Real Estate Part 3

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

When a promissory note and a mortgage exist on real property, security collateral for the note is provided by the:

mortgage

An open-end mortgage is a:

mortgage given to secure future loans made from time to time, usually a back-up to the original balance after partial repayment has been made

Prepaid Interest:

mortgage interest paid in advance of its due date, or the amount charged as discount points

The ______________________ is defined as follows: the process through which a person seeks or obtains a residential mortgage loan including, but not limited to, solicitation, application or origination, negotiation of terms, third-party provider services, underwriting, signing and closing, and funding of the loan [O.C.G.A. 16-8-101(1)]

mortgage lending process

The lender in a mortgage instrument is called the:

mortgagee

The primary mortgage market is the market in which:

mortgages are originated

The borrower in a mortgage instrument is called the:

mortgagor

The mortgage insurance premium on an FHA loan is paid by the:

mortgagor

When a mortgage is insured by FHA, the fee for the appraisal of the property is normally paid by the:

mortgagor

The GA RE Commissioner has:

no voting rights

When an existing structure does not conform to a new zoning law, it is "grandfathered in" as a(n):

nonconforming use

If a metes and bounds description must be prepared, a licensee should consult a lawyer:

only when directed by her broker to do so

An owner signed a listing w a broker where it was understood that, if the property were sold through the efforts of any other broker or the owner, the listing broker would not be entitled to a commission. This kind of listing contract is called a(n):

open listing

The type of listing that allows more than one brokerage firm to list the property is know as a(an):

open listing

A type of mortgage enabling one to borrow additional funds w/o negotiating a new mortgage is called a(n):

open-end mortgage

A contract in which a landowner gives a developer, for a stated consideration, the right to buy a parcel of land w/in a specified time for a fixed price may properly be described as a(n):

option

A contract to keep an offer to sell or purchase property open over a prior set period of time is called a(n):

option

A signed offer to purchase or sell RE must be delivered to the seller or buyer:

promptly

The purpose of antitrust laws is to:

promote competition in an open marketplace and regulate any activities that would endanger that competition

Nonconforming Use:

the continuing use of property in a manner that doesn't conform to new requirements but is legal nonetheless

When a buyer asks a licensee to recommend a lawyer to answer her legal questions, what should the licensee do?

Provide the names of several lawyers

Liquidated damages is most likely to be found in which of the following?

Purchase contract

Which of the following deed forms may convey no ownership rights at all?

Quitclaim deed

Which of the following deeds would most commonly be used to remove a cloud from a title?

Quitclaim deed

Which type of deed means to renounce all possession, right, or interest and contains no covenants or warranties?

Quitclaim deed

A property owner must allow a residential tenant w a handicap to make reasonable modifications to the dwelling unit:

at the tenant's expense

A special assessment becomes a lien on real property:

at the time the amount is determined and fixed

If the legal description is too long to include in the body of a sales contract, the salesperson should:

attach it and make reference to it

The person to whom a power of attorney is granted is called the:

attorney-in-fact

Ratification:

authority given after an act has already been performed

Bundle of Rights:

authority that comes w ownership, including the authority to use, possess, enjoy, and dispose of something in any legal way. All others are barred from interfering, including w leasing and air rights

The responsibility for selecting a title and escrow company under conventional financing rests w:

both the buyer and the seller

The promissory note, once signed, is a negotiable instrument, which means it can be:

bought or sold

When one party fails to live up to her contractual obligations, it is know as:

breach

The decision as to whether a salesperson will be an employee of or an independent contractor to a broker is determined by the:

broker and salesperson

The rights of ownership, including the right to use, possess, enjoy, and dispose of a thing in any legal way and to exclude everyone else w/out rights from interfering, is called:

bundle of rights

Title insurance companies:

businesses that issue title insurance policies

Fannie Mae functions in the secondary mortgage market to:

buy mortgages that are originated by other lending institutions

One way the Federal Reserve System can regulate interest rates on loanable funds is through its open market operations. Through this process, the Federal Reserve can:

buy or sell gov bonds at either higher or lower interest rates to banks, thereby either increasing or decreasing the bank's supply of funds

In a RE contract, the consideration given by the buyer is a promise to:

buy the property

In GA, closing costs in a RE transaction are typically the responsibility of the:

buyer

On a co-op sale in a single agency situation, the selling broker owes loyalty to the:

buyer

On a co-op sale in a single agency situation, the selling broker's client is the:

buyer

The private mortgage insurance on a conventional mortgage is usually paid by the:

buyer

To create buyer agency, the agent and buyer sign a:

buyer agency contract

Closing costs may be paid by the:

buyer or seller

on a co-op sale in a single agency situation, a salesperson working for the buyer's broker is the:

buyer's broker's agent

The Federal National Mortgage Association (FNMA) was created primarily for the purpose of:

buying property loans to keep the market liquid

Under the Brokerage Relationships in RE Transactions Act (BRRETA), a buyer or a seller may become a client of a broker:

by entering into a written brokerage engagement

A contract may be canceled:

by mutual agreement btw the parties

A seller engages a RE broker to find a buyer ready, willing, and able to purchase the seller's parcel of real property. The seller executes and delivers to the broker an exclusive right-to-sell employment contract. A few weeks prior to the exp date of the employment contract, the seller decides to revoke the contract before any sale occurs and prior to the broker finding a buyer ready, willing, and able to buy the property. The owner:

can revoke this contract but could be liable for damages

A buyer who gives a broker 5 days to secure an acceptance of his offer:

can w/draw before the 5 days have passed if he has not been notified of acceptance by the seller

The decontamination procedure to clean up a dwelling formerly used as a meth lab:

cannot be guaranteed

An appraiser using the replacement cost approach on a property would use all of the following EXCEPT:

capitalization (cost of improvements new, land value, depreciation)

Fannie Mae does NOT purchase:

car mortgages

A poisonous gas given off as part of combustion is known as:

carbon monoxide

all of the following are essential elements of a valid RE contract EXCEPT:

cash down payment (offer and acceptance, consideration, competent parties)

Earnest $ may be paid in the form of:

cash, certified check, personal check, promissory note, or other valuable asset

Boot:

cash, which is subject to tax, that the taxpayer has received in the exchange of real property

The acronym DUST describes the:

characteristics of value

When items in a pre-printed sales contract are crossed out, it is necessary to:

have all parties initial the changes and include the date and time

the best way to identify material that contains asbestos is to:

have it sampled and analyzed by a qualified professional

The advantages of being a member of an MLS include the fact that members get wider exposure of properties and:

have more properties to offer to buyers

To advertise a property for sale, a broker must:

have the seller's written permission

An owner hired a contractor to do some renovations. The contractor hired some day laborers. The owner paid the contractor who did not pay the day laborers bc the contractor suspected them of stealing. What option is available to the day laborers? They:

have the statutory right to file a mechanic's lien against the property

All of the following are correct regarding the GA RE Commissioner EXCEPT:

he or she must hold an active broker's license for at least 5 years to be eligible to be the Commissioner (the commission shall select and employ the Commissioner on a full-time basis as its representative/if licensed, the Commissioner's license must be placed on inactive status while he or she is the Commissioner/ the Commissioner is the Chief Executive Officer for the GA RE Commission)

If an applicant is refused a license, the first recourse is a(n):

hearing request

A salesperson or associate broker who chooses to incorporate must earn commission on behalf of:

her affiliated broker

An appraiser advised the owner of an older home that considerably more income could be obtained if the house were torn down and a diff improvement placed upon the lot. This illustrates the principle of:

highest and best use

Comprehensive Environmental Response, Compensation and Liability Act (also: Superfund):

holds past and present owners and even lenders liable for cleanup of hazardous substances unless they can qualify for exemption. The act further sets up a trust fund to pay for cleanup when responsible parties can't be identified. Also called the Superfund

The most important factor needed to maintain the value of residential property is:

homes in the area conform in size, age, condition, value, and style

Cap:

in an adjustable rate mortgage, the maximum percentage the interest rate is permitted to increase each year and/or the maximum total increase over the life of the loan

Third party:

in an agency relationship, a person (or entity) w whom the agent deals as a representative of the client. A 3rd party can be involved in the transaction but not as one of the principals

Separate Property:

in community property states, any asset owned by a married person that is not held jointly

Corporations own their own property:

in severalty

Inchoate:

in some states, an incomplete or unfinished legal right, such as to the estate upon a spouse's death

Curtesy:

in some states, the right of a husband to a life estate in his deceased wife's property

Dower:

in some states, the right of a wife to a life estate in the deceased husband's property

Irrevocable:

incapable of being recalled or changed

To be enforceable under the GA Statute of Frauds, all of the following contracts must be in writing EXCEPT:

leases for 1 year or less (RE sales contracts, leases for more than 1 year, mortgages)

The best thing to do w asbestos material in good condition is to:

leave it alone

The use of forms pre-printed by legal counsel for a sales transaction is:

legal

Partitioning may be accomplished through:

legal action

Air Rights:

legal authority for an individual to develop and control unused air space above land he or she owns

the money in the Education, Research, and Recovery Fund may be invested in any investment that is:

legal for domestic life insurance firms

a housing development advertises its units as being available only to persons over 55. In this case, it is:

legal if 80% of the residents are age 55 or older

A lease agreement in which the tenant has the right to buy the property w/in a specified period of time is called a(n):

lease option

An ___________________ lease may be oral and still be valid and enforceable.

month-to-month

Compared to nonjudicial foreclosure, judicial foreclosure is:

more costly and time-consuming

Taxation:

the practice by which gov raises money to support itself through taxes and assessments for public improvements

Farming:

the practice of focusing most of one's marketing efforts on a particular geographic area to become the RE "expert" there

Lateral Support:

the right of a property owner to have his or her land physically supported by both adjoining land and underground structures

Equitable right of redemption:

the right of homeowners to pay off their mortgage debt, interest, and costs to stave off foreclosure

Subjacent Support:

the right of land to be supported from underneath and not be disturbed by excavation or construction on adjoining property

Eminent Domain:

the right of the gov or an authorized private entity to acquire property by condemnation for public or quasi-public use upon payment of fair compensation to the owner

Prepayment Privilege:

the right to pay all or some of the outstanding principal balance before it is due, w or w/out a prepayment penalty

A broker acting under a listing contract for the sale of a residence usually receives his commission when:

the sale is closed

In calculating the transfer tax on a property when the buyer obtains a new loan, the tax is calculated on:

the sales price

In the most common kind of agency relationship, a RE broker represents:

the seller

The transfer tax is a state tax charged to:

the seller

the selling agent in a subagency situation must be loyal to:

the seller

A seller gave a buyer an option for 30 days to purchase her property for a consideration of $500. There is no anti-assignment clause in the option. All of the following statements are true EXCEPT:

the seller can force the buyer to buy the property (the buyer is the optionee, the seller is the optionor, the buyer may assign this option to a 3rd party)

Under an installment contract, until all payments have been made by the buyer:

the seller holds legal title to the property

Vendor:

the seller in a contract for deed (land contract, agreement of sale)

If a property is sold "as is," it means:

the seller makes no warranty or guarantee of the condition of the property

At closing, the warranty deed must be signed by:

the seller only

Under a listing contract, a salesperson working for the listing broker must represent:

the seller's interest

The commission for a listing is determined by negotiation of:

the seller, salesperson and broker

Amount realized:

the selling price minus seller-paid expenses such as commissions, advertising, legal fees, loan placement fees, or discount points

What is the existing lender's role in a transaction involving a short sale?

the short sale requires lender approval, but the lender is not a party to the transaction

Lot and Block (also: Recorded Plat Method):

the shortest, easiest, and simplest method to legally describe real property. Also called the recorded plat method

In the case of a mutual mistake in material fact resulting in no mutual agreement, the contract is:

void

If a contract is signed under duress or undue influence, the resulting contract is:

voidable

If a minor signs a contract to buy RE, the resulting contract is:

voidable

If a property is destroyed before the title or possession has passed, the contract is:

voidable by the buyer

coercion and duress of a buyer would make a contract:

voidable, at the option of the buyer

which of the following conditions is NOT an allowed circumstance for a broker to disburse money from a trust account?

w permission from the seller only

An agent owes her principal the duty of following all instructions. In the event that the principal asks the agent to commit an unlawful act, the agent should:

w/draw from the listing

A seller made a counteroffer and gave 2 days for acceptance. The next day, the seller receives a better offer, which she wants to accept. The first step the seller should make it to:

w/draw the counteroffer

w/in how much time is a broker or someone authorized by the broker required to review a contract?

w/in 30 days

Under the GA Time-Share Act, a purchaser may cancel a time-share sales agreement w/o penalty:

w/in 7 days after signing the sales agreement or receiving the public offering statement, whichever is later

A RE sales licensee may contact an expired listing client to solicit new business (referrals):

w/in the first 18 months after expiration

An endorser of a note who does not guarantee payment of the note to the person to whom he immediately assigns it, and to all future holders, endorses it:

w/out recourse

How many brokers may a salesperson be licensed under at one time?

Only one

If her broker is not available, when should a licensee consult a lawyer for assistance in preparing a sales contract?

Only when directed to do so by her broker

When should a license consult a lawyer when writing a sales contract?

Only when directed to do so by her broker

When can a listing agent legally refuse to show a property that is for sale to a minority buyer?

When the seller goes out of town and asks that the property not be shown while she is gone

When should a licensee consul her broker when preparing a sales contract?

Whenever she has a question

Which of the following parts of the home is LEAST likely to have asbestos?

Windows

A multiple listing may properly be defined as a listing agreement in which:

a broker w an exclusive listing has a contractual obligation to distribute the listing among certain other brokers

Branch office:

a broker's office in a diff location from the main office

In GA, the written contract in which a seller, buyer, landlord, or tenant becomes a client of a broker and agrees that the broker may receive compensation for performing brokerage services is called:

a brokerage engagement

General Partnership:

a business arrangement in which all partners are equals in ownership and management and have full authority to act

Limited Liability Company:

a business entity that combines the best features of a corporation and a partnership

RE Investment Trust:

a business organized to provide investors w a way to won, operate, and/or finance large scale RE that produces income

S Corporation:

a business that does not pay corporate income tax; instead, profits flow through to shareholders, who treat them as personal income and pay taxes accordingly. Shareholders also can deduct their share of nay losses

Property:

a business that handles the management of buildings, particularly rentals, when owners are unable or unwilling to do it themselves

Brokerage:

a business that matches sellers or real property w potential buyers and assists in negotiating transactions btw the 2

Engaging in the activities of a licensed broker, an associate broker, or a salesperson w/o a license makes a person subject to:

a cease and desist order

Conversion:

a change from one legal use to another, e.g., an apartment building turned into condominiums. Also used to mean the unlawful treatment of another individual's property as one's own

Operation of Law:

a change or transfer that occurs automatically under existing law, whether intentional or not

Late payment penalty:

a charge assessed by a lender against a borrower who fails to make installment loan payments on time, or by a lessor against a lessee who fails to make rent payment on time

Special assessment:

a charge or levy against real property to pay for improvements such as paving, curb and sidewalk creation, and installation of water mains, sewers, and street lights. The levy is imposed only on those residents who benefit from the improvements

Lien, Involuntary:

a claim against property w/out the consent of the owner

Lien, Construction (also: Materialman's Lien, Mechanic's Lien):

a claim lodged against property by a contractor or other professional who has furnished labor or materials for work on that property. Also called a materialman's lien, mechanic's lien

Lien, General:

a claim on all of a debtor's property

Chattel Mortgage:

a claim on personal property (as distinct from real property) used to secure or guarantee a promissory note)

Zoning:

a code by which municipal officials spell out the use to which property may be put in specific areas

Uniform Probate Code:

a collection of laws adopted by several states dictating that, among other things, a surviving spouse is entitled to a certain share of the deceased spouse's estate, and that share it not merely a life estate interest

Title Plant:

a collection of records about ownership and lien history of real property maintained by a title company

Planned Unit Development:

a common interest subdivision in which residents own portions of the property in common or otherwise depart from ordinary zoning and subdivision regulations

To engage in community association management services, an individual must hold:

a community association manager license, a broker license, or a salesperson license

Mortgage banker:

a company or institution that originates, finances, and closes mortgages, generally selling them to large investors in the secondary market

Corporation:

a company or other legal entity endowed by law w rights and liabilities separate from those of the ppl composing it

Uniform Commercial Code:

a comprehensive collection of modified and standardized regulations governing security transactions in personal property

Regression:

a concept holding that the value of a better property will suffer if it is surrounded by less expensive properties

Progression:

a concept holding that the value of a lesser property will be enhanced if it is surrounded by more expensive properties

Lien Theory:

a concept under which a mortgage creates a voluntary financial obligation against the borrower's property that may be enforced by foreclosure but does not transfer title to the lender, contrary to the practice in title theory states

Title Theory:

a concept whereby the mortgage transfers title to the lender, contrary to the practice in lien theory states

Clause, Defeasance:

a condition in a mortgage that gives the borrower full title to property once all repayment terms are satisfied

All of the following concerning encumbrances are true EXCEPT:

all encumbrances are liens (deed restrictions are a form of encumbrance, encroachments may properly be regarded as encumbrances, all liens are encumbrances)

Site Development:

all improvements made to a site - including clearing, grading, and installation of public utilities - before actual construction begins

All of the following concerning life estates are true EXCEPT:

all life estates are for the life of the tenant (all contracts for a life estate have to be in writing to be enforceable, the life tenant is responsible for paying taxes on the property, a life estate can be a freehold estate)

An inspection by a professional asbestos inspector should include:

all of the answers shown (lab analysis of samples, a complete visual examination, collection of samples)

Under the 1988 Fair Housing Amendments Act, "family" means:

all of these (a father in a divorce, w 2 children under age 10/ parents w children under 18/pregnant women)

A listing agreement btw a brokerage firm and seller may be terminated by:

all of these (bankruptcy of the seller, death of either party, destruction of the property)

In terms of basic physical characteristics, land may properly be described as:

all of these (indestructible, nonhomogeneous, immobile)

The RE Settlement Procedures Act (RESPA):

all of these (prohibits referral fees and kickbacks, prohibits the seller from requiring the buyer to purchase title insurance from any particular title company, limits the amount the lender can require for property tax and insurance reserve accounts)

The Federal Reserve Board can control the flow of money by:

all of these (selling bonds, increasing the reserve requirement of its member banks, raising the discount rate to member borrowers)

A properly executed promissory note establishes:

all of these (who is the borrower and who is the lender, the terms of repayment and the interest rate, the amount of the debt)

An earnest money check may not be held by a broker unless:

all parties agree in writing

A licensee representing a seller under a brokerage engagement has a duty to disclose adverse material facts pertaining to the physical condition of the property to:

all parties w whom the licensee is working

A buyer purchased a condominium that included several common facilities: swimming pool, tennis courts, and a putting green. Under a typical condominium arrangement, these common elements are owned by:

all the owners of he condominium units, as tenants in common

A "time is of the essence" clause in a sales contract means:

all times stipulated in the contract are obligations, and a party who does not comply has breached the contract

A housing development for the elderly is exempt from the state and federal laws regulating discrimination against families w children if:

all units are occupied by person 62 years of age or older

Senior housing may refuse to rent to families if:

all units are occupied by persons over age 62

Crossing out part of the printed matter in a contract is:

allowed but should allow a reader to see what was crossed out

Mortgage, budget:

also called a PITI mortgage (for principal, interest, taxes, and insurance), this financing arrangement provides that an amount equal to one-twelfth of the estimated annual property insurance premiums, taxes, homeowners' association dues and/or special assessments, if any, will be padi to the mortgagee w the monthly principal and interest payment

Before receiving a VA or FHA appraisal, any purchase contract must contain a/an:

amendatory clause

The document used to change a contract that has already been signed by both parties is called a(n):

amendment

Interest rate:

amount paid to borrow money, expressed as a percentage per month or year of the sum borrowed

Reserves for Replacement:

amounts set aside for replacing building components that wear down or have a relatively short life expectancy, e.g., some kitchen appliances

An appraisal is:

an "opinion of value."

A full historical summary of all matters affecting title to property is:

an abstract of title

Trust account:

an account separate from a broker's own funds, one in which the broker is required by law to deposit all funds collected for clients

Which of the following is the best description of a contract?

An agreement btw competent parties and based upon legal consideration that creates legally enforceable duties and obligations

Certificate of reasonable value:

An appraisal of property value by the U.S. Department of Veterans Affairs

When a property manager knows that the taxes and maintenance costs are rising dramatically, it would be a benefit to the property owner to have which of the following included in the lease?

An escalator clause

Which of the following statements about brokerage operations is correct?

An exclusive agency listing permits the owner to sell w/o being liable for a commission

A newly licensed sales person and a broker are discussing the agreement btw them. The broker is explaining the differences btw an employee (which is what the salesperson has been) and an independent contractor. Which of the following statements BEST describes the differences?

An independent contractor pays their own income taxes, and the broker does not contribute to social security

which of the following needs to be recorded to be valid against subsequent buyers?

An option to purchase

Which of the following is NOT a necessary part of a lease?

An option to purchase (term of the lease, terms of the rental payment, parties to the lease)

Under Truth-in-Lending, the lender must disclosure what rate to borrowers?

Annual percentage rate

Which of the following statements is NOT true of a tenancy by the entirely?

Any two persons may hold title in this manner (the right of survivorship may exist, the tenants hold title as one person, it is a concurrent estate.)

Which of the following are used to set premiums on fire insurance policies for a property?

Appraisals

A buyer obtains a new loan to purchase a home. Closing takes place on Dec 27. When is the buyer's first loan payment due?

Feb 1

Monetary Policy:

Federal Reserve System regulation of the supply and flow of money and credit available to promote economic growth and stability.

"CRV" is a common phrase in the RE business. It stands for "Certificate of Reasonable Value." It is issued by:

Federal Veterans Affairs

Anyone who calls persons on the DO NOT CALL list could face which of the following penalties?

Fines

The seller has asked the salesperson to lower the listing commission, which of the following is an appropriate response?

I will need to ask my broker if I can accept that price.

A "loan" problem uses the T-bar w the name:

IRB

Which of the following awards the designation certified property manager to members who successfully complete required educational courses in property management?

IREM

Sue and Jo are tenants in common in the ownership of a rental property. Sue owns 60% and Jo owns 40%. Which of the following statements is NOT correct?

If Sue dies, Jo automatically inherits her share (Sue may receive 60% of the profits, Jo may pay 40% of the expenses, Either may sell w/out the other's consent)

Under what conditions may a contract be changed after it has become an executory contract?

If all parties sign an amendment

if the current or previous owner of a property died a result of a homicide or suicide, when should the owner of RE professional disclose this info to a potential buyer?

If allowed to by the state stigmatized property law

A buyer and a seller have signed a binding sales contract. What happens to the contract if one of the parties dies before title is transferred to the buyer?

If either party dies, the contract remains in effect and is enforceable against the heirs of the party

Which item would a typical property management agreement NOT include?

If families are accepted as tenants (property's legal description, manager's responsibilities, manager's compensation)

Which of the following is provided for by a special assessment?

Installation of streetlights in a neighborhood

Which of the following is TRUE of the GA RE Commission's Commission?

Is the Chief Executive Officer of the Commission and if licensed, such license must be inactive

What is a major advantage of concurrent ownership?

It allows multiple owners to achieve goals and share responsibilities set for the property

Which of the following correctly describes an appraiser's best estimate?

It is the appraised value of the subject property's worth

An applicant for a salesperson's license has received their criminal background report, which indicates that in 1988 when they were 23 they got a DUI (driving under the influence) to which they pled nolo contendre, paid a fine, and completed a defensive driving course. What happens now?

It must be disclosed to the Commission who will do a preliminary investigation to determine if the applicant should be issued a license

Which of the following is NOT a characteristic of a fee simple estate?

It must be free of all encumbrances (it is of indefinite duration, it must be transferable, it must be inheritable)

Which of the following is usually correct regarding listing contracts btw a RE broker and a seller?

It must be in writing to be enforceable in court

Tax Deductions:

Items that can be subtracted from gross income to arrive at annual taxable income

The listing broker is advertising a small condo close to downtown. Which of the following ads would meet the seller's need to sell and not violate fair housing or advertising laws?

JEWEL IN THE CITY Cozy updated condo. Easy walking distance to downtown restaurants and entertainment. Bring your pickiest buyers. They will love this special home. Sara Smith ABC Realty: 900-000-2100.

A borrower has an amortized loan for which payments are due and payable on the first of the month. When the Feb 1 payment is made, the portion of the payment applied to interest covers the month of:

Jan

Use the info in the case study to answer the question below. Closing Case Study: the sales price is $424,000. The buyer will obtain a new 80% loan, and the interest rate is 3.75%. closing is Nov 13. The annual property taxes of $2,034 have not been paid. The broker's commission is 5%. Assume a 30-day month and a 360-day year, and that the buyer owns the property on the day of closing. When is the buyer's first loan payment due?

Jan 1

Ted gave a general warranty deed to his nephew John when John bought the apartment building Ted owned. John had the deed recorded. Later, John decided to convey the property back to Ted. How could this best be accomplished?

John must make a new deed to Ted, and Ted should record it

When calculating the annual percentage rate for a disclosure statement under the Truth-in-Lending Act, which of the following items would NOT be included?

Tax prorations paid by the buyer (service charge paid by the buyer, discount points, loan fees paid by the buyer)

Which federal law prohibits discrimination against persons w handicaps at commercial properties or establishments?

The Americans w Disabilities Act (ADA)

The GA Attorney General has issued a recommendation that a licensee's license be revoked. To whom does the licensee direct his challenge of the decision?

The Courts

A member of the GA RE commission finds it necessary to resign his appointment. How ill the position be filled?

The Governor may appoint a replacement member for the unexpired term of the vacating member

If a residential RE sales transaction involves a new loan, what document is provided to the potential borrower w/in 3 business days after submitting a loan application to help the borrower understand the costs and compare the costs of different loan offers?

The Loan Estimate

The law that limits the amount a lender can require a borrower to pay in advance for property tax and insurance reserve accounts is:

The RE Settlement Procedures Act

Whose obligations is it to make sure all parties are in compliance w lead-based paint and other disclosure laws?

The RE professionals involved in the transaction

which of the following is NOT a requirement for an applicant for a community association manager's license?

The applicant must be a college graduate and hold a diploma (the applicant must be a resident of the state, the applicant must pass a state examination, the applicant must be at least 18 years of age.)

Which of the following would get an applicant a low rating on a loan application?

The applicant wants the property bc "RE values always goes up"

A salesperson for ABC Realty has moved to XYZ Realty. What happens to the listings the salesperson took at ABC Realty?

The belong to ABC Realty

In GA, when a security deed is used to secure a loan, how is the title held while the borrower is making payments on the loan?

The borrower holds equitable title

A seller offers to pay the listing salesperson a bonus if she gets an accepted offer w/in the first 30 days. If the salesperson earns the bonus, who will pay it?

The broker, after closing

A buyer tells her agent that she has cash to purchase the property. The buyer's agent tells this to the listing agent when delivering the offer. The seller accepts the buyer's offer, over other offers, based on her having the cash to close quickly. When the buyer is asked to produce proof of having the cash to close, she cannot and tells the agent she does not have the cash. Who is responsible for the buyer's actions?

The buyer

Who is more likely to win a suit for specific performance?

The buyer

Foreclosure Sale:

an auction by the lender of property seized as a result of the borrower's default

Acknowledgment:

an avowal before a notary or other eligible official that conveyance is voluntary

Easement, Prescriptive:

an easement acquired through adverse use

A listing agreement is:

an employment contract

Lien, Special (Specific):

an encumbrance against one or more specified parcels of RE

Lien:

an encumbrance that turns property into security for repaying a debt or discharging an obligation such as taxes, mortgage, deed of trust, etc

Personal Property:

an entity that's not real property, i.e., that's not land or anything physically attached to it

Clean Air Act:

an environmental protection law that imposes standards for air quality

Clean Water Act:

an environmental protection law that imposes standards for water quality

When closing takes place in escrow, the neutral 3rd party who handles the documents and the funds is referred to as:

an escrow agent

Capitalization:

an estimate of a property's value based on its net income and a reasonable return on the investment, which is calculated by dividing annual net income by the capitalization rate

Comparative Cost Method (also: Cubic Foot or Square Foot Method):

an estimate of the price tag for replacing property based on cost per square foot or cubic foot. Also called the cubic foot or square foot method

Comparative cost method (also: cubic foot or square foot method):

an estimate of the price tag for replacing property based on cost per square foot or cubic foot. Also called the cubic foot or square foot method

Title Search:

an examination of public records, laws, and court rulings to ensure that no one except the current owner has a valid claim to the property

Delayed exchange:

an exchange made under Section 1031 of the Internal Revenue Code in which a sale is made by a taxpayer and the proceeds are held by a facilitator until they can be used to pay for replacement property. The new property must be identified w/in 45 days after the title of the previous property is transferred and purchased w/in 180 days

Like-Kind Exchange:

an exchange of tangible properties that are like each other, e.g., RE for RE or personal property for personal property

Proprietary Lease:

an exclusive agreement held by an individual w stock in the cooperative where he or she lives

The seller has given the brokerage firm an exclusive agreement that allows the company to earn a full commission upon the closing of the sale of the property, no matter who procures the buyer. This is know as:

an exclusive right-to-sell listing

Group boycott:

an illegal restraint of trade in which 2 or more brokers refuse to deal w a 3rd broker (perhaps over discount fees) to force a change in business practices or drive him or her out of the profession

Principal Meridian:

an imaginary north-south locator line that runs through an arbitrary starting point in the US Public Land Survey System

Easement by Necessity:

an implied easement that's created when a landlocked property must be accessible

Negative Amortization:

an increase in the principal of the loan caused by the borrower's failure to make timely payments of the interest due

Appreciation:

an increase in the value of real property due to positive physical or economic changes or a reduction in or elimination of negative factors

Constructing homes costing $190,000 in an area of homes valued at $140,000 would mean the current homes in the neighborhood should see:

an increase in value

Administrator:

an individual appointed by a probate court to handle the estate of someone who died intestate

Executor:

an individual designated by a will to carry out its provisions

Mortgagor:

an individual or institution that borrows money to purchase RE, pledging the property as security for the loan

Mortgage broker:

an individual who brings borrowers and lenders together for a RE loan

Actual notice:

an individual's direct knowledge of a RE transaction

Loan application:

an info source for a lender on which a prospective borrower provies his or her name, place of employment, salary, bank account #s, and credit references, describes the RE that is to be mortgaged, and stipulates the amount and repayment terms of the loan

Estate, Fee (also: Fee Simple Estate):

an inheritance in real property that is w/out conditions, of indefinite duration, and that may be transferred or passed down to heirs. Also called a fee simple estate

Time-share:

an interest in a development entitling its owner to occupy the property for a specific, limited period each year

Estate, Life:

an interest in real property held only for the duration of the life of one or more persons

Easement:

an irrevocable right, privilege, or interest for a specific purpose that one party has over the land of another. The land that must cede rights to the easement is known as the servient tenement. The land that benefits from the easement is called the dominant tenement. An easement can be many things, including a party wall btw townhouses, a right of way or the right to run a sewer line across another property

Closing Statement, Buyer's:

an itemization of the closing costs for which the buyer is responsible and the credits he or she will receive

Closing Statement, Seller's:

an itemization of the closing costs for which the seller is responsible and the credits he or she will receive, plus a statement of the proceeds

A listing that allows on owner to list concurrently w more than 1 brokerage firm is:

an open listing

Homeowners Association:

an organization created by homeowners or the developer that is responsible for maintaining the quality of a residential area

Access Right:

an owner's authority to reach his or her property over adjoining property

A title insurance policy purchased at closing to protect the buyer against any loss that results from defects in title is:

an owner's title insurance policy

Acting in a transaction as an undisclosed dual agent is:

an unfair trade practice

Inducing a party to break a contract for the purpose of substituting a better contract w another principal is:

an unfair trade practice

Encroachment:

an unlawful intrusion onto adjacent property by extending a structure or building on it

If a person wishes to act as a referral agent W/O a RE license, the only source from which he/she may receive compensation is:

an unlicensed party to whom a referral is made

The Truth-in-Lending Laws provide that the cost of credit on certain amounts must be disclosed to the borrower as a(n) _________ percentage rate.

annual

The word "emblements" means:

annual corps

Emblements:

annual crops cultivated by a tenant that are treated as the tenant's property, not the land owner's

The terms of a written lease can be changed only by:

another agreement in writing, signed by both parties

Effective gross income:

anticipated gross income from an investment property minus vacancies and collection losses

The Commission rules require that a broker give a copy of documents to all parties who sign:

any RE contract

Title, Cloud on the:

any claim, encumbrance, or other condition that may invalidate the title to real property or create doubts about its authenticity

A quitclaim deed can be used to convey:

any interest in real property

An eligible veteran may obtain a loan guarantee from VA for the purchase of:

any of these (a condominium, a single-family home, a mobile home)

A condominium is an estate in real property consisting of an undivided interest in common in a portion of the property, together w a separate, complete ownership of space. The estate the space is held in may be:

any of these (an estate for life only, an estate for years only, fee simple only.)

