Post license
How many hours of continuing education is required for every renewal?
36 hours
What is the level of radon that is considered to be elevated?
4 piC or greater
What is the mix of licensed and unlicensed members of the GA Real Estate Commission?
5 Licensed & 1 unlicensed
How long is a member of the Georgia real estate board appointed for?
5 year term
How many members are in the GA Real Estate Commission?
6 members
How many protected classes does the federal level have?
7
What are property management duties?
A Georgia property management agreement should be a clear statement outlining the duties and responsibilities of a manager in specifying the managers authority. (Rent collection, employee supervision, training, repairs to the property)
Conventional mortgages
A conventional loan is neither insured by the FHA nor guaranteed by the VA. But if the amount of the loan exceeds 80% of the properties value private mortgage insurance may be required.
Deed of trust
A deed of trust is financing instrument that does not require judicial foreclosure in the case of default by the borrower. A mortgage would require judicial foreclosure proceeding.
Lead-based paint disclosure
A federal requirement for residential property built prior to 1978
Mortgages
A financing instrument that pledges the real property as collateral for a debt. Can be filed as a lien or clout against the title.
Balloon Loans
A loan that is interest only or is only partly MRIs when the term is over and has a large payment at the end of the term
What is a fully amortized loan?
A loan that will be gradually paid off in equal payments over certain number of years is referred to as a fully amortized loan.
What is the experience required for a broker license?
A sales person must've taken in past 60 hour broker course, passed state broker license exam, and held an active sales license for at least three years.
What qualifications are needed to change from Community Association Manager to Broker?
Additional 75 Hours of RE Course Work
Posting bonds in Lieu of a trust fund
An individual who owns and manages a property can post a bond rather than maintain a trust fund. But a licensee who owns a rental property may not post a bond in Lieu of maintaining the security posit in a designated trust account.
What are some permitted support personnel activities?
And unlicensed support personnel may answer the phone, assemble documents for closings, or check on the status of a loan commitment after a contract has been negotiated.
How are the members of the GA Real Estate Commission selected?
Appointed by the governor
How can you manage risk?
Avoid the risk, share the risk, transfer the risk.
What demographic group plan on purchasing a second home?
Baby boomers 1946-1964
Who is exempt from Fidelity insurance?
Brokers who never handle more than $60,000 in trust funds at one time are exempt
Who plans on downsizing?
But 2/3 of older sellers will buy houses when they decide to downsize
Sherman antitrust violations
By leading the Sherman antitrust act may result in serious monetary fines brew not result in a five-year prison term
How much does the RE Education, Research and Recovery Fund get when an approved RE School activates it's original license?
$20
Dan and Sally purchased their first home for $95,000. They put 10% down and got a 90% mortgage. How much is it intangible recording tax on their new home?
$256.50 When calculating intangible taxes, divide the new debt by 500 round up the fraction then multiply result by $1.50. $85,000 / $500 = 171 x 1.50 = $256.50
Grandson is home for $275,650. What is the total transfer tax due on the sale?
$275.65 $275,650 x .001
What cannot be included in the estimation of asset value basis for tax purposes?
1. Fire insurance premiums 2. Rent for occupancy of the house before closing 3. Charge for utilities for use before closing
When listing undeveloped property what knowledge is required?
1. Wetlands 2. Endangered species 3. Water supply sources and storage tanks
How long must a commission keep in applicants original application?
15 years.
The silent generation
1925-1945 Hard-working quiet and generally very successful
What is the purpose of community associations?
Community associations or associations of home owners within certain subdivisions, townhouse development, condominium complexes, cooperatives, or other plan development and are designed to preserve and improve homes and property within the development and enforce cabinet for the community.
Lease/purchase contracts
Contract with the purchase, after paying a down payment, can move into the property under a lease and pay rent. They have the obligation to close on the property on or before a certain date. Title does not transfer until the end of the lease period By which time closing must have occurred.
