CE Shop Unit Quiz Questions

Other fines are specified by the type of violation. For instance:

$100 fine for:Failure to turn over trust funds promptlyFailure to provide a copy of transactional paperwork to an individualFailure to include financing terms in a sales contract $500 fine for:Failure to reconcile a trust account at least monthlyFailure to handle trust funds according to laws and rulesFailure by a school to require the student to complete the required hours, exercises, or examinations appropriate to the course

Sworn Written Request The commission will investigate all complaints, when a sworn written request is made by a consumer or other licensee against a licensee, instructor, or a pre-licensing applicant. GREC may make a decision to investigate a complaint even when a sworn written request isn't made.

A _____________ written request isn't required for GREC to investigate a complaint, but a sworn complaint can help to ensure a more expedient response.

Citation Advantages

A citation is similar to a plea bargain in a criminal court in that it: Saves time and money associated with further due process Results in a lesser penalty

Take the state portion of the Georgia licensing exam

A licensee from Florida is seeking a non-resident license in Georgia. What does the commission require of this applicant?

Florida A resident licensee from Florida will be required to take the state portion of the licensing exam when seeking a non-resident license in Georgia.

A licensee from which neighboring state is required to take the state portion of the licensing exam in order to obtain a non-resident license in Georgia?

An exception to the real estate licensing requirement

A person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______.

Government employee

A real estate license is required, even as a __________ employee, when negotiating the purchase, sale, or lease of property.

While associated with and supervised by a broker

A salesperson or associate broker may perform real estate brokerage activities under what circumstances?

Doesn't need a real estate license Remember that compensation is one factor in the requirement for licensure.

Amanda helps her neighbor sell his home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______.

Which of the following best describes a real estate syndicate?

An organization with many investors who jointly participate in a real estate investment

Farmer Broker

As a _____________ broker, it's vital to understand the tax implications and government subsidies pertaining to farmland ownership.

Seller is the client buyer is the customer in this type of single agent relationship

As a seller's agent, you have a relationship with both the seller and the buyer, but in what capacity?

Industrial

Because these types of properties have both specific physical and complex operational requirements, they are usually handled by more experienced real estate professionals.

Retail shopping centers Equity REITs invest in income-producing property such as a retail shopping center. Undeveloped land isn't likely to produce income, and equity REITs don't invest in mortgage debt. That's the role of mortgage REITs.

Bridget has an investment portfolio which includes an equity REIT. Which of these is most likely to be part of the REIT's investment?

Inform his broker and stop practicing real estate. Only licensees who hold an active license may practice real estate.

Chip, a real estate licensee, just noticed that he missed his renewal deadline, and he's in the middle of a real estate transaction. In fact, his clients close in three days. What can he do?

Citation Deadlines

Citations are effective 30 days after they're served, and the licensee must meet any requirements of the citation within 30 days of that effective date, unless the order provides for a different deadline, or the licensee requests a hearing. Prior citations in which the licensee has met the terms of the citation don't count against the licensee when the commission is issuing a current citation.

Citation

Citations vs. Sanctions Saves time and money

Farm Brokerage

Dean is an experienced licensee whose career has focused on mineral, oil, and water rights, and the science behind soil cultivation. Based on this, what's Dean's likely real estate niche?

Leisure

Hotels, motels, golf courses, resorts, and sporting arenas belong to which of these property categories?

72%

In order to successfully pass the licensing exam, a salesperson applicant needs a minimum score of ______.

Real Estate Appraiser

In the real estate business, which professional's primary role is to estimate property value based on established valuation guidelines?

Real estate appraiser

In the real estate business, which professional's primary role is to estimate property value based on established valuation guidelines?

Traditional Lenders

In the real estate business, which professional's primary role is to finance mortgage loans, while also funding development/construction projects if the risk is not too great?

Investor

In the real estate business, which professional's primary role is to fund high risk land development/construction projects?

Real estate developer

In the real estate business, which professional's primary role is to make improvements to land?

