*Deasha EXAM*

*(BUYERS COST)* If the sales price is $71,500 and the loan type is 95% conventional, what is the loan amount?

*(A)* $67,900 *(FORMULA)*

*( Value 12-1 )* A broker owns a 12% undisclosed interest in an office building located in Decatur County. The broker ..... *MAY NOT*:

*(D)* appraise the property.

*(GOVERNMENT 5-25)* All of the following statements regarding GEORGIA'S FAIR BUSINESS PRACTICES ACT are TRUE *EXCEPT*

*(A)* *EXCEPT..it is not true that.....)* There can be prosecution under this act even if no actual transaction occurs. *(THERE MUST BE TRANSACTION TO PROSECUTE)*

*(FINANCE OR MATH)* Baird, a subdivider, is offering to buy Carr's 150-acre parcel. He plans to develop a residential golf course subdivision and then sell individual lots to builders. If this offer is accepted, he will need a small loan to finance the land purchase, and later borrow a larger amount to finance the construction of the infrastructure and the amenities. *What type of clause* will Baird probably need in the loan for the land?

*(A)* *Subordination*

*( Leases 10-3 )* The interest of a tenant who *originally had a lease*, but who has stayed on the premises after the expiration of the lease is called:

*(A)* *an estate at SUFFER.....ance.*

*(FINANCE 14-11)* A statement from a *BORROWER* , setting forth the amount of the balance unpaid, the interest rate, and any claims he or she might have against the *LENDER* is called:

*(B)* *ESTOPPEL CERTIFICATE*.

*(VALUE 12-22)* Which of the following describes a type of *depreciation*?

*(B)* *Functional obsolescence*

*(RIGHTS)* For many years a farmer has been driving his cattle across a strip of land belonging to a neighbor. When the neighboring land is sold, the new owner now plans to bar this use. *The farmer might claim*:

(A) *An easement by prescription*

*(FINANCE)* Who signs the note for the amount borrowed under a *PURCHASE MONEY MORTGAGE?*

(A) The *MORTGAGOR* or *BORROWER*

*(Value 12-20)* The *replacement cost* approach to an appraisal might begin with:

(D) *square foot costs.*

*(GOVERNMENT 5-17)* Under the *FEDERAL FAIR HOUSING LAWS* the manager of an apartment house can *LEGALLY* turn away a prospective tenant because the tenant:

*(D)* cannot supply an *ADEQUATE* credit report. *(CAN'T AFFORD HOUSE)*

*(AGENCY)* When taking a listing, a broker is required to disclose to the seller:

*(D)* if any other current business might present a *conflict of interest.*

*(Agency 6-5 )* Broker Howe is listing a luxurious house owned by the Langes, who state that they do not want a sign placed on the property, want no newspaper advertising and no open house showings. Are these restrictions binding on Broker Howe?

*(D*) Yes, because Broker Howe *owes obedience* to his clients.

*(FINANCE OR MATH)* Which of the following transactions is *NOT COVERED* by the *Truth-in Lending law?*

*(The financing of a $48,000 automobile. *(WHY... over 20k)*

*(VALUE 12-30)* Given the *NET INCOME* of a property, the *APPRAISER* can determine a value for that property by:

*(C)* *DIVIDING* by the *RATE OF CAPITALIZATION*.

*(PROPERTY)* In a *metes and bounds* legal description of property, all of the following words or phrases might apply *EXCEPT*

*(C)* *EXCEPT* ..ranges and meridians

*(CONTRACTS)* A statement of exaggeration which a reasonable person would recognize as untrue is an example of:

*(C)* puffing

*(AGENCY)* When a listing agent is working with a buyer prospect but wishes to avoid dual agency, the agent should:

*(C)* treat the buyer as a *CUSTOMER*

*( Contracts 8-4 )* A buyer submits an offer to buy a home. One hour later she discovers the need to withdraw her offer and recover the earnest money deposited with the offer. Which of the following is *TRUE?*

*(A)* The buyer *may* withdraw the offer *before receiving notification* of the seller's acceptance.

*(FINANCE OR MATH)* What is the effect of a loan discount point?

*(A)* It increases the lender's yield.

*( Finance 14-31 ) * Which of the following statements regarding the *secondary mortgage market* is *TRUE ?*

(B) *It provides a national market where lenders can buy and sell loans*, so that money is available when needed for new loans.

