GA State RE Exam
1 mile = how many feet?
5,280 feet
Sales contracts survive death - T or F?
True
Who is a trust deed executed by?
Trustor
A seller sells her home to a buyer who purchases the property "subject to" the existing loan. If the buyer defaults, who is liable for the balance of the debt? Select one: a. Seller b. Buyer only c. Seller and buyer jointly d. Seller and buyer jointly and severally
a. Seller **When a buyer purchases property "subject to" the existing loan, the seller alone remains responsible to the lender for the repayment of the debt.
A listing broker has an agency relationship with his client (the seller). The broker also has a moral and statutory obligation to all prospective customers (buyers). One way to describe the relationship with the buyer would be: Select one: a. To obey the letter of the law. b. To do what is right. c. To do those things that are required. d. To do anything that is asked.
b. To do what is right
A non-licensee practicing real estate for a fee is guilty of: Select one: a. fraud b. a misdemeanor c. a felony d. nothing
b. a misdemeanor
The document that determines what type of improvements you can build in a certain area is: Select one: a. Master plan b. Zoning ordinance c. Spot zoning d. Bulk zoning
b. zoning ordinance
What is the legal process, used by the government, to acquire property from a private citizen? Select one: a. Eminent domain b. Escheat c. Condemnation d. Taxation
c. Condemnation **legal PROCESS - If the stem of the question were to ask for the right, power or authority that the government has to take private property, that is eminent domain.
A written instrument or something of value given to a disinterested third party to hold, but which is to be returned upon satisfaction of certain acts is an example of: Select one: a. A bond. b. A deed of trust. c. Escrow. d. An assignment.
c. Escrow.
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.
d. 756.
When the grantor's tax is calculated, how does the amount of the tax appear on the settlement sheet? Select one: a. Debit the buyer; credit the seller. b. Debit the seller; credit the buyer. c. Credit the seller, only. d. Debit the seller; nothing to the buyer.
d. Debit the seller; nothing to the buyer. **The grantor's tax is paid by the seller because the seller is the grantor. This is a charge or debit to the seller and nothing to the buyer.
A borrower who had repaid a portion of the original loan could borrow those funds again without rewriting the original terms of the note under which of the following types of mortgages? Select one: a. Package b. Blanket c. Wraparound d. Open end
d. Open end
According to a community association management agreement, the duties of a property manager include all of the following except? Select one: a. Collecting, controlling, or disbursing funds. b. Maintaining a fidelity bond on each association when managing more than $60,000. c. Oversee the day-to-day operations of the association. d. The agreement must be made by a CAM licensee.
d. The agreement must be made by a CAM licensee.
What does Increasing and diminishing returns apply to?
Increasing and diminishing returns applies when the owner makes improvements to the property that cost more than the value that is added to the property.
Highest and best use definition
"a property that is utilized in the manner most profitable at the time that the value is estimated."
Blockbusting
Attempting to induce members of one race to sell their properties by saying that members of another race are moving into the neighborhood
Listing contracts and offers survive death - T or F?
False
Interest Formula
I = P X R X T
When must you renew license by?
Last day of anniversary month every 4 years
What is tacking?
Tacking is the combining of two periods of adverse occupiers in an attempt to obtain ownership through color of title.
RESPA primary purpose
The primary purpose is to ensure that buyer and seller are fully informed as to all settlement costs, and to standardize real estate settlement practices.
Personal property which is attached to a building and which will convey with the land is known as: Select one: a. A chattel b. A fixture c. A lien d. Nonconforming use
b. A fixture
Which of the following is true regarding the useful life of a property? Select one: a. The physical life of a property can NOT be extended by superior maintenance b. The physical life is generally greater than the economic life c. The economic life is generally greater than the physical life d. The physical life is equal to the number of years the property is economically viable
b. The physical life is generally greater than the economic life
Mr. Smith inherits a ranch in the Midwest and without having seen it, wants to sell it. Which is the best deed he can use to convey the ranch with the least liability to himself? Select one: a. General warranty b. Bargain and sale c. Quitclaim d. Trustee's deed
c. quitclaim
What is a blanket mortgage?
covers more than one piece of real estate
When a buyer obtains a loan for the purpose of financing the purchase of real property, how does the amount of the loan obtained appear on the settlement sheet? Select one: a. As a credit to the buyer and a debit to the seller. b. As a debit to the seller and a credit to the buyer. c. As a credit to the seller, only. d. As a credit to the buyer, only.
d. As a credit to the buyer, only.
