Real Estate Practice in Georgia
A seller agreed to pay a broker a commission of $5,500 if the broker sold the property for up to $97,000. Any sale price amount over $97,000 would also be for the broker to keep. Would this type of listing be allowed under the Georgia License Law? Select one: a. Yes, because commissions are always negotiable between seller and broker b. Yes, because a flat fee combined with a bonus commission is allowed c. No, because net listings are illegal in Georgia d. No, because flat fees are illegal in Georgia
c. No, because net listings are illegal in Georgia
A real estate deal fell through with the buyer and seller disputing what to do with the earnest money. The buyer and seller went to court to settle the matter. What should the listing broker do with the earnest money? Select one: a. Keep part of the earnest money for his commission and give the rest to the buyer b. Give the earnest money to the seller due to the fiduciary relationship c. Pay the earnest money to the court for disposition d. Split the earnest money between the buyer and the seller
c. Pay the earnest money to the court for disposition
According to a property management agreement, the duties of the manager include all of the following except? Select one: a. Promotion of the property. b. Maintain the property in a good condition. c. Prepare income taxes for the owner. d. Develop a budget by balancing income and expenses.
c. Prepare income taxes for the owner.
A salesperson told a buyer that the air conditioner would stay with the house. However, he had NOT checked it out with the seller. After closing, the seller took the air conditioner. Which would happen? Select one: a. He would have to pay for the air conditioner b. The GREC would automatically revoke his license c. The GREC can take disciplinary action or dismiss a complaint if filed d. The buyer would have to look to the seller for relief
c. The GREC can take disciplinary action or dismiss a complaint if filed
A broker and a non-licensee went together to buy a piece of property. What is the minimum that the broker must disclose to the seller? Select one: a. Nothing since the broker was only a part owner b. The exact percentage of the broker's interest in the property c. The broker would have an interest in the property d. The broker was acting as a middle-man in the transaction Feedback
c. The broker would have an interest in the property
Which of the following statements is true regarding a licensed salesperson's selling the salesperson's own house "for sale by owner"? Select one: a. The salesperson must notify the broker who holds the salesperson's license b. The sign in the yard could say "For Sale By Owner" c. The sign in the yard MUST say "For Sale By Owner-Seller holds a real estate license" d. The salesperson must include the brokerage name in all advertising
c. The sign in the yard MUST say "For Sale By Owner-Seller holds a real estate license"
A buyer makes an offer on a property with some earnest money now and some to follow later. What should the licensee do? Select one: a. Pay the difference ahead of time to the broker personally b. Encourage the seller to take the smaller amount of earnest money only c. Write the offer as is with the extra earnest money to follow later d. Not present the offer until the extra earnest money is received
c. Write the offer as is with the extra earnest money to follow later
To supervise a branch office, you must be: Select one: a. full-time broker who does not sell or list b. licensed salesperson c. a Broker or Associate Broker d. licensed salesperson who is also a sales manager
c. a Broker or Associate Broker
In order to sit for the Community Association Management (CAM) state licensing exam, an applicant must: Select one: a. complete a 75 hour approved course of study. b. complete a 60 hour approved course of study. c. complete a 25 hour approved course of study. d. none of the above.
c. complete a 25 hour approved course of study.
