BF Practice Test 1

All of the following are limitations on ownership of property, EXCEPT: Select one: a. Zoning b. Police power c. Building codes d. Seizen

Seizen

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

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

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

b. Yes, since he was being compensated for the referrals

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. ho

b. deliver the earnest money to the broker upon receipt of the money

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.

The intent behind the Statute of Frauds is to: Select one: a. protect licensees from sellers who try and cheat licensees out of duly earned commissions b. put real estate transactions in writing c. protect the public from fraudulent actions by licensees d. prevent sellers from lying about property defects to prospective buyers

b. put real estate transactions in writing

Which of the following BEST describes a buffer zone? Select one: a. An industrial park located between an area zoned residential and another zoned commercial b. An office park located between an apartment project and an area zoned for industrial use c. A recreation park located between an apartment complex and an area zoned for single family homes d. A highway that separates residential property from commercial property

c. A recreation park located between an apartment complex and an area zoned for single family homes

Which of the following best describes a contract? Select one: a. An offer and acceptance between competent parties to do a specific legal act. b. A written agreement between competent parties to abstain from doing a specific act. c. An offer and acceptance between competent parties to do or not to do a specific legal act for consideration. d. A mutual agreement between two or more partie

c. An offer and acceptance between competent parties to do or not to do a specific legal act for consideration.

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)

Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the prepaid interest and by whom was it paid? Select one: a. Sam $1,350 b. Emma $45 c. Emma $90 d. Sam $45 Feedback

c. Emma $90 Emma will pay 2 days of prepaid interest, the day of closing through the last day of the closing month.

When property is conveyed by deed, the buyer is referred to as the: Select one: a. Mortgagee b. Mortgagor c. Grantee d. Grantor

c. Grantee

When property is secured by a mortgage, the lender is known as the: Select one: a. Trustor b. Trustee c. Mortgagee d. Devisee

c. Mortgagee

David, an independent broker, dies. His daughter, a licensed broker and only heir, inherits the brokerage business. If she intends to operate the brokerage and keep the listings, it is necessary that she: Select one: a. File legal notice of her intent to assume responsibility for the brokerage business b. Advise the probate court of her intent to assume responsibility for the listing agreements c. Negotiate and receive new listing agreements from each client d. Nothing is required because she is

c. Negotiate and receive new listing agreements from each client

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 Ge

c. No, because net listings are illegal in Georgia

To be legally binding, a real estate contract MUST contain a: Select one: a. List of personal property. b. Termite clause. c. Property description. d. Commission to be paid to the broker.

c. Property description.

Which of the following terms would MOST likely be included in a title insurance policy? Select one: a. Acceleration b. Alienation c. Subrogation d. Subordination Feedback

c. Subrogation

If there is a breach of a contract for the sale of real property, an option available to the non-defaulting party is: Select one: a. Liquidation. b. Reversion. c. Suit for specific performance or actual damages. d. Suit for punitive damages.

c. Suit for specific performance or actual damages.

When necessary, who forecloses in a trust deed state? Select one: a. The Beneficiary b. The Lender c. The Trustee d. The Trustor

c. The Trustee

Regulation Z requires that all of the following information be disclosed to the borrower EXCEPT: Select one: a. Finance charges. b. The annual percentage rate of the loan. c. The cost of title insurance. d. The total amount of interest that will be paid.

c. The cost of title insurance.

The primary purpose of the secondary mortgage market is. Select one: a. To aid in the resale of property. b. To provide investment vehicles for lenders. c. To ensure a flow of mortgage money to primary lenders. d. To assist small mortgage companies.

c. To ensure a flow of mortgage money to primary lenders.

A borrower applied for a VA first mortgage for $100,000. However, the property appraised for $80,000. If the buyer still wished to buy the property, which could happen? Select one: a. The veteran could not get the VA loan because the price was higher than the appraisal. b. VA would require the veteran to get a second mortgage for the difference. c. VA could allow the veteran to make up the difference in cash. d. The broker could write up a different contract for a different sales price to take t

c. VA could allow the veteran to make up the difference in cash.

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

c. the broker is not, by law, practicing disclosed dual agency.

Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. If Emma paid PMI all at closing, how much did she pay? Select one: a. $0.00 b. $5,062.50 c. $5,626.00 d. $4,050.00

d. $4,050.00 A 90% LTVR requires a 2 % PMI to be paid on the loan amount. $202,500 x 2 % = $ 4,050.00

A two-story office building is 10.5 feet high on each floor, 18 feet wide and 54 feet long. How many cubic yards is in the entire building? Select one: a. 10,206. b. 20,412. c. 378. d. 756. Feedback

d. 756. Volume (cubic feet) = Length X Width X Height 54 ft. X 18 ft. X 10.5 ft. x 2 stories = 20,412 cubic ft. 20,412 cubic ft. divided by 27 cu. ft. per cu. yd. = 756 cu. yd.

On the last day of a valid one year lease, the tenant gave the landlord a check for the next month's rent, which the owner accepted. What is created by the actions of the two parties? Select one: a. An estate for years. b. An estate at sufferance. c. An estate at will. d. A periodic estate.

d. A periodic estate.

The value of real property is affected by which of the following? Select one: a. Real estate taxes b. The cost of financing c. Government regulations and zoning d. All of the above Feedback

d. All of the above

Which of the following is an example of a subdivision? Select one: a. Condominium. b. PUD. c. Industrial park. d. All of the above.

d. All of the above.

Jennings decided she will acquire title to a piece of unused land by adverse possession. In order to do this, Jennings' occupancy of the land must be: Select one: a. Hostile to the interest of the true owner. b. Continuous. c. Open and notorious. d. All of these choices. Feedback

d. All of these choices.

Which of the following statements about liens is ALWAYS true? Select one: a. A lien is an encumbrance on title. b. A lien arises from a debt. c. A lien creates a cloud on title when recorded. d. All of these choices.

d. All of these choices.

If a property owner has littoral rights, it signifies that his property is on the edge of: Select one: a. A river. b. A stream. c. A navigable waterway. d. An ocean.

d. An ocean.

When will escrow be used? Select one: a. When property is purchased and secured by a deed of trust. b. In an exchange of property. c. With contract for sale. d. Any of these chices. Feedback

d. Any of these choices.

How many brokers can be given an open listing? Select one: a. One b. Two c. Three d. As many as the owner chooses Feedback

d. As many as the owner chooses

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

Which of the following factors would have the LEAST effect on an appraisal? Select one: a. The real estate market, in general. b. Income to be derived from the property. c. Location of the property. d. Livelihood of the prospective buyer.

d. Livelihood of the prospective buyer.

Under Truth-in-Lending, full disclosure of all financing terms is required. Which of the following could be omitted and NOT violate the regulation? Select one: a. Interest rate. b. Number, amount and frequency of payments. c. Amount of the down payment. d. Selling price of the property.

d. Selling price of the property.

ABC Incorporated was organized with five stockholders. How would ABC Incorporated take title to the property? Select one: a. Tenants in common b. Joint tenants c. Tenancy by the entirety d. Severalty

d. Severalty

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

d. Yes, it is inclusive of everyone including the handicapped.

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 re

d. Yes, provided written authorization is given by all parties to the contract

Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. What was the amount of the property tax proration? Select one: a. $212.33 b. $208.90 c. $1,037.67 d. $1,041.10 Feedback

a. $212.33 Since the closing was after July 1st, the taxes had been paid in full. The Seller will be credited with 62 days, the day after closing through the end of the year. Annual tax bill $ 1,250 / 365 = $ 3.4246 per day x 62 days = $ 212. 3287 = $ 212.33

A property is valued at $285,000 by an appraiser using a capitalization rate (cap rate) of 4%. What would the value of the property be if the appraiser used a cap rate of 5%? Select one: a. $228,000. b. $287,850. c. $282,150. d. $232,000.

a. $228,000. Value = Net Income / Cap. Rate. Net Income = Value X Cap. Rate. Net Income = $285,000 X 4%. Net Income = $11,400. Value = Net Income / Cap. Rate. Value = $11,400 divided by 5% Value = $228,000.

A fuel oil tank on the site of a house that is being sold is half full. If the tank were 3 feet wide by 4 feet long and 3 feet high, how much would the buyer owe the seller for the oil if it were currently selling for $5.00 per cubic foot? Select one: a. $90.00 b. $18.00 c. $180.00 d. $36.00

a. $90.00 Multiply 3 feet wide by 4 feet long and 3 feet high = 3 X 4 X 3 = 36 cubic feet. Now multiply by $5/cubic foot... 36 X 5 = $180 but don't forget to read the question again, it said the tank is half full, so divide by 2 OR 180/2 = 90. The buyer would owe the seller $90.00.