Real Estate Attorney

In the real estate business, which professional's primary role is to protect brokerages from litigation and to answer questions for licensees about legal matters regarding real estate transactions?

Real Estate Salesperson

In the real estate business, which professional's primary role is to provide brokerage services to clients while under a broker's supervision?

None

Jim would like to sell his own home. What is the minimum real estate license he must possess?

No, you're inactive.

Let's say you're a Georgia real estate licensee, and you miss your renewal deadline. Can you practice real estate?

Citation

No one wants a ___________, but in some cases, it may be a better penalty than a sanction The lesser of the two penalties in the eyes of the law Fines of $1,000 and up to $5,000 per violation Involves a deadline for completion unless stipulated otherwise

Healthcare

Of the six categories of real estate, what types of properties are hospitals, urgent care centers, and doctor's offices?

Citations in Georgia Real Estate

Per 43-40-31, licensees found guilty of violating Georgia license law, rules, or regulations are guilty of a misdemeanor. However, when it determines that a violation has occurred, the commission may decide, at its discretion, to issue a citation in lieu of a sanction.

Sanction

Results in possible license suspension The commission considers prior offenses

Retail

Shopping centers and malls belong to which of these property categories?

Residential

Single-family, multi-family (duplex, triplex, etc.), apartment buildings, condominiums, and cooperatives are part of what property category?

False The licensee has the right to appeal the decision, but must do so within 30 days of the decision arising from the hearing.

The decision that arises from a hearing is final, and there's no appeal process.

Georgia's Real Estate Education, Research, and Recovery Fund

The recovery fund compensates victims of: Fraud or intent to defraud Misrepresentation Deceit Theft (conversion) of trust funds Victims who have been unable to collect payment of damages are compensated from the fund.

He can search real estate sites and resources to find available homes in the area.

Tom is an unlicensed individual helping his sister, Katie, find a new house, in return for a trip to Europe. Which of the following activities can Tom legally perform?

Citation Penalties

Typical stipulations in a citation include: Required courses of study for the violator Auditing by an independent accountant Fines of $1,000 per violation and a maximum of $5,000 per citation

Mortgage and Equity

What are the two types of Real Estate Investment Trusts?

Mortgage and equity

What are the two types of Real Estate Investment Trusts?

Real Estate Debt

What does a mortgage Real Estate Investment Trust invest in?

When it's intended to make a profit solely derived from the management effort of others

When is an investment a security?

Negotiate the sale of a fire house Lease retail space in an airport Acquire and develop land for a new military base

Which of these require a government employee to have a real estate license?

Partnership

Which type of legal structure may be either general or limited in type?

General

Which type of partner shares full personal liability for the partnership's debts and obligations?

Office Buildings

Which type of real estate property can be divided into classes A, B, and C?

Payment from the Real Estate Education, Research, and Recovery

________________ Fund can occur if the consumer suffers damages because a licensee: Engages in fraud or intent to defraud Makes a misrepresentation Acts in a deceitful manner Takes or uses trust funds, what's known as conversion Demonstrates untrustworthiness Acts as a salesperson or broker when a license is not held Acts negligently or incompetently Performs acts for which a real estate license can be revoked or suspended

Injunctive Action

_____________action is an action of a lawyer

Citations

are similar to a plea bargain and result in a lesser penalty.

Real estate educator

In the real estate business, which professional's primary role is to provide training to individuals who want to obtain their real estate license or who need to keep their license current?

