Real Estate Prelicense Sales Exam
A 14 year old boy purchased a car from a disreputable car dealer. This contract would be: A - Binding on the dealer, but voidable by the boy. B - Binding on the boy , but voidable by the dealer. C - Voidable by either the dealer or the boy D - Binding on both the dealer and the boy
A
Private mortgage insurance (PMI) would most likely be required in which of the following mortgage loans? A - A conventional loan for 90% of the appraised value B - A jumbo loan C - An FHA loan D - A VA loan
A
In order. to be paid a commission in a nonexclusive listing, the broker must be able to show: A - That the property sold for the listed price B - That the seller did not find the buyer C - That all the exact terms of the listing were met D - That the broker was the procuring cause of the sale
D
Special purpose properties, such as a fire station or a library are typically appraised using which method of appraisal: A - Cost approach B - Comparison approach C - Capitalization approach D - Gross rent multiplier approach
A
A mortgage is considered a: A - Lis Pendens B - Specific Lien C - General Lien D - Warrant
B
The lead-based paint disclosure is required for home built prior to: A - 1965 B - 1978 C - 1995 D - 2008
B
Which of the following statements is INCORRECT regarding the Georgia laws and regulations regarding trust accounts? A - Not all licensed brokers are required to maintain a trust account. B - All trust accounts must be interest-bearing accounts and disclose who must receive the interest. C - Commissions may be temporarily held in the account but must be withdrawn at least monthly. D - The broker may have more than one trust account.
B
Which of the following types of loans will most certainly have a balloon payment. A - An adjustable rate mortgage. B - A loan which is amortized. over thirty years, due and payable after ten years. C - A graduated payment mortgage D - A VA loan
B
A seller lists a property with a broker and later sells the property without the assistance of the broker to a buyer during the term of the listing period. The brokerage engagement requires the seller to pay the broker a commission anyway. Which type of listing did the broker have? A - Open Listing B - Exclusive agency listing C - Exclusive right to sell listing D - Dual agency listing
C
Salesperson Sally is acting as dual agent for both the seller and the buyer in a purchase transaction. The appropriate disclosures have been made and written consents obtained from both the buyer and the seller. The seller's listing price is $200,00, but the seller has mentioned to Sally that the seller might be willing to accept $190,000 for the property. Under what circumstances could Sally inform the buyer of this fact? A - Under no circumstances B - If the seller did not give instructions not to reveal that information. C - Only if the seller specifically permitted the release of this information in writing. D - Under all circumstances, as BRRETA requires its disclosure.
C
After listing a home with Angela the seller tells Angela that there is some termite damage but the seller does not intend to disclose the damage and wants to sell the property "as is." What should Angela do? A - Respect the confidentiality of the client. B - Tell a buyer about the damage only if asked a specific question, regardless of the client's instructions. C - Tell the client that she must tell buyers the truth only if they ask about termite damage. D - Tell the client that she will not be able to follow these instructions.
D
An owner buys a house and puts in a new furnace and air conditioning unit. These items would be considered a(n): A - Trade fixtures B - Chattel C - Emblements D - Appurtenances
D
Under what circumstances may a broker who is licensed but not in Georgia sell a property in Georgia without a Georgia License? A - If the out of state broker enters into an agreement with a Georgia broker which will specify the commission split and the Georgia's broker's supervisory responsibilities and all contracts and advertising is in the name of the Georgia Broker B - Under no circumstances C - Only if the out of state broker obtains a temporary Georgia broker's license D - Without restriction
A
When a home loan is obtained in Georgia, the lender's claim against the property is created with a: A - Security deed. B - Mortgage. C - Trust deed. D - Subordination Note.
A
When a valid deed is recorded, what does this do? A - It gives constructive notice. B - It transfers the title. C - It bars any future claims. D - It gives actual notice.
A
Which of the following brokerage engagements would be illegal under Georgia real estate law? A - A brokerage engagement in which the broker's compensation will be any sale price in excess of a specified price. B - One in which the broker will not act as agent for the customer. C - A nonexclusive brokerage engagement. D - An exclusive agency engagement.
A
Which of the following choices does NOT constitute a legal description of a property? A - Assessor's parcel number B - Metes and bounds' C - Rectangular survey D - Recorded plat map
A
Which of the following is required when property is held in joint tenancy? A - Equal ownership interest among all the parties B - A husband - wife or equivalent relationship C - A named beneficiary in the event of the death of any of these parties. D - All of these choices
A
Which of the following statements about the UDTPA (Uniform Trade Practices Act) is true? A - Penalties for violations can include fines, injunctions, and triple damages. B - A consumer transaction must take place for a violation to occur. C - Only a member of the consumer public can bring an action under the UDTPA. D - The UDTPA is primarily directed at deceptive advertising.
A
Which of the following statements best describes the provisions of BRRETA regarding dual agency? A - Each real estate brokerage firm must create an office policy stating whether or not dual agency is permissible for its licensee. B - Only firms with more than ten associated licensees may elect to permit dual agency. C - Dual agency is only permissible if it is within the office policy and the licensee is an associate broker. D - Only firms with fewer than ten associated licensees may elect to permit dual agency.
A
Which of the following statements is true regarding the Chair of the Georgia Real Estate Commission? A - The chair person is selected by the members of the commission. B - The chair person must have been licensed for at least five years. C - The chair is selected by the governor. D - The chair person serves as the commissioner.