Owner Kelly is leaving the area for a one year period. She asks salesperson Boren to manage her rental house for $45 per month while she is gone. Which of the following is true in this situation? Select one: a. Boren must work through her broker b. Boren must put the $45 in an interest bearing escrow account c. This is OK because the compensation is less than $1,000 d. This is OK because the time element is not more than one year

a. Boren must work through her broker

What can a homeowner legally deduct on his or her personal income taxes? Select one: a. Interest on the mortgage note b. Depreciation on their personal residence c. The IRS allows no deductions related to the financing of a home d. Price of the land

a. Interest on the mortgage note

According to the Truth-In-Lending Law, certain words used in advertisements "trigger" full disclosure of ALL the terms of financing. Which of the following statements would NOT require any additional disclosure? Select one: a. Liberal terms available. b. Down payment - $1,000. c. Only 9 1/2 % interest. d. Payments of only $1,200 per month.

a. Liberal terms available.

When appraising new single family homes, the greatest reliance would be placed on which of the following? Select one: a. Market value and replacement cost b. Replacement cost and income c. Highest and best use and market value d. Replacement cost and capitalization

a. Market value and replacement cost

Many Korean families have purchased homes in an older neighborhood of your community. Most merchants in the area now cater to the Korean clientele. A Caucasian resident of the area has listed his house for sale with your firm. You list the property in the MLS. You also place a bi-lingual ad in the newspaper and a bi-lingual "For Sale" sign on the property. Are your actions discriminatory? Select one: a. No, this is proper marketing practice. b. No, because you are targeting the market most likel

a. No, this is proper marketing practice.

When there is a "meeting of the minds", which of the following has been accomplished? Select one: a. Offer and acceptance. b. All of the elements of the contract have been satisfied. c. Settlement has been made. d. Acknowledgment and delivery.

a. Offer and acceptance.

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

a. Request a hearing before the GREC

Sophie, a licensed salesperson, works for a broker who is representing a buyer. Sophie finds a house for the buyer and the transaction closes. Sophie will receive her commission from which of the following? Select one: a. The broker that holds her license b. The broker that listed the house that Sophie sold c. The settlement attorney handling the closing d. The buyer, per his or her agreement with Sophie

a. The broker that holds her license

A handicapped person asked the landlord for permission to alter the apartment. Which of the following is true regarding the costs of changing the apartment back after the termination of the lease? Select one: a. The landlord can require that it be restored as it was before the alteration b. The landlord may raise the security deposit to cover renovation costs c. The landlord can require the tenant to move out if not comfortable d. The federal government will reimburse the landlord for any renova

a. The landlord can require that it be restored as it was before the alteration

If the closing occurs on January 31 (and we assume taxes have not been paid) which party will owe taxes at closing? Select one: a. The seller b. Both seller and buyer c. The buyer d. Neither seller nor buyer

a. The seller

A seller told a broker during the listing presentation that cash only should be accepted for the earnest money deposit. The broker presented an offer with a check as earnest money but failed to disclose this to the seller. The seller accepted the offer only to find out two days later that the earnest money check was worthless. Did the broker do anything wrong? Select one: a. Yes, the broker did not follow instructions b. Yes, the broker should have cashed the check first c. No, the owner signed

a. Yes, the broker did not follow instructions

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

a. security deposits for rentals leased by the broker.

Following are information and questions pertaining to Seller's Estimated Net Proceeds and Purchaser's Estimated Costs.Answer the questions utilizing the information below:List Price: $142,500Commission: 7% of sales priceSales Price: $140,000Closing will be on May 14Seller's loan balance (May 1): $86,300Sellers' interest rate is 9%Seller's P&I payment: $839.20Property taxes: $1,700/yearSeller's escrow balance: $1,575Sellers to pay $150 termiteEarnest money: $7,000Buyers Hazard Insurance: $468Buye

b. $140.00 . There was no loan assumption, so the taxable amount is the same as the sale price: SP $140,000 / 100 = 1400 x .10 = $140.00

If the seller of a house agrees to pay the broker a 6% commission on the first $10,000 and 3.5% commission for all money received over that amount, what was the sale price of the house if the broker collected $946.50 in commissions? Select one: a. $ 9,900. b. $19,900. c. $15,775. d. $21,550. Feedback

b. $19,900. Commission earned on 1st $10,000 = $600.00 ($10,000 X .06). Total commission $945.50 - 600 = $346.50 commission on remainder. $346.50 / .035 = $9,900 + $10,000 = $19,900 sale price.