Real Estate Education, Research and Recovery Fund: Primary Provisions of the Statute

How it's funded: New licensees pay into the fund at the time of their initial application ($20 currently, but subject to change) Minimum required fund balance: $1 million (if it drops below this amount, licensees may be assessed as much as $30 at the time of license renewal) Maximum fund disbursement per transaction: $25,000 (an award of $30,000 would only pay out $25,000) Maximum fund disbursement per licensee, regardless of the number of transactions, claimants, or amount of awards: $75,000 Lifetime maximum disbursement per individual recipient: $25,000 Individuals and entities prohibited from making claims against the fund: Bonding companies not acting as principals to a transaction Licensees acting as agents or principals Family members and personal representative of the violating licensee

Georgia's Real Estate Education, Research, and Recovery Fund

However, in 1973, a recovery fund was established for the purpose of compensating consumers in these situations. Later, the fund also came to be used for education and research. This fund is now called the _____________________________Fund.

Real estate debt Mortgage REITs don't buy properties, but instead invest in real estate debt, primarily commercial and residential mortgage-backed securities.

What does a mortgage Real Estate Investment Trust invest in?

Acting Without a License

When an individual engages in licensed activities or advertises herself as real estate professional without holding a real estate license, the commission may issue a cease and desist order to that person. Such a cease and desist order will be final 10 days after it's issued unless the recipient requests a hearing before the commission. Violating a cease and desist order subjects the person in violation to further commission proceedings, such as a fine of as much as $1,000.00 for each violation instance. Each day the person practices real estate in violation is considered a separate violation. Initial judicial review of the commission's decision will only take place in the superior court of the county where the commission is located. The commission may also impose remedies provided by statute before issuing a cease and desist order.

Citation

When the commission determines a current ___________, it doesn't consider a former one the licensee has settled. Former sanctions are considered, however.

A person or an entity A broker's license can be held by a person or an entity, such as a corporation or partnership.

Which of the following can hold a broker's license?

Syndicates

Which of the following must adhere to the rules of the Securities and Exchange Commission?

Approve a VA loan

Which of these do NOT require a government employee to have a real estate license?

Office buildings

Which type of real estate property can be divided into classes A, B, and C?

The Georgia attorney General The Georgia attorney general represents state entities including the real estate commission.

Who or which entity can bring injunctive actions against a licensee to stop activities that violate license law or have the potential to violate license law?

Deadline for filing claims against the Real Estate Education, Research, and Recovery fund:

Within two years of the cause of action (the commission must be notified at the time of filing, and reserves the right to intervene to defend any action)

Real Estate Broker

In the real estate business, which professional's primary role is to provide brokerage services to their clients and to supervise licensees who work for them?

Requirements prior to applying to the Real Estate Education, Research, and Recovery fund:

A court judgment, after which the consumer must have tried every reasonable means to obtain the funds awarded in the judgment from the licensee; a subsequent court order to file a claim of the fund must be requested and received.

Real Estate Counselor

In the real estate business, which professional's primary role is to provide clients with the information they need to make informed decisions about their own specific real estate interests?

Broker

Consuela is a real estate licensee, and she has three other licensees working under her supervision. What type of license does Consuela hold?

Real Estate Educator

In the real estate business, which professional's primary role is to provide training to individuals who want to obtain their real estate license or who need to keep their license current?

Hearings Before the Commission

If, after an investigation, the Georgia attorney general finds reason for disciplinary action, a request for a hearing is filed and the licensee and the licensee's sponsoring broker are notified. Because proper notice of a hearing date and time is provided, failure to appear won't delay the hearing. It will proceed as scheduled, with or without the licensee. A licensee can end the hearing process by agreeing to a settlement with the commission. A settlement may result in disciplinary actions, but it will end the hearing process. A licensee who can present sufficient evidence demonstrating that no violation has occurred will result in the commission dropping the complaint. Without a decision to halt the hearing process, a formal hearing will follow. If a licensee disagrees with the hearing's findings, he is entitled to judicial review in the county where the commission is located, but must file an appeal within 30 days of the hearing judge's final decision.

Real estate salesperson

In the real estate business, which professional's primary role is to provide brokerage services to clients while under a broker's supervision?

General C corporation A C corporation usually has centralized management where elected officers govern company affairs, while the designated licensed broker is directly responsible for the real estate transactions.