A
A Georgia real estate sale closes. on March 12. How many days of accrued interest must the seller pay? A - 19 B - 12 C - 11 D - 0
B
A lawsuit to force a party to carry out his or her obligations under a contract is called a suit for: A - Damages B - Specific performance C - Habeas Corpus D - Execution
B
A lender forecloses against a property which sells for less than what is owed on the property. The court gives the lender a judgement against the owner for the remaining balance due. The lender has received: A - A writ of execution B - A deficiency judgement C - A quiet title judgement D - None of these choices
B
A man and woman received a divorce with the woman receiving the house as part of the divorce settlement. The woman then decided to sell the house but could not find her ex-husband who was still on the deed as an owner. Which of the following statements BEST describes what she should do in this situation? A - File for a judgement against her husband. B - File a suit to partition. C - File a quiet title suit. D - File an adverse possession claim.
B
A mortgage loan in which the borrower makes interest only payments until the maturity date is known as: A - A fully-amortized loan B - A straight mortgage C - Balloon mortgage D - A graduated payment mortgage
B
A person who holds a Georgia real estate license and who is selling his or her own home chooses not to list the home with any real estate broker. Instead, the person runs his or her own advertisements to promote the sale of the home. The person must disclose his or her licensed status in the ad: A - Only if the license is active. B - Whether the license is active or inactive. C - Only if the license is inactive. D - Under no circumstances.
B
A property had six rental units. The leases had been signed after the mortgage was recorded on the public record. The property was later foreclosed on but the leases were not disturbed. Which of the following clauses must have been included in the mortgage? A - Prepayment B - Nondisturbance C - Defeasance D - Acceleration
B
A ten year straight note was executed by a buyer. The interest paid over the term was $28,000. The annual interest rate was 6%. What was the loan amount? A - $32,500 B - $46,667 C - $54,333 D - $69,999
B
A tenant has a lease with an option to buy. When would the price of the option be determined? A - At the time the lease expires. B - It would be based on the original terms of the agreement. C - At the time of exercising by the tenant. D - At the time of the final closing.
B
Broker Bob is representing a seller in the sale of a 50-unit apartment complex. He shows the buyer financial statements that show all of the income from the property, but purposely leaves out certain key expenses. Which of the following statements is correct in this circumstance? A - Broker Bob has committed misrepresentation. B - Since Broker Bob did not falsify any expenses, and it is the responsibility of the buyer to verify the data given, Broker Bob has not committed misrepresentation. C - Since Broker Bob is representing the seller, he has no obligations to the buyer. D - Since this is a commercial property, misrepresentation is not illegal.
B
A convenience store is currently for sale. The convenience store was formerly a video store and before that an auto repair store. What. should an agent recommend to a potential purchaser of this property? A - Include an environmental inspection as part of the offer. B - They should rely only on the information disclosed in the seller's discloser statement. C - Make sure the purchaser checks to see if the property is on the 407 list. D - The lender will make sure the zoning is correct for their use.
A
A property sold for $98,000 with an 85% loan-to-value ratio loan. What is the down payment? A - $14,700 B - $15,200 C - $18,500 D - $83,300
A
Each of the following are tests of whether an item has become a fixture, EXCEPT: A - The method of attachment. B - The time of attachment. C - The adaptability of the item. D- An agreement between the parties.
B
Each of the following statements about the Georgia Real Estate Commission. is correct, EXCEPT: A - The commission consists of six members, each of which are appointed by the Governor and. confirmed by the state senate, and serve terms of five years. B - Employees of the commission cannot hold a real estate license, whether active or inactive. C - Only one member of the commission can have no connection to the real estate industry. D - The governor can remove a member for incompetence, dishonesty, or failure to perform duties.
B
Examples of possible monopolistic activities would include: A - A broker and his sales associate establishing a commission fee. B- Commission fixing between two or more brokers. C - Exclusion from multiple listing services because of a failure to meet membership requirements D - All of these choices.
B
Georgia real estate brokers must keep copies of listing contracts and other records for at least: A - 1 year. B - 3 years. C - 5 years. D - 10 years.
B
If a buyer purchased a house in Georgia for $168,500 and took out an 80% loan at 7.5% interest per annum and the purchase closed on March 15, what is the total dollar amount, if any, of the prepaid interest? A - $505.92 B - $477.42 C - $449.33 D - $470.88
B
In a contract for deed, the buyer is referred to as a: A - Vendor B - Vendee C - Mortgagor D - Mortgagee
B
In the U.S. Government Rectangular Survey System of legal descriptions, properties are described as they relate to: A - A point of beginning B - The intersection of a designated base line and meridian C - A designated monument D - A publicly recorded document
B
In which of the following types of developments does the unit occupant NOT receive an individual property tax bill? A - Condominium B - Cooperative C - PUD D - Standard detached single family residences
B
An agent had a listing on a home. The owner died prior to the expiration of the listing. A buyer made an offer which had yet to be accepted when the owner died. Which of the following statements is correct? A - The death of the owner would terminate both the offer and the listing. B - The offer would terminate, but not the listing. C - The offer would be terminated, but the listing would be terminated if it were a non-exclusive listing. D - They buyer who made the offer could sue to force the sale of the property and the agent would be entitled to the commission.
