Real Estate
An apartment complex has a monthly gross income of $45,300 and has an annual expense of 46% of the gross income. What is the value of the property using a 10% cap rate? a. $3,125,000 b. $2,935,440 c. $293,544 d. $294,000
b. $2,935,440
Which of the following was not added to the 1988 Amendment to the Federal Fair Housing law? a. Families b. Elderly people c. Mental Disability d. Physical disability e. All the above were added to the 1988 amendment.
b. Elderly people
Your client wants to purchase a rental property and asks for your advice on preparing a good offer. If a comparable property that was charging $800 a month for rent and sold for $180,200, using the GRM what price would you recommend to your client if the subject property rents for $1200 a month? a. $200,000 b. $215,825 c. $270,300 d. $275,575 e. $190,300
c. $270,300
An apartment building has a Value of $750,000 and has a capitalization rate of 15%. If expenses equal 60% of gross operating income, what is the gross operating income? a. $67,500 b. $112,500 c. $281,250 d. $199, 200
c. $281,250
Who pays transfer and intangible taxes at closing? a. Always the buyer b. Always the seller c. Buyer and seller split it 50/50 d. Based on the closing disclosure given prior to closing
d. Based on the closing disclosure given prior to closing
If the lender requires 8-months of taxes and 6-months of hazardous insurance to establish the escrow account, how much would the buyer have to pay if the annual tax bill were $2150 and the annual hazardous insurance is $950? a. $2354.76 b. $2254.16 c. $1908.33 d. $2750.00
c. $1908.33
A house that measures 35' by 43' on the first and second floor and has a basement half the size of the first floor, would have a value of how much if the first-floor improvements are valued at $65 a square foot, the second-floor improvements are valued at $50 a square foot, and basement improvements are valued at $25 a square foot? a. $192,000 b. $193,000 c. $191,888 d. $193,888 e. $187,890 f. $188,500
c. $191,888
Your client has a business that has a $1,325 monthly net operating income. Using an 8% capitalization rate, what is your client's property value? a. $15,900 b. $115,900 c. $198,750 d. $19,750
c. $198,750
Your client wants to purchase a property with a sales price of $425,000 and is getting a 95% conventional loan for 30-years fully amortized. The lender is charging a PMI rate of 0.65% of the loan amount. What is your client's monthly PMI payment? a. $2600.00 b. $2624.38 c. $218.70 d. $220.00
c. $218.70
Closing date is May 12 and the taxes have not been paid. If the annual tax bill is $714, what is the tax proration? a. $455.79 Credit to Buyer b. $455.79 Credit to Seller c. $258.21 Credit to Buyer d. $258.21 Credit to sellerv
c. $258.21 Credit to Buyer
What must a landowner receive for eminent domain of their property? a. The assurance their property is only taken as a park. b. The balance of their mortgage c. Market value d. Just compensation e. Compensation and assurance, it is being used for public benefit.
d. Just compensation
RESPA applies to which of the following transactions? a. A purchase of a new farm b. A gift deed contract of a home c. The first mortgage on a home d. Land sales contract of a home e. All the above
d. Land sales contract of a home
Fannie Mae is now a held company and does all the following except? a. Act as a secondary mortgage market for conventional loans b. Act as a secondary mortgage market for VA loans c. Act as a secondary mortgage market for FHA loans d. Lend money to low-income resident who cannot qualify for a traditional loan
d. Lend money to low-income resident who cannot qualify for a traditional loan
An outdated appliance would be considered what type of obsolesce? a. A Functional Obsolescence b. An Economical Obsolescence c. A Physical Obsolescence d. Outdated appliances are not considered an Obsolescence.
a. A Functional Obsolescence
Which best describes complete ownership of land? a. A Fee Simple Estate b. A Leasehold Estate c. An Estate by the Entirety d. A Community Property Estate
a. A Fee Simple Estate
If the annual insurance premium is $4,570 and started on January 1st, what would be the insurance proration if the closing were on Oct 10th? a. $1,026.68 b. $1,116.35 c. $1,040.94 d. $1,039.21
a. $1,026.68
Your client is purchasing a property on July 15th with a sales price of $180,000 and is getting a 95% LTV FHA loan. The lender is charging 6% interest and will amortize the loan for 25-years. If the lender is using a factor for principal and interest of $7 per $1,000, what is your client's first payment of principal and interest? When is the payment due? a. $1,197 and Sept 1st b. $1,197 and August 1st c. $1,200 and Sept 1st d. $1,200 and August 1st
a. $1,197 and Sept 1st
Your client has an investment property that has an NOI of $1,300 a month. They have been using a 10% capitalization to determine their property value. They are now looking to list the property. To help determine the right price, you notice that similar properties are using an 8% capitalization rate. What is your client's property value with an 8% capitalization rate? a. $195,000 b. $16,250 c. $156,000 d. $124,800
a. $195,000
The Research, Education, and Recover fund will pay how much per licensee violation, and how much total per licensee? a. $25,000 and $75,000 b. $25,000 and $50,000 c. $50,000 and $75,000 d. $25,000 and $100,000
a. $25,000 and $75,000
Eddie, a developer, is purchasing two lots to build a medical plaza, shopping center, and mixed-use building. Each lot is one square mile and is selling for $2,500 an acre. How much did Eddie spend? a. $3,200,000 b. $1,6000,000 c. $360,000 d. $3,225,000
a. $3,200,000
Your client listed a property for $375,500 and agrees to an 8% commission. In the MLS you stated that you will split half the commission with the buyer agent. At closing, how much does the seller owe your broker? a. $30,040 b. $15,020 c. $10,514 d. $9,012
a. $30,040
What is your take-home from a home that was listed for $180,000, but sold for $190,000? If you have a 70/30 split with your broker, and the total commission from the sale was 7% and typical terms applied. a. $4,655 b. $4,410 c. $8,820 d. $9,310
a. $4,655
Mark occupies a building owned by his company and pays his share of the bills for the property taxes, insurance, and utilities for the building. What kind of ownership is this? a. A Cooperative b. A Condominium c. A Timeshare d. A General Partnership
a. A Cooperative
Your client wants to sell their home and purchase another home. What would you put in the offer for the new house to protect your client? a. A contingency saying the first house must sell. b. An amendment saying the first house must sell. c. An option saying the first house must sell. d. A clause saying the first house must sell.
a. A contingency saying the first house must sell.
A property deeded to be used "on the condition of", describes what ownership? a. A fee simple condition subsequent b. A fee reversionary estate c. A fee simple determinable d. A lease with a kick-out clause.
a. A fee simple condition subsequent
Which is the most common disclosure on a listing? a. A seller disclosure form b. Latent defects c. Lead base paint disclosure. d. Radon disclosure
a. A seller disclosure form
What does economic-base analysis mean in appraisals? a. A way of measuring economic factors that could affect the value of a property and community. b. It refers to the economic life of a property. c. A way of measuring the return on investment for a property. d. A way of measuring publicly provided benefits.
a. A way of measuring economic factors that could affect the value of a property and community.
In Georgia, what must a lender do before foreclosing on a defaulting owner? a. Advertise the property. b. Have an appraisal and inspection done. c. Evict the occupants. d. File a court action to foreclose. e. Has a Broker's price opinion done by a broker?
a. Advertise the property.
Which of the following would be taxed by ad valorem? a. All homes and land in Fulton County b. All land in Newton County that is undeveloped only. c. An RV home based on where it is parked. d. All furniture and items inside the home
a. All homes and land in Fulton County. (ad valorem is general property tax paid yearly)
What kind of lease starts January 15th, 2018, and ends July 1st, 2018? a. An estate for years b. An estate at sufferance c. An estate from period to period d. An Air B & B
a. An estate for years
CAN-SPAM Act requires which of the following? a. An opt-out clause. b. A phone number c. A license marketing person for all advertising d. Your real estate license number on all advertising
a. An opt-out clause.
When must earnest money be turned over to the broker? a. As soon as practically possible. b. Immediately, unless the agent has written permission to hold it. c. When an offer is accepted d. Within 72 hours
a. As soon as practically possible.
Asbestos was once used as insulation in homes, today due to safety concerns asbestos can no longer be used as the primary source of insulation. What was the primary concern with asbestos? a. Asbestos was friable allowing particles to enter the air. b. Asbestos was expensive, allowing only the rich to own in. c. Asbestos contained lead and was banned under the lead base paint ruling. d. Asbestos was fragile and shattered when dropped, allowing particles to enter the air.
a. Asbestos was friable allowing particles to enter the air.
If a listing agreement has no ending date, what law says it ends in one year? a. Brokerage Relationship in Real Estate Transaction Act b. License law c. Rules and Regulations d. State or Federal Law e. The Federal Contract Act of 2009
a. Brokerage Relationship in Real Estate Transaction Act
An insurance company doing a replacement/reproduction approach, would do what first? a. Determine Depreciation b. Determine the Sales price c. Determine the Land value d. Determine the Market value
a. Determine Depreciation
Ben owns 50-acres and decided to deed the front 30-acres to his son Andrew. What kind of easement would Ben have put in the deed to ensure he had access to his back 20 acres? a. Easement by reservation b. Easement by necessity c. Easement by Grant
a. Easement by reservation
You are helping a low-income client purchase a home. Unfortunately, your client has not been able to qualify for any loans. Who might lend your client money? a. Government National Mortgage Association (Ginnie Mae) b. Mortgage Guarantee Insurance Corporation (MGIC) c. No one, time to move on d. I did not pay attention in class, so I do not know this.
a. Government National Mortgage Association (Ginnie Mae)
The Georgia Real Estate Commission will investigate any complaint against a real estate agent. However, before they start any investigation the complaint must. a. Have a sworn written statement. b. Have evidence to support it. c. Must be filed online. d. Must involve a closed real estate sale.
a. Have a sworn written statement.
Which of the following do you owe a customer? a. Honesty b. Confidentiality c. Accounting d. Nothing, unless they sign an agreement.
a. Honesty
Which of the following would be considered a freehold estate? a. Life Estate b. Estate for Years c. Leasehold Estate d. Periodic Tenancy
a. Life Estate
Your client purchased a home along a lake, what ownership of the lake, if any, does the owner have? a. Littoral right b. Riparian rights c. Fixtures rights d. Percolating rights
a. Littoral right
What fiduciary duties to you owe a client? a. Loyalty b. Confidentiality c. Disclosure d. Obedience
a. Loyalty
Which of the following is not considered real property? a. Lumber b. Bricks mortared into the sidewall. c. A newly planted tree d. An outhouse
a. Lumber
Walk 30-degrees East for two hundred feet, then 120-degrees South two minutes, then west 30-degrees, then North 60-degrees for 2-minutes and thirty seconds back to the point of beginning, is using what form of legal description? a. Metes and Bounds b. Plat Map c. Rectangular Survey d. Google Maps
a. Metes and Bounds
Due to the operation of law which of the following will terminate a sales contract? a. Mutual Agreement b. Death of the seller c. Destruction of the property d. Death of the broker
a. Mutual Agreement
To receive any funds or anything from a real estate transaction, one must have a real estate licensee according to Georgia Law. Is giving your seller client a $100 gift card as a closing gift a violation of Georgia Law? a. No, with the listing broker's permission. b. No, if the buyer is a licensed agent. c. No, with permission from the Real Estate Commission d. No, if the agent pays for the closing gift.
a. No, with the listing broker's permission.