A contract could be rescinded due to:

any of these (fraud, mistake, misrepresentation)

When more than one offer is received, the seller may accept or make a counteroffer on:

any offer received

Encumbrance:

anything that affects or limits the fee simple title to or value of property, e.g., mortgage or an easement

Property:

anything that can be owned, i.e., that can be exclusively possessed, used, controlled, and disposed of. Property is either real or personal

Gross leases are most often used w:

apartments

Net leases are rarely used in:

apartments

The RE Commissioner is:

appointed by the Commission

The loan-to-value ratio is the loan amount divided by the:

appraised value or selling price, whichever is lower

Any right that goes w the land and cannot be separated from it in classified as a(n):

appurtenance

Special assessments:

are apportioned according to benefits received rather than by the value of the land and buildings being assessed

A property owner's full-time employees who handle only the property of that owner:

are exempt from licensing

Loans made under programs from VA:

are made by private lending institutions

If the owner of a condominium defaults on his mortgage, the owners of the remaining units:

are not affected by the defaulting owner's actions

Limited Common Elements:

areas and amenities in a common interest development reserved for the exclusive use of one or more units, e.g., patios, balconies, etc

Trade Fixtures:

articles of personal property or equipment that a business tenant installs for sue in his or her trade that may be removed by the tenant before the lease expires

A licensee who receives an earnest $ check must turn it over to the broker:

as soon as practically possible

Compensating Factors:

aspects of a would-be borrower's financial situation that provide a reason for a lender to go beyond normal guidelines for making a loan, such as evidence of an ability to afford the payments, a better-tahn0average credit history, job security, etc

RE sales contracts are:

assignable, unless the contract states otherwise

The existing mortgage debt that is taken over by the purchaser as part of the selling price is called a(n):

assumed mortgage

In GA, a residential RE transaction is typically concluded:

at a closing meeting of all parties to the transaction

A listing broker's commission is typically paid:

at closing

A quitclaim deed is most commonly used to:

cure title defects

In reaching an agreement through the process of offer and acceptance, the seller can be:

either the offeror or offeree

The chairperson of the commission is:

elected by the commission

The person appointed to the office of Commissioner _________________ active in a RE business.

may NOT be

A RE agent:

may act as a dual agent w the knowledge and written consent of both parties

The amount of earnest money in a RE sales contract:

may be a matter of negotiation btw the seller and the buyer

A broker may change the advertised price for a listed property:

only w the seller's written authorization

The loan document that creates the promise to repay money borrowed from a lender is called a:

promissory note

If the cost of constructing houses is greater than their market value, what will occur in the short run?

Construction will decrease

A property is sold for $198,000. The buyers will assume the seller's loan of $166,500 and pay the balance to the sellers in cash. What is the amount of the transfer tax?

$31.50 ($198,000-$166,500= $31,500, $31,500/$100=315, 315x$0.10=$31.50)

A property is appraised at $400,000, using a cap rate of 12%. What is the annual net income?

$48,000 (_____ (I) = 12% (R)x $400,000 (V), I = 12%x $400,000, I = 0.12 x $400,000, I = $48,000)

The promise to pay used in a mortgage transaction is the:

promissory note

The money available for ed and research in the Ed, Research, and Recovery Fund is anything over:

$1,000,000

The Recovery Fund must maintain a minimum balance of:

$1,000,000.00

Estate in Severalty:

sole ownership by one person or entity, e.g., a corporation

If a lender charged 4 discount points on a $170,000 loan, how much di the borrower pay at closing?

$6,800 (points are always charged on the loan amount, which was $170,000 x 0.04 = $6,800)

A broker's commission is 7% of the first $100,000 of the sales price and 6% of the amount over $100,000. What is the total selling price of the property if the broker receives a total commission of $10,000?

$150,000 (sales price x rate of commission = total commission, $100,000 x 0.07 = $7,000. $10,000-$7,000 = $3,000, $3,000/0.06 = $50,000, $100,000+$50,000= $150,000)

Use the info in the case study to answer the question below. Closing Case study: the sales price is $375,000. The buyer will obtain a new 80% loan, and the interest rate is 4.5%. Closing is April 20. The annual property taxes of $1,800 have not been paid. The broker's commission is 6%. Assume a 30-day month and a 360-day year, and assume that the buyer owns the property on the day of closing. What is the buyer's loan amount?

$300,000 ($375,000x0.80)

From the point of view of the lessee, the weakest possible tenancy is:

tenancy at sufferance

The buyer who is buying a lot in a new subdivision asked the salesperson to recommend a builder. What is the salesperson's best response?

"Here is a list of several builders, but you may want to look elsewhere as well."

A Cali couple has relocated to GA and is looking to buy a new home. They ask the salesperson which is the best way for a married couple to take title in GA. What is the salesperson's best response?

"I suggest you discuss that w an attorney"

A salesperson w Quality Service Realty is giving a listing presentation to a seller. When discussing that Quality Services Realty's commission is 7%, the seller replies "but I thought most companies in the community charged 5%." The salesperson's best response is:

"My company feels its high-quality service warrants a 7% fee."

Payments periodically made to reduce an outstanding indebtedness on real property are called:

"amortization"

When a RE agent represents more than one party in a transaction and this representation of more than one party is w knowledge and written consent of all parties: his action is called a:

"dual agency"

A seller has signed a listing agreement w a brokerage firm to sell her home. By the terms of the agreement, the firm will definitely receive a commission if the home is sold by anyone during the listing period. This type of contract is called a(n):

"exclusive right-to-sell."

A mortgage that includes both real and personal property is called a:

"package" mortgage

The fee the seller pays to his or her lender for the privilege of paying off the loan ahead of schedule is the:

"prepayment penalty"

Use the info in the case study to answer the question below. Closing Case Study: the sales price is $275,000. The buyer will assume the seller's existing loan of $225,000 and pay $50,000 in cash. The interest rate on the seller's existing loan is 4%. The Seller paid the June 1 loan payment prior to closing. The seller has paid the homeowner's insurance premium of $1,200, and the buyer will assume the seller's policy, which ends on July 25. Closing is June 5. The annual property taxes of $1,566 has not been paid. The broker's commission is 5%. Assume a 30-day month and a 360-day year, and that the seller owns the property on the day of closing. What is the amount of the intangibles tax?

The rate of the transfer tax is:

$0.10 per $100 of taxable amount

$1,018.50 ($424,000x0.80=$339,200 new loan, $339,200/$500=678.4, round up to 679, 679x$1.50=$1,018.50)

If the buyer's monthly income is $3,700 and the buyer plans to make a 10% down payment to obtain a 90% LTV loan, which allows a front-end debt ratio of 28%, what is the maximum mortgage payment the buyer can afford?

$1,036 ($3,700x0.28)

A residential rental property is sold. The closing date is Nov 5. The monthly rent is $1,260, and the tenant paid the Nov rent on Nov 1. Assuming a 30 day month and the seller owns the property on the day of closing, what is the entry on the settlement statement for the rent proration?

$1,050.00 debit to the seller, $1,050.00 credit to the buyer

A borrower obtains a loan for $181,900 for 30 years at 6.5%. The amortization table indicates that a loan of $1,000 at 6.5% for 30 years would have a monthly payment of $6.33. what is the borrower's monthly loan payment?

$1,151.43 ($181,900/1,000=181.9, 181.9x$6.33= $1,151.43)

The annual property taxes on a property being sold are $1,980. The seller has NOT paid the property taxes before closing, which occurs on Aug 20. Assuming a 360-day year and the seller owns the property on the day of closing, what is the entry on the settlement for the property tax proration?

$1,265.00 debit to the seller, $1,265.00 credit to the buyer ($1,980/360=$5.50 per day, 7 monthsx30 days=210 days for Jan-July, 210+20 days for August=230 days, seller owns property for 230 days, $5.50x230 days= $1,265.00 seller owes buyer)

If the buyer's monthly income is $3,700 and the buyer plans to make a 10% down payment to obtain a 90% LTV loan, which allows a back debt ratio of 36%, what is the maximum payment the buyer can qualify for?

$1,332 ($3,700x0.36)

A borrower who has a monthly income of $6,000 wants to obtain a mortgage loan. Using a front end rate of 28% and back end rate of 36%, what are the ratios the borrower must fall btw to qualify?

$1,400 to $1,800 (the front end is $5,000 x 0.28 = $1,400, and the back end is $5,000 x 0.36 = $1,800).

A borrower who has a monthly income of $4,000 wants to obtain a mortgage loan. Using a front end rate of 28% and a back end rate of 36%, what is the maximum PITI loan payment the borrower can qualify for?

$1,440 (the back end ratio determines the full PITI amount. $4,000x0.36)

What is the cost of a lot that is 264 ft x 660 ft, w a price of $8.50 per sq foot?

$1,481,040 (264 ft x 660 ft = 174,240 sq ft, 174,240 x $8.50 per sq foot = $1,481,040 total cost)

On a straight term loan of $480,000 w a 4% interest rate, what is the monthly interest?

$1,600 (monthly interest is always the same formula: Principle x rate/12= monthly interest: $480,000 x 0.04 = $19,200 (annual interest) /12 = $1,600 monthly interest)

$1,726.80 debit to the seller, $1,726.80 credit to the buyer ($2,034/360=$5.65 per day, 10 monthsx30 days=300 days for January-October, 12 days for Nov, buyer owns the property on Nov 13, 300+12=312 days, seller owns property for 312 days, $5.65x312 days=$1,726.80 seller owes buyer)

A borrower who has a monthly income of $5,000 wants to obtain a mortgage loan. If the back-end debt ratio allowed by the lender for the loan is 36%, what is the maximum amount allowed for PITI + PMI + HOA + non-housing bills?

$1,800 ($5,000 x 0.36)

A borrower who has a monthly income of $5,000 wants to obtain a mortgage loan. Using a front end rate of 28% and back end rate of 36% what loan the largest loan amount the borrower can qualify for?

$1,800 ($5,000x0.35)

If the tax value is 50% of he assessed value, which is $89,990, what are the annual taxes if the rate is $4.10 per $100?

$1,844.80 (assessed value x tax rate = annual tax, $89,990 x 0.5 = $44,995, 4.10/100 = 0.041, $44,995x0.041 = $1,844.80 annual tax (rounded)

If the assessed value of a property is $340,000, and the annual taxes are $4,250, what is the tax rate per $100 of tax value?

$1.25 (assessed value x tax rate = annual taxes, $4,250/ $340,000 = 0.0125 per $100 = $1.25 tax rate)

The rate of the intangibles tax is:

$1.50 per $500 of taxable amount

A group wants to invest in a shopping strip. They desire to earn 10% annually on their investment and have $100,000 w which to purchase a building. How much must their annual income be to meet their goals?

$10,000 per year ($100,000 investment = $10,000 per year 10% (0.10) rate of return)

A 10.5% loan has an interest charge of $962.50 this month. What is the principal balance of the loan?

$110,000 ($962.50 interest per month x 12 months = $11,550 per year, $11,550/0.105 interest rate = $110,000 loan balance)

The sales price is $189,950, and the property appraises at $187,700. The loan-to-value is 90%. The closing costs are estimated to be 3%, and there is a discount point. What is the indicated down payment?

$21,050 (the first thing to remember is that the lender bases the loan on the property's value, or the loan is based on either the sales price or the appraised value, whichever is lower. Then multiply by the loan-to-value ratio and round down to the nearest $100. Subtract that # from the sales price. When comparing $189,950 to $187,700, choose $187,700 x 0.90, which is $168,930, and round down to $168,900. Subtract this figure from $189,950, and the down payment is $21,050.)

If the closing were to take place on Sept 27 and the outstanding loan principle was $145,750 at an interest rate of 7%, what would be the interim interest?

$113.36 ("Interim" interest, which is also called the interest adjustment, is the buyer's interest. The buyer obtained the loan referred to in the question as "outstanding loan principle," which technically it is, on September 27, and therefore pays through the end of the month of closing, or 4 days (Sept 27 + 28+ 29 +30 = 4 days.) Take the loan $145,750 (note: you round down a new loan amount to the nearest $100 unless specifically told otherwise, as was the case here); multiply by the interest rate 7%; divide by the # of days in the year, 360 (for interest calculations); and multiply by the # of days, in this case 4, for 145,750 x 0.07360 = 28.340278 x 4 = 113.361111)

if closing occurs on Dec 11 and the $332 policy was paid on April 23, what is the amount of refund for the seller?

$120.07

If the purchase price of a property is $279,900.00 and the buyer is ta king over the existing loan, which has an outstanding balance of $158,798.42, the transfer tax will be:

$121.20 (when calculating a transfer tax the correct procedure is to take the sales price, less than loan assumption, divide that amount by 100, round up to the whole dollar, and then to multiply that amount by $0.10. Hint: correct answers will always be in dime increments! 279,900.00-158,798.42= 121,101.58/100=1,211.158, 1,212x0.10=121.20)

$125.00 debit to the seller, $125.00 credit to the buyer (the buyer will make the July 1 payment, which covers interest for June. The seller owes interest for June 1-5. $225,000x0.04=$9,000 annual interest, $9,000/360=$25.00 per day, $25.00x5 days= $125.00 seller owes buyer)

The purchase price of a property is $86,300, and the purchaser has secured an 85% conventional loan. The lender charges a 1% origination fee, and additional closing costs total $2,625. How much cash must the purchaser bring to the closing if she has already paid an earnest money deposit of $3,000?

$13,304 ($86,300 price x 0.85 loan-to-value ratio = $73,355 loan, $73,335 loan x 0.01 loan origination fee = $734 (rounded), for the buyer's required cash: $86,300 price + $734 loan origination fee + $2,625 additional closing costs = $89,659 total charges, $89,659-$73,355 loan = $16,304, $16,304 - $3,000 earnest money deposit = $13,304 total due at closing

$13,750 ($275,000x0.05)

The Browns sold their home on which they had no mortgage. The escrow company deducted $545 for expenses and a broker's commission of 5% from the sales price paid by the buyer. The Browns received a check from the escrow company for $124,000. What did their house sell for?

$131,100 ($124,000+$545=$124,545, 100%-5%=95%, $124,545/0.95=$131,100)

The listing price of a property is $149,900, the offer is $147,500, and the appraisal comes in at $147,250. If the transaction is based on a 90% loan, what is the loan amount?

$132,500 (first, the listing price has no bearing on the loan amount, so the base for the loan is either the sales price or the appraised value. Lenders are going to minimize their risk, so the loan will be based on the lower of the 2 prices (offer and appraisal). In this case, the appraisal is the lower. So, take the appraised value, which is $147,250, then multiply by the loan-to-value, which is 90%. $147,250 x 0.90 = $132,525. This is answer choice B, but it is not correct bc lenders tend to round loans off to hundred dollar increments, and again, to minimize risk, lenders round new loan amounts down. Therefore, $132,525 would round down to $132,500.)

A property is sold for $220,000. The buyers will assume the sellers' loan of $81,550 and pay the balance to the sellers in cash. What is the amount of the transfer tax?

$138.50 (the taxable amount is the sales price minus the assumed loan, $220,000-$81,550=$138,450, $138,450/$100= 1384.5, round up to 1385, 1385x$0.10= $138.50)

a parking lot containing 2 acres nets $12,000 per year. The owner wishes to retire and sell his parking lot for an amount that will net him $12,000 per year by investing the proceeds of the sale at 8.5% per year. What must the selling price be to accomplish the owner's objective?

$141,176 (investment x rate of return = annual net income, $12,000/0.085 = $141,176 selling price (rounded))

A local lender appraises the house, finds it has a market value of $180,000, and agrees to make an 80% L/V loan. In dollars, up to how much will the lender loan to the buyer?

$144,000

A house sells for $165,000. If the seller agrees to pay 5.5% discount points on a $155,000 mortgage, and the broker's fee is 6%, how much does the seller net?

$146,575 (points: loan x # of points as percentage = dollars in points, $155,000 x 0.055 = $8,525, dollars in points commission: sales price x rate of commission = total commission, $165,000 x 0.06 = $9,900 total commission, $9,900+$8,525 = $18,425 total expenses, $165,000-$18,425 = $146,575 net to seller)

An investor wants a 12% rate of return. She has found a building and made an offer of $125,000. What will the NOI (net operating income) need to be to get the rate of return she seeks?

$15,000 (to determine the NOI (net operating income), multiply the purchase price by the rate of return or capitalization rate. 125,000x0.12= $15,000 NOI)

$166.50 credit to the seller, $166.50 debit to the buyer (30-5=25 days, buyer owes insurance for 25 days in June, 25+25 days for July = 50 days, buyer owes insurance for 50 days from June 6 through July 25, $1,200/360= $3.33 per day, $3.33x50 days=$166.50 buyer owes seller)

A property was sold for $200,000 but was appraised for $202,500. If the lender will provide an 85% loan, the loan amount would be?

$170,000 (loan value is sales price or appraised value whichever is less. $200,000x0.85= $170,000)

The Franks recently bought a home for $168,000. How much would the Franks have to sell their home for to pay a 5% commission and break even on the sale?

$176,842 (100% - 5% = 95%, $168,000/95%= $176,842)

An investor owns an apartment building near an airport. Bc of the airport noise, the investor is losing $150 per month net income. A capitalization rate of 10% for the building is appropriate. How much has the property lost in value?

$18,000

The property taxes that are paid in arrears are $6,000, and the closing is Jan 21st. The buyer has the day of closing. Using a 365-day year, what will be the amount on the settlement sheet?

$180.82 debit buyer, credit seller (total owed/total days x days owed = amount. Items paid in arrears are SOB, seller owes buyer. $6,000/365 x 11 (31-20=11) = $182.82 debit buyer, credit seller)

the subject property has 3 bedrooms, 2 bathrooms, and is in excellent condition. A recent sale had 3 bedrooms, 2.5 bathrooms, was in a good condition, and sold for $179,000. In the area, a bedroom is worth $15,000, a bathroom is worth $10,000, and a house in excellent condition will sell for $7,500 more than a property not in excellent condition. What is the indicated value of the subject, based on the comp?

$181,500 (the easiest way to remember how to adjust is "CBS" and "CIA." CBS is simply "comp better, subtract," whereas CIA is "comp inferior, add." Always remember to adjust the comp (which has an established value) to the subject (whose value is being estimated). The bedrooms are the same and do not require any adjustment, but the comparable has an extra half bath, which must be subtracted. If a bathroom is worth $10,000 and that is all the info provided, subtract $5,000, assuming that a half bath would be worth half of a full bath, or $5,000. However, you need to add to the condition of the comp to make it equal to excellent, which is worth $7,500. The solution is $179,000-5,000+7,500 = $181,500.)

If a borrower obtained a $150,000 loan (at a loan-to-value ratio of 80%), how much was the appraised value of the property?

$187,500 (to solve, take the loan value and divide by the LTV $150,000/0.80= $187,500)

the sales price of property is $198,000 w an L/V ratio of 90%. What is the down payment?

$19,800

A lender charges 2.25 discount points to allow the borrower to buy down the rate to 4%. What will the borrower pay for discount points on a sale of $128,000 w a LTV of 90%?

$2,592 ($128,000 price x 0.90 loan-to-value ratio = $115,200 loan, $115,200 loan x 0,0225 points = $2,592 in points)

Jamal sells a property for $185,000. The commission on this sale to the RE firm w whom Jamal is associated is 5%, of which he will receive 50%, which is 60% of the sales price. What is Jamal's share of the commission in dollars?

$2,775 (sales price x rate = commission x company rate x salespersons split = answer, $185,000x0.05= $9,250x0.60 = $5,550 to the company x 0.50 = $2,775 salespersons commission)

A house has an assessed value of $142,000. The property is taxed at 80% of the assessed value at a rate of $2.12 per $100. If the assessed valuation is increased by 18%, what is the amount of taxes to be paid on the property?

$2,841.82 ($142,000x 1.18 = $167,560 increased valuation, $167,560 x 0.80 = $134,048, new tax basis assessed value x tax rate = annual taxes, 2.12/100 = 0.0212, $134,048 x 0.0212 = $2,841.82 annual taxes)

A home is valued at $72,000 and is assessed at 70% of its value. The annual tax rate is 0.0575%. what is the amount of the annual tax bill?

$2,898 ($72,000 x 0.70 assessment ratio = $50,400 assessed value, $50,400 x 0.0575 tax rate = $2,898 annual tax bill)

A local lender appraises the house, finds it has a market value of $200,000, and agrees to make an 90% L/V loan. In dollars, how much is the buyer's down payment?

$20,000

A property has a net income of $2,500 per month. Using a cap rate of 15%, what would the value be?

$200,000 ($30,000 ($2,500x12 months) = annual income, $30,000 (I) = 15% x $ ______ (V), V = $30,000/15%, V=$30,000/0.15, V= $200,000)

A property valued at $200,000 appreciates by 2% each succeeding year. What is the value of the property after 2 years?

$208,080 (original value x percentage of appreciated value = new value, $200,000x0.02= $4,000 one year, $4,000+$200,000= $204,000, $204,000x0.02= $4,080 two years, $4,080+204,000= $208,080 appreciated value)

The salesperson is doing a CMA (comparative market analysis) for a listing presentation and has discovered that in the neighborhood a bedroom is worth $15,000 and a bathroom is worth $10,000. The salesperson also feels that the seller's house is in need of a very overdue carpet cleaning, which will cost $1,200. The seller's house has 3 bedrooms and 2 bathrooms. If the comp, which has 3 bedrooms and 2.5 bathrooms and is in excellent condition, sold for $215,000 last week, what is the adjusted sales price?

$208,800 (the bedroom value of $15,000 did not apply, as both properties had the same # of bedrooms, but the comp had an extra half bathroom and was in better condition. The property had to be adjusted down to the subject's level. The easy way to remember how to adjust is "CBS and CIA." CBS is "comp better subtract" and CIA is "comp inferior add." Therefore, in this case, the salesperson should subtract the better condition of the comp to make it equal to the subject w bad carpeting and the extra half bath. $215,000 minus $1,200 (the cost to clean the carpet) and minus $5,000 (half of a full bathroom worth $10,000 is $5,000). $215,000-$1,200-$5,000= $208,800)

$22,500 ($375,000x0.06=$22,500)

A buyer obtains a $125,000 loan to purchase a property. The interest rate is 4%, and closing is on Sept 15. Assuming a 360-day year and the buyer owns the property on the day of closing, what is the interest payment owed by the buyer at closing to cover interest for the month of closing?

$222.32 (Sept 1-14, days no interest due, 30-14=16 days, buyer owes interest for 16 days, $125,000x0.04=$5,000 annual interest, $5,000/360=$13.89 per day, $13.89x16 days=$222.24)

The annual homeowner's insurance premium on a home being purchased is $1,350. If the lender requires the buyer to make a payment at closing amounting to 2 months' of the premium to place in a reserve account, how much is the buyer's payment?

$225.00 ($1,350/12=$112.50 per month, $112.50x2months=$225.00)

A residential rental property is sold. The closing date is June 25. The monthly rent is $1,350, and the tenant paid the June rent on June 1. Assuming a 30-day month and the seller owns the property on the day of closing, what is the entry on the settlement statement for the rent proration?

$225.00 debit to the seller, $225.00 credit to the buyer ($1,350/30 days=$45.00 per day, 30-25=5 days, buyer owns property for 5 days, $45.00x5 days=$225.00 seller owes buyer)

Buyer Bess is buying Seller Sue's home of r$234,750 through a 90% loan. How much is the transfer tax and the intangibles tax?

$234.80 and $634.50 (transfer tax is computed on the adjusted sales price which is sales price minus any loan assumed. In this case, there was no loan assumed so the transfer tax is computed on the entire sales price at $0.10 per $100 unit or nay part of a unit. The calculation would be $234,750/100=2,347.50 which is rounded to the next whole # which is 2,348x0.10=$234.80. to calculate the intangibles tax, determine the loan amount, divided by $500, round up to the whole dollar, and multiply by $1.50. $234,750x0.90=$211,275 rounded down to $211,275/500=$422.55, rounded to $423x1.50= $634.50)

A property had a land value of $45,000 and the value of the improvements, if new, were estimated to be worth $240,000. If the annual depreciation rate is determined to be 1.5%, what is the depreciated value of the property after 10 years?

$249,000 (the improvements depreciate, not the land. Therefore, set the land value of $45,000 aside. The annual rate of deprecation is 1.5%, so over 10 years that would be a total depreciation of 15% (15% x 10 = 15%) multiplied by the value of the new improvements (240,000 x 0.15 = 36,000), which is then subtracted from the value of the new improvements (240,000 - 36,000 = 204,000). Then, add back the value of the land (204,000 + 45,000 = 249,000.) This would represent the depreciated value of the real property.)

When damages are paid from the Recovery Fund, the limit of liability for a single transaction involving a licensee is:

$25,000

When damages are paid from the Recovery Fund, the most that a member of the public may recover regardless of the # of transactions is:

$25,000

As a result of loan fraud a consumer suffers a financial loss of $50,000,00. The consumer has exhausted all remedies available in pursuit of damages from the broker. the consumer is now applying for payment from the Ed, Research, and Recovery Fund. What is the maximum the consumer might receive?

$25,000.00

the purchase price of a property is $128,000. If a lender's maximum loan-to-value ratio is 80% w/o private mortgage insurance (PMI), but 90% if PMI is charged, what is the down payment required if the buyers want to avoid the PMI?

$25,600 (to avoid PMI, the borrower must put a 20% down payment for a maximum loan amount of 80%, $128,000 price x 0.20 down payment = $25,600 down payment)

The closing date is Jan 15. The taxes for the calendar year begin accruing on Jan 1 and are paid in arrears. If the taxes are $6,000 per year, using a 360-day year, w the seller having the day of closing, what will be the entry on the closing statements?

$250 debit seller (total owed/total days x days owed = amount. Items paid in arrears are SOB, seller owes buyer. $6,000/360 days= 16.6667 x 15 + 250.00 debt debit seller; credit buyer, who will pay the bill.)

Mr. Smith bought a second mortgage at a discount of 20% and paid $22,000 for the note. What was the original face value of the note?

$27,500 (100%-20%=80%, $22,000/0.80= $27,500)

A property is sold for $297,000 w new financing. What is the amount of the transfer tax?

$297.00 ($297,000/$100=2,970, 2,970x$0.10= $297.00)

an apartment building has 10 apartments rented at a monthly rate of $780. The property closed on August 18, w the seller having the day of closing. Using a 365-day year, what will be the seller debit on the closing statement?

$3,271 (10 x $780 = $7,800 per month, $7,800/31 = $251.6129 per day, $251.6129x13 = $3,270.9677 = $3,271 debit (rounded))

A property is sold for $64,000 by a salesperson. The commission is 6%, of which the salesperson receives 65% and the brokerage firm receives 35%. How much did the salesperson receive?

$3,328 (sales prices x rate of commission = total commission, $64,000 price x 0.08 = $5,120, $5,120 x 0.65 = $3,328)

a mortgage payment this month consists of $225 in interest and $70 applied to the principal. What is the annual debt service?

$3,540 (debt service equals principal and interest payments on a given loan for an entire year. $225 interest + $70 principal = $295 per month, $295 x 12 months = $3,540 annual debt service)

$3.33 ($1,200/360=$3.33)

a lot is assessed for 60% of market value and taxed at a rate of $3.75 per $100 of assessed value. 5 years later, the same tax rate and assessment rate still exist. However, annual taxes have increased by $750. By how much has the dollar value of the property increased?

$33,333.33 ($750 increase/$3.75= $200 ($100 units), $200 ($100 units) x $100/unit = $20,000 tax value, $20,000/0.60 = $33,333.33 increase in value)

The maximum loan amount that FHA will insure in GA (outside of Atlanta) for single-family residentials is:

$331,760

A percentage lease stipulates a minimum rent of $1,200 per month and 3% of the lessee's annual gross sales over $260,000. The total rent paid by the end of the year is $16,600. What is the lessee's gross business income for the year?

$333,333.33 (12 months x $1,200 = $14,400 minimum annual rent, $16,600- $14,400 = $2,200 above minimum, $2,200/0.03 = $73,333.33 over $260,000, $260,000+$73,333.33 = $333,333.33 total sales)

$339,200 ($424,000x0.80)

A parcel of land sells at market value. The market value and the tax value are the same. If the tax value is 100% of assessment value, the tax rate is $1.50, and the annual tax is $540, what is the selling price of the land?

$36,000 (assessed value x tax rate = annual tax $540/0.0150 = $36,000 selling price)

Use the info in the case study to answer the question below. Closing case study: the sales price is $375,000. The buyer will obtain a new 80% loan, and the interest rate is 4.5%. closing is April 20. The annual property taxes of $1,800 have not been paid. The broker's commission is 6%. Assume a 30-day month and a 360-day year, and the buyer owns the property on the day of closing. What is the amount of the transfer tax?

$375.00 ($375,000/$100=3,750, 3,750x$0.10=$375.00)

A buyer is purchasing a home for $245,900 by taking over the existing loan that has a balance of $207,695 as of the closing date, which is scheduled for Oct 1. What is the amount of the transfer tax and the intangible tax?

$38.30 and $0 (since there is no new loan there is no intangible tax. All that applies here is the transfer tax, which is determined by taking the sales price less any loan assumption dividing by 100, round up to the whole number, and then multiply by a dime ($245,900-$207,695=$38,205/100=$382.05 rounded to $383x0.10=$38.30). Remember, all transfer tax calculations must be in dime increments (0.00,0.10,0.20, etc.) all and intangible tax calculations must end in fifty cent increments (0.00 or 0.50)

The property manager has negotiated a 2-year lease of a 3,500 square foot industrial space at $1.85 per square foot per month and will be paid 3% of the gross rent to be paid. How much is the total commission?

$4,662 (3,500 sq feet x $1,85 per sq foot = $6,475 per month. $6,475 per month x 24 months = $155,400 total rents. $155,400 x 0.03 = $4,662 commission.)

If the mortgage payment is $1,344 and the appropriate front-end debt ratio is 28%, what would be the minimum monthly income required?

$4,800 ($1,344/0.28)

If the value of a home rises to $220,000 and the loan is paid down to $180,000, the owner's equity will be:

$40,000

A seller purchased her home for $35,950 and sells it at a 0.13 profit. What is the selling price?

$40,623.50 (If the profit is 0.13, always add 1.00 to the profit and take 1.12 "of" the purchase price. So $35,950 x 1.13 = $40,623.50. Remember "of" means multiply. Or the problem can be solved by finding the profit first and then adding to $35,950: $35,950 x 13 = $4, 673.50 (profit), $35,950 + $4,673.50 = $40,623.50 (selling price)

If a lender received $24,000 as a discount by charging 6 points, what was the loan amount?

$400,000 ($24,000/0.06)

$412.50 (April 1-19, days no interest due, 30-19=11 days, buyer owes interest for 11 days, #375,000x0.80=$300,000 loan amount, $300,000x0.045=$13,500 annual interest, $13,500/360=$37.50 per day, $37.50x11days=$412.50)

A property is sold for $415,000 w new financing. What is the amount of the transfer tax?

$415.00 ($415,000/$100=4,150, 4,150x$0.10= $415.00)

A property is sold for $176,000 w a new 80% conventional loan. What is the amount of the intangibles tax?