*(TRANSFER 4-11)* Julio signs a deed to his farm, naming his cousin Roberto as grantee, and he places the deed in his safe deposit box. Upon Julio's death the box is opened and the deed is found. At this time Roberto has also expired. Who has title to the farm?

*(A)* Julio's estate. *(GRANTEE WAS NOT ALIVE)*

*( Rights 2-13 )* An attachment *lien* is created for the purpose of:

*(A)* Preventing an owner from conveying title while a suit is going.

*(License Law 18-4)* Which of the following is required to become a licensed real estate salesperson in Georgia?

*(A)* Successful completion of *75 hours of study*, take and *pass state administered exam.*

*(LEASES)* Which of the following describes the transfer of the remainder of a tenant's lease?

*(B)* Assignment

*(LICENSE LAW)* The (Georgia Real Estate License Law* gives the commission the power to do *ALL* of the following *EXCEPT*

(D) *EXCEPT* Regulate fees and commissions charged by licensees.

*(CONTRACTS)* A buyer is unable to get a mortgage loan from a lender at this time as he has just entered into a new business. For that reason, he purchases a home under a land contract (installment contract). Which statement is*TRUE?*

(D) The seller is not obliged to pay off an existing loan on the property while the land contract is in place.

*(AGENCY)* Seller Falk enters into an *exclusive agency listing contract* with broker Baird. Baird procures a *ready, willing and able buyer*, but the sales does not close because Falk proves *unable to convey a marketable title.* Is Baird entitled to commission?

(D) Yes, because Baird did produce a *ready, willing and able buyer.*

*(VALUE 12-27)* A retail store building was evaluated at $285,000 using a *10% CAPITALIZATION RATE* What would the value of the building be if a *12% CAPITALIZATION RATE* were used?

*(A)* $237,500 *(NEED FORMULA)*

*( Rules & Regulations 19-15 )* Some brokers make it a practice to hold earnest money checks pending acceptance or rejection of an offer. This practice is:

*(A)* *appropriate* only if authorized in a *signed contract*.

*( Finance 14-8 )* In a *nonjudicial foreclosure* state, before a lender can sell a property that has been foreclosed, the lender *must :*

*(A)* ..... advertise..... this sale.

*(Agency 6-13 / Contracts 8-10 & 14)* A buyer and seller enter into a binding agreement for the sale of a property. The sale price is $320,000, the listing commission is 6% of the sale price, and the listing broker is holding an earnest money deposit of $2,000. The buyer's broker is to receive one-half of the commission. Before the transaction closes, the parties to the contract mutually agree to cancel their contract, and the seller does not renew the listing. *The broker should be paid*:

*(A)* 6% of the $320,000.

*( Contracts 8-3 )* Which of the following is *NOT* an essential element of a real estate contract?

*(A)* Earnest money.

*(LEASES)* Betty Lou is signing a *one-year lease* on a townhouse, and thinks that she might want to buy the property when she receives some money that is coming to her from the estate of a deceased aunt. Her agent suggests that she include a *one -year option agreement* with her lease. If she does this, which statement will be *TRUE?*

*(A)* If Betty Lou decides to buy before the year ends, the seller must sell.

*( Contracts 8-8&9, Agency 6-6 )* A broker has a listing on a property for $190,000. After several months, there is no activity, so the broker lowers the price in the newspaper ad by $10,000 and immediately receives numerous offers. Which of the following is *CORRECT ?*

*(A)* This is *unlawful* unless the broker has written permission from the owner.

*( Agency 6-14 & 20 )* What is the obligation of a .....*buyer's* ..... broker with respect to his client?

*(A)* Verify all important information from the ..... *listing broker and seller.*

*( Leases 10-4 )* When must a lease contract be in writing?

*(A)* When it is for more than one year.

*(RIGHTS 2-19)* William has verbally granted to his neighbor, Tom, the right to park some of his construction equipment on William's land when it is not in use. Later William sells his land to Leslie and Leslie tells Tom to remove the equipment. Is Leslie *CORRECT* in doing this?

*(A)* Yes, because a *LICENSE ENDS* with the sale of the property.