A
An attorney in fact relationship is created through the use of a: A - Power of attorney B - Contract with a licensed attorney C - Listing agreement D - Certificate of habendum
A
An exclusive agency agreement is best defined as one where: A - Any broker or the seller can sell the property and get the commission B - The seller gets a specified amount and the commission is any amount over that C - The seller can sell the property and not pay a commission D - The broker gets paid a commission regardless of who sells the property
A
An investor required a 10% return on their money. The property had a gross annual income of $110,000, a vacancy rate of 4%, and operating expenses of $10,000. What would be the maximum price that the investor would pay for the property? A - $956,000 B - $960,000 C - $96,000 D - $98,800
A
A purchase offer on a home located in Georgia included a clause which gave the buyer 20 days to obtain a loan. The 20 days have passed, but the buyer still believes that the financing will come through. The seller agrees to give the buyer an additional 14 days. What is. the minimum action that. must be taken in order to implement this change. A - There must be at least a telephone call from the seller to the settlement agent. B - There must at least be a conference call between the seller, the buyer and the settlement agent. C - An amendment must be signed by the seller and the buyer. D - An amendment must be signed at least by the seller.
C
A ten unit apartment compex has gross annual rent of $80,000. It recently sold for $750,000. A nearby, similar complex has gross annual rent of $95,000. What is the indicated value of the similar complex? A - $804,625 B - $828,000 C - $890,625 D - $878,000
C
An offer received and accepted by a seller becomes a binding contract when the offer is: A - Put in writing. B - Recorded at the county courthouse. C - Communicated back to the buyer. D - Acknowledged by a notary public.
C
An owner of a property instructed the property manager to do a task that could be harmful to the owner. The property manager should: A - Follow the instructions of the owner as the manager owes the agency duty of obedience to the owner client. B - Follow the instructions of the owner as long as the task was not illegal. C - Inform the owner of the possible harm. D - Call his or her personal attorney for advice.
C
If Sam is a licensed real estate salesperson in Georgia and pleads nolo contendre to a crime, he must notify the Georgia Real Estate Commission: A - Within 30 days. B - Within 3 business days. C - Within 10 days. D - Prior to the next renewal of his license.
C
If a buyer paid $168,500 for a house in Georgia and took out. an 8-% mortgage loan, what is the amount of the intangibles tax to be paid? A - $426.00 B - $404.50 C - $405.00 D - None of the above
C
If the balance of the Real Estate Education, Research, and Recovery Fund drops below $1,000,000, which of the following events will occur? A - All licensees will be assessed an additional fee up to $30. B - Research and education expenditures will be halted. C - Both of these choices. D - None of these choices.
C
If the sale of a Georgia home closed on March 15 and the annual tax liability is $1,300, the tax proration amount is? A - $53.42 B - $160.27 C - $263.56 D - $267.12
C
If the seller asked the broker what race the buyers. were, would the broker have violated the fiduciary relationship by respectfully refusing to answer? A - Yes, because the seller has a right to tell the neighbors about the buyer of the property. B - Yes, because the broker needs to follow all of the seller's instructions C - No, because race, color, religion, national origin, and sex are not material D. - No, because the broker always represents the buyer
C
Larry is a licensed real estate broker in Georgia. He is managing a single family residence for an investor who owns the property. the tenant signed a two year lease on the home one month ago. The lessee has put up a security deposit of $1,000. There are currently $400 in bills outstanding against the property. How much money should currently be in Larry's trust account on behalf of this client: A - $400 B - $600 C - $1,000 D - $1,400
C
Paul makes an offer for a property which is listed with Broker Susan. He gives Susan. a good faith deposit with the offer. In which of the following instances would Paul be entitled to a refund of his deposit. A - Paul defaults on the contract. B - Acceptance of the offer. C - Withdrawal of the offer prior to its acceptance. D - Under no circumstances.
C
Ronny leases property to open a restaurant and installs booths, ovens, and counters. Which of the following is true? A - These items are fixtures and belong to the landlord. B - These items may not be removed from the premises. C - These items belong to Ronny. D - These items are owned by both Ronny and the landlord.
C
Salesperson Sally informs Broker Betty that she intends to transfer her license to a. different real estate broker. Broker Betty should send Sally's license to: A - The Georgia Real Estate Commission B - Sally's new real estate broker C - Either of these choices D - None of these choices
C
A seller has rejected three offers for $1,000 less than the listed price. A broker gets a fourth offer for $2,000 less than the listed price. What should the broker do with this most recent offer? A - Tell the buyer that other offers at higher prices have been rejected by the seller so the buyer's offer need not to be submitted to the seller B - Tell the buyer that the seller is likely to accept an offer if it is only $500 below the listed price C - Tell the buyer that several offers have been rejected at a price $1,000 above this buyer's offer only if the buyer so requests D - The offer must be submitted to the seller
D
An investor who wants to use leverage to the greatest extent possible would: A - Avoid borrowing money as much as possible. B - Invest primarily with other investors, using only cash. C - Use his or her existing cash for the investment. D - Borrow as much money as possible for his or her investment.
D
An older house has fixtures which are out of date but are still in working order. This would be an example of: A - Curable physical deterioration. B - Incurable physical deterioration. C - Economic obsolescence. D - Functional obsolescence.
D
Bob is an associate broker for ACME Realty, XYZ Realty asks Bob to serve as their. qualifying broker. May Bob do so? A - Yes, but only is Bob resigns his affiliation with ACME Realty. B - Yes, without any restriction. C - No. D - Yes, but only if he meets all the requirements and if he stays with ACME Realty he must notify his broker in writing.