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
How long do you have to notify the GREC after a conviction?
within 10 days after conviction
How do you calculate intangibles tax?
.003 X New Loan Amount
1 cubic yard = how many cubic feet?
1 cubic yard = 27 cubic feet
How long is license exam score valid for?
1 year
Complaints with the HUD must be filed within?
1 year **2 years to file complaint in federal district court
5 essential elements of a contract
1) Legally competent parties, 2) Clear property description, 3) Meeting of minds, 4) Consideration, 5) Legal purpose
After a nonjudicial tax sale in Georgia, what is the redemption period during which you can get your house back by paying the buyer the amount they paid at the sale plus additional amounts?
12 months
A borrower has to pay PMI all at closing on a 90% conventional loan. How much would he pay?
2 % of the loan amount.
1 acre = how many square feet?
43,560 square feet
Purchase money mortgage?
When a seller accepts part or all of the purchase price in the form of a promissory note from the buyer along with a mortgage or trust deed, the mortgage or trust deed is known as a purchase money mortgage. In this case the seller is said to be "taking back paper." A seller may agree to do this if he does not want all cash for tax reasons, or may do it because the buyer cannot come up with enough cash using other financing channels.
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 **Boren is "employed" by her broker and can only receive compensation through her broker for any act of real estate brokerage, therefore the arrangements must be made with the broker and Kelly. No salesperson may act on his or her own. All brokerage activity must be through the employing broker.
A homeowner sells his principal residence for a profit. Under which of the following circumstances may the homeowner avoid paying taxes on the profit realized from the sale? Select one: a. By using the tax exempt $250,000 exclusion for a principal residence. b. By claiming the once-in-a-lifetime exemption, if the owner is eligible. c. No taxes are due as long as the profit is reinvested in real estate. d. Always, as profits realized from the sale of a residence are never subject to taxation.
a. By using the tax exempt $250,000 exclusion for a principal residence. **No taxes are due if the owner avoids paying taxes on the first $500,000 of profit if they are married or on the first $250,000 if they are single. They must have lived in the home as their primary residence for two of the last five years.
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? Select one: a. Specific performance b. Monetary damages c. Liquidated damages d. Quiet title
a. Specific performance
The GREC, in investigating a licensee, may: Select one: a. issue subpoenas for all records relevant to the complaint b. petition the attorney general for an injunction to keep the licensee from leaving the state c. make the licensee submit to a polygraph examination d. subpoena out of state residents who were involved in the transaction
a. issue subpoenas for all records relevant to the complaint
A tract of land which is owned and occupied as a family residence is known as: Select one: a. An acreage. b. A homestead. c. Land. d. A lot.
b. A homestead
A buyer purchased a property from a seller and assumed the seller's loan. The seller wanted to be released from liability on the loan. Which of the following would accomplish this for the seller? Select one: a. The seller would have to sign a release of liability b. The lender would have to sign a release of liability c. The seller would need to note the release of liability in the sales contract d. The buyer would have to sign a release of liability
b. The lender would have to sign a release of liability
A lease provision that prohibits using certain premises for a drugstore is called a: Select one: a. Protective covenant. b. Use covenant. c. Restrictive covenant. d. Condemnation covenant.
b. use covenant
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
Sam, a FSBO, advertises his property for sale by saying "for sale to Cuban buyers only." May he advertise in this manner? Select one: a. Yes, as long as he does not own more than two homes at once and there is not a real estate firm involved in the transaction. b. No, no one can ever discriminate on race according to Jones v. Mayer. c. Yes, any FSBO is exempt from Federal Fair Housing laws. d. No, individuals are not exempt from discriminating in advertising.
d. No, individuals are not exempt from discriminating in advertising.** No one is exempt from discriminating in advertising unless they qualify as a private club, religious organization, or all elderly housing
When conducting a closing, the settlement agent is responsible for all of the following, EXCEPT: Select one: a. Collecting all legal documents and funds pertaining to the closing of the transaction b. Obtaining all information relevant to the marketability of the title c. Paying the net proceeds of the sale to the seller d. Payment of the commission to the listing salesperson
d. Payment of the commission to the listing salesperson **The settlement agent pays the BROKER any commission due and the BROKER pays the salesperson.