$423.00

The annual homeowner's insurance premium on a home being purchased is $1,770. If the lender requires the buyer to make a payment at closing amounting to 3 months' of the premium to place in a reserve account, how much is the buyer's payment?

$442.50 ($1,770/12=$147.50 per month, $147.50x3 months=$442.50)

A property is sold for $190,000 w a new 80% conventional loan. What is the amount of the intangibles tax?

$456.00 ($190,000x0.80=$152,000 new loan, $152,000/$500=304, 304x$1.50=$456.00)

An office building has a quarterly gross income of $220,000. An annual vacancy rate has typically been 5%, w operating expenses of 41%. What is the approximate net operating income?

$475,200 (taking the quarterly gross and make it annual ($220,000x4= $880,000), then subtract for the vacancy ($880,000 x 0.05 = $44,000), and determine the operating expenses ($880,000 x 0.41 = $360,800). Subtract the vacancy and the operating expenses from the gross income ($880,000 - $44,000- $360,800 = $475,200.)

Authority, implied:

the powers an agent reasonably needs to perform the duties identified by express authority

A buyer pays $45,000 for a lot. 5 years later, he puts it on the market for 20% more than he originally paid. The lot then sells for 10% less than the asking price. What is the selling price of the lot?

$48,600 ($45,000x1.20 (120%)= $54,000, asking price $54,000x0.90= $48,600 selling price)

The annual interest on a seller's existing loan is $9,600, and the date of closing is April 18. The seller pays for the day of closing. The amount of accrued interest the seller will owe at closing is:

$480 (the first step is to get to monthly interest by dividing $9,600 by 12, which gives monthly interest of $800. The formula is always the same: total amount due/total days x days owed. $800/30x18= $480)

The annual property taxes on a property being sold are $1,710. The seller has NOT paid the property taxes before closing, which occurs on April 15. Assuming a 360-day year and the seller owns the property on the day of closing, what is the entry on the settlement statement for the property tax proration?

$498.75 debit to the seller, $498.75 credit to the buyer ($1,710/360=$4.75 per day, 3 monthsx30 days= 90 days for Jan-March, 90+15days for April=105 days, seller owns property for 105 days, $4.75x105 days= $498.75 sellers owes buyer

If the mortgage payment is $1,568 and the appropriate front-end debt ratio if 28%, what would be the minimum monthly income required?

$5,600 ($1,568/0.28)

The tax rate is usually expressed by # of tax dollars per $1,000 of assessed value. If a town levy is $5 million and the entire town has an assessed value of $100 million, what would the tax rate be for the town per $1,000?

$50 (rate = tax dollars required / taxable assessed value rate = $5million/100 million = 0.05 0.05 x $1,000 = $50 per $1,000 tax rate)

If an investor's rate of return is 13% and his investment is $390,00, what will be his net annual income?

$50,700 (income/rate of return= investment, $390,000x0.13= $50,700 income)

A buyer obtains a $240,000 loan to purchase a property. The interest rate is 3.75%, and closing is on Nov 11. Assuming a 360-day year and the buyer owns the property on the day of closing, what is the interest payment owed by the buyer at closing to cover interest for the month of closing?

$500.00 (Nov1-10, days no interest due, 30-10=20days, buyer owes interest for 20 days, $240,000x0.0375=$9,000 annual interest, $9,000/360= $25.00 per day, $25.00x20 days= $500.00)

The purchase price of a home is $185,000.00, w the buyer procuring a 90% loan at 6%. The closing is scheduled for September 12, and the buyer has the day of closing. Using a 360-day year, what is the interest adjustment?

$527.25 (the first step is to calculate the new loan ($185x90= $166,500). The calculation is always the same: total amount / total days x days owed. $166,500 x 0.06 / 360 x 19 (30-11=19)=$527.25)

$545.00 debit to the seller, $545.00 credit to the buyer ($1,800/360= $5.00 per day, 3 monthsx30 days = 90 days for Jan-March, 19 days for April, buyer owns the property on April 20, 90+19=109 days, seller owns property for 109 days, $5.00x109 days= $545.00 seller owes buyer)

If the sales price was $230,000 and the buyer was getting a new 80% loan, what is the intangible tax?

$552.00

Closing is on March 20 and the $1,600-per-month rent will be prorated. What is the amount debited to the seller and credited to the buyer?

$567.74

An owner lists a property for sale w a broker. at what price must the property be sold to net the owner $7,000 after paying a 7% commission and satisfying the existing $48,000 mortgage?

$59,140 (sales prices x rate of commission = total commission, $7,000+ $48,000= $55,000, 100%- 7% commission = 93%, $55,000/0.93= $59,140 price at which property must be sold (rounded)

If an interest-only loan of $12,500, w 9.5% interest per year, is paid back six months from the date of loan origination, how much interest will be paid?

$593.75 ($12,500 loan x 0.095 interest rate = $1,187.50 interest per year, $1,187.50/12 months = $98.9583 per month, $98,9583 monthly x 6 months = $593.75 total interest paid

A property has a market value of $188,550. The assessment rate is 40%, the homestead exemption is $15,000, and the millage rate is 33.45 for the city and 6.247 for the county. What are the quarterly taxes?

$599.62 (multiply the market value by the assessment rate, subtract the exemption (188,550x0.40=75,420-15,000=60,420), add the 2 tax mills together and divide by 1,000 (33.45+6.247=39.697/1,000=0.039697). Multiply the 2 answers from the previous 2 steps, and divide that answer by four to convert to quarterly (60,420x0.039697=2398.492744=599.623185 or simply 599.62)

A shopping strip takes in a monthly rent of $2,300. Its monthly expenses total $800, and there is an annual debt service of $800, and there is an annual debt service of $12,000. What is the annual cash flow?

$6,000 (annual income (rent) ($2,300 x 12 months) = $27,600, annual expenses ($800 x 12 months) = ($9,600), annual debt service ($12,000), positive annual cash flow = $6,000)

A 50-unit apartment building rented each unit for $800 per month. The vacancy rate was at 10%. The annual gross rent multiplier is 12.5. what is the indicated value?

$6,000,000 ($6,000.00 (50 x $800 x 12 x12.5 = $6,000,000))

Sphere of influence:

the ppl an agent knows who can be asked for possible referrals

a building valued at $105,000 is assessed at 35% of its value and taxed at the rate of 66 mills. One mill 14 110 of one cent. What is the quarterly tax payment?

$606.38 ($105,000x0.35 assessment ratio = $36,750 assessed value, $36,750 x 0.066 tax rate = $2,425.50 tax per year, $2,425.50/4 quarters = $606.375 per quarter rounded to $606.38)

The loan amount is $150,000 w interest at 5% for 30 years. What is the first month's interest payment?

$625.00 ($150,000 x 0.05 = $7,500 annual interest/ 12 = $625.00 in monthly interest)

The Jones family spends an average of $105 on utilities every 2 months. How much do they spend on utilities in a year?

$630 ($105/2= $52.50 per month x 12 = $630)

$635.94 (Nov1-12, days no interest due, 30-12=18 days, buyer owes interest for 18 days, $424,000x0.80=$339,200 loan amount, $339,200x0.0375=$12,720 annual interest, $12,720/360= $35.33 per day, $35.55x18days)

if the purchase price is to be $129,950 and the loan-to-value is to be 80%, w an interest rate of 7% and a payment factor of 6.66 per thousand, w annual taxes of $1,450 and an insurance premium of $480, what is the indicated monthly payment?

$691.97 (this is an 80% loan, so no tax or insurance reserve is required. All that is necessary is the principle and interest portion of the payment. Take the purchase price of $129,950 and multiply by the loan-to-value ($129,950 x 0.80 = $103, 960), which is the rounded down to the nearest hundred ($103,960 rounds down to $103,900). Divide this sum by 1,000 and multiply by the monthly payment factor ($103,900/1000 = $103.9x6.66 = $961.9740 or simply $691).

A seller lists her house w a broker for $119,900, w a commission of 6.5%. The broker negotiates a sales contract for $116,500. The buyer is required to deposit $4,500 as an initial escrow deposit and an additional escrow deposit of $5,500 w/in 5 days, and to apply for a new mortgage of $106,500. The RE commission would be:

$7,572.50 (sales price x rate of commission = total commission, $116,500 price x 0.065 commission rate = $7,575.50 total commission, all other info is irrelevant)

the sale price is $171,700, w an existing loan of $100,287 being assumed. What is the transfer tax?

$71.50

A sale closes on Feb 12, w the seller having the day of closing. The buyer is assuming the seller's mortgage, which has an outstanding balance of $28,000 as of the closing date. The last mortgage payment was made on Feb 1. The annual interest rate is 7.75%, and interest is paid in arrears. What interest proration appears on the buyer's closing statement?

$72.36 credit ($28,000x0.0775= $2,170 yearly, $2,170/12 months = $180.83/30 days= $6.03/day, $6.03x 12 days= $72.36 used portion (as payments are made in arrears, this amount is a credit to the buyer and a debit to the seller)

When damages are paid form the Recovery Fund, the limit of liability for any one licensee in multiple transactions is:

$75,000

The Franks recently bought a home for $168,000. How much would it have to increase in value in value for the Franks to pay a 5% commission and break even on the sale?

$8,842

The closing on the sale of a rental property is to be held June 10. The seller has received the rent for June in the amount of $1,200. What entry will appear on the seller's and buyer's closing statements if the seller has the day of closing?

$800 credit to buyer ($1,200/30= $40 per day, 40x20 days due to buyer, $800 rent credit to buyer)

An 11.75% loan has an interest charge this month of $849.43. what is the balance of the loan after this payment is made?

$86,750 ($849.43 interest per month x 12 months = $10,193.16 interest per year, $10,193.15/0.1175 interest rate = $86,750 loan balance)

The property has a market value of $250,000. The assessment rate is 40%. There is a homestead exemption of $10,000.00. the city's mills are 33.5, and the county mills are 6.405. what are the quarterly taxes?

$897.86 (the value is multiplied by the assessment rate and then the exemption is subtracted. The mills are divided by 1,000 to convert to a mileage (tax) rate and multiplied by the taxable base form the first step and then divided by 4 hour to convert quarterly, $250,000x0.40= $100,000 - $10,000 = $90,000. 33.5 + 6.405 = 39.905/1000 = 0.039905. 90,000 x 0.039905 = $3591.454 = $897.8625 or $897.86)

A seller bought a home for $160,000 and made a 6% profit when she sold it. How much was her profit?

$9,600 ($160,000x6 = $9,600)

The net income of a 5-unit apartment building is $4,600. The capitalization rate the lender uses is 6%. What is the value of the building?

$920,000 ($4,600x12= $55,200, yearly net operating income/rate= value, $55,200/0.06= $920,000 value of building

An 11% loan for $95,000 is made w principal and interest payments of $898.93 per month. What is the balance after the first payment?

$94,971.90 ($95,000 loan x 0.11 interest rate = $10,450 interest per year, $10,450/12 months = $870.83 interest = $28.10 principal, $95,000 old balance - $28.10 principal repaid = $94,971.90 new balance)

a salesperson and a broker have a 70-30 commission split program (70% to the salesperson). What is the salesperson's commission on a sale of $124,500, w a 6% total sales commission, if there are no other brokers or salespersons involved?

(sales prices x rate of commission = total commission, $124,500 price x 0.06 = $7,470 total commission, $7,470 x 0.70 = $5,229 commission)

Appurtenances refer to:

those rights that go w the land

Littoral Owners:

those who own property adjoining lakes and oceans

Which of the following shows the mill rate as an expressed part of a dollar?

0.001 (one thousandth) ($1.00/1000=0.001)

A licensee representing a seller under a brokerage engagement must disclose to the buyer certain adverse material facts about physical conditions in the neighborhood surrounding the property that exist w/in:

1 mile of the property

When a broker opens a trust account, he/she must notify the Commission w/in:

1 month

How many brokers may a licensee normally be actively licensed under?

1 only

When completing settlement statements, property taxes are usually prorated over a period of:

1 year

A person who claims to have been injured by a discriminatory housing practice may file a complaint w the U.S. Department of Housing and Urban Development (HUD) or a state or local agency no later than:

1 year after the alleged discriminatory practice occurred or terminated

One discount point is equal to:

1% of the loan amount

What education brochure about ARMs must a lender provide to a prospective borrower?

Consumer Handbook on Adjustable-Rate Mortgages

Which of the following gov rights permits the state to take ownership to land left by a person w no devisees or heirs?

Escheat

Houses built before what date require disclosure of Lead-Based-Paint?

1/1/1978

After a listing terminates, the listing broker must remove a "For Sale" sign w/in:

10 days

After conviction, an applicant for a broker or associate broker licensee in GA who has been convicted of forgery, embezzlement, theft, or a similar crime may not be granted a license until after:

10 years

A seller owned 26.25 acres of land. He sold 2.5 acres to one buyer and 11.75 acres to an investment corporation. How much land does he have left?

12 acres (2.5+11.75=14.25, 26.25-14.25=12 acres)

An investor wants to buy an investment property and has found one she likes. The listing price is $125,000. The current net operating income is $15,000. If she purchases the duplex at full price, what will be her rate of return?

12% (to determine the rate of return, divide the NOI (net operating income) by the purchase price to get the rate of return, or capitalization rate. $15,000/125,000 = 0.12 or 12% return on her money)

Which of the following ads for an open house would be considered to be a blind ad?

123 Ash St. Open 1 -4 call 520-969-8989 for info

A buyer pays $60,000 for a property w an income of $650 per month. What is the rate of return?

13% rate of return ($650x12=$7,800 annual income = 13% rate of return)

Which constitutional amendment did the Court use as a starting point to determine whether Congress could prohibit al racial discrimination, private and public, in the sale of rental of property?

13th

An established business relationship (EBR) exists if the consumer was involved in a transaction w the company during the previous:

18 months

To receive a community association manager's license in GA, a person must be:

18yo

The seller will pay off an existing loan on the day of closing, which is June 19. The seller paid the June 1 loan payment prior to closing. Assuming the seller owns the property on the day of closing, how many days of accrued interest will the seller owe at closing?

the monthly payment of principle and interest is $861.60. the loan balance is presently $145,675, and the interest rate is 5 12%. How much of the next payment will go toward the loan's principle?

193.92 (take the balance and multiply by the interest rate, which represents a year's interest. Divide that # by 12 to determine a month's interest, which when subtracted from the total payment of principle and interest, will give that payment's principle. $14,5675 x 0.055 = $8,012. 125012 = $667.67708; $861.60 - $667.67708 = $193.92292)

To receive damages from the Recovery Fund, a member of the public must take action w/in:

2 years

an eligible veteran may obtain a loan guarantee from VA for the purchase of any of the following, EXCEPT a:

5-unit apartment building (mobile home, single-family home, condominium)

If a lender received $3,000 for discount points on a $150,000 loan, how many points were charged?

2% (points are always charged on the loan amount, which was $150,000. To determine the amount of points, divide the amount paid by the loan amount to get the points. $3,000/$150,000 = 2% or 2 points)

Joint Venture:

2+ individuals or firms joining together in a single project as partners

How would the section directly south of Section 16 be numbered?

21 (sections are numbered snakelike, starting w 1 in the NE corner of the township)

In order to be licensed as a Community Association Manager, what is the minimum # of pre-license education hours?

To receive a community association manager's license in GA, a resident must successfully complete an approved pre-license course of at least:

25 hours

An established business relationship (EBR) exists fi the consumer has made an inquiry w the company w/in how many months prior to the call?

When an affiliated licensee of a firm employs an unlicensed support person, there must be __ written agreements.

To take the state broker's exam, an applicant must have been an active license:

3 of the last 5 years

For RE sales transactions in which a broker is involved, the broker is required to keep copies of the closing statements for:

3 years

To receive a broker's license in GA, an applicant must have been an active licensee for:

3 years

What are the experience requirements necessary to obtain a broker's license in GA?

3 years of licensed experience

How many days of notice of cancellation for the fidelity insurance is an insurance company required to give in order to be approved to operate in GA?

30 days

Under GA law, after termination of a lease, a landlord must return any security deposit owed to the tenant w/in:

30 days

Unless otherwise agreed to in the property management agreement, when an owner terminates a management contract w a broker, the broker must deliver to the owner all records of transactions and funds held on behalf on the owner w/in:

30 days

To renew a licensee, most brokers or associate brokers must show proof of completing (during the renewal period) continuing ed courses totaling at least:

36 hours

A parcel is 0.84 acres. How many square feet are there in this parcel?

36,590 sq ft (43,560 sq ft per acre x 0.84 acres = 36,590 sq ft (rounded)

Approach, market date (also: sales comparison approach):

3rd main method used in appraisals. The market data approach determines value by comparing prices paid for similar properties. Also called the sales comparison approach

How many acres are in a rectangular parcel of land that is 490 ft x 356 ft?

4 acres (490 feet x 365 feet = 174,440 sq feet, 174,440/43,560 sq feet per acre = 4 acres)

424.00 ($424,000/$100=4,240, 4,240x$0.10=$424.00)

1 acre = __________square feet

43,560

Treating people differently bc of race, color, religion, sex, disability, familial status or advertising in such a way that is intentionally misleading or inaccurate violates which of the following GA code sections?

43-40-25 Unfair Trade Practices and Violations

Which is true of the GA RE Commission?

5 members must be residents of and licensed in GA

What is the annual interest rate on a $60,000 straight loan if monthly interest payments are $275?

5.5% (first determine the annual interest, which is $275x12= $3,300. To find the rate divide $3,300/$60,000= 0.55 or 5.5%)

In GA, a sufficient title search period is considered to be:

50 years or more

A salesperson earns a commission of $6,000 in a sale of a property worth $100,000. What is the commission rate?

6% (sales price x rate of commission = total commission $6,000/$100,000 = 6%)

What is the commission rate on a sale of $111,000 if the total commission paid was $7,215?

6.5% (sales price x rate of commission = total commission, $7,215 commission/$111,000 sales price = 0.065 or 6.5% commission rate)

If a license in GA is convicted of a crime, the license is automatically revoked if the licensee does not request a hearing from the Commission or takes no action. How long does the licensee have to request a hearing?

60 days

In the event that a qualifying broker leaves a firm, the firm must obtain a new qualifying broker w/in:

60 days

A lessor and a lessee have an estate at will rental agreement that has been in place about 3 years. Termination would require:

60 days' notice by the lessor or 30 days' notice by the lessee

To receive a RE broker's license in GA, a resident must successfully complete an approved broker pre-license course of at least:

60 hours

A developer has sold a buyer a condominium. Under the GA Condominium Act, should the buyer change his mind, how long does the buyer have to rescind the contract?

7 days

When a consumer is purchasing a condominium in GA, in a new development directly from the Developer, what is the # of days during which the consumer may legally terminate that contract?

7 days

A lot measuring 128.5 ft x 236.2 ft would be what percentage of an acre?

70% (128.5 ft x 236.2 ft = 30,351.7 sq ft, 30,351.7/43,560 sq ft per acre = 0.69678 or 70% of an acre)

The seller will pay off an existing loan on the day of closing, which is Dec 8. The seller paid the Dec 1 loan payment prior to closing. Assuming the seller owns the property on the day of closing, how many days of accrued interest will the seller owe at closing?

The appraised value of a property is $425,000. The purchaser borrows $340,000. What is the loan-to-value ratio?

80% (loan/value=ration, $340,000/$425,000=0.80= 80% loan-to-value ratio)

Senior housing may refuse to rent to families if:

80% of the units are occupied by one person over age 55

Under GA's Commercial RE Broker Lien Act, a broker who is entitled to a commission in a commercial RE transaction and is not paid may take action to place a lien on the property if the broker files a claim of lien w/in:

90 days of the due date of the commission

the outside dimensions of a rectangular house are 35 feet by 26.5 feet. What is the square footage?

927.5 sq ft (35x26.5=927.5)

If a borrower obtained a $186,200 loan on a property valued at $196,000, the loan-to-value ratio is?

95% ($186,000/$196,000= 0.95 or 95%)

An acre of land is 450 feet wide. If the acre is rectangular, what is its length (rounded)?

97 feet (area = length x width: 43,560/450 = 96.8 feet = 97 feet (rounded))

Which of the following meets the minimum requirements to sit for the salesperson's licensing examination?

A 17-year old w a GED who has completed an in-class pre-license course from an approved school

Who of the following is NOT eligible to be appointed to the GA RE Commission?

A Tennessee broker w 20 years of experience who was recently licensed in GA (a broker/owner of a firm licensed in 1978, a salesperson w 6 years of experience, an associate broker who has managed an office for 15 years)

A non-resident may obtain a license in GA by meeting which of the following requirements for licensees?

Age, ed, and examination

An appraiser would use the cost approach for which of the following properties?

A church

Which of the following is the best explanation of an option?

A contract granting exclusive right to buy, sell, or lease property at a given price w/in a stated period of time

A broker wrote an offer to purchase for a buyer, which the buyer signed. The offer did not provide for an earnest money deposit. Which of the following statements is TRUE concerning this situation?

A contract will be formed on acceptance w/out the existence of a deposit

Items entered on a closing statement must be designated as either "debit" or "credit." Which statement regarding debits and credits is true?

A debit is owed, and a credit is received

The balance of the loan was $150,000 after the last payment, and the closing is scheduled for tomorrow. If the pre-payment penalty is 0.5% what would be reflected on the seller's side of the Settlement Statement?

A debit of $750.00 ($150,000x0.005 (0.5%) = $750.000. It would be the seller's responsibility and is applied to the seller's loan, so it would be a debit.)

which of the following statements concerning RE finance is TRUE?

A deed of trust or mortgage is given as security for a promissory note

Under the federal Fair Housing Act, which of following would be protected?

A drug addict in treatment

Consumer Credit Protection Act:

A federal law enacted to protect consumers from abuse by lenders. A key provision is the Truth in Lending Act, which ensures that applicants for consumer credit are given sufficient info so they can easily compare terms offered by various creditors

The relationship btw a RE agent and his or her client is which of the following?

A fiduciary relationship

Taking advantage of someone in the execution of a contract is called:

undue influence

One the day of closing, the sellers inform the listing broker that they are not going to close and want to keep their home. The listing brokerage firm, in this case, is owed?

A full commission

Which of the following may be a lien against real property?

A judgment

Which of the following is a document that transfers possession for a consideration, but does not transfer ownership?

A lease

Which of the following is created when RE is pledged as security for a loan?

A lien

What is the difference btw a mortgage and a security deed?

A mortgage conveys a lien to the lender and requires judicial foreclosure, whereas a security deed conveys legal title to the lender and allows for nonjudicial foreclosure.

Once the deed of trust is recorded in the county where the property is located and is the given to either the lender or the trustee for safekeeping, to whom would title records show the deed of trust was conveyed?

A neutral 3rd party

Which of the following items would most likely be included in the buyer's closing statement as a debit to the buyer?

A payment for the reserve account

Which of the following individuals is required to hold a community association manager license?

A person who provides community association management services on behalf of a broker but does not hold a salesperson or broker license

Which of the following actions will terminate an easement?

A release signed by the holder of the dominant tenement

Which of the following is NOT a protected minority under state law?

A same-sex couple who had a commitment ceremony (a single woman who has 2 adopted Asian children, an unmarried couple w 2 infant children, an interracial married couple expecting a baby)

Code of ethics:

A set of rules and principles expressing a standard of accepted conduct for a professional group and governing the relationship of members to each other and to the organization

Which of the following statements about a survey is true?

A survey measures boundaries, determines land areas, and reveals encroachments

which of the following may NOT be terminated by partition?

A tenancy by the entirely (a tenancy in common, eminent domain, a joint tenancy)

which of the following would not be covered under the federal fair housing?

A tenant who receives public assistance

which of the following terms best describes a form of real property ownership w the right of occupancy and use of specific property for a specific portion of each year for either a fixed # of years or forever?

A timeshare

Which of the following statements about to title commitment is true?

A title commitment is a commitment to issue a title insurance policy in the future if certain conditions are met

Which of the following is NOT an appurtenance?

A trade fixture (a barn, a fence, an orchard)

A salesperson works for ABC Realty and sells a property listed by XYZ Realty, which pays the buyer's representative an MLS co-op fee. The salesperson may only receive her commission from:

ABC Realty

Select from the following the most correct meaning of the phrase "ad valorem."

According to value

Which of the following is NOT part of the acronym that is used to test a fixture?

Accurately assuming value (agreement, modification, intentions of the annexing party)

CC&Rs:

Acronym for "covenants, conditions and restrictions," the basic rights and obligations of property owners w/in a subdivision or condominium development that regulate the use and maintenance of property, CC&Rs are typically developed and enforced by homeowners associations

Notice of parties in possession is found though what type of notice?

Actual

Which of the following is NOT required to be included in a short form (recorded plat) legal description in GA?

Address (county, state, page #)

If a buyer asks a licensee a question that requires a legal interpretation, how should the licensee answer her?

Advise her to consult an attorney

If a buyer asks a licensee if the title on the home she is looking at is okay, what should the licensee do?

Advise her to consult an attorney

A new property manager has been told by the apartment owner that he prefers to rent to females bc he feels that males cause more damage to the property than females. What should the property manager do?

Advise the owner that she must treat all tenant prospects equally

The license was revoked due to a violation of one of the unfair practices of the license law. When is the soonest the licensee may reapply for another license?

After at least 10 years have passed, and even then it may be denied

Which of the following is not a federally protected class under fair housing law?

Age (sex, race, religion)

Which listings much be in writing in GA?

All exclusive listings

Which listings must be in writing in GA?

All exclusive listings

Which of the following is an encumbrance?

All of these (deed restriction, easement, lien)

Which of the following actions by a broker is a violation of the GA RE license law?

All of these (inducing a seller to break an existing sales contract when the broker receives a better offer for the seller, failing to provide completed closing statements to the seller and the buyer when a sale is consummated, failing to retain copies of sales contracts in the broker's files for a period of 3 years)

A month-to-month tenancy must include which of the following to be valid?

All of these (offer and acceptance, oral or written contract, consideration)

Which of the following actions is a specific violation of GA laws?

All of these (printing or publishing an advertisement for the sale or rental of property that indicates any preference based on race, color, religion, gender, disability, familial status, or national origin/ denying access to a multiple-listing service or RE brokers' organization based on race, color, religion, gender, disability, familial status, or national origin/ representing to a person that an available property is not available for inspection based on the person's race, color, religion, gender, disability, familial status, or national origin)

W reference to the function of a property manager, which of the following is (are) the responsibility of a property manager?

All of these (providing financial records and accounts, preserving the owner's investment, obtaining the best possible return on the owner's investment)

Which of the following modifications must a landlord allow a handicapped tenant to install in a rental property if the tenant bears the cost?

All of these (wheelchair ramps, grab bars in bathrooms, a flashing light instead of door bell)

Which of the following is a requirement concerning the presentation of offers in GA?

All offers must be presented, even if the seller may reject it

According to the Brokerage Relationships in RE Transactions Act (BRRETA), which of the following MUST an agent present to a seller?

All offers, regardless of their form

In order to create a valid listing contract, who must sign the contract?

All property owners and the agent

Which listings in GA must have a definite date of termination?

All written listings

Under federal Fair Housing law, which of the answers shown may an owner of rental property do?

Allow first-come-first serve parking for all

If a tract of land measured 500 feet by 750 feet and the owner was to quit claim one quarter interest to his brother, what would be the approximate acreage the owner would retain?

Almost six and one half acres (the total tract of land measures 375,000 aq ft (500x750= 375,000), which converted to acres, is 8.608815 (375,000/43,560 = 8.608815. if the owner conveys one quarter interest to his brother, he would retain 3 quarters for himself (8.608815x0.75 = 6.4566))

When is the buyer legally obligated to provide true and accurate info related to her ability to meet the terms of the purchase contract?

Always

When is the tenant legally obligated to provide true and accurate info related to his or her ability to meet the terms of the lease?

Always

How many married spouses take title to property in GA?

As joint tenants or tenants in common

An agent is approached by a couple to find them a home. When should the agent disclose to the couple that she works for the seller?

As soon as possible

When should licensees disclose whom they represent to members of the public?

As soon as possible

Court action against anyone judged to be in violation of the license law or rules may be bought by the:

Attorney General

A buyer obtains a new loan to purchase a home. Closing takes place on June 14. When is the buyer's first loan payment due?

August 1

Salesperson Baird is a disclosed dual agent representing the seller and buyer of 107 Risky Road. The buyer and Baird started dating after the dual agency consent was given. The buyer has expressed how much she likes the property and is willing to make a full price offer if that is what it will take to get the house. How should Baird proceed in this transaction?

Baird should inform the seller about the personal relationship w the buyer

If a licensee offers to purchase property in order to obtain a listing, when must the written purchase offer be made?

Before execution of the listing agreement

If a licensee offers to purchase property to enable a party to purchase another property, when must the offer be written?

Before execution of the other party's contract to purchase new property

Which of the following instruments would NOT transfer an interest in real property?

Bill of sale (lease, option, agreement of sale)

ABC Realty has an exclusive agency listing, and a cooperating brokerage firm brings an offer, which the seller accepts. In this case, who will receive a commission?

Both firms

Which of the following breaches ethical standards?

Both underpricing and overpricing properties

As part of urban planning, areas are planned to provide separation btw residential areas and areas zoned as industrial. What are these areas called?

Buffer zones

Which of the following is NOT a function of a property manager?

Building appraisal (rent collection, marketing, tenant selection)

How is title to a condominium unit transferred?

By unit deed

Federal regulators are required to evaluate each financial institution's actual performance in meeting the credit needs of its community, according to the:

CRA

a buyer told the listing broker that the seller said the property line ran from a boulder in the front yard to a tree in the rear. The listing broker did not correct this or tell the buyer's broker, even though he knew it was incorrect. After moving in, the buyer was in the process of putting up a fence on that side of the property when a neighbor presented an injunction to stop the fence, claiming that it was on his property. What could the buyer do?

Collect damages from both the listing broker and seller

When a licensee transfers to a new broker, the licensee's former broker may forward the license of that person to the:

Commission or the new broker

A property owner refused to sell his land to the local school board, believing the price the school board offered for the land was not sufficient. What process may the school board use to obtain the land?

Condemnation

Which of the following enables the seller to finance a buyer by permitting him/her to make a down payment followed by monthly payments?

Contract for deed

An appraiser was hired to prepare a feasibility study for adding a swimming pool to a 24-unit apartment building. What basic principle of appraising would be used?

Contribution

Which of the following is NOT a characteristic of value?

Cost (scarcity, transferability, utility)

A post office of unique design and construction is best appraised by which of the following approaches?

Cost approach

In which of the following approaches to value is it necessary to determine a dollar value for existing depreciation when determining the value?

Cost approach

Fannie Mae:

Created as the Federal National Mortgage Association in 1938, Fannie Mae is a gov-sponsored enterprise that buys mortgages mostly from large commercial banks, which it bundles and sells as mortgage-backed securities.

a property on a lake is closing on August 1st. A boat dockage fee, due to the homeowners association, for $240 for a six-month period, from July 1 to Dec 31 is due Sept 1, and will be paid by the buyer. What entry appears on the closing statement?

Credit to buyer $40 ($240/6= $40 per month x 1 month (July 1-July 31) = $40 credit to buyer)

When appraising a 15yo, single-family, owner-occupied building in a good neighborhood for the purpose of estimating a basis for sales price, which of the following factors would be given the greatest weight?

Current sales price paid for similar homes in the same neighborhood.

The absence of which of the following would invalidate a deed?

Delivery

Title Subject to:

Description of a RE arrangement under which the purchaser receives the title, but the existing lien remains in the seller's name, even though the buyer makes the payments

Which of the following would NOT result in a potential license suspension and/or revocation?

Disclosing dual agency

Which of the following is most likely required in the short form legal description?

District

In a large rental complex w several buildings, the landlord has developed a set of guidelines for the property manager to follow. Which guidelines is permitted under federal fair housing laws?

Do not disclose to prospective tenants that a former tenant had AIDS

When a listing agreement is signed, who is required by law to receive a copy of the listing?

Each party who signs the listing agreement

When a listing contract is signed, who is required by law to receive a copy of the listing?

Each party who signs the listing agreement

Which of the following are NOT main elements of a lease?

