to possible legal action requiring specific performance or payment of monetary damages.

valuable, breach

A Managing broker must have all licensed and unlicensed staff, whether employees or independent contractors sign a _________ __________ agreement setting forth the relationship, the duties and the compensation.

written employment

For a brokerage or any licensee under a managing broker to be a Dual Agent, he/she must obtain ________ _________ from both the seller and the buyer before acting on behalf of either party.

written permission