How long after passing the state exam must you apply for a license?
12 months
What type of foreclosure does a lien theory state have?
Judicial foreclosure
When was the cutoff for requirement of less than 36 hours of continuing ed?
July 1, 2015
What is a term/straight loan?
a loan in which only interest is paid during the loan period and the entire principal loan amount is paid on the maturity date.
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
For tax purposes, the initial cost of an investment property plus the cost of any improvements and minus any deductions to the property represents the investment's? Select one: a. Adjusted basis. b. Capital gains. c. Equity. d. Salvage value.
a. Adjusted basis
In determining total square footage of a dwelling, the appraiser would consider: Select one: a. Outside dimensions. b. Inside dimensions. c. Price per square foot. d. Basement dimensions.
a. Outside dimensions.
A shop owner agrees to $1,350 per month base rent plus 2% of annual gross sales over $80,000. Last year the owner paid a total of $22,000 for rent. What were the gross sales of the shop? Select one: a. $1,100,000. b. $400,000. c. $370,000. d. $96,200.
c. $370,000.
A promissory note is best described as? Select one: a. A pledge of property. b. An earnest money deposit. c. Written evidence of debt. d. A form of unilateral contract.
c. written evidence of debt
When using the market data approach, an appraiser would make adjustments for? Select one: a. Location. b. Time. c. Financing. d. All of these choices.
d. All of these choices.
Which of the following could be recognized as consideration in a valid contract? Select one: a. A mortgage note with interest b. A promise to install a cabinet c. A note without interest d. Any of the above
d. any of the above**A promise is considered consideration. The consideration in a contract does NOT have to be money, but can be anything of value.
Asbestos would most likely be found where in a house? Select one: a. Around electrical wires b. In the paint c. Around the fireplace d. Around pipes
d. around pipes
FBPA GA Law
deals with deceptive ads
UDTPA GA Law
deals with price fixing
Fannie Mae is?
is the largest purchaser of home loans in the secondary market.
What does "meeting of the minds" mean?
offer and acceptance
What is a package mortgage?
use BOTH real and personal property as security
Sophie and William build a home at a cost of $250,000 in a neighborhood where the other properties are valued in the $125,000 price range. Their home will tend to decrease in value and the others tend to increase in value. This is an example of the appraisal principle of: Select one: a. Plottage and assemblage b. Progression and regression c. Increasing and diminishing returns d. Supply and demand
b. Progression and regression
The authorities are investigating a violation of the law by a licensee. Which could happen? Select one: a. The local association of REALTORS® could revoke or suspend his license b. The Georgia Real Estate Commission could revoke or suspend his license c. The Georgia Real Estate Commission could impose criminal penalties d. The Attorney General could impose criminal penalties
b. The Georgia Real Estate Commission could revoke or suspend his license
How does a purchaser obtain equitable title to a property? Select one: a. With an abstract. b. Through a valid contract. c. By deed. d. By an estoppel certificate.
b. Through a valid contract. **A deed would convey complete legal title, not just equitable title.
Casper is planning to sell his house and desires the broadest possible exposure. He gives Bert an exclusive right-to-sell listing, Gail an exclusive agency listing and Mark an open listing. Mark sells the house. Under these circumstances, which of the following statements is true? Select one: a. Mark must split his commission with Bert and Gail. b. Casper owes two commissions, one to Mark and one to Bert and Gail to be split between them. c. Casper owes 3 commissions. d. Mark is the only one who will receive a commission.
c. Casper owes 3 commissions
Mr. Gregory has a home for sale with a sign, FOR SALE BY OWNER, in the front yard. Salesperson Gary calls, identifies himself and asks for the key to show the property. Mr. Gregory agrees. Which of the following best describes any agency relationship that may exist? Select one: a. Mr. Gregory is Gary's client. b. Gary is Mr. Gregory's agent. c. Gary's broker is the agent of Mr. Gregory for a reasonable time. d. No agency relationship exists.
c. Gary's broker is the agent of Mr. Gregory for a reasonable time.