A licensed salesperson is looking for a home for herself. She is interested in a home listed with another company. If she wishes to purchase the home, she must: Select one: a. write the offer and deliver the offer to the seller herself b. ask her broker to write the offer for her and then deliver it to the listing broker c. include in the offer the fact that the buyer is a licensed salesperson d. write the offer herself but need not disclose her identity since the seller may ask for more money when they realize the buyer is a professional
c. include in the offer the fact that the buyer is a licensed salesperson
A husband, wife and mother-in-law were looking at possible houses to buy with a real estate agent. They asked the agent how they should take title to a property. The BEST response for the agent would be: Select one: a. joint tenancy b. tenancy in the entireties c. to have them consult an attorney d. to have them consult the broker of the office
c. to have them consult an attorney
A licensee decided to buy a property that the licensee had listed. Which of the following must the licensee do in orderto purchase from the principal? Select one: a. Pursue the purchase of the property after waiting 30 days to see if the property will sell b. Pay full list price for the property c. Have a third party purchase the property and transfer it to the licensee at a later date d. Disclose to the seller that the licensee will have an ownership interest in the property
d. Disclose to the seller that the licensee will have an ownership interest in the property
A salesperson is selling their personal home as a for sale by owner. What must be in the ad? Select one: a. Salesperson's name and telephone number b. Salesperson's and Broker's name and telephone number c. Broker's name and telephone number only d. Disclosure that the salesperson is licensed
d. Disclosure that the salesperson is licensed
A salesperson was involved in a transaction that consisted of a 6 month lease and an option to purchase. Which of the following statements best describes how the salesperson should handle the documents? Select one: a. Fill in the lease but not the option b. Send the documents to an attorney and have the attorney prepare the forms c. Fill in the option but not the lease as the lease was for 6 months or less d. Fill in both the lease and the option on standard forms and take to the broker for review
d. Fill in both the lease and the option on standard forms and take to the broker for review
Which is true about a net listing? Select one: a. A written net listing is enforceable in court b. An oral net listing is enforceable in court c. It is legal in Georgia d. It is illegal in Georgia
d. It is illegal in Georgia
Broker A received an offer of $189,000 on a $200,000 listing. After the seller gave the offer to his attorney to review, another offer for $176,000 came in. What should the broker do? Select one: a. Present the offer as a backup b. Do not present because it was not for full price c. Wait until the first offer is acted upon d. Present the offer immediately
d. Present the offer immediately
According to a community association management agreement, the duties of a property manager include all of the following except? Select one: a. Collecting, controlling, or disbursing funds. b. Maintaining a fidelity bond on each association when managing more than $60,000. c. Oversee the day-to-day operations of the association. d. The agreement must be made by a CAM licensee.
d. The agreement must be made by a CAM licensee.
A person passed a pre-license class and then took the state exam and failed. The person then gave, to a broker, the names of two friends who were moving out of state. The person later moved from the town. Would this person be entitled to a referral commission? Select one: a. No, this person cannot receive a referral but the broker can give them a nice gift b. No, this person was not licensed at the time of performing the act c. Yes, since this person completed the exam and gave the referral to their broker d. Yes, this person could receive a referral as long as it was not a commission
b. No, this person was not licensed at the time of performing the act
A salesperson who is acting as agent of the seller only was showing a two bedroom house to a buyer. Which of the following facts must the salesperson disclose to the buyer? Select one: a. Times of the day the property may be shown b. Property is located in a flood plain c. Mortgage balance d. Commission they will receive
b. Property is located in a flood plain
A salesperson decided to sell her house. She did not want to list the house with her brokerage company. Instead, she wanted to sell her own house as a for-sale-by-owner. Which of the following items would the salesperson have to do? Select one: a. List with her own brokerage company since she is licensed under that broker b. Put in all advertising "seller holds a real estate license", including the yard sign c. Put in all advertising "owner-occupant", including the yard sign d. Use her brokerage contract forms even though she's selling the house herself
b. Put in all advertising "seller holds a real estate license", including the yard sign
According to BRRETA, a licensee is responsible, under certain circumstances, for disclosing facts known about the area surrounding a property. What is the extent, in miles, that this disclosure encompasses? Select one: a. 1 b. 2 c. 3 d. 5
a. 1
In dual agency, the consent form must contain all of the following except? Select one: a. A lot and block legal description of the property b. A statement that the client does not have to consent to the dual agency. c. A statement that the agent will disclose all adverse known material facts. d. A statement that the agent will disclose any material relationships.