D
Bob used to work in property management for a Georgia Real Estate broker, but his license is now on inactive status. Bob has been offered a job in property management by a major manufacturing company in Georgia. If Bob accepts this job offer, which of the following statements is correct? A - Bob may leave his license on inactive status. B - Bob must activate his license with a broker. C - Bob must surrender his license. D - Bob must obtain a broker's license.
D
Sam completed his Georgia salesperson post-license course on July 10. His license was not issued until July 30 of the following calendar year. Does Sam need to repeat his post-license course? A - No, since he completed the course prior to the expiration of one year after the date his license was issued. B - No, since there is no time limit for completing the post-licensing course. C - Yes, since his license was issued more than one year after completing the post-license course. D - Yes, since he is not supposed to enroll in the post-license course prior to the issuance of his license.
D
Sam has a Georgia real estate salesperson's license, although it is on inactive status and he is not currently affiliated with any broker. Sam purchases a hone through Shady Acres, a licensed Georgia real estate broker. Shady Acres does not disclose numerous adverse material facts about the property and Sam pays a great deal of money repairing the property. He sues and obtains a judgement, but is unable to collect it. Sam files a claim with the Real Estate Education, Research, and Recovery Fund. What payment is sam most likely to receive from this fund? A - $15,000 B - $45,000 C - $50,000 D - $0, since Sam is a licensed real estate salesperson.
D
Sam is licensed in South Carolina. Sam has a. client who wants to sell property he owns in Georgia. Sam refers his client to Stephanie who is a Georgia broker. Stephanie represents Sam's client and sells the Georgia property. Stephanie splits her commission with Sam. Stephanie does not tell the client about the commission split. A - This is legal because the seller is Sam's client. B - This is legal because Sam is not licensed in Georgia. C - This is illegal because Stephanie cannot split a commission with an out of state broker. D - This is illegal because Stephanie must inform her client of all fees paid to a third party.
D
The Sale of a Georgia home closes on March 15. If the seller owes $45,300 on a mortgage against the home and the interest rate in 6.5%, what, if any, is the amount of accrued interest paid? A - $333.66 B - $358.04 C - $456.35 D - $122.69
D
The concept that the value of any particular property tends to be set by the cost of acquiring an equally desirable similar property which is available without undue delay describes the principal of: A - Highest and best use. B - Progression. C - Conformity. D - Substitution.
D
The main purpose of the Georgia Landlord Tenant Law is: A - To allow the landlord to enter the rented property whenever he or she wishes. B - Provide a forum for disputes to be heard instead of having to go to court. C - Assigns certain responsibilities to only the landlord. D - Assigns certain rights and responsibilities to the landlord and the tenant.
D
The owner-occupant of a condominium and a tenant in a rented apartment would both have a(n): A - Fee simple estate B - Less-than-freehold. estate C - Estate in real property D - Fee simple defeasible estate in real property.
D
The requirement to disclose the Annual Percentage Rate was created by which federal law: A - The Real Estate Settlement procedures Act (RESPA) B - The Homeownership Equity Protection Act (HOEPA) C - The Gramm-Leach-Bliley Act D - The Truth in Lending Act (TILA)
D
The term "fiduciary" most. accurately means: A - The relationship of an attorney in fact to a client. B - The duties of a principal. C - A person who has limited obligations to another. D - A person who is in a position requiring trust, particularly regarding money or property.
D
Tom manages several properties on behalf of the homeowner or community association. Tom works for ABC Realty in Atlanta Georgia, but does not get involved in the sale of property. What license is Tom most likely to have? A - Salesperson's license B - Broker's license C - No license D - CAM license
D
Under Georgia real estate law, the individual responsible for the acts of the firm and all associated licensees is called the: A - Branch manager B - Associate broker C - Administrative broker D - Qualifying broker
D
What is the defining characteristic of an associate broker? A - The individual has had a broker's license for less than two years. B - The individual is a sole proprietor. C - The individual manages a branch office. D - The individual has a broker's license but is working for another broker.
D
What is the maximum period a license may remain inactive? A - 2 years B - 5 years C - 10 years D - Indefinitely
D
What obligation does a Georgia real estate salesperson have to a customer? A - To deal with customer honestly and fairly. B - To disclose all adverse material facts about the property known to the licensee. C - To disclose adverse facts about the neighborhood that are known to the licensee within a one mile radius of the property. D - All of these choices.
D
Which of the following circumstances could lead to property being acquired by "intestate succession"? A - An exercise of the government's power of eminent domain. B - A quiet title action in court. C - Purchase of property in one state by a resident of another state. D - A property owner who dies without a will.
D
Which of the following scenarios would require a Georgia real estate license? A - Full-time employees of ABC Corporation sell homes from subdivisions built and owned by ABC Corporation. B - Mr. Reese tells Ms. Sellers about his friend, Bob, who wants to buy a house. Bob pays a referral fee to Mr. Reese. C - Mr. Jones has moved to an assisted living center and give power-of-attorney to his friend Charlie to sell his house. As part of the agreement, Mr. Jones pays $10,000 to Charlie in return for his assisstance. D - Larry sells real estate only though auctions.
