Test Review... questions missed.

What phrase or words are required on a deed and are considered an "act of conveyance"?

"Hereby conveys" The phrase, "hereby conveys," must be on a deed as a part of the granting clause and is considered an act of conveyance.

When advertising is placed on a property using the Internet and the information has changed, the ad must be updated or removed within how many days of being placed?

30 days When advertising on the Internet, if a previously placed ad has changed, a licensee must update or replace the ad within 30 days to avoid marketing outdated information.

The ______ clause is also known as a due-on-sale clause.

Alienation The alienation clause allows the lender to make the loan due if the borrower sells or otherwise transfers the property.

What's the difference between a real estate analyst and a real estate appraiser?

An analyst determines investment potential; an appraiser determines value. Both analysts and appraisers are interested in value, and both provide detailed analysis; however, an analyst is interested in investment potential, while an appraiser is solely interested in value.

Which of the following terms describes the actions required to transfer a title by deed?

Delivery and acceptance are the actions required to transfer a title by deed.

At the close of a real estate transaction, the ______ and the ______ of the transaction must reflect a zero balance.

Deposits, disbursements At the close of a real estate transaction, the deposits and the disbursements of the transaction must reflect a zero balance.

As a real estate licensee in Georgia, if you advertise or otherwise market using lies, deceit, misrepresentations, fraud, or other unethical practices, what are you in violation of?

Georgia Fair Business Practices Act The Georgia Fair Business Practices Act focuses primarily on deceptive advertising. Georgia license law 43-40-25 also addresses deceptive trade practices in real estate.

Industrial Property Types

Heavy industrial, Warehouse buildings, light manufacturing

Home Inspector and Appraiser

Home inspectors visually inspect a property's structure, system, and site conditions, and provide detailed reports to the buyers. Appraisers, who must be board certified, estimate a property's value based on established valuation guidelines.

Leisure Property Types

Hotel, motel, golf course, restaurant, movie theater

What's the name of the clause in a promissory note where this language appears: "If the Note Holder has not received the full amount of any monthly payment by the end of ______ calendar days after the date it is due, I will pay a late charge to the Note Holder"?

Late charge provision The late charge provision includes statements describing the borrower's responsibility to pay a fee if the monthly payment is late.

Six property types

Lesiure residential retail industrial healthcare office buildings

Aside from your name, what else must be included on every page of your website, according to GREC's rules?

License status and license number

What are the two types of Real Estate Investment Trusts?

Mortgage and equity

Which type of real estate property can be divided into classes A, B, and C?

Office buildings - Office buildings can be divided into Class A, which is prestigious, Class B, which is fair to good, or Class C, which is functional with below-average rent.

Similar to the deed of trust, the security deed contains a clause that allows lenders to foreclose on and sell the property non-judicially if the buyer is in default. What is this clause?

Power-of-sale clause The power-of-sale clause in any security instrument we've discussed (mortgage, deed of trust, or security deed) gives lenders the right to foreclose on and sell the property if the buyer defaults.

Investor and Lender

Private investors, unlike traditional lenders, are often willing to take financial risks when funding development/construction projects, hoping to realize a profit once the properties begin to sell. Although traditional lenders will finance development/construction projects, they only do so if they can mitigate the risks by requiring larger down payments and quicker paybacks.

Real Estate Educators and Property Managers

Property managers manage properties for others. If managing properties for more than one owner, they need a real estate license. Real estate educators provide the training real estate professionals are required to have to either obtain their initial license (pre- and post-licensing) or keep their license current (continuing education).

Real Estate Attorneys and Counselors

Real estate attorneys can provide brokerages with additional protection from litigation and answer any questions licensees might have about legal matters regarding real estate issues. They can also legally broker deals. Real estate counselors are licensed brokers who use their years of experience and data-gathering abilities to help their clients make informed decisions regarding real estate projects based on property-specific evaluations, studies, and reports.

Bridget has an investment portfolio which includes an equity REIT. Which of these is most likely to be part of the REIT's investment?