You sold a client a home 20-years ago, but now the area is being rezoned commercial. This includes skyscrapers and parking garages. Does your client have to move? a. No, your client has a non-conforming use. b. Yes, your client is in a non-conforming use area. c. Yes, but your client can tie a bunch of balloons and take their house. d. No, if your client has a defeasance clause.
a. No, your client has a non-conforming use.
A new applicant for a real estate licensee that just passed their exam has how long to activate their license or retake the exam? a. One Year b. 18 Months c. 3 Months d. No time limit.
a. One Year
.Your client has accepted an offer and you are now under a binding contract when another buyer approaches you with an offer. What should you do? a. Present it to your clients as a backup offer. b. You can accept it if the terms are better. c. Too bad, so sad, should have got up earlier. d. Accept it as a backup offer.
a. Present it to your clients as a backup offer.
Which of the following is not required for a deed to be valid? a. Recorded with the county. b. Name of grantee c. Description sufficient to describe the property from any other property. d. Signature of the grantor
a. Recorded with the county.
Another name for an easement is? a. Right of way b. Egress right c. Nonpossessory interest d. An attachment
a. Right of way
An applicant for a salesperson licensee must complete all the following except. a. Take a 75-hour in-seat class. b. Pass a background check. c. Pass the state exam. d. Pass the class final exam. e. Be 18-years of age. f. All the above apply for a real estate licensee.
a. Take a 75-hour in-seat class.
Which property do you adjust in the CMA (Comparative Market Analysis) approach? a. The comparable property b. The Subject property c. Both d. Depends on the adjustment.
a. The comparable property
A licensee under investigation for discrimination would have all the following use against them, except? a. The lack of the equal housing sign in their office b. The brokers file of their transaction c. The undercover investigator's statement. d. The Agents Intent in the transaction and with their client.
a. The lack of the equal housing sign in their office
Which of the following is not true about a metes and bounds legal description in Georgia? a. There must always be a natural monument. b. There must be a point of beginning. c. The county must be stated. d. There can be more than four sides.
a. There must always be a natural monument.
In Georgia, before a licensed salesperson can become a broker or associate broker, they must have been actively licensed for how many years? a. Three out of five years b. Two out of five years c. Five years d. Three years
a. Three out of five years
The state of Georgia is what kind of theory state? a. Title Theory State b. Lien Theory State c. Deed Theory State
a. Title Theory State
The lines on a Rectangular Survey Government Survey System are called what? a. Vertical is meridian and horizontal is baseline. b. Horizontal is Meridian and vertical is baseline. c. Vertical is the median and horizontal is the meridian base. d. Horizontal is the median and vertical is the meridian base.
a. Vertical is meridian and horizontal is baseline.
Your client made an offer on a house and gave three days for acceptance. On the morning of the third day, your client finds another property they like and wants to withdraw their first offer. Can they do this? a. Yes, since the offer has not been accepted. b. Yes, but will lose their earnest money. c. No, they must wait until tomorrow after their first offer has expired. d. Yes, because the offer has already expired.
a. Yes, since the offer has not been accepted.
Is the above transaction Valid? a. Yes, the transaction is valid. b. No, in Georgia all transaction must be in writing to be valid. c. Yes, if there is a witness. d. Yes, but must be recorded with the county.
a. Yes, the transaction is valid.
You have a client purchasing a house built in 1977, which of the following is true? a. You must give the client a lead base paint disclosure since all purchases of homes built before 1978 must receive this disclosure. b. You must give the client a lead base paint disclosure since all homes purchased after 1978 must receive this disclosure. c. You must give the client a lead base paint disclosure since all purchases of homes built before 1978 have been renovated. d. No disclosure is required since you must give a client a lead base paint disclosure for all purchases of homes built before 1976.
a. You must give the client a lead base paint disclosure since all purchases of homes built before 1978 must receive this disclosure.
An office building is valued at $280,000 with a 6% capitalization rate. What is the value with a 12% capitalization rate? a. $150,00 b. $140,000 c. $250,000 d. $190,000
b. $140,000
The Georgia Real Estate Commission has the authority to issue fines for violation of license law or rules and regulations. How much will a fine cost for a violation of license law? a. $2,000 per violation and up to $10,000 for multiple violation b. $1,000 per violation and up to $5,000 for multiple violations c. $2,500 per violation and up to $25,000 for multiple violation d. $2,000 per violation and up to $5,000 for multiple violations
b. $1,000 per violation and up to $5,000 for multiple violations
A property with no liens was sold, and your client received a $98,400 check at closing. If your client paid $5,499 in closing cost, and the selling commission is 7%, what is the sale price? a. $123,763.44 b. $111,719.35 c. $114,000.00 d. $113,000.00
b. $111,719.35
Your client is getting a $425,725 loan with a 6 3/4% interest rate. Your client wants to reduce the interest rate to 6%, and the lender will charge them 6-discount points to do so. How much will your client have to pay at closing to reduce their rate? a. $25,600.00 b. $25,543.50 c. $28,736.44 d. $30,000.00
b. $25,543.50
Using the previous question. What is the monthly MIP payment, if the lender charges MIP 1.35% monthly? a. $425.00 b. $424.11 c. $5,089.32 d. $5,100.00
b. $424.11
An office building has a gross quarterly income of $425,271, with an annual expense of 52% of gross income. What is the estimated net profit? a. $205,000 b. $816,500 c. $817,000 d. $204,100
b. $816,500
A Buyer using a conventional loan with no PMI, must put how much down? a. 10% b. 20% c. 3.5% d. 0%
b. 20%
In Georgia, a new licensee must complete __ hours of training which is equivalent to __ hours of continuing education? a. 20 and 9 b. 25 and 9 c. 36 and 9 d. 25 and 6
b. 25 and 9
A broker must keep a client's records always secure. License law also requires every Broker to keep a copy of all records for ____ years? a. 5-Years b. 3-Years c. 6-Years d. 10-Years
b. 3-Years
Your client buys 4 properties for $10,000 each. He divides the property in half for a total of 8 lots, and then relists them for $8,000 each. How much profit did he make? a. 50% b. 60% c. 55% d. 40%
b. 60%
In Georgia, the Time Share Act gives a prospective buyer a _____days right of recession? a. 3-days b. 7-Days c. 10-Days d. 5-Days
b. 7-Days
What type of agency relationship was created in the previous question? a. A Universal Agency b. A General Agency c. A Special Agency d. An Implied Agency
b. A General Agency
In Georgia, a buyer would receive a ____ as evidence of the debt, and to show proof of ownership? a. A Promissory Note b. A Security Deed c. A Security Title d. A Title to the property
b. A Security Deed
A home sold at foreclosure would have which of the following liens paid off first? a. A Mortgage Lien b. A Special Assessment Lien c. A Mechanical Lien d. An Income Tax Lien
b. A Special Assessment Lien
What type of contract is an option contract? a. A Bilateral Contract b. A Unilateral Contract c. A Sales Contract d. A Brokerage engagement
b. A Unilateral Contract
What is the legal definition of a condominium? a. A community where people own shares in the building and own their unit. b. A community where owners have title to one piece of individual property and share ownership of common elements. c. A community where all owners share ownership of everything including all community property. d. A community with amenities for their residents such as pool, tennis, and basketball, and each owner pays a monthly fee.
b. A community where owners have title to one piece of individual property and share ownership of common elements.
At closing how the Earnest money appear on a closing statement? a. A credit to the seller b. A credit to the buyer c. A debit from the seller d. A debit from the buyer
b. A credit to the buyer
Your client wants to purchase a property with a 100% VA loan. Your client wants a property that can also make them income. Which of the following property can your client purchase with a VA loan? a. A five-unit or less building if one unit is owner-occupied. b. A four-unit or less building if one unit is owner-occupied. c. A VA loan can only be used for a single-family home. d. A VA loan can only be used for a building with 2-units or less if one is owner occupied.
b. A four-unit or less building if one unit is owner-occupied.
Any agent found in violation of license law or rules and regulations, have the right to what? a. A Jury Trial b. A hearing before the commission c. A lawyer d. Arbitration
b. A hearing before the commission
What is a promissory note? a. A promise to purchase a home. b. A promise to pay a future debt. c. Part of a mortgage d. A private deal between the buyer and seller
b. A promise to pay a future debt.
A presented an offer to your seller client for $375,000, with the condition that the seller signs a General Warranty deed. Your clients rejected the buyer's offer and presented a counteroffer stated they are willing to sign a special warrantty deed. This counteroffer best describes which of the following? a. A binding contract between the seller and buyer. b. A qualified or conditional acceptance of the agreement. c. A terminated agreement between all parties. d. A binding contract once the seller sends the counteroffer to the buyer.
b. A qualified or conditional acceptance of the agreement.
You have four clients that purchased an investment property together. Your clients want to ensure that if one of them kills the other owners, the property could go to their heirs and not the other owners. What type of ownership did they get? a. A joint tenancy b. A tenant in common c. A community Property d. Tenancy by the entirety
b. A tenant in common
Which of the following closing cost would your seller client be responsible for paying? a. Pro-rated Interest b. Accrued Interest c. Inspection Fee d. Appraisal Fee
b. Accrued Interest
Which of the following has the potential to increase your property's value? a. A bunch of New Construction homes being built. b. An Amazon Manufacturing plant opening in the area. c. A new airport being built one mile from your house. d. Zoning change allowing lower income housing to be built.
b. An Amazon Manufacturing plant opening in the area.
Which of the following would most likely be considered incurable? a. A Functional obsolesce b. An Economical obsolesce c. A Physical obsolesce d. Depreciation
b. An Economical obsolesce
A client's mortgage is an example of what? a. An Executed contract b. An Executory contract c. A unilateral contract d. An implied contract
b. An Executory contract
A wall that is shared between two townhomes is considered a party wall, as each owner has some sort of interest in the wall. This type of interest is known as_______. a. Belonging to one side or the other b. An easement appurtenance c. An easement in gross d. Community property
b. An easement appurtenance
When a buyer submits an offer that is accepted, what kind of interest do they now have in the property? a. None, the property has not closed yet. b. An equitable interest in the property c. A right of redemption interest d. None, that buyer is Cray Cray and has not given the seller any money yet.
b. An equitable interest in the property
What is your client's property is only 10,890 square feet? a. Same as above, I cannot advise them on a sale price. b. Around $12,500 c. Around $25,000 d. Around $15,000
b. Around $12,500
A sales contract is a legally binding document and, once a buyer and seller sign the sales contract, the buyer is now obligated to buy, and the seller to sell. A sales contract, must have all but which of the following? a. Be preprinted contracts. b. Be notarized. c. Have a signature. d. A reference to public records for legal description
b. Be notarized.