D
Which of the following statements is most accurate regarding the ability of a buyer to assume an existing FHA loan from a seller? A - It is not allowed. B - It is allowed without restriction. C - It is allowed without any need to qualify the buyer. D - It is only allowed if the borrower qualified for the assumption.
D
Carol originally obtained her Georgia real estate salesperson'a license three years ago. Two years ago, Carol moved to a smaller home and neglected to inform the Real Estate Commission of her new address. Which of the following statements will best apply in this instance? A - Because Carol did not notify the commission within the required thirty days of her move, she is subject to be disciplined by the commission. B - Because Carol did not notify the commission within the required ten days of her move, she is subject to be disciplined by the commission. C - Carol need only take the required continuing education course and pay the original renewal fee. D - Carol will have to file a new application and meet all educational requirements.
A
Each of the following statements is correct regarding VA loans, EXCEPT: A - The borrower must put up a down payment of at least 5%. B - The borrower must obtain a Certificate of Eligibility from the VA. C - An appraisal for a VA loan is called a certificate of Reasonable Value. D - In event of a default, the borrower is liable for repayment of losses incurred by the VA.
A
Each of the following statements is correct regarding earnest money deposits, EXCEPT: A - Any bona fide offer is required to have an earnest money deposit included. B - A broker who holds an earnest money deposit must maintain a trust account. C - Earnest money deposits do not need to be in the form of a cashier's check. D - It would be legal to give personal property as an earnest money deposit.
A
Fred rents an apartment from Wilma for a period of six months. Fred holds what type of estate in real property. A - An estate for years. B - An estate in reversion. C - A leased fee estate. D - Fred does not hold any type of estate.
A
If a mortgage payment is insufficient to pay the interest for the month, the result is called: A - Negative Amortization B - Recasting of the loan C - Regression D - A periodic cap
A
If a salesperson tells homeowners that they should sell their home because the ethnic characteristic of the neighborhood is changing, the salesperson is engaging in: A - Panic selling, which is illegal. B - Redlining, which is illegal. C - Panic selling, which is unethical but not illegal. D - Redlining, which is unethical but not illegal.
A
John represents Emma the seller/client in Georgia. Emma has a sales contract pending to close, what offers must John present to Emma? A - All offers even if they are ridiculous. B - All offers that meet the terms of the listing. C - All written offers. D - All verbal and written offers which meet the terms of the listing.
A
Lenders use the ratio of the borrower's total debt to income: A - As a loan qualifying tool for residential mortgages. B - As an appraisal tool for commercial properties. C - As a financial calculation to maintain their qualification with Fannie Mae. D - As a measure of closing costs.
A
Salesperson Sally has a listing on Seller Steve's home. She plans to run a display advertisement in the local newspaper, and plans to pay for it herself. Each of the following rules would apply to this advertisement, EXCEPT: A - Since Sally is paying for the advertisement, it need not mention the name of her broker. B - Sally will need Seller Steve's written permission to run the advertisement. C - Statements that constitute puffing will not violate any rules. D - If Sally obtains Steve's permission, there must be an expiration date to the permission.
A
Salesperson Steve works for ACME Real Estate. Steve has obtained a listing contract with a homeowner. Salesperson Sally also works for ACME Real Estate and has a buyer interested in purchasing the home. ACME appoints Steve to represent the seller and Sally to represent the buyer. Which of the following statements is correct regarding this situation? A - This is an example of designated agency, and non of the licensees are acting as dual agents. B - This is an example of designated agency, and ACME is acting as a dual agent. C - This is an example of acting as transaction brokers, and none of the licensees are acting as dual agents. D - This is an example of dual agency.
A
Special stipulations are needed to: A - Fully express the intent of the parties. B - Guarantee the broker receives a commission. C - Assure the contract will actually close. D - Protect the seller's position, but not the buyer's.
A
The Georgia Real Estate Commission requires _______ hours of continuing education credits for each renewal period. A - 36 B - 48 C - 25 D - 32
A
The buyers purchased. a home from the sellers. The settlement date was September 22. The sellers had paid the annual property taxes on July 1. How will proration of the property taxes appear on the closing statement? A - As a credit to the seller and a debit to the buyer. B - As a debit to the seller and and a credit to the buyer. C - Only as a credit to the seller. D - Only as a debit to the buyer.
A
The clause in a mortgage which allows the entire mortgage balance to be declared due and payable upon the default of the borrower is called a(n): A - Acceleration B - Defeasance C - Amortization D - Satisfaction
A
Under BRETTA, prior to accepting a brokerage engagement, a licensee must disclose each of the following items, EXCEPT? A - The licensee's policy on prequalification of buyer. B - The type of agency relationships which are acceptable to the firm. C - Any potential conflicts of interest of the firm when performing its obligations under the brokerage engagement agreement. D - Information regarding the handling of confidential information by the firm.
A
The Georgia Real Estate Commission can take each of the following actions, EXCEPT: A - Grant. a real estate license to a person whose license has been revoked ten years earlier. B - As a disciplinary action, revoke a person's broker's license and simultaneously issue that person a salespersons license. C - Act to resolve a commission dispute between two licensees. D - Issue. a reprimand or censure to a licensee without a formal hearing.