Escalation and acceleration addenda (a description of the premises, the starting date and duration of the lease, the names of the lessee and lessor)

Which of the following is a non-freehold or less-than-freehold estate?

Estate for years

Ginnie Mae:

Ested in 1968 as the Gov National Mortgage Association, which split from Fannie Mae. Ginnie Mae doesn't buy or sell loans, but it pools them from approved financial intermediaries into securities, issuing them as mortgage-backed instruments

Which of the following best describes the function of a RE appraiser?

Estimate value

Which of the following factors does NOT play a part in determining the effect of radon exposure on an individual?

Ethnicity (age, length of exposure, season of the year)

Which type of listing allows the broker the right to collect a commission if any other brokerage firm brings a buyer but not if the seller obtains the buyer?

Exclusive agency listing

Which of the following statements concerning commissions is TRUE?

Exclusive agency listings permit the owner to sell w/out being liable for a commission

A broker is entitled to a commission regardless of who sells the property during the listing period if he or she has which of the following listings?

Exclusive right-to-sell

The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give the firm the most protection. In this case, the salespeople should be trying to get what type of listings?

Exclusive right-to-sell listings

Which of the following is a duty of a RE agent during closing if s/he listed and sold the property?

Explain each payment or receipt and make sure both parties are prepared for the closing meeting

The primary difference btw the Fair Business Practices Act (FBPA) and the Uniform Deceptive Trade Practices Act (UDTPA) is that:

FBPA has misleading advertising as its primary focus

Which of the following entities insures home loans?

FHA

Who receives the mortgage insurance premium paid by the borrower financing the property w an FHA insured loan?

FHA

Which of the following actions is a violation of the Rules of the GA RE Commission?

Failing to include in an offer to purchase the license # of each licensee participating in the transaction (giving a copy of a written offer to the buyer before the seller signs it, failing to retain copies of sales contracts in the broker's files for a period of 5 years)

Which of the following actions by a broker is a violation of the GA RE License Law?

Failing to provide completed closing statements to the seller and the buyer when a sale is consummated

A buyer is under contract on a property that is advertised as "most luxurious homes in Oceanview." As part of the inspection the buyer finds out the property is actually in Oceanside where the taxes are much higher and the values are lower than in Oceanview. The buyer rescinds the contract and brings action against the broker. the law the broker violated was the:

GA Fair Business Practices Act

Unless otherwise exempt by 43-40-29, when a business broker negotiates the sale of a business that involves the transfer of real property, the business broker and any of the broker's associates involved in the negotiations must be properly licensed by the:

GA RE Commission

Prior to receiving a non-resident license, the entity that must be designated as the recipient of any legal notices against the applicant is the:

GA RE Commissioner

In 2005, GA became the first state to enact a law specific to mortgage fraud. This law is the:

GA Residental Mortgage Fraud Act

Which of the following duties does a RE agent owe to the client?

Good faith and loyalty

which of the following ads is in compliance w the advertising laws?

Great home. Perfect for entertaining. Bring your pickiest buyers. ABC Realty 363-525-0000

Which one of the following best describes the concept of highest and best use?

Greatest net return over a given period

a lease for an apartment in a residential apartment project is usually which type of lease?

Gross lease

The construction materials were delivered on March 3. The work began on March 6 and was completed on March17. The loan was closed on April 2. Which of the following is TRUE concerning the contractor's rights if he is not paid of the work?

He has 90 days from March17 to file and it will be good for 1 year from the filing date

Which of the following is considered misconduct and serves as the reason the agent lost the commission in this case?

He informed the buyer about a purchase price lower than the listing price that would most likely be accepted.

A broker receives 2 offers, at practically the same time, on a property he has listed. He gets one directly from a proposed buyer. The other comes from a cooperating broker, and, if it is accepted, he will get only 14 of the commission. Under these conditions, which of the following statements is TRUE?

He should submit both offers to the seller and let the seller make his choice

If a property contains lead-based paint, the obligations of the seller include all of the following EXCEPT:

Home", to remove all lead-based paint before closing (to give the buyer the booklet "Protect Your Family From Lead In Your Home", to remove all lead-based paint before closing, to disclose what the seller has knowledge of, to share any report or inspection w info about lead-based paint on the property)

Which of the following citizens is NOT a protected class under federal fair housing law?

Homosexuals (Muslims, Syrians, Men)

As a listing agent, what obligations do you owe to an unrepresented buyer?

Honesty and fairness

Which of the following practices is a violation of state and federal fair housing laws?

In a large apartment complex, requiring families w small children to live in a separate building

Each year the conditions affecting the availability of loan funds change. When would it be to the advantage of lenders to waive a prepayment penalty provision in a note?

In a tight money market

Which of the following is a similarity btw condominiums and cooperatives?

Income tax rules allow the same deductions on both types of ownership

Closing occurs on April 23. When is the first mortgage interest payment due?

June 1

Which of the following best defines real property?

Land and the area below and above the surface to infinity and all the improves thereon

Ad Valorem:

Latin expression meaning "according to value." A type of taxation based on the value of property, whether real or personal

to whom does the legal title convey in a lien theory state?

Lender

Which of the following statements does NOT apply to condominium ownership?

Liens against individual units or individual unit owners are liens against the entire property (each owner receives a tax bill that covers the value of his unit and his proportionate share of the commonly held property, individuals are responsible only for mortgage indebtedness and taxes involving their units and a proportionate share of the property held in common, individuals take title to their units and an interest in commonly held property)

which of the following is a freehold estate?

Life estate

At minimum, which loan conditions must be entered on the conventional loan contingency exhibit attached to a GA residential purchase contract?

Loan amount, interest rate, loan term

Which of the following are among the common causes found in counteroffers?

Loan terms and financing conditions

A plat map is used in which type of legal description?

Lot and block

Gov Lots:

Lots in the US Public Land Survey System that are considerably larger or smaller than the typical 40 acres in a quarter-quarter section. Frequently located along bodies of water

Under Truth-in-Lending, it is permissible to advertise which of the following statements w/o disclosing all the terms of the credit?

Low down payment

Which web-accessible tool can member brokers use to broaden market exposure of a given property?

MLS

Cold calling:

Making unsolicited telephone calls to gain business, subject to "no-call" restrictions

Collateral:

Marketable real or personal property that a borrower pledges as security for a loan

What type of lease is generally used when a sale leaseback is involved?

Net lease

which of the following is a way in which an easement may be terminated?

Merger

Who holds the title to real property when a mortgage is given?

Mortgagor

Which of the following is NOT a strict legal term for a type of employment contract or listing?

Multiple listing

An executor of an estate is listing a property. He states the owners were the victims of a murder-suicide in the home. Based on the Stigmatized Property Act, which of the following is true?

Murder and suicide can be kept confidential unless a buyer directly asks

The national organization that has established a code of ethics for RE professionals is:

NAR

The person appointed to the office of Commissioner must ________________________ in RE.

NOT be actively licensed

A commission is:

Negotiated w a client, a flat amount, fees for services, a percentage of the sales price, negotiated w a principal broker

A tenant who pays rent plus some or all of the property taxes, insurance, and maintenance is under which of the following lease arrangements?

Net lease

An owner leases her warehouse to a tenant who agrees to pay $1,000 per month in rent and pay real property taxes, maintenance, insurance, and utilities. What type of lease did the owner and tenant sign?

Net lease

The tenant pays a base rent plus a percentage of the property expenses in what type of lease?

Net lease

What formula would be used to estimate the value of a property using the income approach to appraising?

Net operating income divided by the capitalization rate

If the current or previous owner of a property was infected w AIDS, when should the owner or RE professional disclose this info to a potential buyer?

Never

When are licensed RE professionals allowed to discriminate?

Never

When is a licensed RE salesperson authorized to conduct a RE closing in GA?

Never

When may a RE licensee offer legal advice to a seller or a buyer in a sales transaction?

Never

A buyer and seller entered into a written agreement for the sale of 1034 Brookhaven Circle in Land Lot 37 of the 17th Section of District 5 in the Overtone Hills Subdivision in Seaview GA as recorded in Plat Book 114 page 38. Is this an adequate legal description?

No, the legal description must indicate the county where the property is located

The buyer's contract specifics that the buyer has 7 days from the "binding agreement date," which was Sept 10th. On Sept 15th the buyer notifies his agent of his wish to w/draw from the transaction. On the 17th, the agent sends the necessary form to the buyer. The agent delivers the signed termination to the listing agent on the 18th. Has the salesperson properly terminated this agreement?

No, the termination had to be submitted w/in the 7 days

A salesperson has been working w a buyer and has reviewed agency but they did not enter into a written brokerage agreement. The buyer has been a house that she likes and has asked the salesperson if the asking price seems fair. Can the salesperson answer this question?

No, this type of decision requires that there be a written agency agreement

In GA, which type of death on a property must a seller or seller's agent voluntarily disclose to all potential buyers?

None of these (a homicide only/ a suicide only/ a homicide, suicide, or death by accident)

Recording gives constructive notice. Which of the following also gives constructive notice?

None of these (possession of land by a person other than the grantor, express knowledge of a fact, knowledge of a deed that has not been delivered)

The sale of a leased property affects the tenant in which of the following ways?

None of these (the tenant is protected only if the lease has been recorded in the recorder's office, the tenant must move or renegotiate his lease w/in 30 days, the tenant must be sure to obtain the return of his security deposit from the seller)

In GA, in the event the borrower defaults, what foreclosure process is used?

Nonjudicial foreclosure

In what corner of a township would you find Section 1?

Northeast corner

on a salesperson's website, she has listed her name, area of specialty, the brokerage firm, and the firm's phone #. What else does she need to be in compliance?

Nothing

The seller is signing an exclusive right to sale listing (brokerage engagement) on July 3 w an effective date of July 5 for 120 days. What is the exp date?

Nov 1

The acronym used to remember the fiduciary responsibilities that a RE agent has to the principal is:

OLD CAR

Authority, express:

Permission to act on behalf of another, given orally or in writing, or through ratification of the principal's conduct

Title Report:

Preliminary: a document issued by an insurance company disclosing title status to parties contemplating a title transfer or a new loan

If a buyer w whom you are working asks you to recommend a lawyer to answer his/her legal questions, what should you do?

Provide the names of several lawyers

Which of the following is a violation of antitrust laws in which two or more brokers work in concert to raise prices?

Price fixing

Which principle of value describes the value produced by adding an improvement or upgrades to a property?

Principle of contribution

Who provides the direct funds for loans guaranteed by the Federal Dept. of Veterans Affairs?

Private lenders

Which of the following types of liens are always superior to other liens?

Property tax liens

When completing settlement statements, which costs are prorated?

Property taxes

Which of the following will have lien priority?

Property taxes recorded May 15th

The property's appraisal has come in at $225,000 but the sales price on the purchase and sale agreement was $229,000. The listing salesperson has some recent comps which she feels the appraiser does not know about and the comps support the property's sales price. What should the salesperson do in this situation?

Provide the appraiser w the new comps

All of the following statements concerning the RE Settlement Procedures Act (RESPA) are true EXCEPT:

RE brokers may not split commissions w cooperating members of their multiple listing service (RESPA covers all sales of one-to-four family residences when the purchaser is obtaining a federally-related mortgage loan to purchase the property/ all persons obtaining a federally-related new mortgage loan to purchase a residence must receive a copy of Housing and Urban Development's settlement cost brochures, a lender may not receive a referral fee for sending a seller to a specific title insurance company)

All of the following are true concerning equal housing opportunity EXCEPT:

RE professionals should show families homes only in areas where there are children (all housing prospects are entitled to the same info about availability of financing, Fair Housing laws apply equally to resort and second home purchases, "redlining" an area due to high crime rate is illegal)

Which of the following is administered by HUD and regulates RE settlement practices when federally related first mortgage loans are made on certain types of residences?

RESPA

The administration that came into existence in the 1930s that offers programs to help purchase or operate farms:

RHS

Which of the following liens normally takes priority over all other liens?

Real property tax liens

which of the following six commonly used methods for describing the location of land is generally considered a legal description?

Recorded plat

When making the loan, the mortgagee's risk of default may be lessened by which of the following?

Reducing the loan-to-value ratio

A listing agent has been asked to provide a second contract w diff terms to take to a lender. What should the agent do?

Refuse to do this

Which of the following types of entities is NOT covered by Title III of the ADA?

Religious organizations (establishments serving food or drink, places of ed, sales or rental offices)

When completing settlement settlements, which items are prorated?

Rents paid in advance

which of the following items would be included in the operating budget of a property manager responsible for management of a condominium complex?

Replacement reserve for cedar shingles on the roof

Under federal Fair Housing law, which of the following is a violation?

Restricting families to certain units or building in the complex

Which of the following is considered a disciplinary action that may be administered by the Commission?

Revocation of a license

Which of the following would NOT be grounds for a landlord to terminate a lease and sue to evict the tenant?

Sale of the property (noncompliance of health codes, unlawful use of the property, violation of building codes)

A buyer is considering buying a lot to build a single-family residence. She hires an appraiser to appraise the lot. Which approach to value would the appraiser choose to complete the task?

Sales comparison

An appraiser needing to find the value of a single family home would use which approach to value?

Sales comparison

Which of the following is an economic characteristic of land?

Scarcity

Where, on the Purchase and Sale Agreement, do you indicate that the Dolls would like to take possession of the property at closing?

Section A, paragraph 4

Which of the following is used to secure a RE loan in GA?

Security Deed

Which of the following are the buyer's responsibility to furnish at closing?

Settlement funds and the loan commitment

An indep broker has sold her company to XYZ Realty. What happens to the active listings she has?

She cannot transfer her listings

If brokers conspire to set commission rates, it is a violation of the:

Sherman Antitrust Act

A listing agreement btw a RE brokerage firm and a seller is known as what form of agency?

Special

A RE listing is an ex of what type of agency?

Special agency

A buyer and seller entered into a purchase contract. The seller later stated that she did not wish to sell the property. In order for the buyer to force the seller to sell, the buyer may use what remedy?

Specific performance

An oral lease for 2 years is not enforceable due to the:

Statute of Frauds

According to GA Statute 43-40-12, which of the following are NOT nonrefundable fees that a licensee is required to pay to fund the maintenance and operation of the office of the commission?

Statutory fees (examination fees, activation fees, renewal fees)

What is the meaning of novation?

Substitution of a new contract btw same or diff parties

Building Code:

Systematic regulation of building construction w/in a municipality established by ordinance or law

The ________ was enacted bc it was not an uncommon occurrence for a borrower to see loans advertised for rates lower than the borrower actually wound up paying.

TILA

A buyer gave a broker a written offer to purchase property, which contained a 10-day acceptance clause along w a $2,000 deposit. On the fifth day, prior to acceptance by the seller, the buyer notified the broker that he was w/drawing his offer and demanded the return of the deposit. Which of the following statement is True?

The buyer may revoke his offer any time before the seller's acceptance is communicated to him and may obtain the return of his deposit

If a residential RE sales transaction involves a new loan, what document must the lender provide to the borrower no later than 3 business days prior to consummation of the loan?

The closing disclosure

It is said that a valid contract must have legality of object. Which of the following best describes legality of object?

The contract must not be for an illegal purpose or against public policy

In determining whether an article of personal property has become a fixture, which of the following tests would NOT be applied?

The cost of the article (the modification of the article to the land, the existence of an agreement btw the parties, the manner of attachment)

Which of the following items would most likely be included in the buyer's closing statement as a credit to the buyer?

The deposit the buyer paid when the sales contract was signed

A property has a recorded easement. The seller fails to mention the easement when she sells the property. Which of the following is true?

The easement transfers w the property and will show as an encumbrance in the title work.

A licensee is representing a landlord under a brokerage engagement. The licensee is aware of the following facts pertaining to the property and the surrounding area: a stain on the upstairs ceiling indicating the roof leaks, an elevated level of radon indicated by a radon test that the landlord shared w the licensee, and the presence of a landfill 2 miles from the property. Under GA law, which of these facts must the licensee disclose to any potential tenant?

The elevated level of radon

If escrow instructions differ from the deposit receipt or preliminary sales contract, and the escrow instructions have been signed by both the buyer and the seller, which of the following is correct?

The escrow instructions take precedence

The lessor of real property was notified by his tenant that there were cracks in the ceiling. The tenant informed the lessor that he was afraid the plaster would fall on the tenant's head. The landlord made the repairs, but he did not do a good job. Bc of this, the plaster fell on the tenant's head. There was no covenant regarding repairs in the lease btw the landlord and the tenant. Which of the following statements is TRUE?

The landlord must repair and will be liable for injuries suffered by anyone lawfully in the building.

In GA, when a security deed is used to ensure a loan, who holds legal title to the property while the borrower is making payments on the loan?

The lender

A license has been inactive for 6y and 7 months and was never renewed. Can the license be reactivated?

The license is no longer inactive; the license needs to reinstate the lapsed license

Who is legally responsible for any contracts that a licensee prepares?

The licensee's broker

In an exclusive right to sell listing, if the owner sells the property who gets the commission?

The listing brokerage

Comprehensive Plan:

a blueprint for orderly development or redevelopment that identifies a community's goals, principles, and strategies for growth. It enables property owners to plan for development

If the settlement agent fails to file IRS Form 199-S, which is used to report the seller's proceeds from the sale of RE, to whom does this responsibility fall to first?

The mortgage lender

If the foreclosure sale proceeds are less than the outstanding debt and foreclosure expenses, which of the following remedies is available to the mortgagee?

The mortgagee may obtain a deficiency judgment against the mortgagor

If the amount realized at a foreclosure sale upon a delinquent mortgage exceeds the indebtedness, who gets the excess?

The mortgagor

An out-of-town buyer is making an offer and has the wrong checkbook for writing the required earnest $ check in the amount of $5,000.00. what should the licensee advise the buyer?

The offer will need a special stipulation requiring the check be held

Under an option, which of the following statement is true?

The optionor must sell to the optionee

A broker is attempting to obtain an out-of-state license through reciprocity and must submit a license history from the Commission. What period of time will it most likely cover?

The previous 5 years

Which of the following is TRUE regarding FHA insured mortgages?

The property given as security for the debt must comply w construction standards set by FHA

Which of the following is the major factor that has led to an increase in concern over mold?

The public has become increasingly aware of the effects of mold exposure.

If a firm, licensed as a broker, is the defendant in a contested case before the Commission, who is responsible for binding the firm to any settlement w the Commission?

The qualifying broker

If a firm, licensed as a broker, violates the license law or rules, who is subject to sanction?

The qualifying broker

Which of the following statements is TRUE for a sales associate who is an indep contractor?

The sales associate is responsible for paying his/her own income taxes and Social Security

Which of the following statements is TRUE for a sales associate who is an independent contractor?

The sales associate is responsible for paying his/her own income taxes and Social Security

An appraiser is evaluating a parcel of property in an area of town. In his appraisal process, he plans to use some comparable properties that he knows has recently sold in that area. Which approach to value is he using?

The sales comparison

Which of the following items would most likely be included in the seller's closing statement as a credit to the seller?

The sales price of the property

For a joint tenancy to exist, which of the following unities must be present?

Time and title and interest and possession

Promissory note:

a borrower's promise to pay a specific amount of money

If a seller disclosure form will be provided to a buyer prior to the buyer entering into a sales contract, who completes and signs the disclosure form?

The seller

Whose obligation is it to disclose potential lead-based paint to buyers of homes built before Jan 1,1978?

The seller

What happens if a property that is the subject of a sales contract is damaged by fire or other disaster prior to closing?

The seller is typically responsible for the cost of the repairs

A seller gave 2 firms an open listing on her home. Firm #1 advertised the property but did not show it to any prospects. Firm #2 showed the property to one prospect, but before the firm obtained an offer the seller sold it to a friend. Which of the following statements is correct?

The seller owes nothing to either firm

2 days before the closing, the parties to the transaction are notified that the seller had taken title w her former boyfriend whose whereabouts are unknown and the Friday closing will not take place. Which of the following represents the best remedy to this situation?

The seller should locate the boyfriend, have him sign a quitclaim deed, and have it recorded.

A condominium HOA dues of $345.00 are due on the 1st of each month. The seller has not paid June's dues and has a closing scheduled for June 15th, w the seller having the day of closing. What will be the amount on the settlement statement?

The seller will be debited $172.50, and the buyer will be debited $172.50 (both the seller and buyer owe for the portion of the month they will own the house. Since June has 30 days and the closing in the 15th, each party will owe 15 days. The calculation is always the same: total amount / total days x days owed. $345.00/30x15= $172.50)

A seller signed a 90-day listing for his property w a salesperson for ABC Realty. One month later, the seller died. At the same time, the salesperson received an offer for the property. Which of the following is correct concerning the offer?

The seller's estate is not required to sell the property or pay a commission.

In GA, who typically attends the closing of a residential RE sales transaction?

The seller, the seller's RE agent, the buyer, the buyer's RE agent, and the closing attorney

Which of the following best describes the opinion of the court in this case?

There is no fiduciary duty to provide information on the delivery of the neighborhood.

Black, Blue, and Green hold titles to an investment property as joint tenants. Which of the following statements is/are correct?

They all have use of the entire property

Which of the following statements concerning riparian rights is true?

They are the right to reasonable use of water that touches one's land

Which of the following ads is this best example of puffing?

This house has the best views you will find in the city!

A salesperson is selling a new home under a cooperative relationship w the onsite brokerage firm in a subdivision where the builder has authorized a $5,000.00 selling bonus for cooperating agents. Which of the following is true of this situation?

This is acceptable, but the cooperating salesperson's broker must know of, approve, and oversee the bonus

An executed sales contract may be assigned under what conditions?

Under no conditions

A broker had been representing a buyer under a brokerage engagement. If the engagement ended when the buyer bought a property, which of the broker's duties to the buyer would continue after the brokerage relationship ended?

To account for all funds related to the engagement and to keep confidential info confidential

What right does the buyer have under the GA Predatory Lending Act?

To choose his/her own closing attorney

Which of the following is the purpose of property taxes?

To fund local gov programs and services

Which of the following starts w a landowner's application for registration and the preparation of an abstract?

Torrens system

The annual property taxes are $915.00 and are paid in arrears. W the seller having the day of closing and using a 365-day year, prorate the property taxes for a closing date of March 4. $157.93 (paid in arrears means it is a SOB (seller owes buyer). The formula is always the same:

Total Amount Due/total days x days owed. The seller owes 63 days. The solution $915.00/365x63 = $157.93)

On which of the following can a person find all recorded deeds, mortgages, and other documents at the recorder's office that relate to a parcel?

Tract index

A broker has been approached by the owner of an apartment building and asked to manage the property. The apartment owner tells the broker that he prefers to rent to females bc he feels that males cause more damage to the property than females. What should the broker advise the owner to do?

Treat tenant prospects of both genders equally

Attorney states:

U.S. states that require the presence of an attorney at RE closings

Which of the following has refined and modified the valuation process?

USPAP

Which form of agency gives the agent the broadest powers to act for the principal?

Universal agency

Who can recover damages from the Ed, Research, and Recovery Fund?

Unlicensed members of the public

What kind of mortgage loan allows the interest thereon to be increased or decreased for certain reasons?

Variable

Which statement regarding the methods for closing a residential RE transaction is true?

W escrow, the closing process is conducted by a neutral 3rd party

A seller who is illiterate enters into a contract, to sell property, by signing his name w the letter "x" after the contract was reviewed verbally by his daughter is this contract enforceable?

Yes, an illiterate person is competent if they understood what they were doing

A seller has told the listing agent that she will take less than the asking price. The listing agent stated this in a marketing session at the board of REALTORS. In this case, the listing agent's statement is:

a breach of confidentially

In order to maintain non-resident licensure, a licensee must be affiliated w:

a broker licensed in GA

A buyer asked a listing broker where a property line was. Not knowing exactly, the broker estimated the location of the line. After closing, the buyer discovered that the actual location of the line was 3 feet inside where the broker estimated. Is the listing broker liable to the buyer?

Yes, brokers should only make statements they are sure are true

A salesperson is in need of some help w a 1031 Exchange she is involved in as a principal. She has consulted both an attorney and a CPA for guidance. Is the salesperson acting properly?

Yes, but only if she first notified her broker of her personal business and is following her broker's instructions

A salesperson has a legal question. Time is critical, and the broker is unavailable. Should the salesperson contact the firm's legal counsel?

Yes, but only w the broker's permission

When a lease is signed, it is legal for the lease to contain an option to renew?

Yes, if the duration of the option is specified in the original lease agreement

The listing agent is aware of an environmental issue w an industrial complex about a mile from her new listing. Does the agent need to disclose this info?

Yes, to the seller and any buyer, it is as a material fact.

Variable Interest Rate:

a # that is adjusted at periodic intervals over the term of the loan. Changes are based on a predetermined formula and tied to an index

Legal Concept of Land Ownership:

a 3-dimensional definition of land as property on the surface as well as the space above it (air) and ground below it (underground)

Remainderman:

a 3rd party to whom title will pass upon termination of a life estate. He or she holds what's called a remainder interest or estate in remainder over the entire term of the life estate

Township:

a 6-mile by 6-mile square created by the intersection of range lines and township lines in the US Public Land Survey System. A township is Identified by its range and meridian

Caveat emptor:

a Latin expression meaning "Let the buyer beware." Absent misrepresentation, the purchaser buys at his or her own risk

A contract of sale accepted by the seller w the stated understanding that the seller has an executory contract is:

a back-up contract

Principle of Contribution:

a belief that an individual component of a property adds to the property's overall value

Substitution:

a belief that if a property is replaceable, its value tends to be set by the cost of acquiring, through purchase or construction, an equally desirable substitute w/out undue delay

Principle of Competition:

a belief that profits tend to breed competition and that excess profits tend to breed ruinous competition

Principle of Conformity:

a belief that the value of property is maximized when its style, size, and improvements closely resemble properties around it

Principle of Anticipation:

a belief that value is created by benefits to be derived in the future.

Metes and Bounds:

a method of describing land by providing measurements and direction (also called course and bearing) of each boundary line

Clause, Release (also: Lot Release clause, parcel release clause, or partial release clause):

a condition needed by a borrower w a blanket encumbrance on a subdivision to allow portions of the property to be released from the mortgage lien before the entire loan is repaid. Also called a lot release clause, parcel release clause, or partial release clause

Clause, Or More:

a condition that allows the borrower to pay more than the amount due w no prepayment penalty

A contract provision that requires the completion of a certain act before the contract is binding is:

a contingency

A sales contract includes a provision that the sale will take place only if the buyers are able to sell their current home w/in 90 days. This contract provision is called:

a contingency

Property management agreement:

a contract btw a property manager and property owner specifying that the manager is an agent (fiduciary) of the owner

Lien, Voluntary:

a contractual claim created by a voluntary contract, such as a mortgage or a deed of trust, entered into by the debtor and creditor

Writ of Execution:

a court order to a public official, often the sheriff, to sell a debtor's property to satisfy a judgement

Writ of Attachment:

a court order to seize an asset of a defendant or place a lien against it pending a potential unfavorable judgment requiring payment of damages

Deficiency judgement:

a court ruling against a defaulting borrower indicating that the sale of property pledged for a loan was insufficient to pay off the debt

Judgement:

a court's final and binding determination in a lawsuit or other legal matter. May require payment of damages

Actual eviction:

a court-enforced order to remove a lessee from property, resulting in his or her physical ouster

Lien, Equitable:

a court-imposed claim against property that doesn't require possession of it

Execution Sale:

a court-ordered sale whose proceeds will pay off judgment creditors

The sale of a property is closing in Sept. If the property taxes for the year are paid in arrears, the settlement statement will show the proration of taxes as:

a debit to the seller for the amount from Jan to closing

Reservation:

a deed provision wherein the original property owner retains some interest in or right to the land being transferred, such as an easement or mineral rights

Another name for a security deed is:

a deed to secure debt

Estoppel deed (also: Deed in Lieu of Foreclosure):

a defaulting borrower's surrender of title to a property back to the lender to avoid foreclosure. Also called a deed in lieu of foreclosure

If a commercial property sold at a court foreclosure does not sell for an amount sufficient to satisfy the mortgage loan debt, the mortgagee may obtain:

a deficiency judgment

In GA, an exclusive brokerage agreement must include:

a definite exp date

When transactions involving the sale of RE are placed in escrow, this means that:

a designated agent, agreed to by the parties, holds the necessary documents until the terms are met

Certificate of eligibility:

a designation by the federal gov of an individual's eligibility to obtain a federal Veterans Administration loan

As is:

a designation meaning property will be sold in its current condition, generally w disclosure of nay defects

Plat:

a detailed survey map of a subdivision showing the boundaries, buildings, and other improvements

Quantity survey method:

a detailed way of estimating construction costs by calculating all direct costs (e.g., labor and materials) and indirect costs (e.g., office overhead, insurance, interest, permits, contractor's profit, etc.)

Common Interest Subdivision:

a development of individually owned units w some shared facilities and common areas. Examples are cooperatives and condominiums

A RE sales contract may be referred to as any of the following EXCEPT:

a devise (a purchase agreement, a purchase offer, a purchase and sales agreement)

Tax Credit:

a direct subtraction from income tax due rather than a subtraction from taxable income

Imputed knowledge:

a doctrine that considers a principal to have the same knowledge or notice of facts as his or her agent or subagent, and an agent to have the same knowledge or notice as his or her subagents

Satisfaction:

a document confirming that a mortgage is paid off and explaining the provisions for transferring title to the property

Closing Disclosure:

a document describing closing costs that consolidates the former HUD-1 Settlement Statement and the Truth in Lending Disclosure. It must be submitted to a buyer 3 days before closing

Loan disclosure:

a document that consolidates the former Good Faith Estimate and the preliminary Truth in Lending Disclosure that must be given to a buyer no later than 3 days after he or she applies for a loan. It enables the buyer to compare key info about lenders including interest rates, closing costs, and monthly payments

Environmental Impact Report:

a document that describes the likely effects on the environment of prosed actions and assesses feasible alternatives

Bill of Sale:

a document that details the provisions of selling property or goods by vendor to vendee

Environmental Impact Statement:

a document that discloses the effects of a development whenever a proposed project would have a major impact on the environment

Closing Statement:

a document that itemizes all of the expenses paid by the buyer and seller to close a RE transaction

Management plan:

a document that projects income and expenses, as well as programs of capital improvement, alteration, modernization, and rehabilitation

Security Agreement:

a document that provides the lender w a lien against personal property, replacing the chattel mortgage

Easement Instrument:

a document that sets out the terms for establishing an easement.