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

b. Depositing trust account funds in the broker's personal account

The largest "bundle of rights" to real estate is a? Select one: a. Remainder estate. b. Fee simple estate. c. Life estate d. Homestead estate.

b. Fee simple estate.

Which of the following is established or set by Federal regulations as opposed to State or municipal governments? Select one: a. Real estate license laws. b. Lending institution regulations. c. Zoning ordinances. d. Real estate tax rates.

b. Lending institution regulations.

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 t

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

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 Feedback

b. Run a classified ad in their own name advertising the property for sale

When a consumer signs a note that places a lien on his or her property, the owner, in certain instances, has the right to rescind the agreement within 3 days, without penalty. This right is provided to the consumer by virtue of which of the following laws? Select one: a. Real Estate Settlement Procedures Act. b. Truth in Lending Act. c. Equal Credit Opportunity Act. d. Statute of Frauds. Feedback

b. Truth in Lending Act.

Which of the following does NOT have to exist for a valid contract to be enforceable in the sale of real estate? Select one: a. The contract must be in writing. b. An offer and acceptance. c. Performance. d. Consideration.

Performance

When a deed of trust is used to pledge real property as security for a loan, the lender is the? Select one: a. Beneficiary. b. Trustor. c. Trustee. d. Mortgagee.

a. Beneficiary.

Deed restrictions are imposed by: Select one: a. Developers b. Zoning ordinances c. Realtors d. State governmental bodies

a. Developers

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

A person owned a house which had been built over underground springs. This was a well-known fact in the area. The broker sold the property to a buyer but did not inform the buyer about the underground springs. Six months later, the back corner of the house was found to have structural damage caused by the springs. Which of the following is true? Select one: a. The agent and seller could be responsible because they did not disclose to the buyer about the house being built over the springs b. The

a. The agent and seller could be responsible because they did not disclose to the buyer about the house being built over the springs

An owner of a 12 unit apartment building lived in one of the apartments. The owner refused to rent to a person because of their national origin. Does the person have a valid complaint? Select one: a. Yes, because it was a 12 unit apartment b. Yes, because other tenants were from his homeland c. No, because the owner lived there d. No, because the owner did not discriminate in advertising

a. Yes, because it was a 12 unit apartment

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 estate that may be terminated by any party at any time is an estate: Select one: a. For years. b. At will. c. In possession. d. In termination. Feedback

b. At will.

Which of the following insures loans for lenders? Select one: a. HUD b. FHA c. VA d. SAM

b. FHA

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

b. He or she may hold an active real estate license

Property owner Kilmer, who is living overseas, lists his property with Broker Huff. Later the land is rezoned for a higher use, increasing its value. Huff buys the property herself and sells it six months later. Which of the following is true? Select one: a. As long as Huff informs Kilmer of her intent to buy the property before she does so, her action is above reproach b. Huff can buy the property only after informing Kilmer of the zoning change and the effect that it has on the property c. Huf

b. Huff can buy the property only after informing Kilmer of the zoning change and the effect that it has on the property

A lease that contains no mention of rental period is generally considered to be: Select one: a. Invalid. b. Month to month. c. Included in the statute of frauds. d. A tenancy at sufferance.

b. Month to month.

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

b. Put in all advertising "seller holds a real estate license", including the yard sign

On an FHA insured loan, the money is provided by: Select one: a. The Federal Housing Administration. b. Qualified lending institutions. c. The FDIC. d. The Federal Treasury.

b. Qualified lending institutions.

The Civil Rights Act of 1866 prohibits discrimination on the basis of: Select one: a. Sex. b. Race. c. Religion. d. Marital status.

b. Race.