*(RIGHTS)* For a good many years, Baird has gone pheasant hunting each fall, with the owner's permission, on some undeveloped land that belongs to his friend, Falk. Now Falk has died and his heirs inform Baird that hunting is no longer permitted. Are the heirs within their rights?

*(A)* Yes, because a *license ceases* with the death of either party.

*(Government)* Is a man who refuses to sell a house to a buyer because she is a white person violating any law?

*(A)* Yes, the *Fair Housing Act.*

*(AGENCY )* Broker Letitia has an exclusive right to sell listing on Yolanda's property. She is contacted by a prospective buyer who is not represented by a licensee and prefers to be treated by Letitia as a *customer.* In this situation Letitia owes *absolute loyalty* to:

*(A)* Yolanda *because of the listing contract.*

*(FINANCE OR MATH)* The primary benefit that is derived from choosing a VA mortgage loan lies in:

*(A)* a lower down payment.

*( Transfer 4-10 )*In a valid deed, the *grantee* must:

*(A)* be clearly and unmistakably identified.

*(CONTRACTS)* The right of a salesperson to sign a listing contract on behalf of the broker is contained in:

*(A)* the *employment or affiliation contract*

*(CONTRACTS)* In Georgia, real estate closings are conducted by an *attorney who represents*:

*(A)* the *lender*.

*( Rights 2-11 )* The question of whether one creditor's lien is superior to another's is usually determined by:

*(A)* the date of recordation.

*(BUYERS COST)* Ms. Liu is buying a condominium for $192,800 with a 90% *conventional loan.* If the factor calculating principle and interest payments on the loan is $7 per $1000, and the closing is to be on June 12th, how much will the principal and interest amount to and when will it be due?

*(B)* $1,214.50 due August 1st. *(NEED FORMULA)*

*(MATH)* The ground floor of a home measures 38' by 48', the second floor has the same measurements, the basement is half that size. If the ground floor improvements are valued at $62 a square foot, the second floor improvements are valued at $48 a square foot, and the basement area is valued at $21 a square foot what is the value of the improvements?

*(B)* $219,792

*( Buyer's Cost 17-7 )* How much will the *PMI ..Private Morgage Insurance* cost be if it is to be paid in full at closing? The sale price is $192,800 and the buyer is getting a 90% conventional loan.

*(B)* $3,470 .......* FORMULA = $192,800 sales price x 90% conventional loan = $173,520 x 2% for standard pmi cost = $3,470.4 rounded down to $3,470.00 *

*(VALUE)* An investor wants to purchase a twenty unit apartment complex. *Ten units rent for $300* per month, *five for $325*, and *five for $350*. Vacancy and collection losses are estimated to be *five percent of the potential gross income* and *operating expenses are expected to be $31,950*. Using a *capitalization rate of ten percent*, what should the investor pay for the property?

*(B)* $407,250 *(NEED FORMULA)*

*(VALUE 12-23)* The term *ECONOMIC OBSOLESCENCE* describes a type of:

*(B)* *DEPRECIATION*

*(RIGHTS 2-9)* The homeowners on Elm Street have been notified that the county will be taking some of their land for a widening of the road. With regard to this situation, all of the following are true *EXCEPT*:

*(B)* *IT IS NOT TRUE* That the county is acting under its Police Power.

*( Rights 2-9 )*The state is buying part of Howe's farm for a highway right-of-way. What must be paid to Howe for the purchase of the land?

*(B)* *JUST ... compensation*.

*(VALUE 12-14)* Which words best describe the process an *appraiser* engages in after the three approaches to value have been tried?

*(B)* *Reconciliation / Correlation*

*( Property 1-6 )* Josephine is selling her home and has accepted an offer from buyer, Veronica. As Josephine prepares to move, she realizes that she has failed to note in either the listing contract or the sales agreement that she is planning to keep the dining room chandelier, a gift from her mother. Can she now remove the chandelier and replace it with a substitute?

*(B)* *Yes*, but only if *All parties agree in writing on an Amendment*

*( Rights 2-9 )* Which of the following is an exercise of *police power*?

*(B)* *Zoning* by a municipality.

*(LEASES)* In *Georgia*, most community association managers are required to carry:

*(B)* *fidelity insurance*

*(AGENCY)* The *Real Estate Commission ______________ the acceptance of NET LISTINGS*

*(B)* *prohibits*

*(CONTRACTS 8-12)* Which of the following statements about earnest money is *TRUE*?