Where does money in Recovery Fund come from?
Derived from license fees or income from investing the funds. No money is given or received from state treasury.
If you renew your license online what do you get?
Discounted fee
What does diversity
Diversity can be either a good thing or a bad thing, depending on how your organization chooses to treat it
After an applicant has passed the licensing exam, how long does he/she have to apply for a license without penalty?
Do you have three months to apply for a license without penalty and then nine more months but At an increase fee.
Riders
Document which provide full disclosure of any special requirements from, restrictions on, or liabilities incurred by the borrower
What is the universal strategy for managing risk?
Education
The 1896 Supreme Court case Plessy VS Ferguson in 1896
Establish the ruling that separate but equal was OK
What are the duties to a seller under BRRETA?
Exercise reasonable skill and care in performing the duties under the law in Georgia and comply with all requirement of Bretta as well as applicable statues and regulations including but not limited to fair housing and silver right statues.
What is the Georgia fair business practices act?
FPPA deals mostly with fraudulent or otherwise misleading advertisements
True or False: the members of the GA real estate commission are elected by the public.
False
True or False: there's an agency relationship with Landlord and tenant.
False
Fair housing categories
Familial status, handicap, and religion or three of the seven protected categories under fair housing law
What is the agency responsible for the enforcement of the fair housing act?
HUD: department of housing and urban development
How to transfer risk
Have errors & omissions insurance
Recommending service providers
I'm responding to request that you recommend lenders inspectors surveyors and other service providers I Licenses should consider all the alternatives and the consequences before deciding about which provider to recommend
What is the first step of decision making?
Identify all the alternative decisions that can be made
What is the license requirement for 90-Day Rentals?
If a person is managing rental property that is leased & occupied for more than 90 days, they must have a RE License.
Fines for Sherman antitrust violations
Individual violators of the Sherman antitrust act can be fined up to $350,000 for each offense
Fair credit reporting act
Law that requires lenders to: 1. Keep all credit information confidential 2. Obtain authorization from consumer to seek the consumers credit information 3. Review the sources of credit information to the consumer
An important distinguishing feature of a VA loan is...
Lenders can then for times amount of a VA entitlement
What is the the innkeepers exemption?
License exemption in GA for someone who operated motel/ hotel as long as they don't have THREE suites available for long term lease.
What RE Documents must be kept for minimum of 3 years?
Listings, Buyer agency contracts, sales contracts, and settlement statements. Applications for loans DO NOT have to be retained for 3 years.
FHA 203(k) Rehabilitation Loan
Loan amount is determined by the value before rehab plus the cost of rehab or 110% appraised value after rehab, which ever is less
Lo doc or no doc loans
Loans requiring minimal documentation from borrower usually require a large down payment
What can listing agent disclosure to prospective buyers?
Material facts
Mortgage Insurance Premium (MIP)
Mortgage insurance premium is charge on a 30 year FHA loan with a debt is greater than 80%. The fees are usually 1.5 points upfront and .5% annually
How do you calculate transfer tax?
Multiply the contract price by .001
How is Georgia transfer tax calculated?
Multiply the sales price by .001
How is the Georgia transfer tax collected?
Multiply the sales price by .001
What must a transaction broker disclose?
Must treat all consumers, customers and clients honestly and fairly, and disclose material facts. There's no obligation to disclose everything that the licensee knows about the property or the owner of the property of the licensee is not acting under a brokerage agreement
Does a property manager who maintains property and collects rent need a license?
No
Is a license required if you are a government worker acquiring property by eminent domain or nonprofit organization employee?
No
Is a license required if you are a seven room bed-and-breakfast in manager?
No
Does unlicensed support person need a written policy contract with broker?
No, just need broker's full knowledge and permission.
Bonuses and gratitude to agents
Occasionally a client will want to expressed thanks for a job well done by giving The agent a bonus. When this happens, the money must be delivered to the broker we can reward the agent in accordance with company policy regarding gratitude
Source of funds for recovery fund
Of the initial license fee paid by the licensee, $20 will be allocated to the real estate education, research and recovery fund
Familial Status
One of the protected classes under Fair Housing referring to families with children under 18.