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 t

b. The new broker can begin marketing the property the day after the old listing expires

Which of the following statements about options is true? Select one: a. The optionor can void the option if another offer is submitted. b. The optionee can allow the option to expire. c. The optionee can extend the option period automatically. d. Options only involve raw land.

b. The optionee can allow the option to expire.

The listing price of a property is established by: Select one: a. The multiple listing service b. The owner c. The appraiser d. The listing salesperson and his broker

b. The owner

The capitalization approach to value used by appraisers is: Select one: a. A future income statement b. The present value based on present and future income c. The actual cost of the property d. The same as GRM (gross rent multiplier)

b. The present value based on present and future income

A mortgage contains all of the following EXCEPT? Select one: a. Property description. b. Acknowledgement. c. Covenant not to compete. d. Signature of borrowers.

c. Covenant not to compete.

The truth-in-lending law requires full disclosure of financing terms when certain "trigger" terms are used in ads. Which of the following is NOT considered to be a financing term? Select one: a. The APR (annual percentage rate) of the loan. b. Down payment required. c. Miscellaneous closing costs. d. The number, amount and frequency of payments

c. Miscellaneous closing costs.

If an offer is rescinded, it is: Select one: a. Revised. b. Altered. c. Terminated. d. Accepted. Feedback

c. Terminated.

A purchaser submits an offer to a seller with the condition that the property is to be financed by a conventional loan at no more than 10% interest. If the seller agrees but such financing cannot be obtained, which of the following is true? Select one: a. The purchaser loses his deposit but is relieved of further liability b. The seller is obligated to return the deposit plus interest c. The purchaser may request his deposit be returned d. The seller can sue for specific performance

c. The purchaser may request his deposit be returned

Which of the following is not true about a deed to secure debt? Select one: a. When the document is delivered and accepted, it passes legal title. b. In order to be recorded, it is witnessed the same way a mortgage is. c. With a security deed, the lender holds equitable title. d. Once recorded, the deed to secure debt creates a lien on the property.

c. With a security deed, the lender holds equitable title.

After a closing, all of the following documents are recorded EXCEPT? Select one: a. The deed. b. The deed of trust. c. Satisfaction of loan documents for the seller's mortgage. d. A certified copy of the Closing Disclosure.

d. A certified copy of the Closing Disclosure.

An agent's authority can arise from: Select one: a. Ratification. b. Custom. c. Implication. d. All of these choices.

d. All of these choices.

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

d. Antitrust activities endanger business competition.

Which of the following would not be legally sufficient to support consideration in a sales contract? Select one: a. Money. b. Property. c. Service. d. Love and affection.

d. Love and affection.

A salesperson wishes to charge a reduced commission to her sister. Where would the salesperson obtain approval for such an arrangement? Select one: a. State Association of Realtors b. Local Association of Realtors c. Real Estate Board or Commission d. None of the above Feedback

d. None of the above

Francoise is awarded a judgment lien against Gerald. Gerald's only asset is his real property worth approximately $20,000. This property already has a tax lien, a mortgage lien and a recorded mechanic's lien. If the property is sold at a foreclosure or trustee's sale, Francoise can expect to collect on the judgment lien, before which of the following: Select one: a. The mortgage. b. The tax lien. c. The mechanic's lien. d. None of the above.

d. None of the above.

With which of the following are rental payments guaranteed to increase during the term of the lease? a. Escalator clause. b. Percentage lease. c. Index lease. d. None of these options.

d. None of these options.

A deed in which the grantor protects the grantee only against claims that arise during the time that the grantor owned the property is referred to as a: Select one: a. Quitclaim deed. b. Bargain and sale deed. c. General warranty deed. d. Special warranty deed. Feedback

d. Special warranty deed.

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

d. The GREC may later refuse to issue him a license

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

d. The GREC will NOT enter into any dispute over commissions between licensees

When does a broker earn his commission? Select one: a. When the listing is taken b. When the title insurance policy is given to the purchaser c. When closing is complete and title passes d. When the offer to purchase has been signed and accepted by the seller

d. When the offer to purchase has been signed and accepted by the seller

If a person feels they have been discriminated against, when must they file a complaint in Federal District Court? Select one: a. Within 90 days. b. Within 180 days. c. Within 1 year. d. Within 2 years. Feedback

d. Within 2 years.

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

d. non-licensees.