*(B)* A *BUYER* should be made aware of the fact that the check will be *deposited and will be deducted* from his or her account.

*(OWNERSHIP)* Which of the following events would create a *tenancy in common?*

*(B)* All interest transferred by one joint tenant to a third party

*(RIGHTS)* Which of the following could *NOT* be included in valid restrictive covenants?

*(B)* All residents must belong to a Christian denomination.

*(CONTRACTS 8-9)* For what reason might a *licensee* who drafts a complex original sales contract for a client be subject to a disciplinary action?

*(B)* Because he *does not have a license to practice law*

*( RIGHTS 2-20 )* Faulkner begins to use her back yard in Blue Land Subdivision as a garden. This use is in violation of a deed restriction. How may Faulkner's neighbor, Alison, *LEGALLY* halt this violation?

*(B)* By applying for a *COURT INJUNCTION* against the gardening.

*(RIGHTS 2-5 )* Hiram has deeded a house to his sister, Elmira, for *The Lifetime of their aged Mother*. Which of the following statements is *True*?

*(B)* Elmira possesses a *Life Estate Pur Autre Vie*

*(CONTRACTS)* If a better offer comes in to a salesperson's office after a binding agreement has already been reached on the property, the salesperson should:

*(B)* Give the offer to the *seller* and suggest that it be treated as a *back-up* contract.

*( VALUE 12-30)* Which of the following is used to compare the *gross rental income* of the subject property with the *sale price* of a comparable property?

*(B)* Gross rent multiplier.

*( OWNERSHIP 3-1)* A group of ten investors forms a *corporation* to buy and hold a piece of speculative real estate. Each party owns 10% of the corporate stock. How is the title to the land vested?

*(B)* It is owned in *severalty*. (ownership by one person or a single legal entity)

*(AGENCY)* Mr. and Mrs. Van Pelt have decided to sell their house. Which of the following actions on their part would be both *improper and illegal*:

*(B)* Listing with a broker if he will agree to accept as compensation any price he can get above $200,000

*(CONTRACT PRACTICAL 9-40)* While showing the Carr's listed home to buyer Faulkner, salesperson Dole *MAY DO* which of the following?

*(B)* Present a written offer *(COUNTEROFFER)* from buyer Faulkner for an amount lower than the listing price.

*(FINANCE OR MATH)* Which of the following is *NOT* covered by *Regulation Z*

*(B)* Real Estate loans for business purposes

*(Value 12-23)* To achieve the highest degree of *economic stability*, a neighborhood should have which of the following?

*(B)* Substantial *social* conformity.

*(AGENCY 6-20)* An agent is marketing a property that is badly in need of repairs, and which the seller insists must be sold *AS IS*. Which is *TRUE ?*

*(B)* The agent should make sure that the contract *discloses all known defects*.

*( Rules & Regulations 19-15 / Contracts 8-1 also )* A co-operating agent brings salesperson Andrews an offer to purchase on his listing. The offer is accompanied by an earnest money deposit in the form of a personal note. Which of the following is *true?*

*(B)* The fact that the earnest money is in the form of a *personal note should be included in the offer*. *( it must also be in writing to be enforceable )*

*(RULES AND REGULATIONS)* When Salesperson Sam decides to leave ABC Realty, the question of how he should be compensated for work begun but not completed during his tenure should be decided by:

*(B)* The language of the contract Sam signed when he joined ABC.

*(Property 1-6 / Leases 10-6)* Which statement is *TRUE* regarding trade fixtures?

*(B)* The tenant can remove trade fixtures prior to the expiration of the lease.

*( Leases 10-13 )* In which case is a tenant *relieved* of the obligation to pay rent?

*(B)* The tenant has declared *constructive eviction*, and properly notified the landlord.

*(AGENCY 6-14)* An owner wants to net $96,000 from the sale of his property and asks a licensee to list it on the basis that anything above $96,000 will be the licensee's commission. Which is *TRUE*

*(B)* This listing is *ILLEGAL* as defined in the *Georgia License Law*

*( Transfer 4-3, Leases 10-5 )* To say that a landlord is bound by an implied covenant of quiet enjoyment to a lessee is to say that the landlord:

*(B)* promises that the lessee will not be evicted by a person who has a title that is superior to that of the landlord.