Tac Builder purchased 25-acres of land zoned residential and wants to build 25 single family homes. What type of mortgage would he or she get that would allow him or her to sell certain lots as they are completed and pay off the loan? a. Conventional Loan b. Blanket Loan c. Open-ended loan d. Pledge loan
b. Blanket Loan
When an agent enters an agency relationship with a buyer, they have entered a _____ and are now representing the buyer as an ___ agent. a. Buyer protection and selling agent. b. Buyer agency and selling agent. c. Buyer protection and buying agent. d. Buyer agency and buying agent.
b. Buyer agency and selling agent.
Your client is buying a home and must go out of town. You cannot get ahold of the listing agent, what should you do? a. Call your broker. b. Call the listing broker. c. Have your client make you an attorney in fact. d. Stall the sale.
b. Call the listing broker.
When a builder is done building a house, he or she must get a CO before being allowed to sell the property. What does CO stand for? a. Certificate of Occupation b. Certificate of Occupancy c. County Order d. Completion Order
b. Certificate of Occupancy
In Georgia, the minimum amount that must be maintained in the Research Education and Recovery fund is $1,000,000. If the account falls below that amount what will the R.E. commission do? a. Charge a fee to all agents immediately until the account is back to the minimum. b. Charge a fee at license renewal until the account is back to the minimum. c. Charge a fee from all real estate transactions until the account is back to the minimum. d. Charge an additional fee on property tax until the account is back to the minimum.
b. Charge a fee at license renewal until the account is back to the minimum.
A property that is purchase and then renovated to be leased out, had what kind of maintenance done? a. Property maintenance was done to prepare the unit. b. Construction maintenance was done to prepare the unit. c. Corrective maintenance was done to prepare the unit. d. Home improvement maintenance was done to prepare the unit.
b. Construction maintenance was done to prepare the unit.
Recording a Deed at the County Clerk's office gives? a. Actual Notice b. Constructive Notice c. Physical Notice d. Legal Notice
b. Constructive Notice
After closing, a buyer discovers the seller has taken the light fixture, what should they do? a. Contact their agent. b. Contact the seller and state that the light was a fixture. c. Start a suit for damages against the seller. d. Call the listing broker.
b. Contact the seller and state that the light was a fixture.
You are managing an apartment building, and a tenant calls stating their shower is leaking. What kind of repair is this? a. Preventative maintenance b. Corrective maintenance c. Property maintenance d. Proactive maintenance
b. Corrective maintenance
A licensed appraiser must follow a set guideline when appraising a property. Part of these guidelines states how the cost of an appraisal can be set. What is the first step in the appraisal process? a. Determine the amount of time and work needed. b. Define the problem. c. Set the appraisal fee. d. Reconcile another appraisal report.
b. Define the problem.
According to BRRETA, a licensee must do which of the following when it comes to environmental problems. a. Disclose only when asked. b. Disclose what they already know. c. Discover problems only. d. Discover problems and disclose immediately.
b. Disclose what they already know.
What does a novation clause in a mortgage do for your client during a loan assumption? a. During a loan assumption, the seller is still liable. b. During a loan assumption, the seller is released from liability. c. During a loan assumption, the seller is released as a primary liability but is still secondary liable. d. A novation clause does not apply to a loan assumption.
b. During a loan assumption, the seller is released from liability.
Which of the following would be an example of unfair practices? a. Encouraging a buyer to get an inspection. b. Encouraging a buyer to break their contract with another agent, with your Broker's permission. c. Show a couple around an open house who has an agent. d. Encouraging a customer to list with your broker instead of another broker. e. All the above are unfair practices.
b. Encouraging a buyer to break their contract with another agent, with your Broker's permission.
What is the broker responsible over a licensed real estate agent? a. Controlling the amount of work the salesperson does. b. Ensuring affiliates are properly licensed. c. Nothing, each person is responsible for themselves. d. Provide no instructions to licensees.
b. Ensuring affiliates are properly licensed.
Mark has a loan with a monthly payment of $1300, and his annual income is $65,000. Mark also has a car payment of $325, a student loan of $150, and $200 credit cards. What is his front and back end ratio? a. F=23% and B=37% b. F=24% and B=37% c. F=25% and B=38% d. F= 37% and B=55%
b. F=24% and B=37%
A CAM that handles funds over $60,000 is required to have? a. Homeowner Insurance b. Fidelity Bond Insurance c. E&O Insurance d. Hazardous insurance
b. Fidelity Bond Insurance
A Metes and bounds legal description are used to describe the boundaries of a particular property. To ensure each description is unique and complete, this legal description requires all the following, except? a. Point of beginning. b. Four sides c. County and State d. Bearings
b. Four sides
Your client has made multiple changes to the real estate contract. According to contract law which of the following takes priority? a. Typed wording. b. Handwritten wording c. Preprinted wording d. Cursive handwriting
b. Handwritten wording
Which of the following would be considered mix-used property? a. A skyscraper with 2,000 offices b. Hotel and residential on the same lot c. An outlet center with clothing and furniture store d. Two apartment buildings linked together by a bridgeway.
b. Hotel and residential on the same lot
When can a broker be paid for a real estate transaction when they did not represent either the buyer or seller as a client? a. They are not able to be paid. b. If they were a transactional broker c. If they were the Situational broker d. With proper notification to the Real Estate Commission
b. If they were a transactional broker
According to BRRETA, all agency's relationships must be _____? a. Verbal or in writing b. In writing and with an ending date c. Verbal or in writing with an agreed-upon ending date d. In writing and notarized
b. In writing and with an ending date
To allow more use of a subdivision, a builder would apply for a variance to do which of the following? a. Decrease the number of storage units allowed in the division. b. Increase the number of single-family homes from one to two per acre. c. To restrict the division to seniors only d. To have more fire hydrants installed
b. Increase the number of single-family homes from one to two per acre.
Each piece of land is different than another piece of land. This allows us to track all land by their legal description since no two parcels will have the same legal description. How is each piece of land different from the other pieces of land? a. They are all different sizes. b. It is fixed and immobile. c. They each have a different value.
b. It is fixed and immobile.
You as a licensed agent get a listing for six months, but next week you have a family emergency and must move to Florida. What happens to that listing? a. It is void. b. It is valid. c. It is voidable. d. It is terminated.
b. It is valid.
Market value is what the property is worth on the market, and this can be similar or different from market price. Market price refers to which of the follow? a. What someone offered the seller to purchase the property. b. It reflects the price that was used at closing on an executed sales contract. c. Is the same as market value, and there is no difference. d. It reflects the appraised value of the property.
b. It reflects the price that was used at closing on an executed sales contract.
Concurrent ownership which guarantees the remaining owners receive the shares of the other owners if one were to pass away include? a. Joint Tenancy and Tenants in common b. Joint Tenancy and Tenancy by entireties c. Community Property and Joint Tenancy d. Georgia does not recognize the right of survivorship.
b. Joint Tenancy and Tenancy by entireties
Georgia law requires a broker's license for which of the following? a. Referring a potential client to another broker without a fee b. Listing a property for sale for a fee. c. Advertising property for another for a fee d. Managing a subdivision association for a community you live in.
b. Listing a property for sale for a fee.
You have been hired to manage a property for your broker's client. What task would you be responsible for? a. Fix anything that is broken. b. Maximizing Net income and economical life c. Maintain full occupancy. d. Adjust rent to keep units occupied.
b. Maximizing Net income and economical life
A legal description that references a large tree and stream in the description is part of what legal description? a. Pat Map b. Metes and Bounds c. Rectangular Survey d. This is not a form of a legal description.
b. Metes and Bounds
Your client puts in an offer and gives you $1,000 earnest money on Monday night. The offer was accepted Wednesday at noon. When would you turn over the earnest money to your broker? a. Probably Monday night b. Probably Tuesday morning c. Probably Wednesday afternoon d. Probably Thursday morning
b. Probably Tuesday morning
Sam owns 30-acres of farmland and has a 5-acre lake on her property. She has given verbal permission for her neighbors to fish on her lake. After fifteen years of this, Sam decided to put a fence up around the lake and deny anyone access. The neighbors claim that they have an easement since they have used it for over ten years which is the state minimum for adverse possession. Do the neighbors have an easement? a. Yes, they have a prescriptive easement. b. No, a landowner may revoke a licensee at any time. c. Yes, they have an easement by necessity. d. No, but they can file adverse possession action to take the title to the lake.
b. No, a landowner may revoke a licensee at any time.
You listed your client's property for 1.5 Million dollars, even though CMA showed the property was only worth 1.25 Million. You advised your client of the market price, but they wanted it listed at 1.5 Million. After 8-months on the market, the client has reduced the property price several times, and finally sold the property for 1.3 Million. The client blames you for the loss and decides to reduce your commission. Can they do this? a. No, the client must comply with license law. b. No, if commission is agreed upon it cannot be changed, unless both parties agree. c. No, the commission cannot be changed once it has been agreed upon. d. Yes, since the property sold for less than the listed price.
b. No, if commission is agreed upon it cannot be changed, unless both parties agree.
A country club owns some luxury homes and restricts the rental of the homes to club members only. They do this regardless of if the prospective tenant is disabled. Is this a violation of Fair Housing or License Law? a. Yes, no one may discriminate on housing based on the protected class of FH. b. No, if they do not discriminate in their club membership c. No, if the homes are not equipped to handle disabled people. d. Yes, club member may discriminate on this class of people.
b. No, if they do not discriminate in their club membership
Susan sells her house to her brother Mark with a verbal agreement and handshake. Is this transaction enforceable? a. Yes, if both parties agree b. No, it must be in writing to be enforceable. c. Yes, if the lease if for more than one year d. Yes, if recorded with the county
b. No, it must be in writing to be enforceable.
You just sold a house to a Cuban client in a predominantly white subdivision. Should you inform the neighbors that a Cuban has moved into the area and see if they are now willing to sell? a. No, you owe your client confidentiality. b. No, that is an example of blockbusting. c. No, that is an example of steering. d. No, that is an example of inducing. e. Yes, they have the right to know and could make the agent another sale.
b. No, that is an example of blockbusting.
For the last 40-years, the Smith family has operated their family restaurant at the corner of South Ave and North Ave. The county has just rezoned the entire area to residential properties only and informed the smith family they must sell. Is this legal? a. Yes, since it is for eminent domain. b. No, the Smith family have a nonconforming use. c. Yes, unless the Smith family get a variance. d. No, its private property, the government cannot tell you what to do.
b. No, the Smith family have a nonconforming use.
Your client wants to list their property and states they only need $220,000 and you can keep anything above that. They advise you to list it at market price, or slightly below to sell the property fast. Is this a legal listing? a. Yes, if the sales price covers the commission. b. No, this is a net listing. c. Yes, if the client makes their $220,00 d. Yes, with the permission of your broker. e. No, unless you have permission from the GREC.
b. No, this is a net listing.