C
The issue of how quickly an asset can be converted into cash refers to the concept of: A - Intermediation B - Annuitization C - Amortization D - Liquidity
D
A Georgia real estate salesperson who is acting as a designated agent can discuss the confidential information of his. or her client with: A - The broker only B - The broker and other affiliated licensees. C - Anyone who is. not involved in the transaction. D - No one
A
A buyer wrote an offer contingent on the buyer's spouse approving the property within 24 hours. Would this result in a valid contract? A - It is permissible as long as it is agreed to by both parties. B - It is permissible as long as the contingency is on an addendum contract. C - It is NOT permissible as a contingency invalidates the contract. D - It is NOT permissible as the contingency allows for a personal judgment.
A
A person bought three properties for a total of $60,000. This person then sold the three properties as one combined property for a total of $90,000. This is best referred to as: A - Capitalization B - Combination and appreciation C - Assemblage and plottage D - Coordinate appreciation
C
On the first day of the last month, Buyer Bob. presented an offer to Seller Steve. The offer was for $200,000 and was to expire on the 5th of the month. On the second day of the month, Steve made a counteroffer to Bob at a price of $210,000. On the third day of the month, Bob rejected the counteroffer and decided to buy a different home. On the fourth day of the month, Steve delivered a signed acceptance of the original offer from Bob. Does an enforceable purchase contract exist between Bob and Steve? A - Yes, since the offer was accepted before its expiration date. B - No, since the counteroffer terminated the original offer. C - Only if Steve's acceptance of the original offer was legally communicated to Bob. D - Yes, since legally the counteroffer could only be made by Buyer Bob.
B
Salesperson Sally and Salesperson Sam both work for Broker Bob. Sally and Sam are friends and don't want to compete against each other for the same listings. Sally agrees to focus her efforts in one part of town and Sam agreed to focus his efforts in a different part of town. The agreement is not put in writing but they both live up to the agreement. This agreement: A - Is legal between salespersons working for the same broker but would be illegal between two brokers. B - Constitutes illegal restraint of trade. C - Is only lega; because the agreement was not put in writing. D - Is legal both for salespersons working for the same broker and for similar agreements between two different brokers.
B
Sally makes an offer to purchase Fred's property. Sally wants to make sure that she gets the earnest money back if she does not qualify for the loan. The best way to accomplish this would be to: A - Get the buyer pre-approved for the loan before the offer is made. B - Include a mortgage contingency clause/addendum to the contract. C - Make sure the seller verbally agrees to this condition. D - Make sure the listing broker is agreeable to this condition.
B
The Real Estate Settlement Procedures Act (RESPA) would apply to each of the following situations, EXCEPT: A - A loan with private mortgage insurance from a bank. B - A cash purchase with no loan. C - An FHA loan. D - A VA loan.
B
The basic federal law that prohibits monopolies is the: A - FBPA B - Sherman Anti-Trust Act C - UDTPA D - RESPA
B
The commissions paid by the seller under a listing contract are determined by: A - The listing salesperson and the seller. B - The listing broker and the seller. C - The listing broker and the listing salesperson. D - The seller and the buyer.
B
When a listing expires, Georgia law requires the "For Sale" sign be removed within: A - 15 days. B - 10 days. C - 7 days. D - 3 days.
B
Which of the following best describes the difference between general and limited partnerships? A - Unlike general partnerships, limited partnerships require all partners to assume full liability. B - Unlike general partnerships, limited partnerships must have limited and general partners. C - Unlike limited partnerships, general partnerships limit the general partner's ability to make only management decisions. D - Unlike limited partnerships, general partnerships limit the general partner's liability to only their initial investment.
B
Which of the following statements is false? A - Brokerage engagements must be in writing. B - An agency relationship always has a client. C - Ministerial acts are only performed for customers. D - The definition of "timely" varies with circumstance.
B
Which of the following statements is true under Georgia Law regarding dual agency? A - Dual agency is prohibited under any circumstance. B - Dual agency is only permissible with the written consent of both principals. C - Brokers are required to offer dual agency when appropriate. D - Dual agency is permissible without restriction.
B
Who can conduct closings in Georgia? A - A licensed attorney for any closing or a paralegal for simple transactions. B - A licensed attorney only. C - A licensed attorney or a real estate broker. D - A licensed attorney or a title insurance company.
B
A Georgia real estate licensee who is acting as a transaction broker could have an agency relationship with: A - Either a buyer or a seller, but not both. B - Either a landlord or a tenant, but not both. C - No one. D - Only when acting as a designated agent.
C
A broker listed a seller's property for sale. The seller informed. the broker that the plumbing did not work and told the broker NOT to disclose this to the buyer. The broker sold the property to a buyer following the seller's instructions regarding the non-disclosure of the plumbing problems. Which of the following statements is correct? A - Only the seller would be liable. B - Only the buyer would be liable. C - Both the seller and the broker would be liable. D - Neither the seller nor the broker would be liable as the buyer has the right to have the property inspected as part of the sales contract.
C
A developer offers various types of lots. Those who want to purchase the highest quality lot are required to purchase one of the lowest quality lots as well. This is known as: A - Market manipulation B - Disintermediation C - A tie-in arrangement D - Pairing
C
A legal. process or status used. to protect a family home from general creditors is a(n): A - Writ of attachment B - Lis Pendens C - Homestead D - Dedication
C
A lien which has been created by a court order and which applies to all properties owned by the individual who is the subject of the lien is called a: A - Lis pendens B - Specific lien C - General lien D - Warrant
C
A parcel of land that measures 1,320 feet by 660 feet would contain: A - 160 acres. B - 40 acres. C - 20 acres. D - 10 acres.