*( Finance 14-34 )* Regulation Z covers all of the following *EXCEPT*

*(B)* real estate loans for small businesses.

*( Value 12-7 )* The old adage that "you don't want to own the best house in the neighborhood" is based on the principle of:

*(B)* regression.

*( Value 12-18 )* When a licensee is attempting to list a rather unique, historic property, and is unable to find any recent sales, the best course of action might be:

*(B)* to suggest a professional appraisal.

*(VALUE)* An *INCOME PROPERTY* is valued at $220,000, based on a 3% *CAPITALIZATION RATE*. What would be the value if a *PROSPECTIVE PURCHASER* required a 4% return?

*(C)* $165,000 *(NEED FORMULA)*

*(FINANCE 14-1 )* If a lender is charging 3.0 points on a $90,000 mortgage loan, how much is the charge?

*(C)* $2,700 *NEED FORMULA*

*(VALUE)* A high rise building has a gross income of $55,100 per month. Annual operating expenses amount to 44% of the gross income. What is the approximate annual dollar amount of the net income?

*(C)* $370,272 *(NEED FORMULA)*

*( Value 12-27 )* A high-rise office building has a gross income of $230,000 every *quarter* year. Annual expenses are 46% of the gross income. What is the approximate annual dollar amount of the net income?

*(C)* $496,800 *( NET INCOME = GROSS - EXPENSES )* $230,000 per quarter x 4 quarters = $920,000 gross x .46 annual expenses = $423,200 annual expenses, then take $920,000 - $423,200 annual expenses = $496,800 annual net

*(PROPERTY OWNERSHIP 3-12)* Helen is purchasing an apartment in Lakeside Villas, and will be acquiring *stock* in the Lakeside Villas Corporation along with a *PROPRIETARY LEASE* on her apartment. This concept is best described as:

*(C)* *A CO-OPERATIVE*

*(GOVERNMENT 5-19)* A provision in a contract of sale which obligates the purchaser to list the property with a specific broker when the property is resold is:

*(C)* *BOTH A AND C* A= in violation of antitrust laws. C= called a tie-in.

*(FINANCE)* An ad states that the monthly mortgage statements on a loan are *ONLY $634". *REGULATION Z* requires further disclosure of all *EXCEPT*

*(C)* *EXCEPT* simple interest rate

*(GOVT.)* The Van Antwerps are listing their house with broker Howard. With Howard's consent, they are entitled to include all of the following provisions in their *LISTING CONTRACT* *EXCEPT*:

*(C)* *EXCEPT*....A 10% discount on the listed price is to be offered to members of St. Matthew's church

*(PROPERTY)* When a property cannot be found in any recorded plat book, the legal description to be used in *GEORGIA* is?

*(C)* *METES AND BOUNDS*

*(VALUE)* As part of a neighborhood analysis, an appraiser is analyzing the population composition of an area. Which of the following would *NOT* be part of the analysis of the area's population.

*(C)* *NOT* Mass transit facilities in the area

*(VALUE 12-12)* An appraiser's fee is generally based on:

*(C)* *TIME AND EXPENSE*

*(FINANCE OR MATH)* Which statement is *TRUE* regarding *FHA loans?*

*(C)* *TRUE* To be insured, the loan *must* involve an *FHA-approved mortgagee.*

*(TRANSFER)* The covenant in a general warrant deed which promises the grantee will be compensated for refunding financial losses due to the title claims made by other parties is called:

*(C)* *The covenant of warranty forever*.

*(LEASE LAW)* Commission rules governing a broker's responsibility for affiliated licensees make the broker responsible for all of the following *EXCEPT*

*(C)* *except for* controlling the *activities* of salespeople

*(LEASES)* Ed is retired and lives in a 20-unit condominium complex. The owners are proposing to employ Ed to take over the management of the complex. *Ed would need*

*(C)* *no license*

*(Leases 10-3)* Under Georgia law, how much written notice must be given from the *Landlord* to the *Tenant*, or from the *Tenant* to the *Landlord*, to terminate a periodic tenancy?

*(C)* 60 days from the *Landlord*, 30 days from the *Tenant*.