a. A lot and block legal description of the property
A buyer and a seller, neither of which is under any contract with a real estate broker, ask a broker to write a contract for them. What should this broker do? Select one: a. Act as a transaction broker and may receive compensation b. Act as a transaction broker but cannot receive any compensation c. Require the seller to give the broker a listing and pay compensation d. Require the buyer to give the broker a buyer's listing and pay compensation
a. Act as a transaction broker and may receive compensation
Which can an unlicensed secretary in a broker's office do? Select one: a. Collect rents submitted to her at her desk b. Show properties to potential clients c. Use the telephone to solicit new business d. Tell persons over the phone the list price and terms of the sale
a. Collect rents submitted to her at her desk
A salesperson was holding an open house. Which of the following would NOT be considered as an inducement to buy? Select one: a. Giving away pencils, magnets and balloons of minimal value to everyone b. Giving away trips to buyers if they purchase the property c. Giving gifts to buyers of $25 or less if they purchase the property d. Giving gift certificates to buyers if they purchase the property
a. Giving away pencils, magnets and balloons of minimal value to everyone
A corporation set up a business to do office rental services. Which of the following acts could the members do without a real estate license? Select one: a. Handle the leasing of its own property b. Lease other companies' properties c. Procure tenants for other owners d. Receive referral fees from brokers but no actual commissions
a. Handle the leasing of its own property
Which of the following items is NOT required to be part of an exclusive agency agreement? Select one: a. Statement requiring owner to notify broker of the intention NOT to renew b. Statement that the listing is exclusive c. Proper identification of the property d. Commission rate to be paid
a. Statement requiring owner to notify broker of the intention NOT to renew
Which of the following is not found in a property management agreement? Select one: a. The property manager conducting an appraisal on the property once a year. b. The duties of the property manager. c. The compensation of the property manager. d. The legal description.
a. The property manager conducting an appraisal on the property once a year.
At the time of listing, a broker noticed a crack in a wall that was covered by boxes. In showing the property the licensee would: Select one: a. inform the prospective buyer of the crack b. inform the prospective buyer of the crack only if they ask c. not tell the buyer as they are representing the seller d. move the boxes to allow the buyer to see it themselves
a. inform the prospective buyer of the crack
A broker had several branch offices. Which is true regarding the management? Select one: a. He would have to have direct supervision over the main office and branch offices b. An Associate Broker can have direct supervision over the branch office c. A salesperson must have direct supervision over the branch offices d. Each branch office must have a full-time broker who does NOT sell or list
b. An Associate Broker can have direct supervision over the branch office
An agency relationship would most likely exist between which of the following parties? Select one: a. Salesperson and seller b. Broker and salesperson c. GREC and brokers d. A listing broker and a cooperating broker
b. Broker and salesperson
A seller's listing expired on August 31st. On August 10th, another broker contacted the seller about listing the property when the current listing expired. Is this legal? Select one: a. No, because the first broker has a right of first refusal on the listing b. No, because the broker contacted the seller prior to the expiration date c. Yes, because a new broker can take over once the current listing expires d. Yes, because owners should have the right to choose whatever broker they want whenever they want
b. No, because the broker contacted the seller prior to the expiration date
Which of the following would NOT be a legal way for a salesperson to advertise a piece of listed property? Select one: a. Run an ad in the paper through the broker's name that said an open house was going to be held on a continuous basis b. Run a classified ad in their own name advertising the property for sale c. To send out cards with the company name stating an open house will be held d. To send out flyers on the company stationery to homes in that area
b. Run a classified ad in their own name advertising the property for sale
Georgia's agency law is known as: Select one: a. BEAST (Brokerage Engagement Agreements in Sales Transactions) b. BARE (Brokerage Agreements in Real Estate) c. BRRETA (Brokerage Relationships in Real Estate Transactions Act) d. BEAR (Brokerage Engagement Acts in Real Estate)
c. BRRETA (Brokerage Relationships in Real Estate Transactions Act)
Seller Carr instructed Agent Dole to inform buyers that the plumbing was in excellent shape. However, the plumbing was needing repair. Dole followed the owner's orders. What can happen in this case? Select one: a. Dole can go to prison b. Dole has done nothing wrong as he was following the owner's orders c. Dole is subject to license revocation d. Carr is subject to discipline by the GREC
c. Dole is subject to license revocation
