Category Review

A budget mortgage payment (PITI) would normally not include:

1/12 of the annual life insurance premium

The maximum amount that may be obtained through Recovery Fund for the acts of one licensee is:

75,000

A broker lists a property. A buyer submits a written offer and the seller accepts the offer. On the day scheduled for closing , the seller refuses to sign any of the papers to close the transaction. The broker is entitled to:

A full commission

On the last day of a valid one year lease, the tenant gave the landlord a check for the next months rent, which the owner accepted. What is created by the actions of the two parties?

A periodic estate

Which of the following would NOT be an agent?

A person working for a multiple listing service

If a buyer gives a note and a mortgage to a seller as part of the purchase price the the resulting mortgage is commonly referred to as:

A purchase money mortgage

A client is obligated to her agent for A. Indemnification against loss not caused by the agent. B. Reimbursement C. Performance D. All of the above

A. Indemnification against loss not caused by the agent.

All of the following statements are true with regard to restrictive covenants in a deed EXCEPT:

The covenant might be at variance with Fair housing laws

When a metes and bounds survey is used as the legal description of property, the word metes refers to:

The length in inches, feets or yards of a property line

A contractor was hired to paint the interior and exterior of Harry's rental property. Harry did not pay and the contractor filed a mechanics lien. Which of the following is true regarding the lien?

The lien applies to all of Harry's real property

Who holds the security for a mortgage loan?

The mortgagee

The loan contingency contained in offer to purchase will contain all of the following EXCEPT:

The name of the financial institution

A lender advertises 80% LTV conventional loans. The 80% is based on the:

The purchased price or appraised value, whichever is lower

Which of the following contracts will provide instruction for the distribution and proration of escrow and impounded funds?

The sales contract

Which of the following is NOT true about a title search

The title searcher goes back at least 100 years

A husband and wife own property as tenants by the entireties. The husband dies naming their son as devise in his will. Which of the following is true?

The wife owns the property in severalty

Which of the following is NOT a test of a fixture?

Time of attachment

All of the following are appurtenances except:

Trade fixtures

Which of the following is a Georgia statue related to antitrust?

UDTPA

If a subdivision deed restriction states that the owner cannot convey the property, this restriction is:

Void and unenforceable

An owner of a large estate told a broker NOT to hold open houses on the estate and to only advertise in a national magazine. Is this allowed?

Yes , as the broker works for the seller and must follow instructions

Using the reproduction method in the Cost approach to appraisal is NOT a good indication of value for which of the following types of property? Select one: a. A new office building. b. An old residence. c. A public library. d. A new single family residence.

an old residence

Pruitt gives Gray a quitclaim deed to a property which Gray has bought. This means that: a. The titles of Pruitt and Gray are merged. b. Pruitt's rights are terminated. c. Pruitt has an easement on the property. d. All deed restrictions, covenants and conditions are terminated.

b. Pruitt's rights are terminated.

You are building a new structure in an area that is zoned commercial. You cannot open for business yet because you failed the inspection for the construction of the bathroom. You are in violation of:

building codes

A document that is based on a full examination of the public record but frequently only identifies the present owner of record and lists only the existing encumbrances is called a(n):

certificate of title

What is the legal process, used by the government, acquire property from a private citizen?

condemnation

When will a deed restriction take precedence over a zoning ordinance?

if the deed restriction is more restrictive

Which is NOT a cloud on title?

lack of a recorded certificate of title insurance

All the following are encumbrances on real property EXCEPT:

license

When a contract is breached, the injured party:

may rescind the contract unilaterally

Which of the following does NOT have to exist for a valid contract to be enforceable in the sale of real estate?

performance

A court action to remove a cloud from the title is called an action or suit:

quiet title

If a third party is not named, the grantor of a life estate retains a:

reversionary interest

Which of the following is essential for a contract for the sale of real property to be upheld by a court?

written form

A seller sells her home to a buyer who assumes her existing loan. If the buyer defaults, who is responsible for the balance of the debt? Select one: a. Seller only b. Buyer only c. Seller and buyer jointly d. Seller and buyer jointly and severally

Seller and buyer, jointly and severally

Under Truth-in-lending, full disclosure of all financing terms is required. Which of the following could be omitted and NOT violate the regulation?

Selling price of the property

Which of the following is NOT essential for a deed to be valid?

Signature of the grantee

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:

Special warranty deed

If a buyer defaults on a valid sales contract and the seller wants to enforce the terms of the contract, the seller would file suit for which of the following?

Specific performance

A person bought 5 acres of ground. The 5 acres as well as the surrounding area was zoned low density residential. The buyer was able to change the zoning on the 5 acres to light industrial. This is best referred to as:

Spot Zoning. Spot zoning is zoning one specific piece of property different than all the surrounding pieces of ground

Which of the following terms would MOST likely be included in a title insurance policy?

Subrogation

How can extend of an encroachment always be discovered?

Land survey

According to the Truth-in-Lending Act, if any "trigger" full disclosure of ALL the terms of financing. Which of the following statements would NOT require any additional disclosure?