A closing in which the documents are signed but the funds are not disbursed and the deed is not delivered is called:

a dry closing

Misrepresentation:

a false or misleading statement

Interstate Land Sales Full Disclosure Act:

a fed law regulating the sale or lease of undeveloped land through interstate commerce or the mail. It applies to subdivisions w 25 or more lots

Financial Institutions Reform, Recovery, and Enforcement Act:

a fed law requiring that, among other things, a RE appraisal used in a federally related transaction meet standards set by the Appraisal Foundation and be performed by a person licensed or certified by the state

US Department of Housing and Urban Development (HUD):

a federal agency that administers the FHA and oversees RESPA, the Fair Housing Act, and the Interstate Land Sales Full Disclosure Act. HUD makes rules to implement such acts and launches investigations to enforce them

Federal Deposit Insurance Corporation:

a federal agency that insures deposits at commercial banks and savings institutions

Federal Housing Administration (FHA):

a federal agency that insures lenders against loss if borrowers default on mortgage loans

Federal Land Bank System:

a federal entity that specializes in providing long-term loans on rural property

Truth in Lending Act:

a federal law requiring lenders to provide full written disclosure of credit terms and conditions, finance charges, and the APR incurred in a consumer loan agreement. Part of the Consumer Credit Protection Act

Equal credit opportunity act:

a federal law that requires lenders and other creditors to make credit equally available w/out discrimination based on race, color, religion, national origin, age, sex, martial status, or receipt of income from public assistance programs

RE settlement procedures act (RESPA):

a federal law that requires lenders handling federally related residential loans to provide borrowers w info about the settlement process (or closing) of the transaction

Fair Credit Reporting act:

a federal law that requires those who take adverse action based on info received from a credit reporting agency to identify to the potential borrower the agency that provided the report. The law also gives consumers the right to have errors in their credit files corrected

Mutual mortgage insurance:

a federal program insuring lenders against loss due to foreclosure of FHA loans

Prepayment Penalty:

a fee charged for paying off a loan ahead of schedule

Estate, Qualified Fee (also: Conditional Fee Estate, Defeasible Fee Estate, Fee Simple Defeasible Estate):

a fee estate that may be terminated or defeated if certain events occur or conditions are not satisfied. Also called a conditional fee estate, defeasible fee estate, or fee simple defeasible estate

Defeasible fee:

a fee simple absolute interest in RE that can be revoked or terminated upon the occurrence of a specified event

A licensee acting on behalf of a property owner is best described as:

a fiduciary

Financial Intermediary:

a financial institution such as a commercial bank that serves as a middleman btw those who need money and those w excess funds. Often that means receiving relatively small sums form the public and investing them in larger institutions

Mortgagee:

a financial institution that lends money to purchase RE

Institutional lender:

a financial intermediary or depository - such as a savings bank, commercial bank, or life insurance company - that invests its own funds or pooled funds under management in various ways, including in trust deeds and mortgage loans

Amortized loan:

a financial obligation for which the principal is repaid over the life of the loan instead of entirely at the end

List-back agreement:

a financing arrangement in which a developer sells land to a builder conditioned on the builder's agreement to list the improved property back w the developer's brokerage firm for sale to individuals. It may be illegal in some places

Monument:

a fixed object used to est a RE boundary. It may be natural (a river or rock formation) or manmade (a fence, building, or iron stake placed by a surveyor). It may be tangible (a point est by another surveyor) or intangible (the centerline of a street)

During inflationary times, a property manager would NOT want a long-term lease w rents based upon:

a fixed rate (graduated amounts, the cost of living index, the consumer price index)

Vested:

a fixed right bestowed upon someone or secured by someone, such as title to property

Cooperative:

a form of apartment ownership in which buyers purchase shares in a company owning the building and, in return, receive exclusive rights of possession to their apartments through proprietary leases

Community Property:

a form of marital ownership in which spouses share most property acquired during the marriage, although anything acquired before it may be considered "separate property." One territory (Puerto Rico) and nine states have community property laws: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin

Curable depreciation:

a form of physical deterioration or obsolescence that is economically feasible to remedy, I.e., the cost is less than the anticipated increase in property value

Home equity line of credit:

a form of revolving credit in which a person's home serves as collateral

Verification of Deposit:

a form that requests confirmation of amounts on deposit at financial institutions

Verification of Employment:

a form that requests documentation of a mortgage applicant's work history and/or occupation, to assist in a credit investigation

Brown is the sole owner in fee simple of a parcel of RE. She is the owner of:

a freehold estate and an estate in severalty.

Mortgage, self-liquidating:

a fully amortized mortgage in which periodic payments result in the loan's being repaid in its entirety by the end of the mortgage term

Estate in Remainder:

a future property interest held by a person to whom title will pass upon termination of a life estate

Condition:

a future uncertain event that, in a contract, creates an obligation or exception. In conveyance of real property, a condition may cause an interested to be vested or defeated

All of the following are protected under federal fair housing EXCEPT:

a gay married couple (children under 18 years of age, a Muslim family, a pregnant woman)

Devise:

a gift or disposal of real property by last will and testament

a broker paying a referral fee to another licensed broker is:

a good business practice

US Department of Veterans Affairs (VA):

a gov agency that, among other things, guarantees loans from private lenders to enable eligible veterans, reservists, and National Guard members to afford homes they intend to occupy

All of the following are examples of a percentage lease EXCEPT:

a gradually increasing amount of rent, to step up at specified intervals (fixed minimum rent w percentage added to the minimum, percentage w/out any minimum, fixed minimum rent w additional rent based on a percentage being payable only after the applicable percentage has earned the minimum)

Syndicate:

a group of investors who start and operate a RE business. They may be partners, corporate stockholders, tenants in common, etc

Title, chain of:

a history of deeds and other documents that can be used to determine how a title came to be vested in the current owner

if an individual buys into a planned unit development, s/he will receive:

a house and lot as separate property and ownership in a community association that owns the common areas

Townhouse:

a house of 2 or 3 stores connected or next to a similar house

Submitting a false statement on an application is grounds for all the following EXCEPT:

a jail sentence (suspension or revocation of any license, refusal to grant or renew a license, imposition of sanctions)

Mortgage, wrap-around:

a junior lien or second mortgage, which "wraps" into it the balance on the first lien. Frequently used in seller financing

Home equity loan:

a junior loan in which the homeowner uses the equity in his or her home for home improvements, consolidation and payment of credit card and consumer debt, car purchase, ed, medical expenses, etc

Condominium:

a large property development in which individual units are bought and sold and common areas shared

Balloon payment:

a larger than usual onetime payment on a loan, often a mortgage, that is usually the final one for discharging the debt

Sherman antitrust act:

a law that prohibits anti-competitive conduct, whether by 2 or more separate entities participating in a common scheme or plan intended to unreasonably restrain trade, or by a single entity attempting to create a monopoly

National environmental policy act:

a law that requires any federal agency to prepare an environmental impact statement disclosing the effects of a development whenever a proposed project would have a major impact on the environment

Partition Suit:

a lawsuit whose goal is to force division or sale of a co-owned property, w the proceeds to be divided among the owners

Estate at Sufferance (also: Tenancy at Sufferance):

a leasehold estate arising when a tenant continues to occupy property w/out permission after the lease expires. Also called a tenancy at sufferance

Estate at Will:

a leasehold estate occupied by a tenant for an indefinite time, w/out regular rental periods, terminable by one or both parties

Estate for Years:

a leasehold estate that is to last a definite period of time, after which it expires. May be for any specified period

Joint Tenancy:

a legal arrangement under which 2 or more ppl own property together, each w equal rights and obligations

Lien, Contractual:

a legal claim against property as a result of a voluntary contract, such as a mortgage

Lien, Income Tax:

a legal claim by gov on the assets of a delinquent income taxpayer

Lien, Property Tax:

a legal claim encumbering a parcel of RE until the property taxes have been paid

Lien, Judgment:

a legal claim on all property of someone who owes money in a lawsuit, which enables the creditor to sell the property to pay the judgment

Laches:

a legal defense that bars recovery of damages if the plaintiff has been tardy or negligent in seeking relief

Deed, special warranty:

a legal document in which the seller guarantees the title against defects arising only during his or her ownership of a property, not before that

Instrument:

a legal document that creates, modifies, or terminates a right. Such documents include promissory notes, deeds of trust, mortgages, installment sales contracts, leases, and assignments

Deed, gift:

a legal document that permits the transfer of property w/out consideration

Deed, grant:

a legal document that permits the transfer of real property and shows that the title hasn't been granted to someone else

Deed, quitclaim:

a legal document that releases an individual's interest in a specific property but w no warranties of ownership

Deed, warranty:

a legal document that transfers real property and declares it free of outstanding mortgages, liens, and encumbrances and promises defense of the title against claims by 3rd persons

Deed, Correction (also: reformation deed):

a legal document used to correct a specific error in a previous deed. Also called a reformation deed

If a broker places his/her own money into a designated trust account in order to maintain a minimum balance required by the bank, this is:

a legal practice

Estoppel:

a legal principle under which a person is barred from asserting or denying a fact contrary to his previous acts or words

Bankruptcy:

a legal proceeding for an insolvent debtor that provides relief from payment of some debts

Strict foreclosure:

a legal proceeding in which the amount due on a mortgage is determined and the borrower given a deadline by which to pay, w the understanding that in the event of default, his or her rights will be terminated and the title transferred to the creditor

Foreclosure:

a legal process that terminates a defaulting borrower's interest in a property, enabling the lender to seize it as pledged collateral

Will:

a legally binding document in which an individual specifies the disposition of his or her property after death

In a foreclosure by power of sale, the procedure begins when:

a lender files a notice of default w the public recorder

Assumption fee:

a lender's charge for processing records for a home buyer who assumes an existing loan

Loan commitment:

a lender's promise to make a loan subject to an appraisal and underwriting

To help a buyer get an FHA loan, a RE broker should put the buyer in contact w:

a lending institution approved by FHA

Holdover Tenant:

a lessee who remains on property after the lease expires

The Ed, Research, and Recovery Fund covers losses to a member of the public resulting from the actions of:

a licensee performing acts requiring a RE license

Designated agency occurs when:

a licensee represents a seller and a diff licensee affiliated w the same firm represents a buyer who is interested in the seller's property

Restriction:

a limitation on how real property may be used. A zoning ordinance is an example of a public restriction. A private restriction - typically created in a deed, agreement, or a subdivision's general plan - is usually in the form of a covenant or promise to do or not do a specific thing

Steering (or channeling) involves a RE professional's steering protected classes toward:

a limited # of choices

Scarcity:

a limited amount of available RE, which influences supply and demand

Income tax:

a tax on money earned, through employment or other means

Mortgage, reverse (also: reverse annuity mortgage):

a loan available to a person 62 or older that allows him or her to convert some home equity into cash and receive periodic payments. It is payable when the borrower dies, moves out, or the property is sold. Also called a reverse annuity mortgage

Mortgage, variable rate:

a loan for which interest rate isn't fixed

Mortgage, graduated-payment:

a loan in which payments start low, then gradually increase

Mortgage, participation:

a loan in which the lender may share in the income or resale proceeds, becoming a partner rather than just a lender

Mortgage, construction:

a loan made to finance home-building or improvement of land. Funds are usually disbursed in increments as construction progresses

Residential mortgage loan:

a loan or agreement to extend credit made to a person, which loan is secured by a deed to secure debt, security deed, mortgage, security interest, deed of trust, or other document representing a security interest or lien upon any interest in one-to-four family residential property located in Georgia including the renewal or refinancing of any such loan [O.C.G.A. 16-8-101(4)]

Mortgage, purchase money:

a loan provided by the seller to the buyer as part of the purchase. Can be used when the buyer is assuming the seller's mortgage

Mortgage, fully amortized:

a loan scheduled to be repaid in its entirety by the end of the mortgage term, w/out the need for a balloon payment

Mortgage, open-end:

a loan that allows the borrower to increase the principal up to a specified maximum, w/out negotiating a new mortgage

Mortgage, junior:

a loan that follows a previous mortgage on the same property or, by agreement, is made subordinate to a later-recorded mortgage

Mortgage, second:

a loan that is taken out against the value of a home when there is already one mortgage

Mortgage, term (also: straight mortgage):

a loan that isn't amortized; that is, the borrower pays only interest over the mortgage term, then a balloon payment of the entire principal at the end. Also called a straight mortgage

Conforming Loan:

a loan that meets Federal Housing Administration criteria, making it eligible to be sold to Fannie Mae or Freddie Mac

Mortgage, Flexible Rate:

a loan that permits the borrower to overpay or underpay as desired

Mortgage, level-payment:

a loan that provides for equal payments of principal and interest each month or payment period

Mortgage, partially amortized:

a loan that provides for partial amortization over its term, followed by a balloon payment on the maturity date

Non-Recourse Loan:

a loan under which, in the event of default, the lender may take possession of assets pledged as collateral but can make no other claims against the borrower

Mortgage, adjustable rate:

a loan whose interest rate is subject to change

Take-Out Loan:

a long-term loan that replaces another loan, typically taken out after construction is completed and used to pay off the construction loan

Economic obsolescence (also: external obsolescence):

a loss in value due to factors external to the property, such as neighborhood blight. Also called external obsolescence

Asbestos is:

a material used for its fire retardant qualities

Warehousing:

a means of assembling and pledging loans to serve as security for a lien of credit from a commercial bank

Exchange:

a means of trading equities in 2 or more properties so the transactions are treated as a single one w a single escrow

Acre:

a measure of land equaling 4,840 square yards, or 43,560 square feet

Credit union:

a members-only bank that specializes in short-term consumer loans but may also provide long-term financing of RE, equity loans, and home improvements

Adverse Possession:

a method by which a person other than the owner of record is able to acquire title to real property through continuous possession for a statutory period

Approach, reproduction cost:

a method of calculating the cost of constructing a duplicate building w the same materials, design, and workmanship but at today's prices

Approach, replacement cost:

a method of calculating the cost of constructing a new building w similar materials but at today's prices

A commission is not:

a minimum amount set by the state, a percentage of the principal's budget, a maximum amount set by the state, an amount in excess of a net amount to the seller, an amount in excess of a gross amount to the seller,

Benchmark:

a monument or similar item used to establish elevation

Which of the following could not be RE?

a mortgage (an easement, land, fixtures)

A purchase money mortgage is:

a mortgage given to the seller by the purchaser as part of the purchase price

Conventional loan:

a mortgage written w/out governmental underwriting, i.e., not guaranteed by the Federal Housing Administration or Veterans Administration

Certificate of Occupancy:

a municipal permit certifying that a home meets all safety regulations and that any improvements are in compliance w the building code

Agreement:

a mutual understanding or arrangement; may or may not be a contract

A broker agrees to list a seller's property. The listing agreement does not include a list price or a commission rate. However, the broker and the seller agree that the seller will keep $200,000 of the proceeds from a sale, and the broker will receive all excess money earned from the sale over the amount. This type of listing is:

a net listing, which is illegal in GA

Facilitator:

a non-agent who, in some states, represents one party in a RE transaction but has no fiduciary responsibility. However, he or she generally is obliged to exercise reasonable skill and care, deal in good faith, disclose all material facts, and account for money and property

Interest-only loan:

a non-amortized loan in which the borrower pays only interest during the term of the loan, than begins either to repay the principal in installments or pays it off in a lump sum

Arbitration:

a nonjudicial dispute resolution process in which a neutral third party conducts a hearing and makes a decision that is binding on the parties

Estate, Dominant (also: Dominant Tenement):

a parcel of land that benefits from an easement. Also called dominant tenement

Exception:

a part of real property described in the deed that is left out, w/held, or excepted from it

Mortgage, shared equity (also: shared appreciation mortgage):

a participation loan in which the lender conditions its loan commitment on receiving a sizable percentage of the property's appreciation in value. Also called a shared appreciation mortgage

Limited Partnership:

a partnership consisting of one or more general partners as well as limited partners. The general partners manage the business affairs of the partnership. The limited partners take no part in those affairs and have no liability for partnership debts in excess of their invested capital

Buydown:

a payment to the lender form the buyer, seller, and/or a third party that reduces the interest rate for the first few years of the loan

Compensation for property managers usually is based on:

a percentage of rents collected

Tax Ratio:

a percentage used to determine the amount of property tax due when the assessed value is less than 100% of market value

Point of Beginning:

a permanent reference point, which is called a monument, that starts a description of metes and bounds

According to state and federal fair housing laws, persons protected under the "handicap" or "disability" classification include all of the following EXCEPT:

a person currently addicted to methamphetamine (a person w a history of mental illness who is currently healthy, a person who often visited by a friend in a wheelchair, a person who is regarded as mentally disabled due to a speech impediment)

Attorney-in-fact:

a person holding power of attorney, which authorizes him or her to transact business and sign agreements on behalf of another individual

Legatee:

a person identified in a will to whom a legacy is bequeathed

Debtor:

a person or entity who is in debt and has a legal obligation to repay another person or entity

Associate broker:

a person qualified to be a broker but licensed under another broker

Grantee:

a person to whom title or an interest in property is given in a deed

Broker:

a person who acts as an intermediary in a business transaction, such as a RE agent representing one of the parties

Independent contractor:

a person who acts for another, but whose methods of achieving the desired results are not subject to the control of another

Grantor:

a person who gives title or an interest in property to another in a deed

Certified general appraiser:

a person who has met specific qualifications for estimating the value of all types of real property, regardless of value

Certified residential appraiser:

a person who has met specific qualifications for estimating the value of residential property consisting of one of four units, regardless of value or complexity

Under federal fair housing law, a landlord is required to rent to all of the following EXCEPT:

a tenant who is black and smokes (a family of four who is adopting a fifth child, a recovering drug addict, a white male who is a Muslim)

Licensed Appraiser:

a person who has met the qualifications for receiving a state license to estimate the value of noncomplex residential units w a value of less than $1 million that are designed for one to four families; complex residential units w a value of less than $250,000 that are designed for one to four families; and nonresidential property w a value of less than $250,000

Donor:

a person who makes a gift

Donee:

a person who receives a gift

Devisor:

a person who, by will, disposes of real property

Devisee:

a person who, by will, receives a gift of real property

Fixture:

a personal item attached to property in such a way as to become part of it, e.g., a plumbing fixture or cabinet

Vested interest:

a personal stake in present or future enjoyment of real property

A mortgage is:

a pledge of property to secure a debt

Legal Description:

a precise description of property being conveyed based on the US Public Land Survey System

Age-life method (also: straight-line method):

a presumption that improvements depreciate at an equal rate each year until the end of their economic lives, when a structure would be torn down. Also called the straight-line method

Supply and Demand:

a principle holding that market value is affected by the interaction btw quantity of housing available and amount of interest in acquiring it

Operating budge:

a projection of anticipated income and costs for annual operation of the property

Covenant against encumbrances:

a promise by the seller that a property is owned free and clear, w no tax liens, mortgages, or assessments except as stated in the deed

Covenant of seisen (or seizen):

a promise by the seller that he or she owns and possesses the property, has a fee simple title w no conditions, and the right to transfer title

Covenant of Warranty:

a promise by the seller that he or she will defend the title against any claims by 3rd parties

Covenant of quiet enjoyment:

a promise by the seller that the buyer will not be disturbed by any 3rd party's claim to or lien on the property

Covenant of further assurance:

a promise by the seller to perform any additional acts necessary to provide that title as promised to the buyer

Covenant:

a promise that specific activities will or will not be carried out, such as a promise to build a house in a particular architectural style or to refrain from using property in a certain way

Note:

a promise to repay a loan under specified terms. Evidence of a debt

All of the following concerning RE financing are true EXCEPT:

a promissory note is the security for the deed of trust (an owner who borrows and executes a deed of trust is the "grantor."/ the mortgage or deed of trust creates collateral for the debt/ a mortgage is a lien on real property; an execution of a mortgage does not transfer title)

FSBO ("For Sale by Owner"):

a property being sold by the owner w/out an agent's services

Spot Survey:

a property report to determine whether there might be problems w boundaries, easements, encroachments, or improvements. Often performed for a title company

Appurtenance:

a property right, privilege, or improvement that is permanent and passed along when a property is sold unless a contrary intention is manifested. Examples include rights-of-way, easements, water rights, and improvements

Nuisance:

a property use or characteristic (such as offensive noise or odor) that unreasonably interferes w the use by others of their own property

Scheduled gross income:

a property's total potential income from all sources, e.g., rent, vending machines, parking, etc

Assignment of rents provision:

a provision in a loan agreement that entitles the lender to take possession of a property and collect any income from it if the buyer defaults

Clause, Power of Sale:

a provision in a security instrument that gives the lender or its representative (e.g., a trustee) the authority to sell w/out judicial foreclosure a property in default

Habendum Clause:

a provision that defines the quality and quantity of an estate being conveyed. Needed only when the grantor is conveying less than a fee estate.

Clause, Acceleration (also: Alienation Clause, Due on Sale Clause):

a provision that gives the lender the right to demand full repayment of the mortgage if the owner sells the property or transfers title to it. Also called an alienation clause or due on sale clause

Clause, Lock-In:

a provision under which the lender guarantees a quoted interest rate for a specific period of time. Also prohibits any repayment of principal during the time period

Bona Fide Purchaser:

a purchaser of real property who pays consideration in good faith w no notice of any other person's claim to the title

To be eligible for a broker's license, a firm must designate:

a qualifying broker

Court action taken to remove a cloud on title, when a person is not cooperative in removing title defects, is called:

a quiet title action

The type of deed commonly used to clear up a cloud on title is:

a quitclaim deed

FICO Score:

a rating of how an applicant has handled credit. Scores close to 800 indicate excellent credit and result in favorable terms. Those around 600 or below indicate poor credit and result in higher interest rates, higher down payments, or rejection of credit applications. (FICO is an acronym for Fair Isaac Corporation, a CA data analytics firm.)

Estate, Freehold:

a real property inheritance of indeterminable duration, e.g., a fee simple or life estate

Split agency (also: assigned agency, designated agency):

a relationship that permits one agent in a brokerage to represent the buyer and another in the brokerage to represent the seller in the same transaction. Also called assigned agency or designated agency

A list or account of all rent from the units or leased space is referred to as:

a rent roll

Innovations for marketing properties through multiple listing services do NOT include:

a requirement that a person be a licensee to search listings. (computerized listings, video display of listings, the ability to display listings other than those w the company hosting the website)

Mortgage, closed-end:

a restrictive loan of a fixed amount that cannot be prepaid or renegotiated w/out taking out a new mortgage

Easement, Negative:

a right held by the dominant estate that restricts use by the servient estate, such as a view easement

A riparian owner is one who owns land bordering on:

a river

Land contract (also: conditional sale contract or contract for Deed):

a sales contract whereby the buyer takes possession of the property but the seller retains title until all or a prescribed portion of the purchase price has been paid. Also called a conditional sale contract or contract for deed

Trust Deed (also: Deed of Trust):

a security instrument used in lieu of a mortgage that involves 3 parties: the borrower who signs the trust deed, the lender who benefits from the agreement in the event of default, and a neutral 3rd party (trustee) to whom the property is hypothetically deeded as security for payment of the debt. Upon default, the trustee can sell the property and transfer the proceeds to the lender to pay off the debt. Also called a deed of trust

money received by a broker on behalf of others is deposited in:

a separate trust or escrow account

Deed:

a signed legal document that transfers title to real property from a seller to a buyer

Mortgage, blanket:

a single loan that applies to more than one piece of real property

Origination Fee:

a small charge, roughly 1% to 2% of the loan amount, as a fee for processing a new mortgage application

A seller listed her townhouse w a local RE broker. the listing is an example of:

a special agency.

Fiduciary Relationship:

a special bond built on trust, confidence, and responsibility

To be valid, an exclusive right to sell listing must have:

a specific ending date

Uniform Residential Appraisal Report:

a standard form used to estimate property value based on an analysis of key features

Escalation:

a stipulation to a purchase offer that automatically escalates the bid to a specific amount if another offer comes in above the original offer

An existing first mortgage loan can generally be changed to a second or junior lien by:

a subordination agreement signed by the first mortgagee

Avulsion:

a sudden and perceptible loss of land in one location and its deposit in another, due to the action of water

Title, abstract of:

a summary or history of all transfers, conveyances, legal proceedings, and other actions connected to a property

Affidavit:

a sworn written statement or declaration made before an official w authority to administer an oath or affirmation

Unit-in-Place Method:

a tactic used by appraisers to estimate the reproduction cost of a property by calculating the cost of producing and installing each component

If taxes are not paid on real property, the owner is subject to:

a tax lien and loss of the property

In remodeling their home, the Wades put in the following items. Once in place, all would be fixtures EXCEPT:

a throw rug in the front entry hall (the built-in dishwasher, custom-fitted wall-to-wall carpet installed over plywood subflooring, the built-in kitchen range)

Standard Coverage:

a title insurance policy that insures against matters that are on the public record unless excluded or excepted from coverage. It also insures against some hidden risks

A collection of property records maintained by a title company for all counties in which the company does business is referred to as:

a title plant

When a title insurance company receives a request for title insurance, a title examiner will perform:

a title search

National association of realtors:

a trade association that lobbies at the national level for the RE industry and also oversees a code of ethics, model forms and policies, and provides educational opportunities for members

Section 1031 Exchange (also: Nontaxable Exchange or Tax- Deferred Exchange):

a transaction authorized by Section 1031 of the Internal Revenue Code that defers some taxes on so-called like-kind property (e.g., RE for RE). also called a nontaxable exchange or tax-deferred exchange

According to the brokerage relationships in RE Transactions Act (BRRETA), a broker who does NOT have a client relationship w any of the parties in a transaction and who performs only ministerial acts for one or more parties for compensation is called:

a transaction broker

Sales-Leaseback Arrangement:

a transaction in which an owner sells property, then agrees to lease the property back from the purchaser

Demise:

a transfer of property for a definitive term

Reversion:

a transfer of property, but w the owner reserving a right to future possession or enjoyment of it

Asbestos:

a type of building material used primarily in insulation until the 1970s. w repeated exposure, it can cause lung and stomach cancers

Lien, Statutory:

a type of claim authorized by state statute, such as a mechanic's lien or property tax lien

Mortgage, package:

a type of loan that includes property, improvements, and movable equipment and/or appliances as security

Title insurance, extended coverage:

a type of policy that expands the risks that standard title insurance typically insures against to include unrecorded liens and physical easements, facts a physical survey would show, water and mineral rights, and the rights of tenants and others under unrecorded agreements

Allodial:

a type of property ownership in which the land is owned free and clear w no restrictions except for certain powers held by gov. this is in contrast to the feudal system

Feudal System:

a type of property ownership system in which the land is owned by a sovereign who, in turn, may grant lesser interests in return for service or loyalty. This is in contrast to the allodial system

A contract based on one party's promise in exchange for an act from the other party is classified as:

a unilateral contract

An option to buy RE is:

a unilateral contract

if a RE professional prepares a sales contract using financing in which the stated sale price or down payment is higher than it really is, it is:

a violation of lending laws

an option in a contract by which the owner of property gives another person the right to purchase his or her property for a stated sum w/in a given period of time is:

a voluntary encumbrance

Party Wall:

a wall shared by separate properties, e.g., adjoining townhouses

Installment sale:

a way to defer and spread out income tax payments on RE gains

Injunction:

a writ or court order that requires or prohibits a specific action

To create a valid listing for the purposes of selling RE, a broker must have:

a written contract

Mortgage:

a written contract that permits the buyer to borrow money by providing something of value - the property - as security for the loan

When a lender "calls in" a note, the lender is invoking the:

acceleration clause

A broker enters an agreement by accepting an employment opportunity and then does nothing to promote it. This employment agreement is terminated by:

abandonment

A property is being renovated and contains asbestos. The first step should be to:

abate the asbestos

If the borrower defaults on the regular payments specified in a promissory note secured by a mortgage, the lender has the option of calling the entire balance of the loan due and payable, provided the note includes a(n):

acceleration clause

The clause in a promissory note and the mortgage or deed of trust that allows the lender to demand full and immediate payment if the borrower is in default is known as the:

acceleration clause

Accretion:

accession by natural forces, such as the gradual increase of land along an ocean shoreline or stream bank resulting from action of the water

"Ad valorem" means:

according to valuation

A declaration made by a person to an official stating that a deed has been freely and voluntarily executed is called a(n):

acknowledgment

A formal declaration that the person signing a document is the person named in the document and that the signing of the document is a free and voluntary act is referred to as:

acknowledgment

A transaction broker is permitted to:

act as a scribe in preparing RE form contracts or leases

RE professionals need to be certain that their language is clear and they have stated what the parties intended, when writing sales contracts, to avoid all of the following EXCEPT:

acting as a mortgage broker (voidable contracts, unauthorized practice of law, undisclosed dual agent)

A mortgage broker:

acts as an intermediary

The legal removal of a tenant from a leased property bc of a violation of the lease terms is known as:

actual eviction

add $545 to $124,000

A seller sells her home and receives $100,000, which represents a profit of 6% over what she paid for it. If you were asked to determine the amount she paid for it, the first step would be to:

add 6% to 100%

Residential RE sales transactions often require more info than will fit in the spaces provided on the sales contract form. When this occurs, documents providing the additional info are attached to the contract. These documents are referred to as:

addenda

When presenting an offer to a seller and the seller has legal questions about the contract, the RE professional should:

advise the seller to consult a lawyer

The general rule is that a buyer may NOT w/draw his offer:

after proper notification of the seller's acceptance of the offer. (after an earnest money deposit has been given, after the seller's acceptance of the offer but before the buyer is notified, before it is presented to the seller)

The deed covenant that warrants the buyer against encumbrances not stated in the deed is called the covenant:

against encumbrances

The relationship established btw a principal and an agent is known as:

agency

Someone who is employed by and has the legal authority to act for someone else is called a(n):

agent

The transferring of title to real property to another is defined as:

alienation

property is being sold whereby the purchaser is to continue the payments of an existing amortized loan secured by the first mortgage. In order to determine if the buyer may assume the existing mortgage w/out penalty, the RE agent should check to see if the mortgage contains a(n):

alienation clause

any kind of change in ownership is known as a(n):

alienation of title

Addendum:

an addition to a contract

Accession:

an addition to real property through human efforts (annexation) or natural forces (accretion)

Rural Housing Service:

an agency of the U.S, Department of Agriculture Rural Development that makes financing available in primarily rural areas for the purchase, repair, and rehabilitation of housing occupied by low-to moderate- income families and senior citizens

Implied agency:

an agency relationship created when a person acts in a manner that implies he or she is an agent. Creates legal liabilities for the agent

Dual agency:

an agency relationship legal in some states whereby a single agent is permitted to represent both of the principals in a transaction

On a co-op sale in a single agency situation, the selling broker is:

an agent for the buyer

Special agent:

an agent who has limited authority to conduct a single transaction for a principal

Universal agent:

an agent who has the broadest authority that can be lawfully given. He or she is authorized to perform all acts that can legal be delegated, including signing contracts related to all personal and business matters of the principal

"Single agency" refers to:

an agent who represents only one party

Commission:

an agent's compensation for services performed in a RE transaction. Typically a percentage of the selling price or rent

When a signed sales contract is assigned, the disbursal of earnest money is determined by:

an agreement btw the parties

Mortgage, assumption of:

an agreement by a purchaser to take over liability for payment of an existing note secured by a mortgage or deed of trust against the property

Easement in Gross:

an agreement giving a person (rather than another property) the right to use another's land, such as a public utility right of way

Easement, Appurtenant:

an agreement that permits the use of another party's land for a specific purpose that benefits one parcel of land and passes w ownership of that land

Deed, Bargain and Sale:

an agreement that purports to convey title to RE, but w no warranties that the seller actually has a right to sell

Tying arrangement:

an agreement to sell one product but on the condition that the buyer also purchase a diff, or "tied," product. Also called a "tie-in."

Land Trust:

an agreement under which legal title to property is transferred to a trustee

Under the 1988 Fair Housing Amendments Act, the definition of protected handicapped or disabled individuals include all of the following EXCEPT:

an alcoholic w a history of violence (the mentally disabled, a drug addict in treatment, those w HIV/AIDS.)