What is an advantage of amortizing a loan?
Payments which include interest and principal are the same for the life of the loan.
What is stepped up basis?
Property that is conveyed by Wil received a stepped up basis to fair market value at the time of death of descendent
What is the purpose of the GA RE Education, Research, and Recovery Fund?
Provide resources to investigate complaints against licensees and provide reimbursement for damages caused by licensee misrepresentation of value.
Tax relief act of 1997 (TRA' 97)
Provides benefits for person selling the personal residence inn or investment by reducing the capital gains tax on the sale of the property
What are the protected classes
RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, FAMILIAL STATUS, and HANDICAP
The Civil rights act of 1866
Race
What must the broker sign when a licensee is switching to new broker?
Release form
Property manger vs Resident Manager
Resident manager lives on property while property manager doesn't.
Where must security deposit be held?
Security deposit must be held in a trust for tenant is separate escrow account
What fines are imposed by the GA RE Commission?
Suspension, Revocation of License or Extra Exucation. Not allowed to imprison violators or charge $1,000 for single violation or $5,000 for multiple violations
How old broker or agent of a broker who is handles, commingled or otherwise violate license law regarding trust funds be punished?
Suspension, revocation or monetary fines but not with imprisonment
A closing disclosure form is required by who to disclose the anticipated closing cost of the buyers/seller will have a closing?
TRID
What is the purpose of the RE commission?
The basic responsibility of the real estate commission is to protect the public through licensing and regulating Of licenses. It is not the responsibility of the commission to represent the real estate industry.
What is risk
The chance of experiencing a loss
What is an exposure pathway?
The means by which a hazardous substance travels from its safe containment to, and then into, a human being.
What is Redlining?
The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area
What's the Innkeepers Qualifications?
The security deposit given must not exceed the cost of the rental required for the minimum rental period.
What is risks as an outcome?
The ultimate outcome of a decision or series of decisions is the possibility of risk
Non-conforming loans
They are documentation in underwriting standards set by Fannie Mae and Freddie Mac. Anyone Falls outside the standard are considered to be non-conforming loans
What is the new golden rule
Treat others how they want to be treated
True or False: both parties must sign a written agreement for release of earnest money
True
TEA'97 Capital gains exemptions
Under the tax reduction act of 1997 there's an exemption from the capital gains tax on profit from the sale of a personal residence of up to $500,000 for a couple and $250,000 for a single person
CAM duties upon termination
When a community association manager resigned was terminated they have 60 days to return all records to the community association
When is a CAM License required?
When a person is hired by community association to collect & disburse associates dues
What are some judicial resources for fair housing violations
When the fair housing complaint is filed it may be tried in 1. federal district court 2. Before a HUD administrative judge 3. State court
Is a license required of a company charges a fee to help individuals exchange properties?
Yes
va loan funding fee
fee paid by borrower to help cover the costs of foreclosure. may be included into the loan.
Tenancy by the Entirety
form of joint tenancy ownership for husband and wife
Deed of trust / Trust Deed
in some states used instead of a mortgage deed. By using a deed of trust the borrower/trust her actually transfers the title to the property to the trustee for the beneficiary/lender to hold until that is paid off. When paid, the trustee will record a reconveyance deed transferring title back to borrower.
The civil rights act of 1968 (Fair Housing Act)
prohibited discrimination related to the sale, rental, and financing of housing based on race, religion, national origin and sex.
What is the penalty for a person convicted of embezzlement?
will NOT have his license suspended for 30 days. Possible Citations: 1. Reprimand/ Censure in case of minor offense 2. Periodic reports from accountant or designated trust acct 3. Required attendance at edu program 4. Fines up to $1,000 for single violation 5. Fines up to $5,000 for multiple violations