You know the owner of the house down the street is about to sell their house. You believe the house will easily sell for $1,000,000 dollars and want to be first in line. To do this you start getting buyers ready to present an offer, can you do this? a. Yes, its common real estate practice. b. No, this would be offering an unlisted property. c. Yes, if you do not use public advertising. d. No, this would create a dual agency.
b. No, this would be offering an unlisted property.
A Buyer has a purchase option for 3 months but decides not to exercise it after two weeks. What should the seller do to terminate the option? a. Have an agent do a termination agreement. b. Nothing, an option expires automatically. c. Sue the buyer since they decided not to purchase. d. Use the contingency clauses in an option.
b. Nothing, an option expires automatically.
In Georgia, a short form legal description would have which of the following? a. Land Lot Coordinates b. Plat Book and Page number c. Bearing and Degrees d. Militia District Number
b. Plat Book and Page number
Your client tells you they do not want to receive any offers below $250,000. What should you do if a buyer offers your client $200,000? a. Counter the offer before presenting it. b. Present the offer to the seller. c. Accept the offer, but do not present it since you own the client obedience.
b. Present the offer to the seller.
Which principal of value indicates that additional developers will jump into the market when existing developers are becoming very profitable. a. Principal of anticipation b. Principle of competition c. Principle of regression d. Principal of value
b. Principle of competition
In Georgia, all the following legal descriptions are used, except? a. Plat Book b. Rectangular Survey c. Metes and Bounds d. A description that is unique to each individualized parcel of land
b. Rectangular Survey
If the Real Estate Commission deems a broker's trust account to be unsafe, what will they do with the account? a. Close the account. b. Report it to the Attorney General. c. Appoint a receiver. d. Close the brokerage.
b. Report it to the Attorney General.
The power to sell clause allows a lender to do what? a. Sell the property after default by going to court. b. Sell the property after default without going to court. c. Sell the loan to another bank. d. Collect the balance due after a property is sold.
b. Sell the property after default without going to court.
Which of the following is a licensed real estate agent allowed to do? a. Bind the client to a contract. b. Submit all offers immediately. c. Hold Earnest money in their insured saving account. d. Withhold known defects, if ordered to do so by the client e. A and B
b. Submit all offers immediately.
To obtain a salesperson license, an applicant must comply with the following, except? a. Be 18 years of age. b. Take a 75-hour classroom real estate course. c. Have a high school diploma or equivalent. d. Pass the class and the state exam.
b. Take a 75-hour classroom real estate course.
Your client has defaulted on their loan, and the lender is foreclosing. In a lien theory state what must the lender due? a. Advertise the property. b. Take the owner to court. c. Have the sheriff evict the owner. d. Call the entire balance due next month.
b. Take the owner to court.
Who appoints the commission? a. The Governor with house confirmation b. The Governor with Senate confirmation c. The Governor only d. The Governor, with a public vote
b. The Governor with Senate confirmation
The landowner that has lost their property to the easement for a driveway is what type of estate? a. The Dominant Estate b. The Servient Estate c. An Estate at Will d. An Estate at Sufferance
b. The Servient Estate
Your client is purchasing a home with a VA 100% loan. Your client will have to pay a funding fee, who collects this fee? a. The lender b. The VA c. The Closing Attorney d. The Broker
b. The VA
Under Georgia Foreclosure laws, the sale of a property of a defaulting borrow may result in which of the following? a. The sale may not occur until a court order is issued. b. The borrow may receive any funds over the loan and fees for the foreclosure. c. May only take place after being advertise in the local newspaper for 14 days. d. The successful bidder will receive a foreclosure deed at the suction, providing
b. The borrow may receive any funds over the loan and fees for the foreclosure.
What is the security used for in an equity loan? a. An equity loan is an unsecured loan. b. The borrower's property c. The borrower's vehicle d. I do not know I am not a loan officer.
b. The borrower's property
Your client is under contract to purchase a property, however prior to closing the house is struck by lightning and burnt to the ground. If the contract is silent as to who bears full risk if the property is destroyed. Which of the following is true? a. The seller will bear the loss and the contract is voided. b. The buyer will bear the loss as destruction of the property does not terminate a sales contract. c. The buyer and seller will split the loss and risk. d. The seller is still liable since you have not closed and must bear the full risk and liability.
b. The buyer will bear the loss as destruction of the property does not terminate a sales contract.
Which of the following would not be considered an encumbrance against the property or title, and affect the overall use of the property? a. A Mortgage lien b. The capitalization rates. c. CC&R against the property d. A Mechanic's lien
b. The capitalization rates.
Which of the following appraisal approaches has the replacement and reproduction method and is used for special purposes such as insurance companies and new construction? a. The income approach to value. b. The cost approach to value. c. The replacement evaluation approach to value. d. The market analysis approach to value.
b. The cost approach to value.
What is the purpose of CC&R's of a deed or plat map? a. To piss off the future owner b. To control future use of the land c. To control who moves into the area. d. To prevent the future need to use police power against the property.
b. To control future use of the land
What is a promissory note? a. A buyer's evidence of the debt b. The lender's evidence of the debt c. The seller's evidence of the seller d. The buyer's evidence of ownership
b. The lender's evidence of the debt
The four units of Joint Tenancy include all the following, except? a. A single title b. The right of survivorship c. Must have an equal interest. d. Title must have been received by all joint tenants at the same time.
b. The right of survivorship
What is the difference between Bilateral and Unilateral contracts? a. The number of parties in the contract b. The type of contract c. The type of consideration on the contract d. There is no difference.
b. The type of contract
Income producing property or investment properties may qualify for a 1031 exchange from the IRS if which of the following? a. They purchase any residential property. b. They purchase another incoming producing property of equal to or greater value. c. They purchase any commercial property only. d. If they purchase any property zoned for 1031 exchange.
b. They purchase another incoming producing property of equal to or greater value.
What is the purpose of earnest money? a. To provide a down payment b. To assure the seller, the buyer will meet the terms. c. To assure the buyer, the seller will meet the terms. d. As a pre-paid closing cost
b. To assure the seller, the buyer will meet the terms.
What is the primary purpose of the Real Estate Settlement Procedure Act (RESPA)? a. To prevent mortgage fraud b. To ensure all parties understand the cost of a real estate transaction. c. To ensure the buyer understand the cost of a real estate transaction. d. To protect the public from dishonest or incompetent lenders
b. To ensure all parties understand the cost of a real estate transaction.
A lender makes a bunch of loans at one time and packages them to be sold to an investor or the secondary mortgage market, this is an example of? a. Discounting b. Warehousing c. Package financing d. Loan Discounting
b. Warehousing
A Landlord hires you to manage his properties, when was an Agency relationship created? a. When the Landlord interviews you b. When the Landlord signs a Management Agreement with your Broker c. When a renter signs a lease for a unit d. Only when units are available to rent.
b. When the Landlord signs a Management Agreement with your Broker
When can a Salesperson sign a sales contract for their client? a. When the salesperson has a listing agreement b. When the salesperson is the client's attorney in fact c. Never, the client must always sign. d. When the salesperson has written permission from their client e. When the salesperson is related to the client.
b. When the salesperson is the client's attorney in fact
If a licensed real estate agent lets their license lapse, how can they reinstate it? a. By going through the application process again b. Within 2-years by paying all renewal fees, reinstatement fee, and late charges. c. Within 10-years by paying all renewal fees, reinstatement fee, and late charges. d. Once you let your license lapse you can never get it back
b. Within 2-years by paying all renewal fees, reinstatement fee, and late charges.
Does license law apply to an agent whose license is on inactive status? a. No, they are inactive. b. Yes, License law applies to anyone with a license. c. No, license law only applies to active agents. d. Yes, license law applies to everyone with or without a license.
b. Yes, License law applies to anyone with a license.
Does the sale of the property terminate a verbal license? a. No, a license runs with the land. b. Yes, a license ends with the sale of the land. c. No, because a license is an easement and runs with the land. d. Yes, but must give a 30-day written notice
b. Yes, a license ends with the sale of the land.
Your client wants to give you a check as a tip, can you accept it? a. Yes, I can accept the check. b. Yes, but must be payable to the broker. c. Yes, with permission from the GREC. d. No, this is a violation of license law.
b. Yes, but must be payable to the broker.
Your client signed a sales contract but later wanted to void the contract since he was legally ruled incompetent before signing the contract. Can your client have the contract voided? a. No, he signed the contract and must complete the transaction. b. Yes, he was ruled legally incompetent before signing. c. No, his guardian must follow through on the terms of the contract in their place. d. Yes, because a buyer can back out of a contract any time before closing.
b. Yes, he was ruled legally incompetent before signing.
You are helping a buyer as a customer put in an offer for your seller client's house. Along with the offer the buyer gives you $2,000 earnest money, and the offer is set to expire in 48-hours. The next morning, the buyer calls and says they want their earnest money back; can your broker release the earnest money? a. Yes, if the seller agrees b. Yes, if the offer has not been accepted. c. No, not until the offer has expired. d. No, you have a binding contract.
b. Yes, if the offer has not been accepted.
A restaurant owner installed booths in a small shop. Later he decided to move to a larger location. Can he take the booths and save some money? a. No, the booths are attached to the building. b. Yes, the booths are trade fixtures and can be removed before the end of the lease. c. Yes, the booths are trade fixtures and can be removed any time. d. No, the booths are fixtures since they are attached.
b. Yes, the booths are trade fixtures and can be removed before the end of the lease.
When a buyer defaults on a contract, what clause allows the seller to claim the earnest money? a. A Defeasance Clause b. A Subordination Clause c. A Forfeiture Clause d. A Rescinding Clause e. An Earnest Money Clause
c. A Forfeiture Clause
You sell your client property for $225,000; their existing mortgage is only $80,000. The seller also agrees to pay $3,200 closing and a 7% commission. What is your client's net profit? a. $125,100 b. $125,500 c. $126,050 d. $126,000
c. $126,050
Your client is purchasing a property for $275,000 and is getting a 95% conventional loan. The lender will fully amortize your client's loan for 30 years at a 6% APR. Using the amortization table below, what is your client's first monthly payment of principal and interest? a. $1500.00 b. $1650.00 c. $1567.50 d. $1657.50
c. $1567.50
A person found guilty of license law, or practicing real estate without a real estate license, could be found guilty of a ______? a. Felony b. License law violation c. Misdemeanor d. Federal License Law
c. Misdemeanor
Your client is purchasing a property with a Sales price of $390,000, and a 95% FHA loan. The lender is charging a UFMIP rate of 1.75%. How much UFMIP will be added to the loan? a. $540.31 b. $6,488.75 Your client is purchasing a property with a Sales price of $390,000, and a 95% FHA loan. The lender is charging a UFMIP rate of 1.75%. How much UFMIP will be added to the loan? a. $540.31 b. $6,488.75 c. $6,483.75 d. $550.30 d. $550.30
c. $6,483.75
Your home located at 1234 Atlantic City St, Covington, GA 30014 in Newton County, Georgia United States of America is valued at $280,000 and is assessed at 53.5% of the value. What is your real estate tax if Newton County, GA charges $44.00 per $1000 of the assessed value, and the city of Atlanta rate is $20.00 per $1000? a. $2,996 b. $9,588 c. $6,592 d. $12,320
c. $6,592
A landowner has a lot with 18,750 square feet and has a depth of 150ft. If the landowner wants to purchase the property next to him that is 4,500 square feet and has a depth of 90 feet. How much frontage will the new owner have? a. 240 ft. of frontage road b. 150 ft. of frontage road c. 175 ft. of frontage road d. 125 ft of frontage road
c. 175 ft. of frontage road
The real estate commission requires all agents, unless grandfather in, to complete continuing education for licensee renewal. How many of those continuing education hours must be license law and paid for by the broker. a. 6 hours of license law b. No minimum required. c. 3 hours of license law d. 9 hours of license law
c. 3 hours of license law
If the listing broker received a check for $15,500 and they gave the selling broker a check for $7,750. What was the percentage of commission if the property sold for $418,918.92? a. 3.5% b. 6% c. 3.7% d. 6.3%
c. 3.7%
The commission serves what kind of terms? a. 5-Years b. 6-Years c. 5-Years, staggered. d. 6-Years, staggered.
c. 5-Years, staggered.