Price-fixing:

an antitrust violation that occurs when RE brokers conspire to agree directly or through their trade associations to fix or stabilize their fees or commission rates, whether formally, informally, or even innocently

A 3rd party that acts as an intermediary btw an appraiser and a user of appraisal services and administers a network of indep contractor appraisers is:

an appraisal management company

Recapture Rate:

an appraisal term that describes the rate at which investment in a wasting asset - one that's being used up - is likely to be recovered

Appraisal:

an appraiser's analysis of facts about a property, resulting in an estimate or opinion of its value

Buffer Zone:

an area in urban planning that separates 2 incompatible zones, e.g., land btw a residential area and an area zoned for industrial use

Partnership:

an arrangement among 2 or more ppl who co-own a business for profit. It may be a general partnership or a limited partnership

Assume and agree to pay:

an arrangement by which a buyer takes on primary responsibility for an existing mortgage and agrees to make payments directly to the lender

Non-agency:

an arrangement whereby a licensee acts as a facilitator, rather than as an agent, in a RE transaction and does not have a fiduciary responsibility to any party to the agreement. Permitted in some states

Claim of Right:

an assertion of ownership by someone occupying property w/out legal title. Generally used to describe hostile or adverse use

In GA, a RE closing may be conducted by:

an attorney only

Title, certificate of:

an attorney's written opinion after a review of records that ownership of a particular property is as stated

Conditional Use Permit:

authorization for a property owner to use land in a way that does not conform to zoning requirements so long as other terms are met

When payment from the Recovery Fund is authorized, the license of the person against whom the claim is made is:

automatically revoked

A broker enters into a nonexclusive (open) listing w a seller. The listing does not have a set exp date. If the property does not sell and the parties do not take action to terminate, the engagement will:

automatically terminate in 1 year

An estate for years:

automatically terminates at the stated exp date

At closing, title insurance that protects the borrower is:

available at the borrower's option

A short-term lease of less than 1-year duration should be in writing to:

avoid misunderstandings

if a seller has already accepted one offer and later accepts another offer on a contingent basis, this contract is called a:

back-up contract

The borrower's mortgage is payable in monthly installments that include principal and interest over 15 years; the last payment is a larger amount than the regular monthly payments. This is known as a:

balloon mortgage

When the loan on real property requires periodic payments that will not fully amortize the loan by the final payment, the final payment is called the:

balloon payment

A "real estate appraisal" is an estimate of value:

based upon analysis of facts as of a specific date

The primary survey line running east and west in the rectangular survey is a:

baseline

To obtain a community association manager license, an applicant must:

be at least 18 years of age and complete education totaling 30 hours

If a Commission staff member or the Commissioner is licensed, he/she must:

be on inactive status

An escrow is:

beyond the control of any interested parties by themselves

A contract for the sale of real property includes the sale of certain removable items, such as refrigerators and furniture. Upon payment and delivery of the deed, the seller should also deliver a(n):

bill of sale

As an agent for the seller, a principal RE broker, is usually authorized to do all of the following EXCEPT:

bind the client under a sales contract (place a "for sale" sign on the listed property, advertise the listed property, cooperate w other brokers to effect a sale)

A RE agent for the seller is usually authorized to do all of the following EXCEPT:

bind the principal under a sales contract

A salesperson tries to induce owners to sell their homes by telling them that persons of another race, religion, or national origin are moving into their neighborhood. This is a violation of the Rules of the GA RE Commission and an ex of:

blockbusting

The practice of inducing panic-selling on the basis of race or other minority group is known as:

blockbusting

An owner of a cooperative apartment has:

both an ownership interest and a proprietary long-term lease

The DO NOT CALL rules apply to telephone solicitations made:

both in-state and state-to-state

In a so-called "tight money market," one would expect to find:

both potential borrowers delaying projects and marginal borrowers forced out of the credit market

The escrow agent represents:

both the buyer and seller

charged on the difference btw the sales price and the loan balance assumed by the buyer

Public land use controls are established primarily at the ______________level.

city and county

Settlement statements are commonly referred to as:

closing statements

As part of his/her membership, a broker who is a REALTOR must pledge to abide by NAR's:

code of ethics

When a seller breaches a sales contract, the buyer may do all of the following EXCEPT:

collect liquidated damages (sue for monetary damages, rescind the contract, sue for specific performance.)

Community association management services include:

collecting, controlling, and disbursing funds of a community association

The income approach would be used to appraisals of:

commercial and investment properties rented to tenants

Which of the following can occur if a broker doesn't act in good faith and in the interest of the client? The broker could lose his/her:

commission

According to the Commercial RE Broker Lien Act, a lien may be filed if a(n):

commission was earned

The purpose of the sales contract is to:

commit each party to the price, terms, and conditions of the sale

In a condominium, each unit owner holds an undivided interest in areas such as the manager's office, lobby, and elevators. These areas are considered:

common elements

The buyer, even though he has signed the purchase and sale contract, can w/draw his offer to purchase until the acceptance is:

communicated

The last requirement in the process of offer and acceptance that creates the executory contract is:

communication of acceptance

to be enforceable, a RE sales contract must, in all cases, have:

competent parties

Interest paid on original principal and also on the accrued and unpaid interest that has accumulated is:

compound interest

When an owner of land refuses to sell his land to the gov or any governmental agency under the right of eminent domain, the process used to require the owner to sell his land is:

condemnation

to realize the maximum value of property, a reasonable degree of sociological and economic homogeneity is necessary, but it should not become monotonously uniform. In RE, this concept is called the principle of:

conformity

In a properly developed community, values are upheld by:

conformity to land use objectives

A promise to perform in a contract is called:

consideration

In a home sale, the seller promises to sell and the buyer promises to buy. This is known as:

consideration

One essential for a valid contract is usually something of value, such as a promise to do something, money, property, or personal services. This is called:

consideration

When leased premises reach such a physical condition due to lack of attention by the landlord whereby the tenant is unable to occupy them for the purposes intended, the situation is legally recognized as a(n) _________________eviction.

constructive

A tenant leased a heated apartment, but the landlord failed to provide heat bc of a defective heating plant. The tenant vacated and refused to pay rent. This is an example of:

constructive eviction

a discharged serviceman who wishes to obtain a GI Bill (VA) mortgage guarantee must first get a certificate of:

eligibility from VA

When the landlord allows a situation to occur that makes it impossible for the tenant to enjoy the premises under the terms of the lease, it is known as:

constructive eviction

A person cannot successfully claim that he did not know about the content of any recorded document. This is due to the legal principle known as:

constructive notice

If a metes and bounds description must be prepared, a licensee should:

consult her broker

A contractual provision making the sale of a home subject to the buyer qualifying for a particular kind of loan is called a:

contingency

A provision in an offer to purchase that requires the completion of a certain act before the contract is binding is known as a:

contingency

if a seller has entered into an executory contract and wants to make a counteroffer on another offer that just came in, the counteroffer should be:

contingent on the contract not closing

"An agreement btw competent parties based upon legal consideration creating legally enforceable duties and obligations" is the definition of:

contract

A written agreement wherein a seller agrees to sell and a buyer agrees to buy RE on the terms and conditions set forth therein is called a:

contract of sale

Breach of contract may be remedied by all the following EXCEPT:

contract renegotiation (contract rescission, compensatory damages, specific performance)

Private mortgage insurance is usually required on:

conventional loans w a loan-to-value ration of 90% or 95%.

Title to RE is alienated by:

conveying a title

An owner occupies an apartment in a multi-unit building. At the time she moved in, she received a proprietary lease, as well as stock in the building corporation that holds title to the land and building. This form of ownership is known as:

cooperative

A seller sells her home and receives $100,000, which represents a profit of 6% over what she paid for it. If you were asked to determine the amount she paid for it, this would be a ________ problem.

cost

The first step of the ______________________is to estimate the current cost of an improvement, including labor and materials.

cost approach

Replacement cost is best described as the:

cost of building a property of equivalent utility w the same or similar materials

All of the following are factors generally applied when determining whether an item of personal property has become real property EXCEPT:

cost of the article (agreement btw the parties, permanence of annexation, relationship btw the parties)

Variable Expenses:

costs that fluctuate when occupancy does. Examples: fuel, utilities, decorating, repairs, advertising, and management

Fixed Expenses:

costs that remain the same even when occupancy fluctuates. Examples: mortgage or rent payments, property taxes, insurance

A seller rejects a written offer made by a buyer, alters the terms of the offer, and has the new offer delivered to the buyer. This situation describes a(n):

counteroffer

When an offeree rejects an offer and becomes an offeror, the immediate result is a(n):

counteroffer

Title action, quiet:

court action taken to remove a cloud on the title

A late payment penalty is included as a provision in many RE loans in order to:

create the motivation for timely payment

A broker's listing contract in the form of a letter addressed by the owner to the broker provides that the broker will be paid a commission if w/in 30 days the RE is sold for $30,000 "by you, by me, or by anyone else." This:

creates an exclusive right to sell listing

When considering protection of investment in making long-term amortized loans having a high loan-to-value ratio, lenders tend to emphasize both the value of the collateral as a marketable asset and the:

credit of the borrower

A sales person has property listed in Overton Hills and is hosting an open house. A prospective buyer comes to the open house. The prospective buyer should be treated as a/an:

customer

If the buyer's agent is being compensated from the commission paid by the seller, the buyer's agent will typically treat the seller as a:

customer

a valid promissory note provides legally acceptable evidence of:

debt

an example of a variable operating expense in the operation of a large office complex would be:

decorating costs

Assume that the trend in architectural design is toward more contemporary-styled homes. Bc of this trend, a conservatively designed home will tend to:

decrease in value more rapidly than the more contemporary-styled home

Adjustments:

decreases or increases in sales prices, rendered in dollar amounts or percentages, that reflect a property's value based on comparable sales

if the demand for houses remains constant and the supply:

decreases, the value will increase

The turning over of land by a developer to a public use is called:

dedication

A private agreement that protects homeowners from an erosion in property value due to the construction of nearby buildings that are incompatible w the neighborhood is a(n):

deed restriction

When a zoning regulation permits a specific use of a property, but a private restriction contained in the deed limits that use of the property, the one that could prevail is the:

deed restriction

All of the following are government rights EXCEPT:

deed restrictions (police power, escheat, taxes)

BRRETA:

defines material facts as "those facts that a party does not know, could not reasonably discover, and would reasonably want to know."

Upon the termination of his lease, the tenant refused to sign a new lease under diff terms. In such a case, the landlord can:

demand possession of the property

When you turn over a security deposit for a lease to your broker, s/he should:

deposit it immediately

A decrease in value brought about by deterioration through ordinary wear and tear, action of the elements, or functional or economic obsolescence is called:

depreciation

Wear and Tear:

depreciation of an asset due to ordinary usage

Testate:

description of someone who dies w a will

Effective demand:

desire or need for property along w the purchasing power to acquire it

According to the GA RE License Law, the relationship btw a broker and an affiliated licensee is:

determined at the discretion of the licensees

The maximum amount of commission on a RE transaction is:

determined by the broker's contract w the seller

The Ed, Research, and Recovery Fund is used to:

develop education materials and conduct research programs

According to BRRETA, an agent is not liable if the agent gives wrong info, provided the agent:

did not know the info was wrong and reference the source

The transfer of title by descent means the owner:

died intestate, and the property passed to his heirs

Steering:

directing home-seekers to particular areas bc of the presence or absence of neighbors of a diff race, religion, or national origin

The Truth-in-Lending Law seeks to:

disclose the effective interest charged and express it in an annual percentage rate

A listing is for property that was once the site of a methamphetamine lab, but the property has been cleaned. The seller and listing agent should:

disclose this fact to potential buyers

It is improper for a broker representing the owner to:

disclose to a buyer that a homeowner will take less than the list prices

According to the Brokerage Relationships in RE Transactions Act (BRRETA), a broker who represents a seller under a brokerage engagement has the duty to:

disclose to the buyer and the seller latent material defects pertaining to the property

A buyer's agent who is calling to set up a showing on a listed property should disclose the fact that she represents the buyer so that the listing agent can avoid:

divulging confidential info

The law considers the ___________________________________________ to include, but are not limited to, the following: - uniform residential loan applications or other loan applications - appraisal reports - HUD-1 settlement statements

documents involved in the mortgage lending process

An agency listing agreement btw the owner of real property and a RE broker:

does all of these (should contain all the responsibilities of both the broker and the owner/ creates a fiduciary relationship/ is an employment contract, employing the broker to secure a buyer.)

If a RE licensee is an indep contractor for a broker, the broker:

does not w/hold income taxes and Social Security from the licensee's commission checks

An agent representing both the buyer and seller in the same transaction is called:

dual agency

If the buyer authorizes a listing agent to represent him in the purchase and sale agreement negotiations, to provide him w counsel and advice, and to otherwise protect the buyer's best interest, what kind of relationship exists btw the buyer and the broker?

dual agency

Forcing someone to do something against his or her will in the execution of a contract is called:

duress

All of the following are true of the GA RE Commission EXCEPT:

each Commission member must be actively licensed as a broker w at least 5 years of experience (each Commission member is appointed by the Governor/ the Commission meets monthly/ the Commission is made up of 6 members, w each member serving a staggered 5-year term)

The owner of a commercial property enters into an open listing agreement w 3 diff brokers. In this situation:

each broker has the opportunity to earn the full commission by becoming the procuring cause of a sale

Every valid contract must meet all of the following requirements, EXCEPT:

earnest money (a legitimate purpose, an offer and acceptance mutually agreed upon, legally competent parties to the contract)

Alluvium:

earth, sand, or gravel gradually deposited by water on an ocean shoreline or stream bank

A telephone or electric company erecting poles and lines over private property is an example of a(n):

easement

The following document is recorded "I. Property Owner A, grant to Property Owner B a right of way for persons and vehicles along and upon the easterly 30 feet of the southerly 64 feet of Lot 1, Block 2, Smith's Addition to the City of Ontario, for access to Owner B's property." The interest created by the document is a(n):

easement

An easement created when there is no access to a street is a(n):

easement by necessity

When a party owns landlocked property and requires access over the land of an adjacent owner to reach his property, he would likely be entitle to a(n):

easement by necessity

In the gov rectangular survey system, Section 12 is located due:

east of Section 11

The period over which a property may be profitably utilized is know as:

economic life

There are 3 main causes of depreciation. Which one of these finds its origin in social sources and is the basis for the old axiom: "more houses are torn down than fall down"?

economic obsolescence

A complaint alleging discrimination in housing may be filed by:

either HUD or an individual adversely affected by an act of discrimination

the best way to limit the growth of mold is by:

eliminating moisture

A landowner is advised by the gov that a public utility company plans to cross his property w a power line. If the landowner refuses, the utility company can seek to acquire this right through the use of:

eminent domain

The power or right of governmental bodies to take RE for public use is called:

eminent domain

All of the following could be used to enforce zoning ordinances EXCEPT:

eminent domain (building permits, occupancy permits, on-site inspections)

Civil rights act of 1968:

enacted by Congress primarily to prohibit discrimination based on race, religion, national origin, or sex in the sale, rental, and financing of housing. Often called the Fair Housing Act

Civil rights act of 1866:

enacted by Congress to provide that all citizens shall have the same right, in every state and territory in the United States, as is enjoyed by white citizens to inherit, purchase, lease, sell, hold, and convey real and personal property

Often the best process for dealing w asbestos found in a property is:

encapsulation

If a house has a first mortgage lien, the property is said to be:

encumbered

An easement across a property would be a(n):

encumbrance

Permission to use property by the giving of an easement creates a(n):

encumbrance

If the task the broker was hired for is not completed, the listing contract:

ends on the exp date

A contract of sale that is contingent upon the buyer's ability to obtain leases in advance is:

enforceable

During the time period beginning when the buyer and seller sing the sales contract until the seller delivers the deed at closing, the buyer holds:

equitable title

The interest an owner has in her property over and above the mortgage debt is known as:

equity

A clause may be inserted into a lease allowing rent to increase based upon a formula. This is known as a(n) ____________ clause.

escalator

When a person dies intestate and no heirs can be found for intestate succession, the real property will revert to the gov through a process known as:

escheat

When a person dies leaving no heirs or instructions explaining how to dispose of real and personal property, or when the property is abandoned, ownership of the property reverts back to the gov. This is called:

escheat

A lease that has a definite termination date that can be clearly established at the beginning of the lease is called a(n):

estate for years

An owner willed his RE to his mother for the mother's lifetime, after which the property will pass to the owners daughter. The daughter has a(n):

estate in remainder

Freddie Mac:

ested as the Federal Home Loan Mortgage Corporation in 1970, Freddie Mac is a gov-sponsored enterprise that buys mortgages mostly from smaller financial entities, which it bundles and sells as mortgage-backed securities

A GA RE licensee's continuing ed requirements must be met:

every renewal period

A type of RE listing in which the brokerage firm receives a commission unless the seller sells the property is known as:

exclusive agency

The most common type of listing contract, which gives the brokerage firm maximum protection, is known as:

exclusive right to sell

no matter who sells the property during the listing period, the listing broker is entitled to a commission is a(n):

exclusive right-to-sell listing

When the parties to a contract have fully performed the terms, the contract may properly be described as:

executed

A contract that is in the process of being carried out is:

executory

If a RE sales contract has been signed by all parties, but closing has not yet taken place, the contract is referred to as:

executory

The Brokerage Relationships in RE Transactions Act (BRRETA) specifically states that a broker representing the buyer must:

exercise ordinary skill and care

A properly executed quitclaim deed will always convey a(n):

existing interest in the property

Settlement costs:

expenses the buyer and seller pay to close a RE transaction. The answers to questions about what is included, the amount, and who pays depend on the transaction and its terms, the existence of any liens against the parties or RE, and the type of financing to be used

A(n) ____________________ occurs when the parties to the contract declare their intentions either orally or in writing.

expressed contract

Default:

failure to fulfill a duty or promise to promptly repay interest or principal

The Fair Housing Amendments Act of 1988 extended anti-discrimination coverage to the handicapped/disabled and:

families w children

Amenities:

features that make a home more attractive or increase its value to potential buyers

In GA, most antitrust activity is prosecuted under:

federal antitrust laws

The kind of estate that has the maximum rights in land and is the most freely inheritable and transferable is a(n):

fee simple estate

the maximum estate that a person may hold in land is called a(n):

fee simple estate

The Ed, Research, and Recovery Fund is funded from:

fees paid at initial licensure

When a broker of property manager signs a contract to manage an owner's property, he becomes a:

fiduciary

The position of trust assumed by the broker as an agent for the principal is described most accurately as a:

fiduciary relationship

When an agency relationship is created, the agent has a relationship to the principal known as a:

fiduciary relationship

Establishing a condominium in GA requires:

filing a plat of the property, filing plans showing the locations and dimensions of the units, and making a declaration that includes specific details of the condominium

A RE licensee is permitted to:

fill in the blanks of a contract form that has been drafted by an attorney

While assisting a buyer in submitting an offer on a property, a RE licensee is permitted to:

fill in the blanks of a contract form that has been drafted by an attorney

FHA will insure lenders against losses on loans made to:

finance repairs, improvements, or alterations of existing residences

Savings Banks:

financial institutions that invest in RE loans for single-family properties as well as for apartments and some commercial structures

The most used contingency in a sales contract is for:

financing

The 3 common categories of expenses for rental property are:

fixed expenses, variable expenses, and reserves for replacements

When you attach personal property to a building so that, in a legal sense, it becomes real property, it is called a(n):

fixture

W commercial leases, inflation has tended to discourage use of the:

flat lease

Front Foot:

for sale or valuation purposes, a foot measured along the front of a property, w each front foot extending the depth of the lot

The legal procedure that is implemented when a borrower defaults on a note secured by real property is referred to as:

foreclosure

Judicial foreclosure:

foreclosure of property through court action

which of the following is a gas that is emitted by a variety of household products and building materials:

formaldehyde

When a salesperson transfers to a new broker, any written listings or names of prospects are the property of the:

former broker

A listing broker shows a buyer a rural property. When the buyer asks about getting a water permit, the broker says it should not be an issue, even though he is aware that the seller was recently denied a water permit. After closing, the buyer is also denied a water permit. The broker's behavior is considered to be:

fraud

The deed covenant that obligates the grantor to perform any acts necessary to protect the title conveyed is called the covenant of:

further assistance

In a RE analysis, one should be more interested in:

future economic life of the improvements

The type of agency, which is typical in property management, in which the agent has limited authority to bind the principal is known as:

general

The type of deed that provides the greatest warranty that is best for the buyer is the:

general warranty deed

Arrears:

generally refers to the status of an account for which payment is overdue. However, a payment can be said to be in arrears fi it's due at the end of a period instead of before it. Mortgage interest, for example, is due at the end of the payment month; rent, by contract, at the beginning

If a seller signs an offer made by a purchaser, the first thing the listing agent should do is:

give a copy to the seller

When you receive a security deposit for a lease, you should:

give it to your broker as soon as possible

Option clauses:

give the tenant the right at some future time to purchase or lease the property at a predetermined price

Recording a deed:

gives constructive notice of ownership

Assessment:

government valuation of property for tax purposes

Condemnation:

governmental seizure of private property for a public purpose. It can also be a declaration that a structure is unfit for use

Recording of instruments in the county records protects the:

grantee

For a deed to be recorded it GA it must contain all of the following, EXCEPT the:

grantee's signature(s) (complete legal description, grantor's signature(s), notary public's signature)

The borrower in a RE loan in GA is the:

grantor

A lease that requires the landlord to pay all the operating expenses of the property is called a "________ lease."

gross

Net Income:

gross income minus expenses and reserves

The type of lease in which the tenant pays a fixed monthly rent and the landlord pays all expenses such as taxes, insurance, and maintenance out of the rent is a:

gross lease

a lease of land only, on which the tenant agrees to construct a building w/in a certain period of time, is best called a __________ lease.

ground

The Federal Dept. of Veterans Affairs:

guarantees loans

a rental agent showing potential tenants rentals only in areas w families, since the couple is expecting a child, would be:

guilty of steering

In the event of conflicting instructions on a contract, what prevails is the:

handwritten portions of the contract

In an exclusive right to sell listing where the broker procures a ready, willing, and able buyer whose offer has been accepted, but the sale is not closed, the brokerage:

has earned a commission

A license was revoked and a payment made from the Ed, Research and Recovery Fund. The license may reapply for another license after at least 10 years have passed and the licensee:

has repaid the fund plus interest

The process of pledging an asset as security for a loan w/out giving up possession is called:

hypothecation

a valid lease would require all of the following EXCEPT:

identifiable grantee (competent parties, lawful objective, meeting of the minds)

A lease for real property must be in writing:

if for more than 1 year

The broker working for the buyer must tell the seller:

if the buyer cannot qualify for a loan

In GA, a licensee who represents a seller must disclose to a prospective buyer:

if the property was the site of a homicide or suicide but only if asked

a landlord who owes 3 buildings has designated them for diff types of tenants. The one close to the playground is for families, the one close to the pool is for single tenants, and the other is for married couples w/o children. Under federal fair housing, this practice would be considered:

illegal

Buying a property and immediately selling it at a fraudulent, increased price is:

illegal flipping

Commingling:

illegally combining funds being held on behalf of a client w a licensee's funds

Township Lines:

imaginary east-west locator lines running 6 miles apart that parallel the baselines in the US Public Land Survey System

Baselines:

imaginary east-west locator lines used to describe land in the US Public Land Survey System

Range Lines:

imaginary north-south locator lines running 6 miles apart that parallel the meridians in the US Public Land Survey System

Meridians:

imaginary north-south locator lines used to describe land in the US Public Land Survey System

when a licensee requests to be released by a broker, the broker should sign the release form:

immediately

A contract created by actions rather than oral or written words is called a(n):

implied contract

Constructive notice:

in RE, a presumption that the buyer knows the legal status of property bc that info is available in public records

General Common Elements:

in a common interest development, features and elements used by all owners, such as yards, gardens, parking areas, and outside storage space

In a RE sales transaction, if the buyer will obtain a title insurance policy that protect the buyer, the premium is paid:

in a single payment at closing

The EPA prohibits the use of lead plumbing:

in a system connected to a public water supply

The _____________________ considers the monetary returns a property can be expected to produce and converts that into a value the property should sell for if placed on the market today.

income approach

During a period of high inflation, the Federal Reserve Board can limit, to some degree, the expansion of currency by:

increasing reserve requirements of member banks

The Federal National Mortgage Association was created for the primary purpose of:

increasing the amount of $ available for credit financing of housing

According to the DO NOT CALL rules, a RE sales licensee may contact a past client for relationship-building purposes:

indefinitely

All of the following are tests to determine whether personal property becomes a fixture EXCEPT the:

initial cost of the item (intent of the person placing the item, nature of use or adaptation, manner of annexation)

To be legally enforceable, an option or a contract for the sale of real property must be all of the following except:

initialed by a RE broker or attorney (signed by all parties, in writing, supposed by consideration)

When a prospective buyer and seller are in the counteroffering stage of negotiating a contract and one of the terms has been changed in the original document, the change should be:

initialed, dated, and timed by both parties when they agree on the issues

environmental issues must be disclosed if they are a material fact:

inside or outside the property boundaries

the resale of cooperative shares has traditionally been financed by means of:

installment sales agreements

Lender's Title Policy (also: Mortgagee's Title Policy):

insurance protecting a lender who has a lien on the borrower's property. Also called a mortgagee's title policy

Title insurance policy, leasehold:

insurance used to protect a tenant (or lessee) who has entered into a long-term lease

Underwriting:

insuring something against loss; guaranteeing financially

Simple Interest:

interest paid only on the principal owed

Discount points are considered:

interest rate equalization factors

Truth-in-Lending requires the annual percentage rate of a RE-related loan to reflect:

interest, loan initiation fee, and discount points

A property manager's duties typically include all of the following EXCEPT:

investing profits form client's properties (marketing space, making minor repairs, collecting rents)

A money judgement of the court, when recorded, always becomes a(n):

involuntary lien

If a licensee has her license revoked or suspended, or has surrendered her license as a result of a Commission investigation, then any instructor or school approval held by the licensee:

is also revoked, suspended, or surrendered

An appurtenant easement:

is an interest in land capable of transfer

When RE is sold on which there is an existing please containing no provisions in the event of sale, the lease:

is binding on the new owner

A seller sold an acre and reserved an easement appurtenant for ingress and egress to enable him to reach the public road. The buyer's land:

is called the servient tenement

If a brokerage produces a ready, willing, and able buyer at the seller's terms and the seller refuses to sell, the commission:

is earned by the broker

If the listing broker procures a ready, willing, and able buyer but the sale fails to close bc of a failure on the part of the seller, the commission:

is earned by the broker

If a party to a valid RE contract dies while the contract is executory, the contract:

is enforceable on the deceased party's estate

If a tenant w a valid lease dies, the lease contract:

is enforceable on the deceased party's estate

If a property is destroyed before the title or possession has passed, and the buyer terminates the contact, she:

is entitled to her $ back

If a Commission staff member or the Commissioner is licensed, he/she:

is exempt from all fees

An attorney-in-fact acting under a power of attorney for a specific transaction

is exempt from licensing requirements

In the seller's property disclosure, the seller failed to disclose that he had electrical work done by an unlicensed handy man. He also told the salesperson that all work on the home was done by license professionals who pulled permits. After closing, the buyer discovered a # of electrical issues and sued both brokerage firms, the seller's agent and the buyer's agent. In this case, the seller's agent:

is innocent of any wrongful act

If a sale fails to close bc of a failure on the buyer's part, the listing broker's commission:

is not earned

Under a lease/purchase contract, the buyer:

is required to buy the property

An owner signed a property management agreement w ABC Property Management for a 90-day period. Shortly thereafter, the owner died. The agreement:

is terminated at the owner's death

W an open listing, a commission is paid to the brokerage who:

is the procuring cause of the sale

A provision in a mortgage requiring prior written notice to the lender and the lender's approval of the proposed assumption of the mortgage:

is valid

A buyer has purchased a property that, according to the seller and the contract, will allow business use. The buyer later discovers, prior to closing, that business use is not allowed. In this case, the contract:

is void, since it now lacks a lawful objective

An individual has been found to be selling RE for a fee w/out a RE license. The Commission shall have the authority to:

issue a cease and desist order

All of the following are true of an exclusive agency listing contract EXCEPT:

it always requires paying a commission (it is a bilateral, expressed contract/ it must be written to be enforceable/ it must have an ending date)

all of the following statements about radon are true EXCEPT:

it is a liquid released in the soil (it is created during the natural decay of radioactive uranium, it is odorless, it is colorless)

All of the following statements concerning an appurtenant easement are true EXCEPT:

it must involve adjoinment of the properties at their respective boundary lines (it must be transferable, the properties must have diff owners, it must be a burden on one property and a benefit to another)

A court decree determining that one individual is indebted to another and fixing the amount of indebtedness is called a(n):

judgment

The mortgagee sues the mortgagor and obtains a judgment and a court order to sell the property. This is an example of:

judicial foreclosure

A promissory note w/o a mortgage or deed of trust:

lacks collateral

Real Property (also: RE, Realty):

land and everything permanently attached to it; property that's basically immovable. Also called RE or realty

"Reversion" means:

land returns to the grantor

Estate, Servient (also: servient tenement):

land that is subject to, and therefore encumbered by, an easement. Also called servient tenement

Where no time period for acceptance by the offeree is stipulated in an offer, the offer will:

lapse after a reasonable time

The requirement that a contract not be for an illegal purpose or against public policy is referred to as:

legality of object

Under the terms of an FHA-insured mortgage loan, the:

lender is insured against loss should the borrower default

If the Commission determines that all alleged violation appears to have done no harm to a 3rd party or to the public, it may issue a:

letter of findings

Vicarious liability:

liability for the actions of another

The owner of a lakefront property gives verbal permission to 3 local sportsmen to cross his land each weekend during the summer of a given year for the express purpose of fishing. He has created what may properly be described as a(n):

license

To grant permission to use a property during hunting season only would create a(n):

license

When one has revocable permission to use land for some limited, specific purpose, but has no other rights, one has a:

license

The operational costs of the commission are funded primarily from:

license fees

If a licensee in a branch office disregards a written policy provided by the broker and, in the process, violates a provision of the license law, the person(s) who will likely be considered liable is (are) the:

licensee

A widow who is willed the use of the family home for the rest of her natural life w provision that title shall go to the children upon her death holds a(n):

life estate

Deed restrictions:

limitations in a private legal document that dictate or prohibit certain uses of property

When asbestos is found during the course of home renovation, homeowners may reduce the hazard by:

limiting access to the area

The 2 most common kinds of antitrust activities in RE which are prosecuted under the GA UDTPA include: 1) conspiring to fix commission rates and 2)

limiting availability of information or services

If a sales contract states that if the buyer defaults, the seller will receive the earnest $ as damages. This remedy for breach is referred to as:

liquidated damages

The purchase contract specifies that the listing brokerage and the seller may keep the earnest money if the buyer defaults. This stipulation is known as:

liquidated damages

A seller sold his house under a contract of sale, which called for settlement w/in 30 days. The seller later decided that the sales price was too low and refused to close on the sale. all of the following are options the buyer might choose EXCEPT:

liquidated damages (suing for monetary damages, suing for specific performance, rescinding the contract)

Amortization is the process of:

liquidation of a debt

Amortization:

liquidation of a financial obligation on an installment basis; also, recovery over a period of cost or value

When a member of the public wins a court award of damages from a RE license, the first source of funds for the damages comes from the:

liquidation of the licensee's assets

A form of public notice filed against certain lands, setting forth that court action has been instituted, is known as a(n):

lis pendens

On a sale w a subagency involved, a salesperson for the listing broker is the:

listing broker's agent

The safety clause protects the:

listing brokerage

A listing broker receives his authority to accept an earnest $ deposit in the:

listing contract

An owner of property gave a listing to a principal broker. shortly thereafter, the owner died. In this case, the:

listing is immediately terminated

Subagent:

literally an agent of an agent, a person to whom a buyer's or seller's agent has delegated authority and whose hiring has been authorized by the buyer or seller. A subagent has the same responsibilities to the buyer or seller as the buyer's or seller's agent

The loan-to-value ratio on a mortgage is the:

loan as a percentage of the sales price or appraised value, whichever is lower

The introduction of Freddie Mac's Loan Prospector program overhauled the entire process of:

loan underwriting

The amount of a loan expressed as a percentage of the value of the RE offered as security is the:

loan-to-value ratio

Anyone acquiring a right or interest is expected to go to the property to make a visual inspection for claims and inquire as to the extent of those claims and to:

look in the public records

Forfeiture:

loss of money or property due to a failure to carry out an obligation

Depreciation:

loss of property value as a result of age, physical deterioration, or functional or economic obsolescence. Also, the loss in value of an asset that for income tax purposes may be treated as an expense

Obsolescence:

loss of usefulness that makes structures less desirable

Functional Obsolescence:

loss of value due to inadequate or odd features in the property itself that cannot be easily cured. Functional obsolescence is often caused by changes in construction materials, methods, or equipment, or by consumer desires

If unaccompanied by other facts, an advertisement under Truth-in-Lending may state:

low down payment

The prime obligation of an agent to the client is:

loyalty

People who breathe in high amounts of asbestos fibers are more likely to develop:

lung cancer

Exposure to asbestos is most likely to result in:

lung damage

A broker provides community association management services to more than one community association and collects funds totaling more then $60,000. The broker is required to:

maintain a separate fidelity bond or fidelity insurance policy for each community association

Fannie Mae's primary responsibility is to:

maintain an active secondary market for mortgages

A home buyer who wants to have more equity in a home and not pay PMI should:

make a larger down payment

Puffing:

making statements about the quality of a property that most ppl know are nothing more than exaggeration - at best opinions that are not to be taken as factual

Improvements:

manmade property additions; generally, anything artificial or constructed on the land