A secretary of a real estate company has passed the state exam but not yet received her license. Which of the following activities could she do? Select one: a. Give out information on listings to the public b. Pass out business cards with her name on it c. Give another agent in the office an address of a listing d. List but not show property
c. Give another agent in the office an address of a listing
A person has passed their state examination but has not yet received a license. Which of the following could that person NOT do? Select one: a. Place "For Sale" signs on a newly-listed property b. Type advertising copy c. Give the address of a listed property to a buyer d. Deposit money into a broker's escrow account
c. Give the address of a listed property to a buyer
A broker may act as a dual agent in which circumstance? Select one: a. If the seller is aware of it b. If the buyer is aware of it c. If both seller and buyer give prior informed consent d. Under no circumstances
c. If both seller and buyer give prior informed consent
A licensed salesperson put an ad in the paper for the sale of his own house. When would he need to inform prospects that he is an agent? Select one: a. Only when he signs the contract b. Only when prospects call c. In the ad itself d. Only at closing
c. In the ad itself
An agent was working with a buyer. The agent explained agency to the buyer and presented the buyer with an agency disclosure form as part of a sales contract for the buyer to sign. However, the buyer refused to sign. What should the agent do? Select one: a. Refuse to work with the buyer b. Inform the seller of the situation c. Make a note and give it to the broker to be kept in the files d. Refer the buyer to another agent
c. Make a note and give it to the broker to be kept in the files
An attorney who is not a real estate licensee gives referrals to a real estate company. Can the attorney receive a referral fee from the licensee? Select one: a. Yes, if it is the standard fee paid to the lawyer's firm b. Yes, because the attorney does not actually sell the real estate c. No, as the attorney does not have a real estate license d. No, as an attorney cannot receive referrals by law
c. No, as the attorney does not have a real estate license
An unlicensed person worked for a real estate company. The unlicensed person showed a friend a home listed by C the real estate company. The friend purchased the home and the unlicensed person is asking for a 2% real estate commission. Can the broker of the real estate company pay the 2% commission? Select one: a. Yes, as this would be lower than the normal amount paid to a licensed agent b. Yes, as the employee was acting only on company listings c. No, as the employee was unlicensed d. No, as an employee cannot be compensated over and above the normal salary
c. No, as the employee was unlicensed
A buyer signed a contract and gave the broker $5,000 in earnest money. The offer was accepted by the seller and the earnest money deposited into the broker's escrow account. The buyer, however, needed $250 to pay for an appraisal. Could the broker take $250 from the escrow account and give it to the buyer? Select one: a. No, the earnest money can never be used for anything other than the down payment b. No, unless the seller provides written agreement c. Yes, provided written authorization is received from the buyer d. Yes, provided written authorization is given by all parties to the contract
d. Yes, provided written authorization is given by all parties to the contract
Broker Falk had a listing. Broker Carr found a buyer for Broker Falk's listing. A salesperson could close the transaction if: Select one: a. he was under the direct supervision of the listing broker b. he was under the direct supervision of his broker who was also the listing broker c. he was under the direct supervision of a broker who was NOT his broker d. a salesperson can NOT close a transaction, only attorneys can close them
d. a salesperson can NOT close a transaction, only attorneys can close them
Two brokers owned a real estate brokerage company together. After many years in business, the two brokers decided to split the company in half and each start their own new real estate brokerage company. The brokers wanted to split the current listings 50/50. This could be done if the brokers: Select one: a. agreed in writing between the two of them b. received authorization from the GREC c. had all the salespersons in the company agree in writing to this arrangement d. received written permission from all parties to the listings
d. received written permission from all parties to the listings
A seller and broker entered into a 30 day listing agreement to market a commercial property. One week later, the seller was dissatisfied with the broker's activities and contacted another broker about selling his property. The seller signed a new listing agreement with the new broker that took effect when the old listing expired. Which is true regarding the agreements? Select one: a. Since all brokers work together, a new listing agreement is not necessary b. The new broker can begin marketing the property the day after the old listing expires c. The new broker must notify the previous broker that they will not receive a referral fee d. The seller must notify the first broker of the fact that he will not renew his listing and then the new broker may begin marketing the property
b. The new broker can begin marketing the property the day after the old listing expires