The Georgia Real Estate Commission has how many members? a. 5 Members b. 5 Members, 4 licensed c. 6 members, 5 licensed d. 6 members
c. 6 members, 5 licensed
To manage a community association, a licensee would need, at the minimum, what kind of license and training hours? a. A Real Estate Licensee and 25-hours b. A Real Estate licensee and 75-hours c. A CAM license and 25-hours d. A Cam license and 75-hours e. A Brokers license and 60-hours
c. A CAM license and 25-hours
Which of the following would the interest rate stay the same the entire loan, but the payment will increase throughout the term of the loan? a. Adjustable-rate mortgage b. A term loan. c. A graduated mortgage payment d. A fully amortized loan
c. A graduated mortgage payment
Which of the following can own property as tenancy by the entirety? a. Any couple b. Two Brothers c. A married couple d. Any two people purchasing a property together.
c. A married couple
The qualifying broker of a Corporation must be an officer. In Georgia what must the qualifying broker of a Limited Liability Corporation be? a. An officer b. A shareholder c. A member d. An investor
c. A member
Which type of commercial lease has the tenant pay all the utilities, taxes, and operating expenses, but the landlord pays the property insurance? a. A Step-up lease b. A Utility Lease c. A net lease d. A grounds-lease
c. A net lease
A listing which provides the broker's commission is the difference between the selling prices and the requested net amount is what kind of listing? a. An open listing b. An exclusive listing c. A net listing d. A blind listing
c. A net listing
A listing which provides the broker's commission, is the difference between the selling price and the requested net amount is what kind of listing? a. An open listing b. An exclusive listing c. A net listing d. A blind listing
c. A net listing
Your client got a blanket mortgage to buy 20-acres of land and to develop it with single family homes. He plans to build the lots with one house per acre and the other half with two houses per acre. Your client wants to be able to sell the homes as they are finished, what would your client ask the lender to include in the loan? a. A developer's clause b. A builder's clause c. A power to sell clause. d. A partial release clause
c. A power to sell clause.
What does the term condemnation refer too? a. A house being foreclosed on. b. A house that is no longer safe to occupy c. A property being taken by eminent domain. d. All the above
c. A property being taken by eminent domain.
You are hired to oversee a residential property, including supervising employees, collecting rent, and monitoring maintenance. You are a ________? a. A community association manager. b. An association broker working for a broker. c. A property manager working for an owner. d. A leasing agent managing a rental community.
c. A property manager working for an owner.
You owe your client POLAND (performance, obedience, loyalty, accountability, notice, and performance), but only owe a customer three things. Which of the following do you owe both a customer and a client? a. Confidentiality b. Loyalty c. Accountability d. Accounting
c. Accountability
The closing is scheduled for 3/1/21, but due to delays with the buyer's loan, the closing will have to be delayed until 3/21/21. What should you as the agent prepare? a. An extension form. b. A contingency c. An Amendment d. A bilateral agreement
c. An Amendment
Josh a tenant of Michael had an estate for years that ended on 2/21/21, and today is 3/10/21 but Josh has not moved out. Josh would be considered _____? a. A Trespasser, and the police can be called. b. A stay over tenant, who exercised their right of renewal. c. An Estate at sufferance, who can be evicted. d. An Estate at will, who can stay if they like.
c. An Estate at sufferance, who can be evicted.
If a salesperson receives EM on Friday evening, when should it be turned over? a. Friday Evening b. Saturday Morning c. Monday Morning
c. Monday Morning
Which of the following would be considered a dual agency, and while it is legal in Georgia, it is highly discouraged? a. An agent representing two parties in the sale of a home. b. An agent working with a buyer and seller, both as customers c. An agent working with a buyer and seller, both as clients d. An agent representing their broker.
c. An agent working with a buyer and seller, both as clients
A new homeowner has built the house on the lot located directly behind you. The new owner approaches you and informs you that they need to build a driveway through your property to access their land. If there are no other means to access this property what types of an easement is created? a. An easement by prescription b. No easement exists. c. An easement by necessity d. An easement by grant
c. An easement by necessity
What kind of lease starts January 15th, 2018, and ends July 1st, 2018, and renews for another six months? a. An Estate for Years b. An Estate at sufferance c. An estate for period to period d. An Air B and B
c. An estate for period to period
Your client wants to list their lot that is 217,800 square feet. They are asking you for a recommended sales price, similar lots sold for $50,000 per acre. What should you tell them? a. You cannot advise them on a sale price. b. Check with your Broker. c. Around $249,000 d. Around $150,000 e. Around $200,000
c. Around $249,000
Based on the Sherman Antitrust Law, what is the commission for Atlanta? a. The standard rate is 6% based on competition. b. The standard rate is 3% per side of a sale. c. Based on a strict set of guidelines established by your qualifying broker d. Based on strict set of guidelines established by the Real Estate Commission
c. Based on a strict set of guidelines established by your qualifying broker
To protect the lender's interest when they lend money to a home purchaser, they require the loan to be insured to protect the lender's top 20 to 25% interest. This helps in case the foreclosure sale does not cover the remaining loan balance. Who insures loans for lenders? a. The Federal Housing Administration b. Mortgage Guarantee Insurance Corporation c. Both A and B d. Neither A nor B
c. Both A and B
An easement does all the following except. a. Create an interest in land from someone other than the landowner. b. Can be revoked by the Dominant Estate. c. Can be revoked by the Servient Estate. d. Creates an encumbrance against a property.
c. Can be revoked by the Servient Estate.
When you as a licensed agent are preparing a unique or complex real estate contract, due to the terms the parties have agreed to, what should you do? a. Fill in a pre-printed contract. b. Create a new contract yourself. c. Consult a real estate lawyer. d. Have the parties change the terms to work with existing GAR forms.
c. Consult a real estate lawyer.
Brown sells a property to Mark for $200,000 and Mark does not move in or record the deed. Brown, a few weeks later sells the same property to David for $250,000 and David moves in but does not record the deed. Mark later returns and sues David claiming ownership of the property, who has legal ownership of the property? a. Mark owns the property. b. Brown owns the property. c. David owns the property still. d. David and Mark own the property as tenants in common.
c. David owns the property still.
What happens if you decided to take a trip to Vegas and did not get lucky. While there you have missed a payment on your mortgage, what can your lender do if you have an acceleration clause in your loan? a. Nothing, it was only one missed payment. b. Demand payment of the entire balance, at your next payment c. Demand immediate payment of your entire balance. d. Increase the rate of the loan, based on the terms of your loan.
c. Demand immediate payment of your entire balance.
Which of the following can usually be deducted on a client's annual taxes? a. Fees for landscaping and maintenance b. All closing cost c. Discount points d. Their down payment e. Home improvements
c. Discount points
What law passed by the Federal Trade Commission states that an agent may call a client for 18- months, and inquire for 3-months, and not after 9:00 pm? a. Federal Trade Act b. Federal communication Act c. Do-Not-Call Implementation Act d. Federal Telemarketing Act
c. Do-Not-Call Implementation Act
Your client is preparing to sell their house. It has just been announced that a new airport will be built in the area, and the runway starts just one mile from your client's house. This is an example of what? a. Physical Obsolescence b. Functional Obsolescence c. Economical Obsolescence d. Economical Improvements
c. Economical Obsolescence
A lender tells an agent to try and reduce the contract price by $1,000, or their buyer will not qualify. What should you as the agent do? a. Amend the contract to reduce the price by $1,000 so your buyer will qualify. b. Notify the seller and listing agent your client cannot qualify for financing. c. Explain you need authorization in writing by both parties. d. Contact a new mortgage lender for your buyer, that can approve your buyer and have them be the new lender.
c. Explain you need authorization in writing by both parties.
A Manager of a Subdivision Association in Georgia handling over $60,000 in dues must have what? a. A licensed CAM Agent b. General Insurance c. Fidelity Bond Insurance d. Hazard Insurance
c. Fidelity Bond Insurance
An agent wishes to work for the GREC, and must place their license on inactive status, how long can an agent's license be on inactive status? a. Three Years b. Five Years c. Forever d. This agent must surrender their license to work directly for the GREC.
c. Forever
Ownership of real property for an undetermined amount of time is called a a. Leasehold estate b. An Estate c. Freehold Estate d. Non-freehold Estate
c. Freehold Estate
Your client purchases a home zoned as residential only, but they want to open a home business. What must they do? a. Get a nonconforming use permit. b. Put in a buffer zone. c. Get a variance. d. Open the business, and do not tell anyone.
c. Get a variance.
What recourse does a real estate agent have if their broker is not abiding by their employment contract when it comes to commission? a. File a complaint with GREC. b. Sue the broker c. Go to the courts or other arbitrating body such as your Realtor boards. d. File a claim against the research, education, and recovery fund.
c. Go to the courts or other arbitrating body such as your Realtor boards.
What is the only government-owned secondary mortgage buyer? a. Federal National Mortgage Association (Fannie Mae) b. Federal Home Loan Mortgage Association (Freddie Mac) c. Government National Mortgage Association (Ginnie Mae) d. Mortgage Guarantee Insurance Corporation (MGIC)
c. Government National Mortgage Association (Ginnie Mae)
A broker with an office in Rockdale and Newton County, sells a house in Fulton County. What kind of tax would they pay? a. Sales Tax b. Fixed Amount of occupational Tax c. Gross Receipt Sales Tax d. Real Estate Tax e. A and C f. B and D g. C and D
c. Gross Receipt Sales Tax (no matter where home is sold you must pay GA state tax)
There is a clause in a deed that limits the amount of real property transferred, this clause is called the ____ clause and is not required. a. Acknowledgment clause b. Quantity clause c. Habendum clause d. Testimonium clause
c. Habendum clause
What is the best way to prevent an encroachment or to discover one? a. Have an appraisal done. b. Have an inspection done. c. Have a survey done. d. Examine the plat map and legal description.
c. Have a survey done.