The Fair Housing Act protects all of the following EXCEPT:

marital status (color, religion, sex)

A property manger must:

market space in competition w other properties

The value of property as established by the assessor for the purpose of determining taxes is called all of the following EXCEPT:

market value (assessed value, ad valorem value, taxable value)

According to the GA RE license law, property management services include:

marketing real property to tenants

A physical and economic survey of an area is the first step when a city or regional commission creates a:

master plan

If an applicant for a non-resident license in GA has a record of any disciplinary action by a state licensing authority, that person:

may be denied a GA license

If an applicant for a RE license in GA has been convicted of forgery, embezzlement, theft, or a similar crime, that person:

may be denied a license

A lease for less than one year:

may be oral

A factor that distinguishes a license from an easement is that a license:

may be revoked

An easement appurtenant:

may be terminated by the dominant tenement

Under a lease w an option to purchase the property, the tenant:

may buy the property is desired

In a foreclosure, if the property sells for less than the amount owed, the lender:

may go to court to obtain a deficiency judgment against the borrower

A broker is active in RE sales transactions and also manages real property for property owners. W regard to handling trust funds, the broker:

may maintain a separate rental trust account but is not required to do so

A purchase and sale contract has fallen apart, and both the buyer and seller are instating the other is in default. The broker has been unable to get the parties to reach an agreement concerning the disbursement of earnest money. Which represents the broker's best course of action? The broker:

may make a reasonable interpretation, notify the parties in writing, assure the earnest money has been credited to the trust account, and disburse according to the decision

A listing broker trying to make a sale:

may make statements of opinion as long as they are noted as such and are not intended to deceive

An owner of several rental properties in diff counties did not realize that the tenants of one of the properties, who had received the property's tax bill, had not forwarded that tax bill to the landlord/owner, but had bought the property at a tax foreclosure. The owner:

may redeem the property under statutory redemption

A buyer's offer is submitted to the seller. The seller agrees to most of the terms but does not agree to the purchase price or the closing date in the buyer's offer. If the seller wants to submit a counteroffer, the licensee working w the seller:

may use a separate counteroffer form

One of the requirements for a valid contract known as mutual agreement is also called a:

meeting of the minds

A property owner would be in violation of fair housing laws if she refused to rent to someone bc of:

mental disability

The rate of taxation expressed as thousandths of a dollar is called the:

mill rate

Asbestos is a(n):

mineral

Acts that may be performed by a transaction broker and do not require the broker's professional judgment or skill are called:

ministerial acts

Providing administrative assistance by giving a list of recent sales, providing a list of lenders, and locating suitable properties for showing are examples of:

ministerial acts

The process used to make a property w radon less harmful is known as:

mitigation

all of the following are essential to a valid contract EXCEPT:

monetary consideration (a lawful object, competent parties, offer and acceptance)

Compound Interest:

money earned on the original principal and also on the unpaid earnings that has accumulated as the debt matures

An organization of RE brokers that exists for the purpose of exchanging listing info is known as a:

multiple listing service

A person who manages property for several owners but is not involved in buying or selling property:

must be licensed

if a licensee offers to purchase property in order to obtain a listing, the offer to purchase:

must be made prior to entering into the listing agreement

The fees set by the Commission:

must be reasonable

In order to be enforceable, an exclusive listing for residential property:

must be signed by all owners and the listing agent

Written permission to advertise property under a listing agreement:

must have a definite exp date

All of the following are requirements for the position of Commissioner EXCEPT:

must hold a broker's license (is appointed by the commission, is the commission's Chief Executive Officer, attends the Commission's meetings)

If an individual brings a sworn, written complaint against a licensee, the commission:

must investigate the complaint

A prospective buyer, gave a deposit to a broker and signed the usual form of an offer to purchase property. The deposit form included the statement, "This offer is for 5 days." A day later before the offer had been accepted by the seller, the buyer contacted the broker and w/draw his offer and demanded the return of his deposit. The broker:

must return the deposit to the buyer as demanded

The listing agent, when setting a showing w a buyer's agent who will earn a co-op fee,:

must still disclose hidden defects

Offer and acceptance are required in order to have:

mutual agreement

offer and acceptance are required in order to have:

mutual agreement

National Environmental Policy Act:

national charter for restoring and protecting the environment. It requires federal agencies to prepare environmental impact statements disclosing the effects of development whenever a proposed project would have a major impact on the environment

A listing agent is posting her new listing to her social media accounts. In this case, she:

needs to meet the same criteria as print advertising

At the time of her death, Mrs. Sampson, a licensed broker, had 50 listings. The business, including all its assets, was left to her daughter, Jane Jones, who was also a licensed RE broker. if the daughter wished to legally collect commissions on the sale of the listed properties, she would be required to:

negotiate a new listing w each of the 50 property owners

The length of a safety clause in a listing agreement is determined by:

negotiation btw seller and broker

The amount of a commission the listing brokerage firm receives for the sale of a property is determined by:

negotiation btw seller and listing broker

The commission rate for the sale of RE is determined by:

negotiation w the seller

An owner has owned his house for 5 years. He decides to sell the house himself. He refuses an offer from a Catholic bc he doesn't like their religion. This type of discrimination is permissible if:

neither discriminatory advertising nor the services of a broker are used

During a closing conducted by an attorney for the lender, the attorney may provide legal advice to:

neither the seller nor the buyer

A net lease provides:

net income to the lessor

A seller sold his farm under a written contract of sale that made no statements about assignment. The buyer assigned the contract of sale to a new buyer. Until the sale is settled, the equitable title is held by the:

new buyer

Ginnie Mae activities include of all of the following EXCEPT financing:

new subdivisions (urban renewal projects, experimental housing, housing for the elderly)

A licensed RE broker took an exclusive agency listing from an owner for a 90-day term. After the broker had expended considerable time and expense in trying to locate a buyer, the owner sold the property himself during the listing period. Under these circumstances, the broker was entitled to:

no commission

Brown conveys a house to his daughter for life, then to his friend. Brown's heirs have:

no estate or interest

Zoning ordinances control the use of private land through several kinds of restrictions. All of the following are zoning restrictions EXCEPT:

nonconforming uses (building height limitations, designation of land area that building may occupy, setback requirements for buildings)

If a borrower using a fixed-rate VA loan wants to pay off the loan sooner, the prepayment penalty is:

none

Mr. and Mrs. Green own their homes as tenants by the entirely. W/o agreement by Mrs. Green, Mr. Green may:

none of the answers shown (lease the property, sell the property, mortgage the property)

To be a legally enforceable document, a deed of trust must contain a clause requiring the grantor to:

none of these (keep the improvements on the property insured against fire, pay taxes and assessments before the become delinquent, comply w all health and environmental laws)

Under a security deed that contains a power-of-sale clause, the foreclosure process is:

nonjudicial foreclosure

the repair of fire damage to an office building is an example of a:

nonrecurring variable cost

Under GA law, after termination of a lease, a landlord may retain all or a portion of the tenant's security deposit to cover any of the following items EXCEPT:

normal wear and tear on the property (damage to the property caused by the tenant's guests, unpaid rent owed by the tenant, unpaid late charges)

When an owner indicates that he intends to turn away any Hispanic buyer, the broker should:

not accept the listing

The records of an investigations by the Commission on charges against a licensee are normally:

not disclosed publicly

When a sales contract is signed, the earnest $ is:

not legally necessary

In GA, a seller disclosure form is:

not required

Insurance premiums on VA guaranteed loans are:

not required

An individual employed by a broker to show rental units, deliver and receive lease applications, and collect rents is:

not required to hold a RE license

A broker representing the buyer must:

not share the buyer's confidential info w the seller

a proper escrow, once established, should be:

not subject to the control of any one interested party alone

A contract must have certain specific elements in order for it to be valid. All of the following are essential to a valid contract EXCEPT:

notarization (consideration, acceptance, offer)

All of the following are essential elements to a deed EXCEPT:

notarization (legal description, consideration, grantor's signature)

When a mortgage is used in a RE transaction, the evidence of the principal obligation is the:

note

To earn a commission, a listing broker w any exclusive listing must procure a ready, willing, and able buyer at the seller's listing terms and:

nothing else

Lis Pendens:

notice of a pending lawsuit that may affect the defendant's RE title

To buy, sell, or lease property in his/her own name, a licensed salesperson, when acting as principal, must:

notify his/her broker in writing

If a licensed salesperson intends to advertise his own property for sale, the licensee must do all of the following EXCEPT:

notify the GA RE Commission in writing (obtain written permission from the broker w whom he is affiliated, indicate in the advertisement that the seller holds a RE license, notify the broker w whom he is affiliated in writing)

as a single agent for the buyer, one main reason for calling the listing agent before showing a listed property is to:

notify the agent that you represent the buyer

If a licensed salesperson intends to sell her own property, the licensee must:

notify the broker w whom she is affiliated in writing

If a seller accepts and signs an offer made by a purchaser, the next thing the listing agent should do is:

notify the buyer's agent immediately

If a license violates the license law, the licensee's broker should:

notify the commission

2 men entered into a RE contract. After some time had elapsed, they decided to change the contract, and a new contract was executed to replace the original. This is an example of:

novation

The current tenant has 3 months left on her lease. She has just been offered an out-of-state job offer. The landlord agrees, upon finding a new tenant, to release the current tenant from her lease and write a new lease w the new tenant. This process is known as:

novation

The substitution of a new contract, which terminates and replaces an existing contract, is called:

novation

The substitution of a new lease contract that terminates and replaces an existing lease contract is called:

novation

When a home buyer assumes an existing loan and the lender releases the original borrower, it is called:

novation

A GA broker is representing a seller under a brokerage engagement. If the broker receives an offer after the seller has already accepted another offer and entered into a contract of sale, the broker is:

obligated to submit the subsequent offer

as a single agent for the buyer, another reason for calling the listing agent before showing a listed property is to:

obtain info and showing instructions

All of the following are major responsibilities of a property manager EXCEPT:

obtaining listing for resale (obtaining the highest possible return for the investor, preserving the building, maintain high occupancy)

An appraiser gives his appraisal as:

of a specific date

The deed covenant assuring that the grantor will bear the expense of defending the title against the claims of others is called the covenant:

of warranty of title

The party to whom an offer is made is called the:

offeree

The party who makes an offer is called the:

offeror

Asbestos is typically found in:

older buildings w public occupancy

According to the Rules of the GA RE Commission, a broker acting as a property manager is required to provide written statements of property income and expenses to the owner:

on at least an annual basis

A licensed community association manager engages in community association management services:

on behalf of a RE broker

For a brokerage to earn a commission, a ready, willing, and able buyer must offer to buy:

on terms accepted by the seller

If a note is taken as earnest money, it is in the seller's best interest to have the note payable:

on the seller's acceptance

Approach, cost:

one of 3 main methods use to appraise property values. The cost approach estimates property value based on the replacement cost of improvements plus market value of the land, minus estimated depreciation

In a sales transaction that involves a buyer's agent and a seller's agent, the earnest money check is typically made payable to:

one of the brokerage firms

Taxation is:

one of the gov's rights

Estate from Period to Period (also: Periodic Estate, Periodic Tenancy):

one that has no termination date, but the rental period continues for specific amounts of time. Also called a periodic estate or periodic tenancy

Section:

one thirty-sixth of a township. A standard section measures 1 mile (5,280 ft) by 1 mile and contains 640 acres (43,560 square feet). Sections are numbered snakelike, starting w 1 in the township's northeast corner and proceeding to 6 in the northwest corner, then dropping to the next row south and proceeding eastward. The pattern is repeated until all 36 sections are numbered

Heir:

one who inherits property after the owner has died intestate (w/out a will)

Appraiser:

one whose ed, training, and experience as well as license or certification qualify him or her to estimate property values using formal processes

Property taxes are usually prorated over a period of:

one year

Mill:

one-tenth of a cent or one-thousandth (0.001) of a dollar. Mills are used in calculating property taxes

In a single agency relationship, a RE broke represents:

only a buyer or seller, not both

an agent may negotiate the sale of listed property to a relative, friend, or associate:

only if disclosed to the seller

Telephone calls soliciting services as a listing agent may be made to FSBOs who are on the DO NOT CALL list:

only if the RE professional has a buyer interested in the property

If a seller is out of town and a buyer makes a full-price offer, the agent should sign the offer for the seller:

only if the agent has power of attorney

A buyer's single agent presenting an offer to the listing agent represents:

only the buyer

The business name used by a broker can be:

only the name on the broker's license

A seller signs a contract allowing the buyer to buy the seller's home for $63,200 anytime btw the date of the contract and the following Feb 8. The seller also agrees not to sell her home to anyone else until after Feb 8. This contract is called an:

option

Earnest $ for a RE sales contract is:

optional but a common business practice

A multiple listing service is a(n):

organization for exchanging info

A RE professional is doing a CMA for a residential home. She would use all of the following data to determine value EXCEPT:

original cost (location of the property, financing terms, date of the sale)

An appraiser seeking to find market value would be concerned w all of the following EXCEPT:

original cost of the property (reproduction cost, income value, current market sales)

Mortgage bankers typically:

originate a large # of loan transactions and then sell those mortgages at a discount to large investors in the secondary market

The FHA loan fee that is paid by the borrower to the lender for processing the loan is called a(n):

origination fee

Articles 15-17 of the NAR Code of Ethics identify duties a REALTOR has to:

other REALTORS

if the tenant improves a leased building, unless otherwise stated, the:

owner acquires title to the improvements when the lease terminates

An easement is said to terminate by merger when the:

owner of the easement becomes the owner of the land that is subject to the easement

According to the GA RE license law, a community association is an association of:

owners of residential or mixed use common interest property, in which membership is mandatory

Tenancy in Common:

ownership by 2 or more ppl, each w an undivided interest in the entire property but no right of survivorship

Tenancy by the Entirety:

ownership by husband and wife, its main advantage being the right of survivorship. When one spouse dies, the other owns the entire property, avoiding property, avoiding probate, and free and clear of the deceased spouse's debts (but still liable for debts incurred jointly.)

Involuntary alienation of an estate means:

ownership of estates may be transferred by operation of law

If a license lapses due to a failure to complete the 25-hour postlicense course, the license may be reinstated w/o penalty prior to the license lapsing if the licensee:

paid for and enrolled in the course

Deferred maintenance is the:

part of physical deterioration that can be restored by repairs and maintenance

The division of common interests in concurrently held property is known as:

partition

When a person dies testate, the real property:

passes by devise

Charcoal canisters, alpha-track detectors, and charcoal liquid scintillation devices are all examples of ____________ radon detectors.

passive

According to the law, ______________________________ means: one or more misstatements, misrepresentations, or omissions made during the mortgage lending process that involve two or more residential properties, which have the same or similar intents, results, accomplices, victims, or methods of commission or otherwise are interrelated by distinguishing characteristics [O.C.G.A. 16-8-101(2)]

pattern of residential mortgage fraud

When unscrupulous lenders engage in actions that take advantage of unsophisticated or uneducated borrowers in order to benefit the lender, it is called:

predatory lending

An owner of a retail store rented the store toa business w the understanding that the amount of the rent would be $500 per month plus 1% of the businessman's gross sales. This would be considered a _____________________ lease.

percentage

The owner charges rent on a specific portion of the tenant's gross sales and requires a guaranteed minimum. The document he must use is called a(n):

percentage lease

The Brokerage Relationships in RE Transactions Act (BRRETA) specially states that a broker representing the buyer must:

perform the terms of the brokerage engagement

"Time is of the essence" is a concept of RE law concerning:

performance

If a buyer contracts w and pays a seller for the purchase of a home and the seller delivers the deed to the buyer, the contract is considered to be discharged based on:

performance

all of the following are a necessary element in the formation of a contract EXCEPT:

performance (offer, acceptance, consideration)

Direct principal reduction:

periodic loan payments that include a fixed amount of principal, plus interest on the unpaid balance

In GA, dual agency is:

permitted w written consent from all clients

The law defines _______ as: a natural person, corporation, company, limited liability company, partnership, trustee, association, or any other entity [O.C.G.A. 16-8-101(3)]

person

In law, a trade fixture is:

personal property

Loss of value due to deferred maintenance is called:

physical depreciation

When a property has suffered a reduction in value due to dry rot and termite damage, appraisers refer to it as:

physical deterioration

An important characteristic of land is that it may be modified or improved. Such improvements tend to increase the value of RE. All of the following are considered to be improvements EXCEPT:

planted crops (new houses, new access roads, utilities)

Zoning is done by authority of:

police power

Land-use controls are an example of the application of a gov's:

police powers

Participation Certificates:

pooled securities that provide for payments received from mortgagors, minus servicing costs and certain fees, to be passed through to those holding the securities

Deferred maintenance:

postponement of necessary property repairs and rehabilitation, causing a building's physical condition to decline

Authority, actual:

power expressly given to an agent by the principal or given by law and not denied by the principal

A written instrument giving authorization to a person to act as an agent on behalf of another for one specific act or transaction is called:

power of attorney

Authority, apparent (also: ostensible authority):

power that one person, by words or conduct, has led others to believe he or she possesses, though no permission has been specifically granted. Also called ostensible authority

The promissory note must contain an acceleration clause and a(n)

prepayment clause

A provision that prohibits a borrower from paying the loan in full for a prescribed period of time w/o incurring additional charges is known as the:

prepayment penalty clause

A licensee representing a seller under a listing agreement receives an offer from a buyer. The offer is for the exact price and terms at which the house is listed. Before submitting this offer to the seller, the licensee receives another offer on the same property but w a lower purchase price. The licensee must:

present both offers to the seller

Prior to issuing a policy for title insurance, a title company will search the public records for all of the following EXCEPT:

previous sales prices (judgments, unpaid taxes, liens)

Mr. Smith bought a second mortgage at a discount of 20% and paid $22,000 for the note. If you wanted to know the original face value of the note, this would be a(n) _________ problem.

price

o A seller wants to sell her home and receive $100,000 after the broker's 6% commission is deducted. If you were asked to determine the sales price, this would be a _______ problem.

price

o The Franks recently bought a home for $168,000. If you wanted to know how much it would have to increase in value for the Franks to pay a 5% commission and break even on the sale, this would be a(n) ________ problem.

price

When 2 or more brokers from diff brokerage firms work together to set commission rates, it is:

price fixing, which is illegal

The ______________________is where lenders originate loans making funds available to borrowers.

primary mortgage market

A person who hires or appoints an agent is called the:

principal

The party who is represented by an agent is always called the:

principal

Commissions are set by negotiation btw the:

principal and broker

The main north and south line in a gov survey from which townships are located is called a:

principal meridian

The diff btw an exclusive right-to-sell listing and an exclusive agency listing is that in the exclusive agency listing, the:

principal will owe no commission if the principal sell's the property on his or her own

Conventional loans are made from:

private sources

Advertising that is directed at, or refers to persons of any particular race, color, religion, sex, handicap, familial status, or national origin is:

prohibited

A mortgage is usually associated w a:

promissory note

The instrument that gives evidence of a borrower's debt and states the terms for repayment is the:

promissory note

Title, Evidence of (also: Torrens System):

proof of ownership of real property. Forms of title evidence include abstract of title, certificate of title, title insurance (the most widely used form of proof), and title registration (also known as the Torrens system)

A lien that can take priority over all other liens is:

property tax liens

Estate of Inheritance:

property that may be passed down to heirs. Except for a lie estate, which lasts for a tenant's life, all freehold estates are estates of inheritance

Proration:

proportionate adjustment of interest, taxes, and insurance, etc., as of closing or another agreed-upon date

A sales contract calls for closing on June 30. The seller is responsible for property taxes from Jan 1-Jun30, and the buyer is responsible for property taxes from July1-Dec31. The dividing of these types of expenses is known as:

prorating

When settlement statements are prepared, some ongoing expenses and income items are divided btw the seller and the buyer based on the period of ownership. This division of expenses and income items is referred to as:

prorating

The primary justification for a zoning ordinance is to:

protect the public health, safety, and general welfare of an area

Title insurance policy, owner's:

protection for a buyer - who receives a deed upon closing - against adverse claims to the ownership of the property

Title insurance policy:

protection for the lender and possibly seller or buyer against claims disputing property ownership or asserting defects in the title

The assignment of rents provision in a standard deed of trust:

protects the beneficiary

When a RE sales transaction is to be closed in escrow, the escrow agent:

protects the interest of each party to the transaction

When there is not sufficient room in a residential sales contract regarding financing, the licensee should:

provide the info on an exhibit to the contract

Parol Evidence Rule:

provides that speech (parol evidence) cannot be used in court to change or contradict the terms of a written agreement that appears complete

All of the following are a type of zoning control EXCEPT:

providing for control of rents (restricting the area that a building may occupy, regulating land use, restricting height of buildings)

a listing agent representing the seller may help the buyer, w/out fear of violating the fiduciary obligations, by:

providing info on schools

Setbacks:

provisions governing the distance btw lot lines and improvements

When showing a property to a buyer, the salesperson stated that the property had the most attractive landscaping of any property in the county. This statement constituted:

puffing

While showing a property to a prospect, a licensee stated that the property had the most attractive landscaping of any property in the county. This statement constituted:

puffing

Demand is one of the elements that help determine value. In order for demand to be effective, it must be implemented by:

purchasing power

the best way to avoid legal problems when preparing sales contracts is by:

putting all terms in writing

An estate that is subject to certain limitations imposed by the person creating the estate is a(n):

qualified fee estate

In every lease, the lessor gives the lessee an implied covenant of:

quiet enjoyment

The deed covenant warranting that the grantee's ownership will not be challenged by the claims of others is called the covenant of:

quiet enjoyment

The Civil Rights Act of 1866 prohibits discrimination on the basis of which of the following?

race

Under GA law and federal fair housing law, it is illegal to discriminate in housing based on:

race, color, religion, gender, disability or handicap, familial status, or national origin

A colorless, odorless gas that comes form the soil and can cause lung issues is known as:

radon

An owner purchases some stones, sand, and cement and builds a concrete walk on his parcel of RE. this walk is:

real property

In GA, a broke who performs brokerage services for a client owes the client:

reasonable care

Abstract of title:

recites in chronological order all recorded grants, conveyances, recorded easements, mortgages, wills, tax liens, judgments, pending lawsuits, marriages, divorces, and so forth

In GA, if a borrower fails to make payments, and the lender initiates the foreclosure process, the borrower may:

reclaim the property, under equity redemption, by paying the amount owed before the foreclosure sale

The process of completing a RE sales transactions may be referred to as all of the following EXCEPT:

reconciliation (escrow, settlement, closing)

A construction (mechanic's) lien claim arises when a contractor has performed work or provided material to improve a parcel of RE on the order of the owner and the work has not been paid for. Such contractor has a right to:

record a notice of lien and file a court suit w/in the time required by state law

all of the following are essential elements to a lawfully enforceable contract EXCEPT:

recordation (consideration and competency, legality of object, mutual assent)

the conditions of most loan instruments require the borrower to pay all of the following when they are due EXCEPT:

recording fees (principal and interest, property taxes, insurance premiums)

When a non-resident applies for licensure in GA, she must have the licensing body of her home state supply evidence of licensure in that state and:

records of any disciplinary action

Just as his foreclosed property is about to be sold at public auction, the owner appears w sufficient funds to prevent the sale by exercising his right of:

redemption

The purpose of the national DO NOT CALL list is to:

reduce unsolicited telephone sales calls

An escrow to purchase property was owned on Sept 1st, and all instructions were placed in escrow, w closing scheduled for Dec 1st. prior to the closing of the escrow, the seller requested the escrow agent change the closing date to Jan 2nd, for income tax purposes. However, the buyer would not agree to this. The escrow agent should:

refuse to change the closing date w/out the buyer's approval

When a buyer asks a licensee to provide a second contract just to take to a lender, the licensee should:

refuse to do this

The value of the best property in the neighborhood will be adversely affected by the presence of comparatively substandard property in the same neighborhood. This is known as the principle of:

regression

The wages paid to the employees hired to maintain and clean a building are an ex of:

regularly recurring cost

A tenant decided to move his business to a new location when the term of his lease expired. He wanted to move his display cases, which he purchased as equipment for the store, before the lease expired and install them in his new store. The tenant may:

remove the cases prior to exp of the lease

when the Education, Research, and Recovery Fund falls below $1,000,000, funds are raised in the form of:

renewal fees up to $30 per year

An escalator clause in a lease may provide for:

rent increases to match cost increases in specified expenses of the landlord

All of the following is an operating expense in a property manage budget EXCEPT:

replacement of ceiling (management fees, janitorial services, utilities)

In a RE sale transaction, to avoid problems w lenders and buyers, any changes to the original transaction that were not agreed to by the parties to the transaction should be:

reported to the broker and all parties to the transaction

If your firm is a member of a multiple listing service and a seller doesn't want his/her property shown w/out an appointment, you should:

require agents to get the key from your office

On FHA loans, monthly escrow payments for property taxes and insurance are:

required

Reinstatement:

restoration of a mortgage to a borrower who has defaulted but made up all missed payments plus any late fees and other charges

Rehabilitation:

restoration of a parcel of real property or a neighborhood to its highest and best use

A zoning ordinance is a(n):

restriction

Percentage leases are most often used w:

retail space

If an applicant for a community association manager license passes the licensing examination but fails to activate the license w/in 12 months, the applicant may activate the license only after:

retaking the examination

Rezoning often involving ridding the area of nonconforming uses. The means utilized may involve all of the following EXCEPT:

retroactive zoning ordinances (prohibition against rebuilding, prohibition against expanding, amortization provision terminating the use w/in a reasonable time)

A buyer agreed to buy a property for $145,000, signed a purchase and sale contract, and deposited $5,000 earnest $ w ABC Realty. The seller was unable to provide marketable title. In this case, the next step is for ABC Realty to:

return the entire amount to the buyer

The basic goal of the professional RE manager is to:

return to the property owner, in the long-term, the highest possible net return)

An easement appurtenant to real property can be terminated by all of the following EXCEPT:

revocation by the servient owner (prescription by the servient owner, merger of both the servient and dominant parcels, release by the dominant tenement owner)

Spot Zoning:

rezoning a small parcel of land so that its use differs significantly from that of surrounding parcels. May be permitted if it would serve a useful purpose and not create a nuisance

Downzoning:

rezoning of an area, reducing the density of use allowed for a parcel

a prepayment privilege in a mortgage refers to the:

right of the borrower to pay off all of some of the outstanding balance prematurely during the term of the mortgage

A tenant may agree to rent a property only if given an opportunity to purchase it before someone else does. This is most common to a lease. This is called:

right of the first refusal

If effective demand for real property in an area remains about the same over time, the market price will tend to:

rise when supply decreases

An easement appurtenant:

runs w the land

Discount:

sale of a promissory note before maturity at a price less than the outstanding principal balance at the time of sale. also, an amount deducted in advance by a lender from the nominal principal of a loan as part of the borrower's cost of obtaining the loan

The phrase "time is of the essence" is most likely to be found in a(n):

sales contract

All of the following items are prorated at closing EXCEPT:

sales prices (utilities, mortgage interest, property taxes)

when a mortgage is paid in full, it is said, in legal terminology, to be:

satisfied

Approach, income (also: capitalization approach):

second of 3 main methods used in appraisals. The income approach, commonly used for rentals and commercial real estate, estimates value based on anticipated net income to be obtained from a property and the rate of return a new owner should desire on his or her investment. Also called the capitalization approach

The usual purpose of an option to renew clause in a lease is to give the:

tenant the option to renew the lease at a preset level at the exp of the term

GNMA, FHLMC, and FNMA are all sources of loans in the:

secondary mortgage market

In the rectangular survey method, units of 1-square mile are called:

sections

a deed of trust are normally used to:

secure a debt w real property

According to the brokerage relationships in RE transactions act (BRRETA), to promote the interests of the buyer, a broker representing the buyer must:

seek a property that meets the client's needs

The deed covenant that states that the grantor owns the property and has the right to convey it is the covenant of:

seisin

the covenant whereby the grantor warrants that she is the owner and the processor of the property being conveyed is called the covenant of:

seizen

in single agency seller agency, the firm exclusively represents the:

seller

on a co-op sale in a single agency situation, the listing broker's client is the:

seller

unless the sales contract stipulates to the contrary, the risk of loss or damage to property before legal title or possession is transferred to the buyer falls on the:

seller

On a sale w a subagency involved, the listing broker is the:

seller's agent

On a sale w a subagency involved, the selling agent is the:

seller's subagent

Membership in a multiple listing services is an advantage to:

sellers, buyers and brokers

On a sale w a subagency involved, the subagent who brings a buyer is called the:

selling agent

On a sale w a subagency involved, a salesperson for the selling broker is the:

selling broker's agent

Discounting:

selling loans for less than their outstanding balances

As defined in local zoning ordinances, the distance btw lot lines and improvements is know as:

setback

Zoning ordinances usually cover such matters as:

setback lines

A broker had an open listing on a house. To collect a commission, she would have to prove all of the following EXCEPT:

she has the only open listing on the property (she was the procuring cause of the sale/ she had a ready, willing, and able buyer/ she had a current RE license)

Compared to physical life, economic life is usually:

shorter

A salesperson wants to show a property twice in one day. The second time she:

should call the listing broker again

If you show a property twice in 1 day, the second time you want to show it you:

should call the listing broker again

An option:

should recite, in detail, the terms of the purchase, in the event it is exercised

The proper procedure for changing a contract that has become binding is to:

sign a separate amendment

All of the following are essential elements of a deed EXCEPT:

signature by the grantee (legal description, competent grantor, delivery and acceptance)

The sales comparison approach to value would be best used for which of the following:

single-family dwellings

An appraiser who is using the sales comparison approach to appraise a single-family residence should probably NOT use the sales price of which of the following similar homes:

sold in a foreclosure sale (sold recently but is located in another neighborhood, sold over 6 months ago, same size but situated on a corner lot)

Tenancy in Severalty:

sole ownership by one person or entity such as a corporation

The main difference btw sole ownership and concurrent ownership is:

sole ownership is when the title to property is held by one person; concurrent ownership is when the title is held by 2 or more ppl at the same time

The amount of the prepayment penalty when a veteran pays off a $152,000 loan guaranteed by the Federal Dept. of Veterans Affairs is:

spaced-list" > nothing

Mortgage companies usually contract w the lending institutions for whom they originated the loan to service the loan. When servicing the loan, the mortgage company:

spaced-list"> usually charges the lender less than 34 of 1% of the outstanding balances

The type of agency a listing agent has w a principal is known as:

special agency

A RE broker representing the seller usually is a(n):

special agent

Variance:

special authorization to use land in a way that does not comply w a literal interpretation of zoning codes but could be consistent w general objectives for zoning in the area and wouldn't change its basic character

The property owners hired the Blue Water Pool Company to install a swimming pool. In the event the pool company was not paid and it was necessary for them to file a lien for payment of the contract, the lien would be classified as:

special or specific

The deed used to convey title in a property sale warranted only that the owner defend the title against defects arising during the period of her ownership of the property. The type of deed used was a:

special warranty deed

The type of deed that warrants only against encumbrances created during the grantor's period of ownership is the:

special warranty deed

A legal procedure or action brought by either the buyer or seller to enforce the terms of the contract is known as:

specific performance

A remedy in court compelling the seller to sell the property is known as:

specific performance

A suit in court to force a party to a contract to complete the requirements of the contract is called a suit for:

specific performance

In the purchase contract, if the seller refuses to close, the buyer's remedy is:

specific performance

Real property taxes that are not paid are:

specific, involuntary liens

The exp date on an exclusive listing must be:

specified in the listing

The exp period on an exclusive listing must be:

specified in the listing

All of the following are normally the responsibility of a property manager EXCEPT:

spending the profits (insuring that necessary repairs are completed, filing the tax forms for reporting the property's income, keeping the property insured)

ABC Realty has as exclusive agency listing on the seller's property and has put it in the MLS. A person from XYZ Realty brings an offer, which the seller accepts, and the transaction closes. The commission will be:

split btw the 2 brokerage firms, per the MLS terms

Subdivision Regulations:

state and local laws that must be observed before developers are permitted to legally separate land into smaller lots or parcels

Usury Laws:

state regulations that specify the maximum rate of interest that may be charged for various types of loans

Balance sheet:

statement of a company's financial condition at a specific time, showing assets, liabilities, and capital

All of the following are a violation of law when done by a RE professional EXCEPT:

stating in writing that a CMA is not an appraisal (calling a CMA an estimate of value, referring to a pricing opinion as an appraisal, making an appraisal of real property)

Homestead Exemption:

statutory protection of a home from claims of certain creditors after the death of a homeowner spouse

Influencing buyers to buy in certain areas only when done on the basis of a protected classification is known as:

steering

Providing buyers w a limited set of choices based upon the RE professional's decision, not the buyer's instructions, in known as:

steering

If a signed sales contract is canceled by mutual agreement btw the parties, the commission earned by the broker(s) involved is:

still earned and potentially collectible

When describing the premises to be rented in an apartment lease, the contract should include the:

street address of the building

All of the following methods of describing property are considered to be sufficient legal description for a deed EXCEPT:

street name and # (gov survey, metes and bounds, recorded plat map)

Corporations may hold title to real property together as:

tenants in common

All of the following are used in municipal planning EXCEPT:

subdivision covenants (housing codes, subdivision regulations, building codes)

The HUD requirements, administered by the office of interstate land sales registration, apply primarily to:

subdivision lots located in one state and sold to residents of another state

A partition in kind is accomplished through:

subdivision of the property

The duty of loyalty to a principal's interests requires a listing agent to:

submit all written offers received on the property

If a seller is considering one offer and another offer comes in, the listing agent, should:

submit the new offer

if a seller has already accepted one offer and another offer comes in, the listing agent should:

submit the new offer

A second offer made on a property prior to the seller's acceptance of the first offer should be:

submitted to the seller immediately

An agreement to waive some rights in favor of another is called:

subordination

the clause in a second Deed of trust that allows a first note and Deed of trust to be refinanced w/out sacrificing the first Deed of trust's priority is the:

subordination clause

Clause:

subordination: an agreement that permits one mortgage to take priority over another mortgage

Certain economic principles are of considerable importance in the valuation of RE. The principle that "no longer will pay more for a product than the price he can pay for a reasonable duplicate" is known as the principle of:

substitution

Novation:

substitution of a new obligation for an existing one, or of a new party for the same obligation

Mr. Smith bought a second mortgage at a discount of 20% and paid $22,000 for the note. If you wanted to know the original face value of the note, the first step would be to:

subtract 20% from 100%

The Browns sold their home on which they had no mortgage. The escrow company deducted $545 for expenses and a broker's commission of 5% from the sales price paid by the buyer. The Browns received a check form the escrow company for $124,000. If you wanted to find out what the house sold for, you would first add $545 to $124,000 and then:

subtract 5% from 100%

The Franks recently bought a home for $168,000. If you wanted to know how much it would have to increase in value for the Franks to pay a 5% commission and break even on the sale, the first step would be to

subtract 5% from 100%

A seller wants to sell her home and receive $100,000 after the broker's 6% commission is deducted. If you were asked to determine the sales price, the first step would be to:

subtract 6% from 100%

RE values are inflating rapidly. Despite having already signed a written contract of sale, the seller refuses to complete the sale. The remedy the buyer may choose is:

suit for specific performance

A(n) __________________ stipulates that obligations, such as title warranties and commission payments, shall continue after closing if not completed at closing.

survival clause

Chattel:

tangible property that is movable

Zoning ordinances may be used to determine all of the following EXCEPT:

taxable value (uses of land, size of structures, locations of buildings)

If there is a disagreement concerning the assessed value of real property, the burden of proof is upon the:

taxpayer

A man had a one-year lease on a residence that expired on July 31. He stayed on after that date w/o the consent of the landlord and did not pay any rent. He now holds a(n):

tenancy at sufferance

A loan that requires only interest payments until the last day of its life, at which time the full amount borrowed is due, is a(n):

term loan

If a GA resident licensee moves out of the state and the licensee takes no action, her license will:

terminate

If a buyer makes a counteroffer to the seller's counteroffer, the seller's counteroffer is:

terminated

When a counteroffer is made, the original offer is:

terminated

When an attorney-in-fact in an agency dies, the agency is:

terminated

A seller does not agree w the request for repairs in a buyer's offer. The seller makes a counteroffer that eliminates the repair request. The buyer's original offer is:

terminated by the seller's counteroffer

If a contract offer is not accepted w/in the specified time period, it:

terminates

If a party to a valid RE contract becomes bankrupt while the contract is executory, the contract:

terminates

When a new contract is introduced through novation, the old contract:

terminates

a person who dies and leaves a valid will is said to have died:

testate

Ethics:

that branch of moral science, idealism, justness, and fairness that identifies standards of right and wrong for members of a profession or craft

Frontage:

that part of a land parcel or improvement facing a street

An escalation lease can be best defined as a lease:

that provides for a possible increase in rent at a stated future time

The right of alienation is defined as:

the "right to transfer an interest in real property."