An agent showed a property. After writing an offer and presenting it, the seller accepted it. What date must be listed on the contract? Select one: a. Showing the property b. When any signatures or initials are obtained c. Only the date of writing the offer d. Presenting of the offer
b. When any signatures or initials are obtained
A buyer wrote an offer to purchase for a $130,000 house. The buyer asked the salesperson if they could use the title to a speed boat as an earnest deposit. Would this be acceptable as an earnest deposit? Select one: a. Yes, as long as the boat is worth 5% of the value of the house b. Yes, as long as it is agreeable with the seller c. No, a boat can never be used as earnest deposit d. No, earnest money must be in the form of cash or check
b. Yes, as long as it is agreeable with the seller
There was a home listed under an exclusive right to sell agreement. Another broker went to show the house without notifying the listing broker. Was this a violation of the license law? Select one: a. Yes, because only the listing broker can show the property b. Yes, because the selling broker must first contact the listing broker in order to show the property c. No, because the selling broker has an implied contract to show the property d. No, because under an exclusive right to sell listing, everyone is authorized to sell
b. Yes, because the selling broker must first contact the listing broker in order to show the property
A seller listed her property with an agent for $60,000 but told the agent she would negotiate the price. The agent told a buyer that the seller would negotiate the price. The buyer offered less than $60,000 which the seller rejected. Did the agent violate his obligation? Select one: a. Yes, this was misrepresentation to the buyer b. Yes, he violated his fiduciary obligation by telling the buyer the seller would negotiate as he did not have the seller's best interest at heart c. No, the salesperson gave adequate information to the buyer d. No, the salesperson was acting within the jurisdiction granted by the seller
b. Yes, he violated his fiduciary obligation by telling the buyer the seller would negotiate as he did not have the seller's best interest at heart
A salesperson pre-qualified a buyer and took personal information at that time. The salesperson then showed the buyer several homes. Prior to showing the homes the salesperson had the buyer sign an agency disclosure form. Did the salesperson do anything wrong? Select one: a. Yes, the salesperson should never show a house without qualifying the buyer b. Yes, the salesperson should have disclosed their agency prior to taking personal information c. No, the salesperson disclosed their agency prior to showing any properties d. No, the salesperson should disclose their agency only if asked
b. Yes, the salesperson should have disclosed their agency prior to taking personal information
Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted the seller and told him he had a buyer moving in one month after the listing terminates and asked the seller to sign an agreement to take effect after the listing expires. This is: Select one: a. misrepresentation b. a violation of state law c. allowable as the listing would have expired d. considered commingling of listings
b. a violation of state law
A salesperson obtained an offer to purchase with earnest money from a buyer. The seller and buyer made offers and counteroffers back and forth to each other for 10 days. With regard to the earnest money, the salesperson should: Select one: a. wait until acceptance of both parties to give the earnest money to the broker b. deliver the earnest money to the broker upon receipt of the money c. deposit the money in the seller's bank account due to the fiduciary responsibility owed to the seller d. hold the money personally for safe keeping
b. deliver the earnest money to the broker upon receipt of the money
Under BRRETA, an agent's liability for disclosure: Select one: a. is limited to discoverable facts only. b. is limited to only information he knows to be true. c. includes any imputed knowledge his company may have. d. extends to all facts that are part of the public record.
b. is limited to only information he knows to be true.
A broker had an exclusive right to sell agency listing. In order to collect the commission, he must: Select one: a. prove he was the procuring agent. b. prove he was licensed at the time of sale. c. prove he had a ready, willing and able buyer that met the seller's terms. d. all of the above.
b. prove he was licensed at the time of sale.
An unlicensed secretary is the only one in the office as all the licensees are out to lunch. Broker Carr from another company calls requesting information on a property. The secretary may: Select one: a. give him the sale price and address b. take his name and number to have a licensee return the call c. give any information necessary since it is another broker and not a member of the general public d. mail the broker the information
b. take his name and number to have a licensee return the call
According to BRRETA, if a broker practices designated agency: Select one: a. the broker is in direct violation of BRRETA. b. the broker is, by definition, practicing disclosed dual agency. c. the broker is not, by law, practicing disclosed dual agency. d. the broker must co-op the sale with another brokerage firm.
b. the broker is, by definition, practicing disclosed dual agency.