C
Sara is a new licensee who paid for and enrolled in an approved post-license course ten months after her license was issued, but has failed to complete the course within the allowed one year. Sara has one client who is looking at several properties, and one client who has signed a contract on a house. Which of the following statements is correct in these circumstances? A - Sara can present the contract to the seller as long as she has the permission of her broker, and she finishes her course within six months. B. - Sara's broker must present the contract, but Sara can continue to show houses as long as she completes her course within six months. C - Sara cannot present the contract, and cannot show houses, and must complete her course within eighteen months of her license issue date. D - Sara must pay all penalties and fees to requalify as a licensee.
C
Shady Lenders maintains a practice whereby it does not make loans in a particular neighborhood which is predominantly minority populated. Shady Lenders has engaged in: A - Steering. B - Flipping. C - Redlining. D - Blockbusting.
C
The Georgia Real Estate Commission will examine a licensed broker's trust account: A - When the broker's license is renewed B - When the commission believes there is reasonable cause to do so C - Either of the above answers D - Every three years
C
Under Georgia law, an unlicensed assistant to a salesperson may perform which of the following functions? A - Hold an open house B - Make cold calls C - Compute commission checks D - Explain a real estate document to a client of the salesperson
C
What are the maximum total claims that could be paid against any one licensee under the Real Estate Education, Research, and Recovery Fund? A - $15,000 B - $30,000 C - $75,000 D - $60,000
C
What is the primary legal difference. between acting as a designated agent and acting as a transaction broker? A - The nature of the compensation. B - The amount of the compensation. C - There is no difference. D - Whether the licensee can provide services beyond ministerial actions.
C
When a homeowner has applied for a loan to refinance his or her mortgage, what department of the lender will make the decision as to whether the application represents an acceptable risk to the lender? A - Accounting department. B - Marketing department. C - Underwriting department. D - Standards and practices department.
C
When using the market data approach to appraisal, adjustment could be made for each of the following factors, EXCEPT: A - Location B - Capitalization rate C - Financing D - Physical Characteristics
C
Which of the following is NOT protected by any federal fair housing laws? A - People in a particular religious group. B - Those who are physically handicapped. C - Current illegal drug users. D - Persons previously confined to a mental institution.
C
Which of the following statements by a licensee to a buyer would be considered "puffing" whether or not. the person. to whom the statement. was made was familiar with the property: A - "This is a 2,400 square foot house." B - "The roof was replaced five years ago." C - "This is the most attractive home in this neighborhood." D - "The house down the street recently sold for $325,00."
C
Which of the following statements is true regarding property in joint tenancy? A - Either joint tenant can will his or her share to someone else or to the surviving joint tenant. B - Property can only be held in joint tenancy by a married couple. C - Each joint tenant has the right to occupy the property. D - Ownership can be split unequally, such as a 60-40 split.
C
With regard to the payment of a commission to the listing broker, the concept of "procuring cause" would be least significant with regard to which type of listing: A - Open listings B - Exclusive listings C - Exclusive right to sell listings D - Net listings
C
A developer has purchased some raw land and subdivided the land into smaller lots and done some site preparation work. The developer has pledged all of the lots as collateral for a large loan to finance the purchase and site preparation efforts. What type of mortgage loan would most likely be appropriate for this situation? A - A package mortgage. B - A graduated payment mortgage. C - An ARM D - A blanket mortgage.
D
A husband and wife listed their home for sale with a real estate agent. The agent received two offers from two different buyers at the same time on the property. What is the best advice the agent can give to the seller regarding these two offers? A - Make a counter-offer to both buyers at the same time. B - Accept both offers since the seller cannot know which of the buyers is better qualified. C - Hold onto the two offers and wait for a third offer. D - Accept or counter-offer on one offer and reject the other or reject both offers.
D
A listing contract would be terminated in each of the following cases, EXCEPT: A - The death of the owner B - The destruction of the property C - The death of the real estate broker D - The death of the salesperson
D
A promissory note which is structured so that a series of equal and regular payments results in repayments of the debt upon maturity best describes which of the following: A - Acceleration B - Alienation C - Annuitization D - Amortization
D
A prospective applicant for a Georgia real estate. salesperson's license takes the state exam and passes it on May 15th. On June 2nd of the following calendar year, the person submits his application for a real estate license. This person must: A - Pay a fee equal to. two times the original fee. B - Retake the 75 hours of required education prior to submitting his or her application. C - Complete post-license education before submitting his or her application. D - Retake the state licensing exam.
D
Broker Bob has a listing on Seller Steve's house. Broker Bob is. acting as agent of the seller. Buyer Bill has made an offer on the property and put. up. an earnest money deposit of $8,000, which is being held by Broker Bob. Seller Steve has accepted this offer. A dispute now exists. between the buyer and the seller. Buyer Bill maintains that Seller Steve defaulted on the contract while Seller Steve maintains that Buyer Bill defaulted on the contract. The parties are unable to come. to an agreement. What should Broker Bob do with the earnest money deposit? A - Since Broker Bob is acting as agent of the seller, he should give the deposit to the seller. B - Broker Bob should hold the deposit indefinitely until the parties come to an agreement. C - Broker Bob should disburse the deposit to whichever party he feels has the better argument. D - Broker Bob should file an interpleader action in court.