*(SELLERS COST)* Mr. and Mrs. Woodruff have sold their home for $175,750, and have agreed to pay at closing the closing costs amounting to 3 points and also 2 discount points. The buyer is getting a 90% loan. What amount was paid by the Woodruffs for these costs?

*(C)* Closing costs of $4,743.00 and discount points of $3,162.00 *(FORMULA)*

*( Finance 14-31 )* Which of the following statements concerning the Federal National Mortgage Association (FNMA) is *TRUE?*

*(C)* FNMA or *Fannie Mae* is *privately owned* and *government sponsored*

*(License Law)* Which of the following is *NOT TRUE* regarding the *Georgia Real Estate Commissioner?*

*(C)* It is *NOT TRUE* that the Commissioner shall be a licensed real estate broker.

*(RIGHTS 2-26)* If Smith builds a fence on Jones' land by mistake and in good faith, thinking the fence is on Smith's land, then:

*(C)* Jones may require Smith to remove the fence and/or pay damages.

*(FINANCE 14-38)* Which of the following headlines in an *advertisement* would be considered a *"TRIGGER TERM"* under *Regulation Z?*

*(C)* Nothing down.

*( Rules & Regulations 19-15)* Broker Black received an earnest money check on Wednesday morning. When should the check be deposited in the trust account?

*(C)* Promptly, unless Black has written authority from all parties to hold it. *OR UNLESS THE CONTRACT STATES OTHERWISE*

*(OWNERSHIP 3-11)* The President in a homeowners association is typically elected by:

*(C)* The *BOARD OF DIRECTORS*

*(SELLERS COST 16-3)* If the annual tax bill, due July 1st for the calendar year, amounted to $1,324, and a closing on this property is to take place on December 5th how will this tax bill be prorated?

*(C)* The *SELLERS* received a prepaid property tax credit at *closing* of $94.31. *NEED FORMULA*

*( Contracts 8-14 &9 )* Which of the following statements regarding *Sales Contracts* is *true*

*(C)* The contract should be as *Clear and Detailed* as possible since it is *Legally Binding*

*( Contracts 8 *) In which of the following cases might a *Seller Sue* the *Buyer* for damages?

*(C)* When the *Buyer* defaults on the *Sales Contract*

*( Contracts 8-13 )* In which of the following situations would the seller be justified in asking to have the earnest money forfeited as liquidated damages?

*(C)* When the buyer's transfer to the city has been cancelled so he no longer has any need for a house in this area.

*(RIGHTS)* A church is deeded some property to be held *"so long as"* it can be used for a Family Center. This holding is best described as:

*(C)* a *fee simple determinable.* ...conditions are determined about how the property is to be used in order to keep the property.

*(CONTRACTS)* The type of *title evidence* that a *buyer* is generally obligated to provide at a closing in *GEORGIA* IS:

*(C)* a *lender's policy* of title insurance

*(CONTRACTS)* An *express, bilateral contract* is created when:

*(C)* a *seller and purchaser* put in writing their agreement to *sell and buy* the *seller's* property.

*( Value 12-6 )* If home builders are putting up fewer new houses this year than in the recent past, the effect might be:

*(C)* an increase in the prices of previously owned homes. (*supply is limited ????????*)

*(PROPERTY OWNERSHIP 3-10)* An *Ownership Estate* is real property consisting of an *Individual Investment* in a suite of offices along with an *Undivided Interest in the entrance lobby and the parking lot* best defines:

*(C)* condominium

*(AGENCY)* Broker George is informed by a friend that her listing agent with another firm is *not* doing a good job. George should advise her to:

*(C)* discuss her concern with the *listing broker*.

*(AGENCY)* An agent is considered to be *" entering into a brokerage agreement"*

*(C)* only when there is an *express written agreement*

*(Transfer 4-17 & 18*) Carr sells a house for $185,000 to Falk on March 1. *Falk fails to occupy the land* or record the deed. On March 4, Carr sells the same house for $199,000 to Dole who does not know of the earlier sale and who *records the deed* on March 4. Who is the owner of the property?

*(C)*. Dole, because he *recorded the deed first* and had no notice of Falk's interest. .......*Falk could have fought it if he had occupied the land, even if it was still not deeded*

*(SELLERS COST)* Mr. and Mrs. Brown have sold their home for $175,750. They agreed to pay their listing broker a 6% commission on the transaction. What is the amount of the real estate commission that was paid?