Liberal terms available

When a buyer obtains a mortgage to purchase a property, the lender will require:

Mortgage and a Promissory note

In order to claim depreciation on a property, the property:

Must be improved

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:

Negotiate and receive new listing agreements from each client

A seller sold a property to a buyer knowing that a third party had a claim in the property. Would the buyer get marketable title?

No, because there was a cloud on the title.

Which of the following instruments shows evidence of a debt ?

Note

A buyer and seller entered into a valid contract. The buyer, for personal reasons, asked to be released from the contract. The buyer located someone else to buy the property. The seller entered into a new contract with the other person and released the first buyer from any obligation. This would be an example of:

Novation

A subdivision developer obtained a construction loan to build new houses on 20 lots. What type of clause would be request so that individuals lots could be unencumbered as the loan amount is paid down?

Partial Release

A loan in which the final payment on principal is exactly equal to the amount of the original loan is known as any of the following EXCEPT:

Partially amortized loan

There is a geometric theorem which states that "the whole is equal to the sum of its parts." In real estate, there is a theorem which states that "the whole can be GREATER than the sum of its parts." This is an example of:

Plottage

Restrictive Covenants in a deed could :

Prevent the use of property as a dance hall

Brian has a mortgage and is paying 11% interest on the note. He obtains a new loan with an interest rate of 10% and pays off the old loan. This process is known as:

Refinancing

Which of the following items is NOT required to be part of an exclusive agency agreement?

A. statement requiring owner to notify broker of the intention NOT to renew

When appraising property located on a corner lot, the appraiser would consider all of the following , EXCEPT

Acquisition

Which is NOT a lien against real property?

An easement

The value of a property, as determined by a competent appraiser, is considered to be which of the following?

An estimate of value

As a general rule, VA loans are fixed rate, fixed term loans. What would the cause the monthly payment of a VA loan to increase?

An increase in the assessed value of the property.

When a buyer obtains a loan for purpose of financing the purchase of real property, how does the amount of the loan obtained appear on the settlement sheet?

As credit to the buyer and a debit to the seller

Once a property has been appraised, then exposed to the market for a reasonable length of time and finally sells, who has determined the value of the property? A. Lender. B. Buyer. C. Appraiser. D. Seller.

Buyer

To determine qualifications of VA loan applicant, a lender will consider:

CRV of the property being purchased

The best approach for appraising a 20 year old residence is:

Comparable Sales (market data) approach

In terms of ownership, PUDS most clearly resemble:

Condominium ownership

In which type of appraisal approach is replacement or reproduction cost used to estimate value of property?

Cost

Which of the following appraisal approaches would be considered most reliable when appraising a public library?

Cost

A survey is made of Tony's property and it is found that a portion of the neighbors garage is on his property. Tony is planning to sell his property. This encroachment of the garage onto his lot:

Could cause his property to be in marketable

Zoning Ordinances are rights of:

Counties, towns, and municipalities

Georgia's law that is focused on deceptive advertising is: A. an anti trust law B. Regulation Z C. UDTPA (Uniform Deceptive Trade Practices Act) D. FBPA (Fair Business Practices Act)

D. FBPA (Fair Business Practices Act)

Which of the following is NOT a form of involuntary transfer of property?

Dedication

Limitations that a person places on the use of property that she or he owns are which of the following?

Deed Restrictions

Title to real property passes to the grantee when the deed is ________ and ________

Delivered, Accepted

All of the following would be considered an involuntary alienation of property EXCEPT:

Devise

A metes and bounds survey will identify:

Encroachments

The Protection Clause in a contract:

Ensures the broker a commission if the seller and buyer enter into a contract after the listing has expired

In the usual property management agreement, the property manager can do all of the following EXCEPT: A. Enter into a 2 year lease, verbally B. Hire and fire employees C. Collect rents every month D. Furnish the owner with a monthly statement of income and expenditures

Enter into a 2 year lease, verbally

During a listing presentation, a seller asked a salesperson to give them an opinion on the list price, not disclose their pending divorce, contact them at least weekly give them an opinion on the validity of the title. The salesperson May do all of the following EXCEPT:

Give them an opinion on the validity title

Which of the following is usually contained in an appraisal report?

Highest and best use of the property

Under which of the following conditions would a buyer most likely sue for specific performance?

If the seller defaulted on the contract before closing

A prospective buyer noticed an ornate flag pole attached to the front porch of the house she wants to purchase. She wants to make certain that the flag pole is included in the sale. What should the agent do?

Include the flag pole in the offer to purchase

A poor floor plan in a home would be an example of:

Incurable functional obsolescence

Broker Jenkins has presented an offer from buyer Frazer. Before the seller has accepted the offer, Jenkins is informed that Frazer is acting for an unknown purchaser in this transaction. What should Jenkins do in this situation? A. Inform the seller that the offer is void. B. Inform the seller of the existence of an unknown purchaser. C. Return the earnest money deposit to Frazer. D. Inform Frazer that his offer is illegal.

Inform the seller of the existence of an unknown purchaser

Which of the following is true regarding the multiple listing service?

It can refuse to accept open listings

Which would NOT be used in the capitalization approach?

Reproduction cost