Fee and fines collected by the Georgia Real Estate Commission must be held where? a. In an insured trust account b. In an insured business checking account c. In the state treasury d. In an insured operating account
c. In the state treasury
A tenant signed a lease and was told a move-in date of 10/5, but on 10/1 they were informed their new move-in date was 10/15. What, if anything can the tenant do? a. Nothing, the tenant signed the lease. b. Issue eviction notice c. Issue constructive eviction notice d. Move-in on 10/5 even if the unit is not ready.
c. Issue constructive eviction notice
In Georgia, Net listings are illegal, why? a. They drive prices down. b. It is an example of mortgage fraud. c. It takes advantage of the consumer. d. The broker's commission is usually smaller.
c. It takes advantage of the consumer.
In Georgia closing can only be conducted by _____ who represents the lender's interest. Your client is entitled to have their own representation at closing but is not required to. a. A licensed Broker b. A member of the Commission c. License Attorney d. Licensed Brokers and License Attorneys
c. License Attorney
A Quitclaim Deed, has which of the following? a. All protection, covenants, and warranties. b. Some protections and covenants. c. No protection, covenants, or warranties. d. No protection, but all the covenants.
c. No protection, covenants, or warranties. (Peaceful removal of clouds on title)
Does a promissory note have to be attached to the mortgage? a. No, it is an internal record for the lender only. b. Yes, it is part of the agreement. c. No, it is a contract in itself. d. No, it is for internal Broker's records only.
c. No, it is a contract in itself.
Your client wants to open a home business, county zoning permits home business, but there is a deed restriction. Can your client operate a home business? a. Yes, since zoning takes priority. b. No, since deed restriction takes priority. c. No, since you must follow the most restrictive. d. Yes, since zoning is part of police power, which is the government control.
c. No, since you must follow the most restrictive.
Your client goes to a lender to get pre-approved. The lender denies them and notifies you that they no longer are lending in the Covington area. The lender says your client has great credit and income, and that they can approve them for any other area. Is this legal? a. Yes, the lenders must protect themselves. b. No, this is a violation of Fair Housing. c. No, this is Redlining. d. No, this is Sherman Anti-Trust violation
c. No, this is Redlining.
When showing properties to your client, you show them houses you believe they will fit in better based on their background. Is this legal? a. Yes, if the houses fit their budget b. No, this is an example of blockbuster. c. No, this is an example of steering. d. Yes, this is an example of an agent getting to know their client's needs.
c. No, this is an example of steering.
A couple purchased a home in 1965 for $45,000 and paid $800 in closing cost. They sold the property last week for $520,000 and paid zero closing costs. How much of the sale will be taxed as capital gain? a. All the $520,000 sale will be taxed as a capital gain. b. $454,200 will be taxed as a capital gain. c. None of the sale will be taxed as a capital gain. d. $227,100 will be taxed as capital gain
c. None of the sale will be taxed as a capital gain.
There may be a time when a real estate agent may not want to practice real estate, if they might return to real estate later what is their best option? a. Keep their licensee active with a broker. b. Surrender their license. c. Place their license on inactive status. d. Let their license lapse.
c. Place their license on inactive status.
What is the benefit of being in a limited partnership? a. Authority to manage the partnership. b. Reduce liability and limited management of the business. c. Reduced liability and no management authority d. None
c. Reduced liability and no management authority
In Georgia, an associate broker can do which of the following? a. List property in their name if registered with the commission. b. Advertise property in their name. c. Review contracts if authorized by the qualifying broker. d. Hire a salesperson of his/her choosing.
c. Review contracts if authorized by the qualifying broker.
According to HUD standards, which of the following would be an acceptable neighborhood advertisement? a. Traditional Living b. Exclusive Neighborhood c. Senior Housing d. Standard living
c. Senior Housing
Each state has certain laws to protect the consumer from being taken advantage of when purchasing a property. One of these laws is the usury law which does what? a. States who can use the property. b. Set the maximum loan amount. c. Set the maximum interest and loan term. d. Deals with possession of the property.
c. Set the maximum interest and loan term.
Your client is looking for a 3-bedroom and 2-bath house in the Lithonia area. Several houses meet those requirements in Lithonia, but you feel like your clients would be better off in the Decatur area since more churches recognize their religion, and Lithonia would not be. This is an example of? a. Looking out for the best interest of your client b. Blockbusting c. Steering d. Guiding
c. Steering
Which of the following violates an agent's duty of confidentiality? a. Telling a buyer, the property has been listed for two days. b. Telling a buyer that they can get their earnest money back if their offer is not accepted. c. Telling a buyer yes, the seller will accept a lower price, they are in a hurry. d. Telling a buyer that someone died in the house when asked. e. All the above
c. Telling a buyer yes, the seller will accept a lower price, they are in a hurry.
Broker Smith with XYZ realty appointed associate broker Brown to manage the trust account. The commission determined Brown violated license law and suspended his license. What should Broker Smith do, if anything? a. Nothing b. Suspend Associate Broker Brown c. Terminate Associate Broker Brown d. Remove Broker Brown from managing the trust account but allow him to buy & sell property.
c. Terminate Associate Broker Brown
Which of the following concerning the GREC commissioner is not false? a. The Commissioner must be a licensed agent. b. The Commissioner is part of the Commission. c. The Commissioner is not part of the Commission. d. The Commissioner is appointed by the Governor.
c. The Commissioner is not part of the Commission.
In Georgia, all sales contracts concerning real property must be in writing according to which law? a. License Law b. Rules and Regulation c. The Statue of Frauds d. Contract law
c. The Statue of Frauds
Your clients are a newly married couple that is looking for a single-family home to start a family. One of your clients tells you her wife wants to turn the garage into a hair salon and needs at least a two-car garage to do so. After a few days of looking, you find their dream house, and their offer is accepted. After closing your clients find out there is a covenant restricting home business in that subdivision. Who, if anyone is liable? a. No one is liable. The buyer should have looked up the CC&R. b. The seller for not disclosing the CC&R. c. The agent since the client disclosed their needs. The agent should have to check for CC&R regarding the home business. d. No one is liable, the new owner just needs to apply for a variance to the covenant restricting home business.
c. The agent since the client disclosed their needs. The agent should have to check for CC&R regarding the home business.
Some homes can be exposed to a mostly harmless radiation know as Radon Radiation. However, some people of the population are highly allergic to this type of radiation. If your client is concerned about Radon, which area of the house would be more concerning for them? a. An open chimney, as radon enters through the roof. b. A leaking window, as radon enters through the open air. c. The basement floors, as radon enters the home from areas built below the earth's surface. d. A leak in the air conditioning, as radon is a gas used in AC units.
c. The basement floors, as radon enters the home from areas built below the earth's surface.
Unless a licensee renews their licensee, it will expire on? a. Their birthday b. The end of the year c. The end of their birthday month d. December 31st of the expiration year
c. The end of their birthday month
What does title insurance cover for the homeowner? a. The entire loan b. The loan balances. c. The equity d. The market price of the home
c. The equity
Which appraisal method uses the rate of return on investment of return of investment? a. The Sale Market Approach. b. The unit in place approach. c. The income Approach. d. The income multiplier approach.
c. The income Approach.
What does real property include? a. All the buildings on the property b. The land and all the buildings c. The land and all attachments d. All buildings and attachments
c. The land and all attachments
What does lender title insurance cover? a. The entire loan b. The purchase price. c. The loan balances. d. The equity
c. The loan balances.
During a listing presentation, what should you disclose to the seller? a. The amount of money you will use in advertising. b. The time it will be on the market. c. The market conditions. d. Lead Base Paint in the house down the street.
c. The market conditions.
What name must the property be advertised in? a. The Broker's name b. The Agent's name c. The name registered with the GREC.
c. The name registered with the GREC.
What appraisal report must be used for a property being taken by eminent domain? a. The condemnation appraisal report. b. The short form appraisal report. c. The narrative appraisal report. d. The government analysis appraisal report
c. The narrative appraisal report.
The sales comparison approach uses the principle of substitution to compare one property to another. The information is gathered from many sources and is directly related to? a. All pending sales, canceled sales, and short sales in the area. b. The return on investment on the property. c. The quality and amount of sales data available for the area. d. The quality of public data available to the public.
c. The quality and amount of sales data available for the area.
When a client asks you what price they should set the rent at in a landlord listing agreement, what should you use to help your client determine the rate? a. The size of each unit b. Based on the Zestimate rental rate c. The rental rates of similar units in the area d. Based on the number of units available for rent
c. The rental rates of similar units in the area
Joint Tenancy has all but which of the following? a. Right of Survivorship b. Equal Interest c. The right to Probate. d. Right of equal possession
c. The right to Probate.
A buyer assumes a seller's loan, but later defaults. Who is liable? a. Only the buyer b. Only the seller c. The seller is now liable but can get a judgment lien against the buyer. d. The seller is liable but can get an attachment lien against the buyer.
c. The seller is now liable but can get a judgment lien against the buyer.
You are the listing agent, and the county courthouse has burnt down with all the records. Where can you find the legal description of your subject property? a. Your broker's files. b. Have a new legal description done. c. The seller's deed. d. The GREC records
c. The seller's deed.
Your disabled client wants to install a grab bar in the shower and widen the door in his rental home. Who will have to pay for these modifications? The landlord wants the unit back the way it was after the lease is over, can he do this? a. The landlord will have to pay for the modification and can put it back to the original style at his expense. b. The landlord and tenant will split the modification, and the tenant must pay to have everything put back to the original style. c. The tenant must pay for the modification and must remove the grab bar but is not required to return the door to the original size. d. The tenant must pay and must return everything to its original style including the grab bar and door.
c. The tenant must pay for the modification and must remove the grab bar but is not required to return the door to the original size.
Who owns the land of an office building that has a condominium ownership? a. The developer b. The unit owners as joint tenancy c. The unit owners as a tenancy in common d. The unit owners as a severalty owner
c. The unit owners as a tenancy in common
What is the first thing a Broker must prove in any adverse action against them or any claim of commission? a. They were the procuring clause. b. The salesperson was properly licensed at the time. c. They were actively licensed at the time. d. They had a signed agreement with their client.
c. They were actively licensed at the time.
What is the purpose of the Federal Truth in lending act and regulation Z? a. To let borrowers, know the true cost of credit. b. To let borrowers, know the true cost of real estate. c. To limit lenders' activities d. Set a minimum interest rate and control real estate advertising.
c. To limit lenders' activities
Your client is listing a property that was built during the colonial times, and has the same architectural design from that time, and has been well maintained. How would you advertise this property? a. Old house for sell, but weekly maintained and move in ready. b. Well-maintained Colonial Era house for sale. c. Well-maintained Colonial Style house for sale. d. Well-preserved Colonial architectural designed house for sale
c. Well-maintained Colonial Style house for sale.