*(D)* $10,545 *(NEED FORMULA)*

*( Buyers Cost 17-2&9 )* Under *RESPA*, the maximum amount the lender can require borrowers or prospective borrowers to deposit into a reserve account for taxes at settlement can be determined with the following chart which is based on month the 1st payment is received. If a sale is to close May 20th, and the tax bill is $1,844, how much must the buyer place in the tax escrow?

*(D)* $2,151.33.......... * FORMULA = $1,844 annual tax bill / 12 months = $153.6666 per month x 14 months of escrow = $2,151.33*

*(CONTRACTS 8-5 and CONTRACT PRACTICAL 9-40)* An offer to purchase becomes a counter-offer when the seller, having received the offer, responds by changing:

*(D)* *ANYTHING*.

*(GOVERNMENT)* Which of the following might cause an *antitrust action* against *brokers and agents?*

*(D)* *Conspiracy* to fix prices.

*(License Law 18-10)* Sam a real estate salesperson with ABC Realty, has been found guilty of violating the Federal Fair Housing Law. his broker has also been named in the charge, but could possibly be dismissed from the suit if he could prove all of the following *EXCEPT* that....

*(D)* *EXCEPT* He was not in town when the violation occurred.

*(PROPERTY)* Which of the following would be classified as *personal property?*

*(D)* *Fructus industriales.*

*(LEASES)* Falk has a one-year lease on a house. The contract includes an option to purchase the house for $110,000 at any time during the term of the lease. *WHICH IS TRUE?*

*(D)* *IT IS TRUE* if Falk decides to buy, the *seller cannot* renegotiate the price.

*( Leases 10-16, 18 )* An out-of-town owner has hired a broker to manage an apartment building he has purchased as an investment. of all a manager's varied tasks, which of the following *best describes* an overall picture of managerial responsibility?

*(D)* *Maximizing* the value of the property by maintaining the highest possible long-term return on the investment.

*(AGENCY)* In a typical residential listing, if the property fails to sell after the contract period and the seller will not re-list, the broker is entitled to recover:

*(D)* *None* of these costs unless there was a specific agreement concerning them.

*(CONTRACTS)* The clause that must be contained in a sales contract *when certain duties are to be performed* by one party or the other *after the closing,* is called the:

*(D)* *Survival clause.*

*(FINANCE)* The requirement that *fees for appraisal, survey, title search and document preparation*, must be listed on a closing statement is contained in:

*(D)* *The Real Estate Settlement Procedures Act.* *(RESPA)*

*( Rights 2-20 )* A lot owner's fence extends over the boundary line into the alley behind the lot. A purchaser interested in acquiring the lot would most likely become aware of such an encroachment through:

*(D)* *a spot survey.*

*(VALUE)* A large, modern church in a small town is being appraised prior to purchasing an insurance policy on it. The appraiser will place most weight on:

*(D)* *reproduction or replacement cost* *(get definition)*

*(Agency 6-22)* When *no expiration date is provided* in a relationship agreement created under the *Brokerage Relationships in Real Estate Transactions Act (BRRETA)*, it will terminate in

*(D)* 1 year.

*(Seller's Cost 16-6)* When a sale closed on December 5, the sellers had paid for insurance coverage at a cost of $415 per year, and the policy anniversary date was April 8. Based on the above, the sellers will receive a refund for the unused portion of their homeowner's premium. How many days worth of premium will be refunded and in what amount?

*(D)* 123 days; $139.85....... *SELLER IS DUE A REFUND FOR THE PERIOD BEGINNING THE DAY AFTER CLOSING *(Dec 6)* THROUGH THE LAST DAY OF COVERAGE *(April 7)* $415.00 / 365 days = $1.1369 per day x 123 days = $139.8493 rounded up to $139.85*

*(RIGHTS)* In regard to priority of *lien rights*, which statement is *TRUE*?

*(D)* A *property tax* lien filed on May 1st 1997 *takes precedence* over a mechanics lien filed on May 15th, 1997 for work completed on January 12th. 1997.

