Georgia State Exam Practice
Your clients are looking at buying a $200,000 property with a 30 year loan at 5% interest rate. How much would their principal and interest payment be per month? Plug in the numbers using the amortization chart in your resources see what the payment per month would be. Remember: the monthly payment multiplier is per $1000 of the mortgage.
$1,073.64
What's the transfer tax on a Georgia home sold for $215,000 with a mortgage of $180,000?
$215
The court will order GREC to make a payment out of the Real Estate Education, Research, and Recovery Fund when applicable. What's the maximum dollar amount of one claim can be, including all fees and claimants attached to the transaction?
$25,000
Joe sold his home for $327,600. He bought it several years ago for $139,900 with a $100,000 loan. The loan balance when he sold it was $73,400. What was Joes equity?
$254,200 (take the sold amount and subtract the loan remainder)
The buyer has a 30 year, $750,000 loan with a 5.75% interest rate. How much of the first monthly payment is interest?
$3,593.75 (750,000x.0575=43,125/12=3,593.75)
Giant industries has a $674,232 gross operating income, operating expenses of $329,129 and other expenses totaling $38,719. What is the net operating income?
$345,103
What age must a broker applicant be to qualify for a brokers license?
21
How many hours of post licensing must licensees complete to continue their real estate license?
25 hours of post licensing course work
How many hours of post licensing education and and continuing education must a licensee complete after license issuance and before the 4 year license renewal?
61 hours
According to the code of ethics, which of these statements is most accurate when excepting compensation? a) A licensee shall not except compensation directly from more than one party to a transaction b) A licensee shall not except compensation for more than one party to the transaction without consent from the clients c) Licensee shall not except compensation from more than one party to the transaction without the full knowledge and consent of all parties
A licensee shall not except compensation for more than one party to the transaction without the full knowledge and consent of all parties
What legal agreement is required when a licensee guarantees the sale of a property?
A purchase agreement written at the same time as the listing agreement
Decatur licensee Alistair is working with buyer Evie as a transaction broker. According to Georgia law, Alistair May only perform ministerial acts for Evie, which are ______________.
Administrative actions that don't rise to the level of client level representation.
Albert wants to sell his home to his cousin, who's willingness to assume his FHA loan. What clause in Alberts mortgage requires him to obtain the lenders permission to do this?
Alienation clause
Buyer Daphne and seller Kurt signed a sales contract with a definite closing date of May 15. Daphne then learned that she needs to move the closing date to June 15. She'll accomplish this with an __________ to the sales contract.
Amendment
When completing a sales contract, licensees may only alter standard language with ________ review.
An attorney's
Through the divorce process, Gail was granted ownership of the couples vacation timeshare. Gail is ready to sell the timeshare but discovers that her ex husband Daniels name is still on the deed, creating a cloud on the title. What should Gail do?
Ask Daniel to sign a quitclaim deed to release his ownership share
According to the Georgia marketable title acts, the statutory limit is 50 years. Marketable title legislation ____________.
Automatically quiets any title claims after a certain amount of time.
Who's the mortgagor in a mortgage?
Borrower
Where are option contracts on multiple properties commonly seen?
Commercial properties
Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank?
Deliver the deed to Frank, his agent or attorney, or the title company issuing the title.
While conducting a property valuation site visit, Todd realizes that nearly half of the property has no improvements on it. There's no apparent reason why the land would be unusable, which indicates that it is ___________.
Excess land that can be separated and sold
The nettles have excepted the briars purchase offer, and both parties have signed the sales contract. What type of contract with an medals in the briars have?
Executory
What must Georgia's governor do in order to remove a commission member from GREC?
Give notice and a hearing opportunity to the member
What does the income approach to value rely on when valuing properties that are five or more units?
Gross income multiplier
When discussing brokerage compensation policies, brokers must disclose __________.
How broker representing other parties will be paid
Your home inspector Mason found some discoloration in the attic and near the windows on the second floor. Why does he think this may be a concern?
It could be a sign of fire damage
What's the purpose of the Transfer and Assignment clause in the purchase agreement?
It permits either party to assign interest in the contract to another person who will perform the contracts terms.