When would earnest money not be released? a. After the closing and all terms have been met b. Before the offer was accepted c. When demanded by the buyer or seller d. Upon agreement by all parties
c. When demanded by the buyer or seller
When does Joint Tenancy change to a joint tenancy in common? a. When one owner dies b. When one owner sells their shares to the other owners c. When one owner sells their shares to a third party. d. Never, it always stays a joint tenancy.
c. When one owner sells their shares to a third party.
A minor lease an apartment, in Atlanta for $1200 a month. The day he turns 18 he tells the apartment owner he is terminating the lease and moving out. Is this legal? a. No, the minor is bound by contract. b. Yes, if the minor gives proper notices. c. Yes, a contract signed by a minor is voidable by the minor. d. No, the minor can only move out when the lease ends.
c. Yes, a contract signed by a minor is voidable by the minor.
An uneducated person signs a sales contract with an "X"; however, he understands the terms of the contract. Is the contract binding? a. No, the uneducated person would need a guardian to sign. b. Yes, anyone over the age of 18 is a legal adult. c. Yes, because he understands the terms of the contract. d. No, the buyer is uneducated and therefore considered legally incompetent.
c. Yes, because he understands the terms of the contract.
John is a life tenant but decides to sell the property to mark for $250,000. Can John legally sell the property? a. No, they have temporary ownership and cannot sell. b. Yes, and the conveyance is valid, as a sublease c. Yes, but the property is still governed by the original terms of the life estate. d. No, they can only do an assignment of the lease.
c. Yes, but the property is still governed by the original terms of the life estate.
A farmer planted, plowed, and harvested a field next to his property without the landowner's permission. He has done this for over twenty-five years and now wants to claim ownership of the field. Can he do this? a. Yes, by filing Eminent domain procedures. b. Yes, since he has a prescriptive easement. c. Yes, by filing adverse possession procedures. d. No, the land has an owner. He can still attempt to purchase the field from the original owner.
c. Yes, by filing adverse possession procedures.
Is your broker allowed to put earnest money in an interest-bearing trust account? a. No, this is a violation of license law. b. Yes, if the buyer agrees c. Yes, if all parties agree d. No, this is a violation of rules and regulation.
c. Yes, if all parties agree
Your client requested that the earnest money be held in a separate interest-bearing trust account, is this legal? a. No, the money must be held in the Brokers trust account. b. Yes, with permission and notification to the commission. c. Yes, if all parties agree and the commission is notified of the account. d. Yes, since the seller is the client, and has an entitlement to the earnest money.
c. Yes, if all parties agree and the commission is notified of the account.
Your investor is selling a house "As Is" and told you about a leaking roof and had a survey and termite inspection done. He informs you that the report shows minor termite damage and he had it treated. If a buyer inspects the house, and you did not disclose the termite treatment, could you, as the agent be liable for termite damage in the future after closing? a. No, the seller would be responsible. b. Both the seller and agent would be responsible. c. Yes, only the agent is responsible. d. Yes, but the agent may be protected if the seller shows proof of treatment.
c. Yes, only the agent is responsible.
An Agent describes the property line to his/her client but does not tell them that it is just an estimate and not an exact measurement. Later the client builds a fence but has a suit filed against them by the neighbor claiming your client has encroached on their property. Is the agent liable for the encroachment? a. Yes, because the agent sold the house to their clients. b. No, because agents must submit a survey at closing for the property. c. Yes, since the agent did not disclose the boundaries were not exact. d. No, Georgia is a buyer beware state. e. No, the agent's broker is liable since the contract was in the name of the broker.
c. Yes, since the agent did not disclose the boundaries were not exact.
A builder is offering an agent bonus of $2,000 to the first agent who finds a qualified buyer. If you find a buyer for the new home, are you legally able to accept the $2,000 bonus? a. Yes, with proper disclosure to the purchaser. b. No, this is a kickback and a violation of license law. c. Yes, with disclosure and permission from your broker. d. Yes, with disclosure to the Real Estate Commission
c. Yes, with disclosure and permission from your broker.
Under Georgia license law can a licensee work under another brokerage other than the one holding their license? a. No, this is a violation of license law. b. Yes, with permission from both brokers. c. Yes, with permission of their qualifying broker. d. Yes, with permission from the Georgia Real Estate Commission
c. Yes, with permission of their qualifying broker.
Which of the following is considered a blind ad? a. An advertisement using your Broker's name. b. An advertisement without the property address c. You are selling a house without your license number on the contract. d. An agent that is blind and exempt from advertising regulations.
c. You are selling a house without your license number on the contract.
Your client wants to deed his property to his niece on her eighteenth birthday, he signs the deed and places it with his attorney to hold until her birthday party. Unknown to the attorney or his niece, your client passed away a few hours before the birthday party. The attorney delivers the deed in good faith, who owns the property? a. The niece b. Your client's spouse. c. Your client's estate d. The state, by escheat
c. Your client's estate
The Federal Truth in Lending Act requires which of the following? a. Simply interest rate disclosed on all advertising. b. Purchase money mortgage be in writing. c. disclosure of the annual percentage rate expressed as a dollar amount. d. All personal sales of $30,000 or less have full disclosure.
c. disclosure of the annual percentage rate expressed as a dollar amount.
Your client is pre-approved for 100% financing with a lender who will lend double your client's annual income. If your client's annual income is $65,000 and wants to purchase a house listed for $150,000. What will their down payment be? a. $30,000 b. $0 c. $10,000 d. $20,000
d. $20,000
A single bedroom apartment rents for $2,000 a month and has rent restrictions. The apartment complex also has a $100 monthly association fee. If the security deposit is equal to one month's rent, and they have a pet fee of half one month's rent. What is the security deposit for a renter with a Pitbull? a. $5,000 b. $3,150 c. $5,100 d. $3,000
d. $3,000
An office building has an NOI of $26,000 and is considering selling. They want to know what cap rate they should use. You determine an 8% capitalization rate, but if they want to sell fast, they should use a 10% capitalization rate. What is the difference in value? a. $70,000 b. $75,000 c. $62,000 d. $65,000
d. $65,000
Georgia law allows a Real Estate sign to remain on the property, according to license law, how long can an agent leave their sign up at an expired listing that did not sell? a. 0-days since the transaction did not close, the sign must be removed immediately. b. 5-days from the date of expiration c. 7-days from the date of expiration d. 10-days from the date of expiration
d. 10-days from the date of expiration
In Georgia, to renew their license, a Licensee must complete ___ many hours of continued education unless grandfather in, and these hours must be done every ___ years? a. 24 and 4 b. 24 and 2 c. 36 and 3 d. 36 and 4
d. 36 and 4
How much notice must be given for rentals in Georgia? a. 30 days from either party b. 60 days from either party c. 30 days landlord / 60 days tenant d. 60 days landlord / 30 days tenant
d. 60 days landlord / 30 days tenant
Regulation Z covers all the following, except... a. Real estate loan for a single-family home b. Real estate loan for a duplex with one unit as owner-occupied c. Mortgage loan advertising d. A $52,000 car loan
d. A $52,000 car loan
A salesperson who shows a client a house with their own firm is creating what kind of agency when he or she submits an offer for their buyer? a. A General Agency b. An Implied agency c. A Special Agency d. A Dual Agency
d. A Dual Agency
What clause would be included in a sales contract to ensure the contract survives the closing and the seller meets the terms? a. A Repair clause b. A Contract Clause c. A Closing Clause d. A Survival Clause
d. A Survival Clause
Along with the 5-acre farm and 2-story house, your client wants to purchase all the farm equipment. What would be used to transfer this personal property? a. It would be transferred in the original deed. b. A separate deed is used to transfer the personal property. c. Insert the personal property in the purchase and sales agreement. d. A bill of sale would be used to transfer personal property.
d. A bill of sale would be used to transfer personal property.
What kind of ownership can a corporation hold property in? a. A corporation will own property as a general partnership. b. A corporation will own property as tenants in common. c. A corporation will own property as joint tenancy. d. A corporation will own property as severalty.
d. A corporation will own property as severalty.
What fees can be charged before the delivery of a good faith estimate/loan estimate? a. Credit report and appraisal fee b. Loan fees c. A lock-in fee d. A credit report fee
d. A credit report fee
What kind of lease does Mark have in the previous question? a. An Estate for years b. A General Lease c. A Grounds Lease d. A proprietary lease
d. A proprietary lease
An environmental hazard is something that could affect the property and use of the property and must be disclosed. Which of the following is considered an environmental hazard? a. Someone with AIDS b. A Meth lab c. Lead Base Paint d. B and C e. A and B
d. B and C
A homeowner gets a new loan for her house so she can update the kitchen and get a better monthly payment. What did she do? a. A Reverse Mortgage b. An equity line of credit c. A second mortgage d. A refinance loan.
d. A refinance loan.
You have three offers for the sales price with the same terms, what should you advise your client? a. Accept all three offers. b. Accept 1, reject 1, and put 1 as back up. c. Accept 1 and reject the other 2. d. Accept one and put the other two as backups.
d. Accept one and put the other two as backups.
Discrimination is not only wrong but illegal, especially in real estate. What law protects discrimination in Georgia? a. Federal Fair Housing b. Georgia Fair Housing c. Rules and Regulations d. All the above e. A and B Only
d. All the above
The Georgia Real Estate Commission has the authority to do which of the following? a. Revoke an already issued license. b. Refuse to issue a license. c. Set fees for Licensees. d. All the above
d. All the above
The Real Estate Settlement Procedures Act requires all the following except... a. Use of HUD-1/ Closing disclosure form. b. Deliver or settlement cost booklet to the buyer. c. Allows Two extra months of impounds. d. Allows Four extra months of impounds.
d. Allows Four extra months of impounds.
Which of the following actions must be reported to the Georgia Real Estate Commission? a. An Agent arrested for murder. b. An Agent arrested for theft. c. An Agent arrested for assault. d. An Agent arrested and found innocent of reckless driving. e. All the above.
d. An Agent arrested and found innocent of reckless driving.
When a licensed real estate agent leaves one broker for another broker, how are they paid for the work still open during the transfer? a. Based on the Brokers' opinion b. Nothing, you left the Broker. c. Based on your listing contract d. Based on the employment contract you signed when you joined the Broker
d. Based on the employment contract you signed when you joined the Broker
When managing a property which of the following is legal? a. Refusing to rent to a same sex couple. b. Require the apartment management company be every renter's attorney in fact. c. Ask someone with a service animal what their disability is. d. Collecting prospective renter's ID, credit, and financial information
d. Collecting prospective renter's ID, credit, and financial information
What type of ownership does a multi-unit office building typically have? a. Tenants in Common b. Joint Tenants c. Cooperative d. Condominium
d. Condominium
A valid real estate contract must-have? a. Contingencies b. Earnest Money c. Due Diligence d. Consideration e. Valuable consideration
d. Consideration (Offer, Acceptance, competency, & legal intent)
The owner of a rental home you manage does not want the house advertised in the local newspaper because his ex-husband works there. You know advertising it in the paper will produce a qualified renter quickly. What should you do? a. Advertise the property, your landlord agreement states you can use any means. b. Advertise the property, but do not tell the owner you did so. c. Do not advertise the property because you owe your client confidentially. d. Do not advertise the property because you owe your client obedience.
d. Do not advertise the property because you owe your client obedience.