D
Broker Bob is acting as agent for Seller Sally. When working with Buyer Bill as his customer, Broker Bob could: A - Provide negotiating assistance to Buyer Bill. B - Suggest to Buyer Bill that Seller Sally might be willing to sell for less than the listed price. C - Inform Buyer Bill that Broker Bob is required to maintain Buyer Bill's confidentiality. D - Provide Buyer Bill with a contract and help him fill in the blanks.
D
Broker Bob is licensed in Georgia and has a listing on Seller Steve's house. In the course of discussions with Steve, Bob learns that Steve is selling the house because a family member was murdered in the house several months ago. Under what circumstances, if any, is Broker Bob obligated to disclose this fact to any potential buyers? A - In all cases, since this is an adverse material fact. B - Under no circumstances. C - Only if a legal notice regarding the murder has not been filed in a newspaper of general circulation. D - Only id directly asked by a potential buyer.
D
Broker escrow accounts can be used for each of the following purposes, EXCEPT: A - Security deposits from properties managed by the broker. B - Good faith deposits from clients or customers. C - Deposits of rents paid on properties managed by the broker. D - Accrual of renewal and other fees to be paid to the Georgia Real Estate Commission.
D
Each of the following would be considered an encumberance, EXCEPT: A - A lease on the property. B - A mortgage. C - An easement. D - A license.
D
Each of the following would necessarily be present in any adjustable rate mortgage, EXCEPT: A - An index rate. B - A margin. C - An adjustment period. D - Negative amortization.
D
Homeowner Harry is 64 years old and his primary asset is his home, which he paid off. He had hoped to retire at the age of 65 but his retirement plan has sustained significant losses in the past several years. What type of loan would be available to Harry that is not available to younger borrowers in similar circumstances? A - A home equity line of credit B - A graduated payment mortgage C - An ARm D - A reverse mortgage
D
If a Georgia home is purchased for $168,500 and financed with an 80% conventional loan, which of the following is the amount of the transfer tax? A - $175,50 B - $123.20 C - $132.20 D - $168.50
D
If a resident of South Carolina wants to become a licensed broker in Georgia, would this individual be required to take the Georgia Broker's License Exam? A - Yes, in all cases B - No, in no cases C - Only if the individual was never licensed in Georgia D - If the individual is not licensed. in South Carolina or some other state.
D
Louie formally held a Georgia broker's license. He has served a two-year prison sentence for forgery. He has now turned his life around and can provide numerous references to support that contention. He wants to re-apply for a Georgia broker's license. Louie cannot be granted the license until at least: A - 5 years after his conviction. B - 7 years after his release from prison. C - 8 years after his conviction. D - 10 years after his release from prison.
D
Salesperson Sally works for Broker Bob and plans to sell her own home. Assuming proper permissions are obtained, how may she handle trust funds related to the sale of her home? A - She can list her home with Broker Bob and use Broker Bob's trust account. B - She can list her home with another broker and use that broker's trust account. C - She can open her own trust account and register it with the Georgia Real Estate Commission. D - She may do any of these choices.
D
Salesperson Sam publishes a local newsletter about. the real estate market. in the area, which he uses for prospecting and marketing purposes. He recently. obtained a listing on one of the finest homes in the neighborhood, and has been heavily promoting that property in the newsletter. The property recently sold well below the listed price. In the next newsletter, he prominently displays an article about the sale of the property and overstates the actual sale price of the property. Which of the following statements is. correct in this circumstance? A - While there are ethical concerns, since the actual sale price is a matter of public record, there is no violation of law. B - This would be considered puffing and would not be a violation. C - The newsletter itself is a violation, as it reveals confidential sale price of properties. D - This would be considered a misrepresentation to third parties and would be a violation of law as well as an ethical violation.]
D
Salesperson Sam works for Broker Bob and has a listing on Seller Steve's house. Salesperson Sally also works for Broker Bob and wants to purchase Steve's house. She is not representing Seller Steve in any way, and makes the offer through Salesperson Sam. Salesperson Sally must do which of the following? A - Sally does not need to disclose her licensed status nor her affiliation with Broker Bob until just prior to settlement. B - Sally needs to disclose her licensed status in the contract, but not her affiliation with Broker Bob, since she is not representing Seller Steve. C - Sally does not need to disclose her licensed status nor her affiliation with Broker Bob at any time since she is not representing Seller Steve. D - Sally must disclose her licensed status and that she is affiliated with Broker Bob in the contract.
D
Salesperson Sam works for Broker Bob. Broker Bob discovers that Salesperson Sam has been receiving referral fees for every referral Sam made to Acme Mortgage Lenders. Acme's actions are: A - A common and permissible business practice. B - Unethical, but not illegal. C - A violation of the Federal Truth in Lending Act. D - A violation of the Real Estate Settlement Procedures Act (RESPA).
D
A church owns some excess land. It sells the land to a developer who plans to build a house on that land. The church negotiates a clause in the deed that states if the property is ever used to sell alcoholic beverages, title reverts back to the church. The developer builds the house and sells it to Mr. Sanders. Which of the following statements is correct regarding this situation? A - Mr. Sanders would not be subject to the restriction on selling alcohol unless the developer put a similar restriction in the deed to Mr. Sanders. B - Mr. Sanders holds a fee simple defeasible estate in the property. C - The church has no legal right to create any restriction when selling the property. D - There are no circumstances in which the deed restriction can be removed.
D?