Marty receives his Georgia real estate tax bill on May 1st. What's the period of time covered by this tax bill?
January 1 of the current year through December 31 of the current year.
Kate allowed her license to lapse more than two years ago. What does she need to do to reinstate her license?
Kate will need to complete the pre-licensing course requirements and pay all applicable fees for her license to be reinstated
Georgia licensee Greg and buyer Sandra's exclusive buyer agency agreement was set to expire March 1st. On Feb 10, Sandra signed a contract with a seller, but it fell through 10 days later due to a home inspection issue. What's the termination date of Greg and Sandra's buyer agency agreement?
March 11
Murphy's phone has been in his family for generations, since his great great great grandfather received it as a land grant in 1862 what's the beginning point of this properties chain of title?
Murphy the current owner
Corrine signs a buyer brokerage agreement with Juan, but he's transferred to Chicago. How will their agreement terminate?
Mutual Agreement
Taxes, insurance, and maintenance are property expenses that are sometimes covered in a tenants lease payment. These are collectively referred to as the ______________.
Nets
Ken, Dale, and James are brothers who owns more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to town. What was granted by the court?
Partition
Sandra and White are neighbors who share common driveway, but the driveway is in the white property. What kind of ownership rights does Dwight half of the driveway?
Possessory
The __________ clause in a deed of trust allows the lender to close non-judicially.
Power of sale
Which clause is standard in a deed of trust or security deed and affects the foreclosure process that can be used if the borrower defaults?
Power of sale
In Georgia, lenders use one of two methods to release the security deed when the promissory note is paid in full. One method is to simply note on the original deed that it's being released. What's the second method?
Prepare a Cancellation of Debt Secured by Deed form
Which real estate finance instrument in Georgia may include the pledging of collateral and the release of that collateral in the same document?
Security deed
With a security deed in Georgia, how may a lender release the deed when the loan is paid off?
Sign the security deed verifying release of the collateral and re-recording the security deed
Who or which entity has the authority to bring injunctive action against a real estate licensee for the violation or the potential violation of Georgia license law and GRECs established rules?
The Georgia attorney general
Robert, the qualifying broker of a firm, was convicted of fraud and embezzlement. What will happen to the brokerage as a result?
The commission will revoke the firms license
Debras listing agent, Rob, just called to tell her that he'd received an offer on her house and an earnest money check for $4,500. "I'm on my way over to go through the offer with you. I think you'll like it!" Deboras excites and she knows exactly what she wants to spend that $4,500 on. What's wrong with Debras thought process?
The earnest money doesn't belong to Debra. It will be held in an escrow account
What would happen if a licensee fails to complete 25 hour post-licensing requirement within the first year of receiving her license?
The license will lapse
In the complaint investigation process, a "respondent" is ________________.
The person accused of a violation
What does GAFLA require regarding late fees?
They must be clearly specified in loan documents
Sophia and Antonio are expecting twins. They want to sell their old house and buy a larger home using a conventional loan. In order to be sure to get the PMI waived, what will they need to have?
They should have a loan to value ratio of 80% or less
What's the purpose of the fixed/adjustable rate note?
To convert the interest rate from a fixed to adjustable
Why does the closing agent review the purchase contract?
To gather closing related information agreed to in the contract
Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender the right to sell the property if he defaults?
Transfer of Rights in Property
Sergeant Johnson is an active member of the Marines. He's been serving for 10 years. He wants to buy a home with no money down. What loan option seems like the best fit?
VA
You sign a contract to purchase a time machine. Assuming time machines don't actually exist, what type of contract do you have?
Void
Sandra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has legal purpose, an offer was made and excepted, and the fee has been negotiated and documented. Which essential element of a valid contract has Sandra not yet considered?
Wether consent was voluntary
Your client is purchasing a single-family home with a conventional loan the listing price is $410,000. Does this situation require a licensed or certified appraiser?