Retail shopping centers - Equity REITs invest in income-producing property such as a retail shopping center. Undeveloped land isn't likely to produce income, and equity REITs don't invest in mortgage debt. That's the role of mortgage REITs. Not:Mortgages secured by commercial properties, Mortgages secured by residential properties, Undeveloped land parcels

In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______.

Security deed The security deed is the primary security instrument used in Georgia.

Regina has defaulted on the terms of her mortgage, and now her lender has foreclosed. The property was sold at a sheriff's sale three months ago. Regina suddenly learns that she has inherited a great deal of money. She wants her property back. Under a judicial foreclosure, what right might allow her to buy her property from the winner of the foreclosure auction?

Statutory right of redemption

Forms provided by the Georgia Association of REALTORS® cover all of the following situations except ______.

Tenants looking solely for rent-to-own situations There is no specific GAR form for rent-to-own engagements.

Who or which entity has the authority to bring injunctive action against a real estate licensee for the violation or the potential violation of Georgia license law and GREC's established rules?

The Georgia attorney general has the authority to bring injunctive action against a licensee. GREC can make the request, but the attorney general has the authority.

What does BRRETA outline as a buyer broker's responsibility?

The buyer's broker has a responsibility to disclose material adverse facts related to the buyer's financial situation. Disclose adverse facts related to the buyer's financial ability to meet the contract terms.

Who's the mortgagee in a mortgage?

The lender The lender is the mortgagee, and the borrower is the mortgagor. This is because the borrower establishes the mortgage as a security instrument on the lender's behalf.

When a mortgage is sold, what happens?

The note is endorsed and the mortgage is assigned. The note is negotiable and is transferred by endorsement. The attached security instrument (mortgage) will be assigned and recorded.

In the real estate business, which professional's primary role is to make improvements to land?

The real estate developer's role is to take land and improve it through construction, which may include subdividing the land and developing the property.

Which clause in the deed of trust and Georgia's security deed is the equivalent of the defeasance clause in the mortgage?

The reconveyance clause and the defeasance clause stipulate that the borrower receive full title to the property when the debt has been repaid.

What can be said about a designated agent's duties?

They're the same as a single agent's duties. A designated agent and a traditional single agent both owe the same duties to their clients.

What is the trustee's role when a deed of trust is used to secure property for a loan?

To hold legal title to the property on behalf of the beneficiary until the loan is repaid When a deed of trust is used in a title theory state, the trustee holds legal title to the property on behalf of the beneficiary.

Broker and Salesperson

To qualify for a broker's license, a licensee must have at least three years of real estate experience, and meet additional education and exam requirements. Brokers may act as sole proprietors, or own a brokerage with associated licensees who work for them, and for whom they're responsible. Brokers are liable for their licensees' actions. A salesperson must have a salesperson's license and may provide brokerage services only under a broker's supervision.

Which section of his security deed gives his lender to right to sell the property if he defaults? Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state.

Transfer of Rights in Property The Transfer of Rights in Property section gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.

Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender to right to sell the property if he defaults?

Transfer of Rights in Property The Transfer of Rights in Property section gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.

In Georgia, deception, fraudulent behavior, or any other unethical behavior used as a means to obtain business is known as ______.

Unfair trade practice Unfair trade practices are those that are used to obtain new business by being deceptive, fraudulent, or otherwise unethical.

Aubrey, an attorney for the seller, was extremely satisfied with the purchase offer his client was planning to sign. The sales contract contained all of the essential elements. What type of contract is this?

Valid A valid contract in Georgia is a contract that contains four essential elements: competent parties, mutual agreement, lawful objective, and consideration.

Residential Property Types

house, condo, duplex

Valid Contract

in Georgia is a contract that contains four essential elements: competent parties, mutual agreement, lawful objective, and consideration.

Business brokers in Georgia can seek credentials such as all of the following EXCEPT ______.

not Business Intermediary Endorsement (BIE)