A lender requires three (3) months interest be held in a reserve account for all loans made for new construction. If a loan is made for $860,000 at 8-1/2% interest, how much interest will the lender require for the reserve account? Select one: a. $6,091. b. $7,310. c. $13,401. d. $18,275.
d. $18,275.
Which of the following statements is/are true? Select one: a. Replacement cost means that the property is replaced by one with similar utility b. Reproduction cost means that the property is replaced by one that is identical to the subject property c. Using the cost approach tends to set the upper limits of value d. All of the above
d. all of the above ** Using the cost approach to appraisal, replacement cost is the cost to build a structure with similar utility and amenities. Reproduction cost is the cost of building an exact replica of the subject property. Any time that the cost approach is used (either replacement or reproduction) the value will be in the upper end of the value scale.
What is a wraparound mortgage?
occurs when a lender assumes a first mortgage, advances additional funds to the borrower, writes a second mortgage which includes the first and the additional funds, collects on the second and then pays on the first.
What signatures are required for a deed to be valid?
only the signature of the grantor
What type of property is good for a VA loan?
single fam home
What type of property is a library?
special purpose
For prescriptive easements under Georgia law, a claimant must prove four elements before a court will find that he has acquired an easement by prescription for how many years?
that his use of the easement has been uninterrupted for a period of 7 years or more
What is the max an aggravated individual can obtain from the fund?
$25,000
What is the max that may be paid for the actions of any 1 licensee?
$75,000
How do you calculate the transfer tax?
.001 X Sale Price
BRRETA mileage disclosure
1 mile
A borrower has to pay PMI all at closing on a 95% conventional loan. How much would he pay?
2.5 % of the loan amount.
How long is adverse possession period in GA?
20 years
What are the Broker license requirements?
21 years old, active for 3 out of the last 5 years, 60 hours pre-license course
How many days do you have to notify the GREG of a name or address change?
30 days
How many hours of continuing ed is required?
36 hours
How many feet are in an acre?
43, 560 square feet
1 section = how many acres?
640 acres
What is a chattel?
A chattel is personal property. When it is affixed or attached to a building, it becomes real property and is known as a fixture.
How long can one be on inactive status for?
Indefinitely, so long as you renew your license and pay renewal fees every 4 years
What does the FHA do?
Insures loans
What approach is best for special purpose properties?
Cost Approach
Main difference between freehold and non-freehold estates?
Freehold Estate = indeterminable duration (no specific time frame) - can be forever or based on one's lifetime Non-Freehold/Leasehold Estates = for definite duration and doesn't involve ownership
Gross Rent Multiplier Formula
GRM = Value / Monthly Rent
Can a private club deny a minority couple a lease if it only leases to members?
Religious organization and private clubs may favor members if membership is not restricted
An owner lists a property with a broker. The broker shows the property and receives an offer, but is unable to present the offer to the owner. Two days later, the owner cancels the listing agreement. What should be done with the earnest money deposit received with the offer to purchase agreement? Select one: a. Returned to the buyer b. Given to the seller c. Split between the broker and the seller d. Split between the broker and the buyer
a. returned to the buyer
A joint tenant wants to sell his interest in a real property without the consent of the other joint tenants. Can he do this? Select one: a. Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants. b. Yes, because survivorship is present in joint tenancy. c. No, because a single property titled in joint tenancy requires all co-owners to act together. d. No, because the unity of interest in joint tenancy demands that all co-owners act together.
a. Yes, because each joint tenant has separate ownership rights and can act independently of the other tenants. **One joint tenant may sell his or her interest independently of the others and without their consent, but could NOT sell the whole. Anyone who buys that interest will become a tenant in common with the other owners, not a joint tenant.
What does a lender rely on the most when deciding what amount to loan?
appraisal report
How long after conviction is license revoked?
automatically revoked within 60 days of conviction unless written request for hearing is received
Which of the following is used to determine annual real estate taxes? Select one: a. Sales price times tax rate. b. Assessed value times tax rate. c. Assessed value minus tax rate. d. Appraised value times tax rate.
b. Assessed value times tax rate.
When a buyer obtains a loan for the purchase of property, the lender will require: Select one: a. Deed of trust and promissory note. b. Deed of trust and hypothecation note. c. Promissory note and purchase agreement. d. Deed of trust note and contract for sale.
a. Deed of trust and promissory note.