*(LICENSE LAW)* Under *Georgia law,* which of the following statements regarding the presenting of offers *IS TRUE*

*(D)* All offers must be presented as soon as is reasonably possible.

*(SELLERS COST)* When they sold their house, the Woodruffs owed a balance of $84,150 on their existing loan, at 8.75% interest. If the closing took place on December 5th, how would this appear on the seller's costs form?

*(D)* An accrued interest charge of $102.26 was due from the Woodruffs at closing. *(NEED FORMULA)*

*( Leases 10-14 )* A three year lease on a farm wherein Carr is the landlord and Dole is the tenant, is terminated by:

*(D)* Carr selling the farm to Dole.

*( Rules & Regulations 19-10 )* The type of insurance that *community association managers* are *required by License Law* to carry is:

*(D)* Fidelity insurance. *( Community Association Management / Separate Fidelity )*

*(CONTRACTS)* A listing broker's client has accepted an offer on his house which was put on the market due to a job transfer which has been cancelled. When he consults his broker about the possibility of canceling the contract, the broker should tell him that:

*(D)* He should consult an attorney.

*(LICENSE LAW)* When licensees Dole and Baird decide to form a corporation for the purpose of running a real estate business, which is *TRUE?*

*(D)* If neither Dole nor Baird is a broker, a qualifying broker must be hired, and must be named an officer of the corporation.

*( Finance 14-17 )* The Federal Truth-in-lending law requires the lender to disclose which of the following when making a *purchase money mortgage (Sellers loan to buyer) ?* A. The financing charge. B. The annual percentage rate. C. The total closing costs. D. None of the above.

*(D)* None of the above.

*(AGENCY 6-20)* Broker Baird has a listing on Falk's house. An offer has been *PRESENTED AND ACCEPTED,* then a later offer comes in at a better price than the first. What should Broker Baird do?

*(D)* Present the second offer to Falk as a possible *BACKUP*

*(VALUE)* The phrase *"unit in place"* relates to which of the following?

*(D)* The *replacement cost approach to value*

*(AGENCY 6-7)* A broker has a listing on a cafe. Which of the following will *NOT* terminate the agency?

*(D)* The broker, *after taking the listing*, discovers that the property needs major repairs.

*(LICENSE LAW)* All licensed brokers in Georgia must adhere to certain minimum standards in their advertising. What must the advertising copy include?

*(D)* The name of the broker as registered with the Real Estate Commission.

*( Contracts 8-4 )* When there is a *"Meeting of the Minds"*, which of the following has been accomplished?

*(D)* There has been an *Offer* and an *Acceptance*

*(GOVT)* A listing agent promises a seller that the company will buy the house if it is not sold in 120 days. which is *TRUE?*

*(D)* This is legal if the licensee enters into a *written contract* to purchase prior to entering into the listing agreement.

*(AGENCY)* Most *listing contracts contain a safety cause*. If a broker's listing contract contains this protection clause and the broker meets all the provisions of the clause, for how long is the broker protected after the listing expires?

*(D)* Whatever period that is negotiated between the broker and seller.

*(RIGHTS & REGULATIONS)* Broker Baird is advertising a *"guaranteed sales plan"* wherein he promises to buy, on certain terms and conditions, any listing he has that fails to sell within 120 days. Is this plan in accordance with the laws?

*(D)* Yes, as long as his *listing contract* is accompanied by a *sales contract*.

*( Finance 14-3,6,9 )* In the field of mortgage lending, ..... *Georgia..... is:*

*(D)* a ..... *title theory state* and a ..... *nonjudicial foreclosure* state.

*(GOVERNMENT)* A landlord is in violation of *Federal Fair Housing law* when he refuses to lease to:

*(D)* a lady who has just finished a rehab program for alcoholism

*(Agency Practical 7-25 )* A *Licensee* is *NOT* covered by the terms of the *Federal Truth in Lending Act* when describing credit terms in:

*(D)* a letter to a *Buyer Client* *..........Georgia law prohibits representing a buyer as a client without a written agreement.*

*(LEASES)* Perhaps the most challenging task for a community association manager is:

*(D)* acting as a liaison between owners and their directors.

*(VALUE)* In appraising a house, the appraiser would adjust for the fact the subject property has two baths and the comparable has two and a half baths by:

*(D)* adjusting the comparable *downward*