Mr. Deeds has died, and his reporter wife now claims ownership of the property. She can do this because that state allows ____? a. Curtesy b. Tenancy in Common c. Tenancy by the Joint Entirety d. Dower
d. Dower
Capitalization is the process by which net income is used to. a. Determine cost and annual budget of the business. b. Determine Taxable value of the business. c. Estimate next year's income for the business. d. Estimate market value of the business.
d. Estimate market value of the business.
Your neighbor is installing a pool, which is a violation of the CC&Rs. To make it worse she will not even let you use the pool. What can you do? a. Pay for half the pool so you can use it. b. Nothing, it is their land. c. Call the police. d. File a court injunction to stop the work and have the pool removed.
d. File a court injunction to stop the work and have the pool removed.
When an appraiser is conducting an appraisal on a property, they consider many factors to help come to the estimated value of the property. The appraiser will not look at factors such as what the seller paid for the property when they bought it, will look at all the following except? a. Social Factors of the area. b. Physical Factor of the property. c. Environmental Factors of the area, city, state, and country. d. Future Factors of the property and surrounding areas.
d. Future Factors of the property and surrounding areas.
Your client wants to sell their house and purchase a new one after their divorce. Your client is afraid their spouse might sell the house before the court proceedings and keep all the profits. What if anything, can your client do to prevent the spouse from selling? a. The CC&R in the deed would prevent the sell. b. Have your client get a Special attachment on the house. c. Have your client place a Special Lien on the property d. Have your client place an Attachment lien on the property.
d. Have your client place an Attachment lien on the property.
In Georgia to be enforceable, a lease must always be in writing except? a. If it is for more than one year b. If it is for less than one year c. If it is for one year or more d. If it is for one year or less
d. If it is for one year or less
When should a buyer or seller receive a copy of anything they sign? a. Within 24-hours of signing. b. Within 48-hours of signing. c. No copy is required to be given, unless requested. d. Immediately upon signing.
d. Immediately upon signing.
When an agent enters an agency relationship with a seller, they have entered a _____ and are now representing the seller as an ___ agent. a. Seller protection and selling agent. b. Listing agreement and selling agent c. Seller protection and the listing agent d. Listing agreement and the listing agent
d. Listing agreement and the listing agent
What is a CAM license for? a. Listing property b. Managing apartment buildings c. Managing building projects d. Managing a community association
d. Managing a community association
Shawna is selling her business under an open listing and has hired broker XYZ, broker ABC, and Broker Smith. If after two weeks XYZ brings two prospective buyers, ABC brings three prospective buyers, and Smith brings one prospective buyer. Who gets a commission if Shawna sells the house to her co-worker? a. XYZ Broker b. ABC Broker c. Broker Smith d. No Commission is due e. All brokers share the commission.
d. No Commission is due
Your cousin brings you a potential listing, and all they ask for in return is a $25 gift card from Starbucks. Is this legal? a. Yes, since the value is nominal. b. Yes, if the agent informs the broker. c. Yes, so it is a gift card and not actual money. d. No! Unlicensed individuals cannot receive any kind of referral.
d. No! Unlicensed individuals cannot receive any kind of referral.
Which of the following is a violation of the Georgia Fair Housing law? a. Georgia does not have a Fair Housing Law; it is a federal law. b. Refusing to renovate a second-floor unit to accommodate disabled people. c. A private club that gives preferential treatment to their members with their real estate d. Not allowing a service dog, if you have a strict no pet policy.
d. Not allowing a service dog, if you have a strict no pet policy.
Under the Federal Fair Housing Law, which is acceptable advertising? a. Women Renters Only b. Senior Renters only c. Women landlord looking for women tenant. d. Not handicap accessible.
d. Not handicap accessible.
When can a broker not deposit earnest money in an insured trust account? a. Never b. Only with the permission of the buyer c. Only with the permission of the seller d. Only with permission from all parties
d. Only with permission from all parties
The bundle of rights includes the following, except? a. Possession b. Control c. Disposition d. Ownership
d. Ownership
Having a furnace serviced annually to help keep the unit from breaking down is what kind of maintenance? a. Constructive maintenance b. Yearly maintenance c. Corrective maintenance d. Preventative maintenance
d. Preventative maintenance
When doing a listing presentation, you noticed some patchwork on the roof. You asked your client, who states that there was a previous leak, but it has been repaired. The client tells you not to disclose this information to any buyer since there is no active leak. What should you tell a prospective buyer? a. Nothing, you owe your client obedience. b. Nothing, you owe your client confidentiality. c. Tell the buyer there was a leak, but it has been repaired and there are no problems or reasons to worry. d. Tell the buyer there was a leak, but it has been repaired. Inform the buyer they have the right to an inspection.
d. Tell the buyer there was a leak, but it has been repaired. Inform the buyer they have the right to an inspection.
You are at a listing presentation, and your prospective customers tells you how they have lived here for a long time, and want to make sure the house goes to someone that fits in. They ask you to ensure the right people apply. What should you do? a. Take the listing and present to everyone and hopefully, they will get someone that fits their criteria. b. Ensure only people that the client thinks are right for the neighborhood submit offers. c. Tell them, they are moving, why do they care? But in a nicer way. d. Tell them what they are asking might violate Fair Housing law, and if they insist refuse the listing.
d. Tell them what they are asking might violate Fair Housing law, and if they insist refuse the listing.
The Gross Rent Multiplier (GRM) is part of which appraisal approach? a. The cost approaches. b. The Market Data Approach c. The square foot method d. The Income approaches
d. The Income approaches
A licensed Salesperson wants to perform Brokers' duties for an unlicensed developer, which of the following is true? a. The agent cannot do this since the developer is not licensed. b. The agent will have to put their license on inactive status. c. The agent needs the permission of their Broker. d. The agent must surrender their license.
d. The agent must surrender their license.
The total rights a private owner has over their property are called. a. The free simple rights b. A freehold right c. An Estate rights d. The bundles of rights
d. The bundles of rights
When advertising a property for sale, what information must be advertised? a. The name, street address, and telephone number of the broker b. The name of the real estate agent listing the property. c. The price of the property being sold. d. The name of the broker as registered with the Georgia real estate commission.
d. The name of the broker as registered with the Georgia real estate commission.
A property you listed sold for above asking price. You decided to leave the internet advertising up to market your success. How long can advertising stay up after a contract has been terminated or consummated? a. Internet advertising and the yard sign must be removed within 10 days. b. Yard sign and internet advertising must be removed with 30 days. c. The yard sign must be removed within 10 days, there is no time limited for internet advertising. d. The yard sign must be removed within 10 days, and internet advertising within 30 days.
d. The yard sign must be removed within 10 days, and internet advertising within 30 days.
The rectangular survey is used in some states as a legal description. They use this method because it divides the property into six even square mile areas. What are these areas called? a. Counties b. Villages c. Parishes d. Townships
d. Townships
When does a contract become binding? a. When earnest money is deposited b. When an offer is made c. When a counteroffer is made d. When the offeror knows of an offer acceptance e. When the offeree knows of an offer acceptance
d. When the offeror knows of an offer acceptance
When must an agent notify the Georgia Real Estate Commission about an address change? a. Within 10-days b. Within 24-hours c. Within 60-days d. Within 30-days
d. Within 30-days
If an affiliated licensee violates rules and regulations or license law, is the broker required to notify the commission? a. Yes, only if money was involved. b. No, the broker can provide training. c. No, only consumers can file complaints. d. Yes, always.
d. Yes, always.
An agent submitted an offer for their client. The buyer offered the seller $250,000 purchase price with zero closing cost. The buyer also submitted a $5,000 personal note as earnest money. Is the use of a personal note as earnest money legal? a. No, must be cash. b. No, the agent should ask the client for certified funds. c. No, the contract is void. d. Yes, if the offer states that the earnest money is a personal note.
d. Yes, if the offer states that the earnest money is a personal note.
A buyer and seller agree to wait until their agency agreements expire before transferring the property to avoid paying commission. If the broker discovers the sale, are they due any commission? a. No, the agency relations have expired. b. Yes, if they can prove they showed the property. c. Yes, if there is a protection clause. d. Yes, if they can prove they are the procuring clause.
d. Yes, if they can prove they are the procuring clause.
A client wins a suit over their agent for $35,000, but the agents only have $20,000. Can the client place a lien against the agents real and personal property? a. No, the client would have to go after the education, research, and recovery fund. b. No, the client would have to go after the broker for the balance. c. Yes, the client can place an attachment lien against all real & personal property. d. Yes, the client can have a judgment lien placed against all real & personal property.
d. Yes, the client can have a judgment lien placed against all real & personal property.
Three co-owners own a four-unit quadruplex as tenants in common. One of the owners wants to liquidate his/her ownership, can he/she do this? a. Yes, if the other owners agree b. Yes, but must offer to sell to the other owners first. c. No, they have the right of survivorship. d. Yes, they each have a separate title.
d. Yes, they each have a separate title.
Can earnest money held by the broker be used to pay for inspections and appraisals? a. Never b. Yes, that is what earnest money is used for. c. Yes, with written permission from the seller. d. Yes, with written permission from the buy and seller.
d. Yes, with written permission from the buy and seller.
A broker with an office in Rockdale and Newton County, who sells a house in Newton County, would pay what kind of tax? a. Sales Tax b. Fixed Amount of occupational Tax c. Gross Receipt Sales Tax d. Real Estate Tax e. B and C f. A and D g. C and D
e. B and C
Your client wants to purchase a home that is listed for $500,000 and ask you to put in an offer of $490,000. They also ask you to ask that the stove and new smart refrigerator stay in the property. The seller agrees to the price and the stove but refuses to leave the refrigerator. They like the fact that it can order groceries from Amazon for them. You cross that part out and the seller initials it. What kind of contract do you have? a. A binding agreement b. A terminated offer c. An accepted offer d. A counteroffer e. Both B and D f. Both A and C g. A voided contract h. None of the above
e. Both B and D
A person having to walk through a bathroom to enter the master bedroom is an example of what? a. A big master bedroom b. Physical Obsolescence c. Building code violation d. A historical design e. Functional Obsolescence
e. Functional Obsolescence
What state statute is mainly designed to regulate advertising? a. RESPA b. Fair Business Act c. Advertising Act of 2008 d. The Uniform Deceptive Practice Act e. A and C f. B and D
f. B and D
Who pays for any repairs found in an inspection report? a. The buyer b. The seller c. The listing Broker. d. The selling Broker e. Split between all parties. f. Whatever is stated in the contract.
f. Whatever is stated in the contract.
Which of the following loans cannot have a pre-payment penalty by law? a. All Loans can have pre-payment penalty. b. Lenders determine what loans have pre-payment penalties, not the law. c. VA loans d. FHA loans e. Conventional Loans f. C, D, and E g. C and D only
g. C and D only