In this type of corporation, a centralized management group of elected officers governs the company's affairs, while the designated licensed broker is directly responsible for the real estate transactions.

Jessie is searching for a new home for a friend moving into town, who will compensate her 2% of the sale price for her time and effort.

In which of these scenarios would the consumer need a real estate license?

A non-resident license

Jack is a licensee who lives in Alabama. If he wants to provide real estate services in Georgia, what must he obtain?

Enter into a written agreement with a Georgia broker Jacob must have a written agreement in place with a Georgia broker before he can be involved in a real estate transaction.

Jacob, a broker and Tennessee resident, would like to do business in Georgia, but doesn't want to obtain a non-resident license. What's another option for him?

A real estate licensee Janis must hold a real estate license to engage in brokerage activities, even for the government.

Janis negotiates the purchase and sale of military bases across the nation. She must be ______.

Yes. He must have at least three years' experience as a Georgia salesperson before he qualifies to take the broker's exam.

John is 18, and he wants to be a real estate broker in Georgia. If he completes 135 hours of required real estate licensing coursework—75 in pre-licensing and 60 for the broker license—is there anything that might prevent him from taking the broker's license exam?

Corporation A corporation is a legal entity. Most likely, this is a close corporation.

Mike and Ike set up a real estate company. Mike, Ike, and Spike each own a portion of the stock. Mike & Ike Realty is a legal entity of its own. Mike is involved in a ______.

$500 fine for:

Other Citation Penalties: Failure to reconcile a trust account at least monthly Failure to handle trust funds according to laws and rules Failure by a school to require the student to complete the required hours, exercises, or examinations appropriate to the course

100 fine for:

Other Citation Penalties: Failure to turn over trust funds promptly Failure to provide a copy of transactional paperwork to an individual Failure to include financing terms in a sales contract

A syndicate

What does the following define: "An organization with many members who jointly participate in a real estate investment"?

Georgia's Real Estate Education, Research, and Recovery Fund

What happens when a consumer makes a complaint against a licensee and prevails, but is unable to recover damages from the licensee? Without a process to compensate the consumer, public confidence in the profession of real estate would plummet. It used to be that licensees were required to carry bonds for this very reason.

Mineral rights, Water rights, Development rights, Surface rights, Subsurface rights, Oil and gas rights All of the choices are associated with farmland ownership, unless these rights were sold separately.

What rights are usually included with farmland ownership?

Real estate mortgage investment conduit

What type of real estate investment is similar to collateralized mortgage obligations (CMOs)?

Real estate syndicate

What type of real estate investment may meet the definition of being a security and must adhere to the rules and regulations of the Securities and Exchange Commission?

Real estate syndicate Real estate syndicates are organizations with many investors who participate in real estate investment. They sometimes meet the definition of "dealing in securities" and therefore must adhere to the Securities and Exchange Commission's rules.

What type of real estate investment may meet the definition of being a security and must adhere to the rules and regulations of the Securities and Exchange Commission?

Real estate investment trust To avoid the trust income tax, the REIT must distribute 95% of the ordinarily taxable income to the trust beneficiaries, then the beneficiaries report the income for tax purposes.

What type of real estate investment must distribute 95% of its income to beneficiaries?

An analyst determines investment potential; an appraiser determines value.

What's the difference between a real estate analyst and a real estate appraiser?

An analyst determines investment potential; an appraiser determines value. Both analysts and appraisers are interested in value, and both provide detailed analysis; however, an analyst is interested in investment potential, while an appraiser is solely interested in valu

What's the difference between a real estate analyst and a real estate appraiser?

The Authority of Injunctive Action in Georgia

When an alleged violation threatens the public good, GREC may petition the office of the Georgia attorney general—which serves as legal counsel for all state matters—to bring an action to abate or, temporarily or permanently, enjoin a licensee from committing a violation of Georgia license law or GREC rules. Such an action must be filed in the name of the state in the district court of the county in which either the violation has occurred or is about to occur, or where the alleged violator lives.