Gross rent multiplier:

the # by which gross income of a property can be multiplied to estimate a property's value

Actual age:

the # of years that have elapsed since construction was completed

A broker had an exclusive listing on a house. The listing price was $73,250; the commission was 8% of the selling price. The broker received an offer from a buyer for $71,500, along w a $7,000 deposit. The offer included a termite and dry rot inspection as a contingency. The seller accepted the offer and instructed the broker to deposit the $7,000 into escrow. The broker should deposit:

the $7,000 w an escrow company to which the parties have agreed

In GA, the law that addresses agency relationships in RE is:

the Brokerage Relationships in RE Transactions Act

The central repository for GA's Violent Sexual Offender Registry is:

the GA Bureau of Investigation (GBI)

The state law that addresses deceit and misrepresentation in residential RE loans is:

the GA Residential Mortgage Fraud Act

Utility:

the ability to satisfy the needs or desires of a potential buyer

Conveyance:

the act of transferring property ownership from one entity to another. Also used to mean a document, such as a deed, that transfers title

Correlation (also: reconciliation):

the act of weighing data from diff appraisal approaches, the final step in estimating a property's value. Also called reconciliation

Acquisition:

the act or process by which a person procures property

Valuation:

the act or process of appraising real property

Title:

the actual ownership of real property, whether through purchase, inheritance, devise, gift, or foreclosure

Under the Americans w Disabilities Act, an alteration is NOT required by law if:

the added accessibility costs are disproportionate to the overall cost of the original alteration

Plottage:

the added value achieved by combing several parcels of land under single ownership (assemblage)

Effective age:

the age a structure appears to be from its appearance, as distinct from its chronological age

The clause in a security deed that allows the lender to prevent the loan from being assumed is:

the alienation clause

The clause in a security deed that permits the lender to call in the note if the borrower sells or conveys any interest in the property is:

the alienation clause

Capital loss:

the amount by which the adjusted cost basis of a capital item exceeds the net sale proceeds. The loss is calculated upon disposition of the property

Capital gain:

the amount by which the net sale proceeds of a capital item exceed the adjusted cost basis. Used for income tax computations. Gains are called short or long terms based on the length of time the asset is held after acquisition. Usually taxed at lower rates than ordinary income

Interest:

the amount paid to borrow money, which covers the lender's costs of doing business and provides a profit

Discount points:

the amount the borrower or seller must pay the lender for a mortgage at a lower interest rate

To qualify to be an applicant for a broker's license, an individual must be all of the following EXCEPT:

the applicant must have been actively licensed for a minimum of 2 years prior to the application. (the applicant must reside in the state for which s/he is seeking the license, the applicant must complete a broker's source of at least 60 in-class hours, the applicant must be at least 21 years of age)

Reconciliation is best defined as:

the appraiser's weighing of each property and approach to value

Highest and best use:

the approach most likely to produce the greatest net return on land and/or buildings over a given period

Redlining:

the arbitrary denial of residential RE loans in certain geographical areas bc of racial or ethnic makeup

Common elements:

the areas and facilities in a condominium development or subdivision that aren't owned individually. These may be general or limited

Annexation:

the attachment of personal property to land so the law treats it as part of the real property

Riparian Right:

the authority for a property owner to use water from an adjacent waterway

Right of Survivorship:

the authority for a surviving co-owner to acquire the property interests of a deceased co-owner

The point at which rent from a property covers the expenses is called:

the break-even point

In the absence of a brokerage engagement, the unrepresented party is considered:

the broker's customer

advertising property or services by RE professionals, even on social media, should, at a minimum, include:

the brokerage firm's name

Although the payment of closing costs and discount points is negotiable, these costs are typically the responsibility of:

the buyer

In GA, which of the following situations would create an agency relationship in which the buyer becomes a client of the broker?

the buyer and the broker enter into a written brokerage engagement

Vendee:

the buyer in a contract for deed (land contract, agreement of sale)

At closing, the security deed must be signed by:

the buyer only

The commission a buyer's agent earns is paid by:

the buyer or seller or listing firm

the purpose of reviewing an offer w the buyer is the ensure that his or her wishes are expressed in the contract and:

the buyer understands the financial and other obligations

Under a buyer representation contract, a salesperson working for this broker must represent:

the buyer's interest

A walk-through is:

the buyer's opportunity to ensure that agreements regarding the condition of the property have been kept

The consideration in a RE sales contract is:

the buyer's promise to pay and the seller's promise to sell and deliver ownership

On a co-op sale in a single agency situation, the selling broker's commission can be paid by:

the buyer, seller, or both

Federal Reserve System (The Fed):

the central bank of US. As such, it monitors economic and financial conditions - such as the volume of bank deposits and w/drawals, the cost of money and credit, unemployment levels, inflation rates, and world economic conditions - and applies controls or pressures to influence the amount of money and credit available

Building Line (also: Setback Line):

the closet a building may be situated to the property boundary. Also called a setback line

The day when the buyer pays for a property and the seller delivers the deed is referred to as:

the closing date

Assemblage:

the combination of several parcels of land to form one large parcel

A residential broker should have broad knowledge of:

the community and its neighborhoods

Police Power:

the constitutional right of the state to enact laws and enforce them to protect public safety, health, morals, and general welfare

Closing refers to:

the consummation of a RE transaction

Tenancy at Will:

the continuing possession of another property w the owner's consent, though w/out a lease term or regular rent being paid

Constructive severance:

the conversion of real property to personal property, not through physical detachment but through intent, such as the sale of rights

Objective Value:

the cost of producing or creating a property

Escrow:

the deposit of funds w a neutral 3rd party to carry out provisions of an agreement or contract

Which of the following correctly describes the gain on the sale?

the difference btw the amount realized and the basis

Accrued depreciation:

the difference btw the value of an item when it is appraised and the cost of replacing it new

Prior Appropriation:

the doctrine under which ownership and consumption of water are granted to all, but the first user acquires priority over all later users. Prior appropriation typically is practiced in states where water is scarce

Finance Charge:

the dollar amount that credit will cost a borrower over the term of a loan

Two adjoining lots have an easement btw them, w one person holding a dominant tenement and the other a servient tenement. Under these circumstances:

the easement could be eliminated by merging the 2 properties under one owner

Unity of Possession:

the equal right of each co-owner to occupy all or any part of the property owned

Operating expenses:

the expenses of running a business or property, such as management fees, utilities, janitorial service, maintenance, insurance premiums, etc

Predatory Lending:

the extension of credit to borrowers who can't afford the terms being offered, w features designed to increase the likelihood of foreclosure

Gov Survey Method:

the federal gov's creation of a grid system over the country (Public Land Survey System), which specifies the location of parcels of land through the use of principal meridians, baselines, range lines, and township lines

A seller signed an exclusive right-to-sell listing for his residence for a term of 6 months w a local brokerage firm. The price was set at $30,000; the commission was to be 6%. During the listing period, the house was destroyed by a fire. Under these circumstances:

the firm is not entitled to a commission, and the listing is terminated

Patent:

the first grant in the chain of title, issued by the gov

An individual's rights in land are limited by the rights of:

the gov's rights

Reliction:

the gradual recession of water from its high-water mark, w the newly uncovered land becoming the property of an adjoining property owner

In a residential RE sales transaction using a warranty deed that the seller delivers to the buyer and a security deed that is used to secure the loan, the buyer is:

the grantee in the warranty deed and the grantor in the security deed

A percentage lease is calculated on a percentage of:

the gross sales

The Fair Housing Amendments Act of 1988 extended anti-discrimination coverage to families w children and:

the handicapped/disabled

If a hearing is held on charges of a license law violation against a licensee and the licensee does not appear:

the hearing may proceed

Estate, Fee Simple Absolute:

the highest and most complete form of ownership recognized in the US. There are no restrictions or conditions, and it cannot be taken from the estate owner for any reason other than his or her death w/out any living heirs

Taxable Income:

the income on which tax is paid - one's gross income after deductions are subtracted

The amount of commission a principal broker must pay a salesperson from a RE sales transaction is determined by:

the independent contractor agreement

In GA, the tax assessed when a new loan is recorded is:

the intangible tax

Undivided interest:

the interest of each co-owner in enjoying the entire property

All of the following is an advantage to the purchaser of property who finances it by a package mortgage, EXCEPT:

the interest rate is higher than through conventional installment financing (total payments are uniform throughout the life of the loan, the buyer deals w only one lender, the payments are distributed over a longer period)

Prime Rate:

the interest rate that commercial banks typically charge their most creditworthy commercial customers for short-term loans. Often the basis for setting interest rates on higher-risk loans

Discount rate:

the interest rate the Federal Reserve charges on loans to member banks to enable them to keep adequate funds in reserve

Eviction:

the legal expulsion of a tenant from rental property

If a residential RE sales transaction involves a new loan, the attorney conducting the closing represents:

the lender

The purpose of private mortgage insurance is to protect:

the lender against default by the borrower

A salesperson's license has lapsed due to non-renewal a little over 5 years ago. To become active the salesperson:

the license cannot be renewed. The salesperson must requalify as an original applicant

Which of the following individuals may fill out a preprinted form agreement that has been approved by a lawyer?

the licensee

All of following statements concerning the listing agent's responsibility to the seller under a listing agreement are true EXCEPT:

the listing agent is responsible for any losses to the principal (the listing agent must not reveal any confidential info about he principal's financial condition, the listing agent should be able to account for all the principal's money entrusted to her, the listing agent must disclose all known materials facts, even if they have a negative effect on the seller)

The selling agent is a subagency situation receives compensation from:

the listing broker

Closing Costs:

the miscellaneous expenses above the purchase price that buyers and sellers incur in the transfer of property ownership

Market Value:

the most likely price at which a property should sell w/in a reasonable time on an open market under all conditions requisite to a fair sale

Cash flow:

the net income generated by a property after debt service but before deprecation and other noncash expenses are calculated

Escrow Agent:

the neutral 3rd party holding funds or something of value in trust for another or others

A property manager should be aware of the break-even point of any building he manages. The break-even point is:

the occupancy level at which gross income for a property equals total fixed and variable operating costs

For an option to sell real property to be valid and enforceable, all of the following must be completed EXCEPT:

the option must be recorded (the option must be signed by the optionor and the optionee, the option must be in writing, consideration for the option must be given)

The owner of a four-unit building lives in one unit and refuses to rent to families. In this case:

the owner is allowed to discriminate except against the race of the tenant

All of the following are true of an exclusive agency listing EXCEPT:

the owner must pay a commission if the property is sold directly by the owner (the listing must be in writing, there must be a definite termination date in the listing contract, the owner must pay the brokerage firm a commission if anyone other than the owner sells the property)

Landlord:

the owner of RE who rents it to another individual

Basis:

the owner's cost for an asset, deducted from the amount realized, in calculating capital gains

Express Reservation:

the owner's provision of an easement to another individual while reserving the right to continue accessing it

The Westgate condominium has tennis courts, a large parking lot and a swimming pool. These common elements, under the terms of a typical condominium arrangement, are owned by:

the owners of the units in the condominium in the form of undivided percentage interest

Down payment:

the part of the purchase price not financed; the amount paid up-front

Tenant:

the party who has legal possession and use of real property

Capitalization rate:

the percentage considered a reasonable return on an investment and used to estimate value based on net income. It's the rate necessary to attract the average investor to a particular kind of investment

Loan-to-Value ration:

the percentage of a property's total value that a financial institution can or may lend to a borrower. An 80% ratio means the financial institution may lend 80% of the property's appraised value to a borrower

Effective interest rate:

the percentage of interest actually being paid by the borrower for the use of the money, as distinct from nominal interest

Reserve Requirements:

the percentage of their assets that banks must hold in reserve, as established by the Fed. The Fed may increase reserve requirements to slow inflation or decrease reserve requirements to stimulate the economy

Economic life:

the period over which a property will yield a return on the investment, i.e., be put to profitable use

Actual severance:

the physical removal of a feature or item form the land

Break-even point:

the point at which gross income equals

Regulation Z:

the portion of the Truth in Lending Act that requires lenders to provide full written disclosure of the credit provisions of all consumer loans including interest rates, financing charges, and hidden fees

Transferability:

the possibility of trading property ownership and all of its benefits for something of value in return. If the benefits of owning property are not transferable, the property has no value to a prospective purchaser

Blockbusting:

the practice of inducing panic home-selling by falsely claiming that ppl of a diff race, religion, color, etc., are moving into the area

When a monthly payment is made on an amortized loan, the portion of the payment applied to interest covers:

the previous month

Market value is:

the price a willing seller will accept and a willing buyer will pay

Fair Market Value:

the price that a buyer would be willing to pay and a seller accept for a dwelling on the market w both parties knowledgeable about the property and neither under undue pressure to sell or buy

Mortgage, First:

the primary loan on a property, which has priority over all other claims in the event of default

In creating a valid agency relationship, the party or parties who must be legally competent include:

the principal(s) and agent

Survey:

the process by which a parcel of land is measured, its area ascertained, and improvements, easements, and other factors are identified

Closing:

the process by which all parties to a RE transaction conclude the details of the sale and financing, including the signing and transfer of documents and distribution of funds

Tacking:

the process by which an individual occupying someone else's property adds his or her adverse possession of it to that of a previous adverse occupant to meet statutory requirements for gaining title

Attachment:

the process by which real or personal property of a party to a lawsuit is seized and retained in the court's custody to compel an appearance or provide security for a debt or costs arising out of the litigation

Recording:

the process of filing a RE document w a county recorder's office. Once recorded, the document is available for public inspection, meaning it can provide public and constructive notice of changes that might affect title to RE

To rehabilitate real property usually means:

the property will be restored to a good condition

When qualifying a prospective buyer or renter, a licensee may question the prospect about:

the prospect's rental history

Express Grant:

the provision of an interest in real property, generally an easement, to another individual through either a deed or other written agreement

The written statement provided to a prospective buyer of a time-share interval in GA that discloses info about the time-share development is:

the public offering statement

Assessor:

the public official responsible for determining assessed values

Open Market Operation:

the purchase and sale of U.S. Treasury securities to expand or limit the amount of money in the financial system

Business opportunity:

the purchase or lease of any product or service that will enable the buyer to start a business

Cost basis:

the purchase price of the property plus certain closing costs, such as legal fees and title insurance

Vacancy rate:

the ratio btw the # of vacant units and the total # of units in a multi-tenant building or development

Economic rent:

the reasonable amount of rent that could be expected if the property were available for rental at the time of its valuation

A person who acts as a referral agent is exempt from the RE licensing requirements as long as he/she does not receive compensation from:

the referred party or any licensee

Value:

the relationship btw an item desired and a potential purchaser

Qualifying ratio:

the relationship btw income and debt used in analyzing an applicant's qualifications for a loan

Deed, partial reconveyance:

the release by a lender of a portion of real property form a deed of trust

In GA, a written property management agreement must include all of the following EXCEPT:

the rent amount for the property (the terms and conditions for terminating the property management agreement, the amount of fee or commission and when the fee or commission will be paid, an identification of the property)

In GA, a brokerage engagement must advise the client of all of the following EXCEPT:

the requirement to seek legal advice before entering into a RE transaction (the types of agency relationships available through the broker, the broker's compensation and whether the broker will share compensation w other brokers who represent other parties, the broker's obligation to keep info confidential)

Fiduciary Duty:

the responsibility of an agent to act in the highest faith and not try to obtain an advantage through misrepresentation, concealment, or pressure.

Debt-to-Income Ration:

the result of dividing a borrower's monthly recurring debt by income to measure debt loan and ability to repay. Expressed as a percentage

Seller's Market:

the result when the demand for houses exceeds supply

Buyer's Market:

the result when the supply of houses exceeds demand

Redemption:

the right of a borrower to buy back property by paying off the entire debt w/in a specified period before or after a foreclosure

Statutory Right of Redemption:

the right of a mortgagor who has defaulted on the loan to buy back property w/in a period of time before or after a foreclosure sale, depending on state law

To be enforceable, a RE sales contract must be in writing and must include all of the following EXCEPT:

the signature of at least one witness (a sufficient description of the property, the signatures of the parties, the names of the seller and the buyer)

Concurrent Ownership:

the situation that arises when more than one person holds title to a given property

Nominal Interest Rate:

the stated interest rate of a loan. The rate, however, doesn't take inflation into account

Intestate:

the status of an estate when a person dies w no valid will

A contract may be discharged by novation. Novation is:

the substitution of a new contract btw the same or new parties

Estate:

the sum of an individual's net worth, including property and all other assets

Estate, Leasehold (also: Chattel Real, Less Than Freehold Estate, Non-Freehold Estate):

the temporary right of a tenant to occupy FE over the term of a lease. Also called chattel real, a less than freehold estate, or non-freehold estate

If a broker holds security deposits in a designated rental trust account, they must be credited to:

the tenant

When a handicapped person is allowed to make modifications to a rental property, that cost of such modifications is paid by:

the tenant

Physical Life:

the time after completion of construction until a building is no longer fit or safe to use

The phrase "time is of the essence" in a sales contract means that:

the time limits set by the contract must be faithfully observed or the contract is voidable

Annual percentage rate (APR):

the total finance charge expressed as an annual percentage of the amount financed in accordance w Regulation Z and the federal Truth in Lending Act

When a purchase and sale contract has been signed by the buyer and given to the seller's broker w an earnest money check:

the transaction is considered an offer until the seller accepts the contract and the acceptance is communicated to the buyer

Escheat:

the transfer of assets to the state when an individual dies w/out a will or legal heirs

Pledge:

the transfer of property by a debtor to a creditor as security for repayment

Reconveyance:

the transfer of property to the borrower when he or she pays off a deed of trust

Alienation:

the transfer of property, voluntarily or involuntarily, from one person to another

Natural Drainage:

the unassisted flow of excess surface water derived from rain or snow into neighboring rivers and streams

Leverage:

the use of a small amount of cash to purchase a large property investment

Fiscal Policy:

the use of gov spending and taxes of influence economic growth. A key factor is congressional action to increase or decrease income taxes. For example, to slow the economy and halt inflation, Congress can increase income tax rates, which has the effect of limiting how much people can spend or save

Subjective Value:

the value an item might have for a specific use or to a particular investor, even if there is no identifiable demand for it on the open market

Appraised value:

the value of a property at a given time based on facts gathered by an appraiser about its location, improvements, and surroundings

Adjusted basis:

the value of an asset after accounting for depreciation, losses, and enhancements

Equity:

the value of an owner's holdings in RE over and above any liens against it. Also, a branch of remedial justice through which relief is offered based on factors other than contracts

Assessed Valuation:

the value that a municipality or other public entity assigns to a property as a basis for levying taxes on it

Dedication:

the voluntary transfer of private land by its owner for a public use

Erosion:

the wearing away of land through the action of water, wind, or glacial ice

A salesperson attends a closing on behalf of:

their broker

when 2 or more persons hold title as tenants in common:

they all have use of the entire property

The phrase in a contract indicating that a party is in breach of the contract if he or she fails to perform by the specified deadline is referred to as:

time is of the essence

While a seller is considering an offer made yesterday, her listing agent receives 2 more offers on the property. In this situation, the listing agent should:

timely submit the new offers to the seller

Tracing the conveyances and encumbrances of real property is known as:

title search

In order to determine the condition of the title, a purchaser should secure a(n):

title search from a title insurance company

Which of the following is true of lending in the state of GA? GA is:

title theory in respect to mortgages and when using a mortgage would require judicial foreclosure

Title, after-acquired:

title to property acquired after it was supposedly transferred to another

RE professionals involved in fraudulent deals could face all of the following penalties EXCEPT:

to go jail w/out a hearing (lose their licenses and commission, get a bad reputation, be convicted of a crime)

Hypothecate:

to pledge property as security for a loan w/out the necessity of giving up possession of it

Refinance:

to take out a new mortgage that replaces the original using the same property as security. Usually done to get a better interest rate and/or term

Gross Income:

total income before any expenses are deducted

A GA buyer who has not signed a buyer brokerage contract is looking at property w an agent associated w ABC Realty. The buyer wants to see a F.S.B.O. (For Sale By Owner) that has "Brokers Protected" included on its for sale sign. At the request of the buyer, the agent has se tup an appointment to see the F.S.B.O. In this case ABC Realty will be a:

transaction broker

A broker who does NOT have an agency relationship w any of the parties and who performs ministerial acts for one or more of the parties for compensation is known as a(an):

transaction broker

An agent who is not representing the seller or the buyer is referred to as a:

transaction broker

The tax charged by the state when a property is transferred and the new deed recorded is known as the:

transfer tax

The act of entering upon another person's RE w/o authority or permission of the owner is called a(n):

trespass

If a salesperson receives an earnest $ check for a transaction in which the salesperson represents the buyer, the salesperson must:

turn the check over to salesperson's broker as soon after receipt as is practicably possible

A broker may refuse to release an affiliate's license:

under no circumstances

In GA, after a foreclosure sale, the borrower may reclaim the property:

under no circumstances

Under state and federal fair housing laws, the term ""children"" means children:

under the age of 18

Under the 1988 Fair Housing Amendments Act, "children" means children:

under the age of 18

Exclusive listing contracts are all of the following EXCEPT:

unilateral (express, bilateral, terminated upon death of the principal)

a broker lists a home for sale. the seller and broker are both aware that the roof leaks but conceal this info from the buyer. After the buyer moves in, she discovers the leaking roof. The actions of the seller and broker represent all of the following EXCEPT:

unintentional misrepresentation (a violation of the license law, gross misrepresentation, fraud)

The type of agency in which an agent has legal authority to act in place of the principal is known as:

universal agency

An executory contract may be assigned:

unless prohibited in the contract

Once an offer is made, it can be w/drawn:

until acceptance is communicated

Undue influence:

use of a fiduciary or confidential relationship to obtain a fraudulent or unfair advantage over another, precluding rational decision-making

MLS rules typically require that acquired listings:

usually be turned over to the service

Gross effective income equals gross potential income minus:

vacancy and collection losses

A buyer wanted to obtain an option to purchase a property for $180,000 but wanted to pay only $1 for a 60-day option. If such an option were drawn and duly signed by all parties, it would be:

valid

A mortgage w/o a promissory note is:

valid

An open listing which is oral is:

valid and enforceable

A buyer paid an owner $2,000 as an option fee for an option containing this clause: "Option to be for 60 days from June 1st. Upon exercise of the option, the holder is to purchase w/in 30days thereafter for all cash consideration. Option may be assigned." Only July 10th, the buyer sold and assigned his option for $1,000. On July 28, the new holder indicated to the owner that he would purchase on August 15. The owner claimed the option void. The option was:

valid, and the assignee can purchase on August 15

An owner sold a parcel of land, but in the deed he retained an easement so he could reach other land he owned. He didn't use the easement for over 5 years, and when he attempted to do so, the party to whom he had sold the first parcel of land claimed the easement was null and void. The easement was:

valid, bc nonuse of a deeded easement has no legal effect

The loan-to-value ratio is the ratio of the:

value of the mortgage loan principal divided by the appraised value or the sales price of the property, which is lower

A special permit that is issued to allow a land use normally in violation w current zoning is called a(n):

variance

Zoning in an area required that there be 10' from the edge of a building to the lot line. If approval were to be obtained to build up to 7' form the lot line, it would be called a:

variance

Breach:

violation of a law, or failure to perform a contractual duty, either by omission or commission

A contract created to pursue an illegal objective is:

void

A contract that does not have a legal objective is:

void

A sales contract that does not include consideration is:

void

In the case of a mutual mistake in a material fact resulting in no mutual agreement, the contract is:

void

"Physical deterioration" most closely means:

wear and tear

Physical deterioration:

wear and tear or breakdown of a physical structure over item. A major contributing factor is deferred maintenance

When doing renovations or removing asbestos, the best way to deal w dust is to clean the area using a:

wet mop, wet rags, and sponges

If a licensee must take courses to reactivate a license that has been inactive for 5/12 years, the required # of hours of continuing ed is:

whatever would have been required had the license been active

To reactivate a license which has been inactive, the licensee must complete continuing ed courses totaling:

whatever would have been required had the license been active

When is a practicing attorney in GA exempt from licensure as a RE broker?

when RE work is incidental to law practice

True Point of Beginning:

when a property has no permanent reference point (a monument or other fixture at which its description ordinarily would begin), the description must include the distance and direction from the point arbitrarily chosen as a starting point to a corner of the property, which is then called the true point of beginning

According to the GA RE License Law, a broker must deliver completed closing statements to the seller and the buyer:

when a sale is consummated

When are authorized employees of a gov agency, utility company, or lending institution exempt from RE licensing requirements?

when conducting official business (never, always, when conducting non-RE business)

Settlement process:

when parties to a RE transaction are ready to close the sale, the seller provides the closing agent w a deed, and the buyer provides the funds necessary to close. The process is completed when the deed is recorded and proceeds are delivered to the seller

When the buyer is taking out a new loan, interest begins accruing on the loan:

when the funds are disbursed by the lender

A lender's title insurance policy terminates:

when the loan is paid in full

A listing or buyer representation contract terminates:

when the property is closed

A licensee working for a buyer submits a buyer's offer to the seller's agent, and the seller accepts and signs the offer. A contract is created:

when the seller's acceptance is properly communicated to the buyer

Easement by Prescription:

when the unauthorized, non-exclusive, open, notorious, hostile, continuous, and uninterrupted use of another's property for a period set by state statute results in the user obtaining an irrevocable right to continue the use

Primary mortgage market:

where borrowers and mortgage originators negotiate terms and funds are lent directly to borrowers

Secondary mortgage market:

where existing mortgages and servicing rights are bought and sold

Waste:

willful destruction of or damage to property

A licensee may pay a fee or commission to a licensee who represents another party:

with written consent of all parties

In GA, in order for a deed to be accepted for public recording, the acknowledgement must be:

witnessed by 2 witnesses, one of whom must be a notary public

Trigger Terms:

words or phrases used in advertising consumer credit that require specific disclosures such as the loan amount, annual percentage rate, down payment details, repayment terms, and/or the possibility of an interest rate increase

Legal seizure of property for payment of money before judgment is a(n):

writ of attachment

The document allowing for the legal seizure of property for a debt before a judgment is called a(n):

writ of attachment

When a court orders a person to sell property, it issues a(n):

writ of execution

If a blank in a preprinted RE sales contract form does not apply to a specific transaction, the licensee filling out the form should:

write "N/A" in the blank

To be enforceable, a listing must be:

written

To create an agency in RE in the state of GA, a(n) ________________is required.

written agreement

According to BRRETA, providing advice concerning where to obtain a loan, or which inspector to use, or how much to offer requires that the buyer and agent enter into a/an:

written brokerage engagement

Bond:

written evidence of an obligation provided by a corporation or gov entity

Voir tous les ensembles d'études

Real Estate Part 3

Ensembles d'études connexes

Lewis Ch 4 Patient Teaching ? Only til No. 21

Foundation of nutrition chapter 6

Chapter 10

OB final

RN Alterations in tissue Integrity

Chapter 29- Corporations

1.01 Natural Rights

archerreview

Biology Ch. 16

Rhetorical Quiz 2

Biochemistry Exam #3

Cell Membrane Quiz

Test 3 review econ

HF Ch 11+12

Life and health insurance

Chapter 9

Chapter 6 Basic Cognitive Functions: Information Processing, Attention, and Memory (adult)

Study Guide 6

BIOL-141-101 Chapter 5

CS1440 Final Exam Review