Yes, it is required
Which of the following individuals must have a real estate license to perform real estate activities? a) Blake, an attorney, who's selling his cousins home for a fee b) Carmen, an interior designer, who helps her client sell her home at no charge c) Daniel, a CPA, who provides advice to his client who's purchasing a development and charges $600 an hour
a) Blake, an attorney, who's selling his cousins home for a fee
Which of the following is an eligibility requirement for a community association manager in Georgia? a) be a member of the community association or a community association manager licensee b) be a member of the National Association of REALTORS (R) c) be at least 16 d) must also be a resident of Florida
a) be a member of the community association or a community association manager licensee
Which is not a violation for which the real estate education, research, and recovery fund may compensate claimants in Georgia? a) failure to disclose a criminal conviction b) fraud c) misrepresentation d) trust fund conviction
a) failure to disclose a criminal conviction
Which of the following is a true statement about Georgia's real estate education, research, and recovery fund? a) fund money may be invested and interest is deposited back into the fund b) GREC isn't legally permitted to increase licensees' renewal fees to increase the funds balance when it dips below the minimum set by law c) the funds pay for licensees legal costs
a) fund money may be invested and interest is deposited back into the fund
In Georgia, after the commissioner reviews an investigators report on a complaint, the commissioner may take one of several actions. Which of these is not an option? a) impose sanctions against the licensee b) recommend GREC dismiss the case c) request further investigation d) turn over the case to the attorney generals office
a) impose sanctions against the licensee
What's true about the extension clause in Georgia's buyer brokerage agreement? a) it extends the agreement term if the buyer signs a contract that falls through for any reason. b) it's only valid if the parties agree to the extension. c)the parties decide on the extension period when signing the agreement
a) it extends the agreement term if the buyer signs a contract that falls through for any reason.
In which of these situations will a letter of intent most likely be used? a) when purchasing a condominium in a new development b) when purchasing a cooperative c) when purchasing a historic home d) when purchasing an existing condominium
a) when purchasing a condominium in a new development
Business brokers in Georgia can seek credentials such as all of the following except __________. a) accredited business intermediary (abi) b) business intermediary endorsement (bie) c) certified business intermediary (cbi) d) state association credentials
b) business intermediary endorsement
Drake, an unlicensed employee at The Best Nest Brokerage in Savannah, works with broker Allison's property management clients. Which of the following tasks can be not perform legally? a) giving owners financial information on their properties b) handling and managing trust funds c) providing information that Alison has authorized d) shadowing available rental units to prospective tenants per Allison's instruction
b) handling and managing trust funds
Rob is the general contractor for a home being constructed in new development. The foundation has been poured and he's working with the homeowners to make some decisions that weren't identified in the blueprints he's working from. Which of the following details will be guided by local building codes? a) material used for shingles b) number and types of electrical breakers c) number and type of windows per square foot d) placement of gas range in the kitchen
b) number and type of electrical breakers
A "homes for sale" magazine contains the following ad: "one bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which statement is true? a) the ad is in compliance with TILA because condominiums aren't covered under regulation Z b) the ad is in compliance with TILA because providing the APR doesn't trigger the required disclosures fall credit terms. c) the ad is not in compliance with TILA because it mentions financing without including all of the terms of the financing
b) the ad is in compliance with TILA because providing the APR doesn't trigger the required disclosures fall credit terms.
Which of these statements accurately describes a finance and housing related legislation? a) as a stipulation of the housing and community development act, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days. b) The equal credit opportunity act of 1974 required lenders to provide consumers with equal access to credit and prohibited credit discrimination based on just the three protected classes of race color or national origin. c) The fair housing act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin
c) The fair housing act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin
Georgia licensee Estella is the qualifying broker for a firm that's incorporated. Which of the following must be true about her? a) she has an MBA b) she has at least 10 year experience c) she's an officer of the corporation d) she's the CEO of the corporation
c) she's an officer of the corporation
Which of the following statements is true about when a promissory note is sold? a) promissory notes cannot be sold b) the note must be notarized c) the promissory note is endorsed to the new owner of the loan d) when the note is sold, the attached security instrument is assigned to the lender
c) the promissory note is endorsed to the new owner of the loan
In Georgia, which of the following closing costs is usually paid by the seller? a) intangible tax b) lenders title insurance c) loan doc fee d) transfer tax
d) transfer tax
Kristin has been unable to make her mortgage payments. Her property went to auction, but the lender didn't except the high bid. What stage of foreclosure process is this property now in?
real estate owned
