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GA Real Estate Sales License > 3-11-21 Practice Exam > Flashcards

3-11-21 Practice Exam Flashcards

1
Q

An owner of a lakefront property tells a fisherman that he cannot fish in a boat within fifty feet of the owners shoreline. The fisherman protests that the owner cannot prevent him. Is this true?

A

Yes, the fisherman is correct because the water and the land underlying it are public property

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2
Q

A lender may terminate foreclosure proceedings if the defaulting borrower executes what?

A

A deed in lieu of foreclosure

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3
Q

The concept known as “substitution” states that…

A

buyers will not pay more for a certain house than they would for another, similar house.

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4
Q

The “price that a willing, informed, and un-pressured seller and buyer agree upon for a property, assuming a cash price and reasonable exposure of the property to the market” describes which of the following concepts of value?

A

Market Value

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5
Q

To derive value using the income capitalization approach, one must….

A

divide the capitalization rate into net income.

capitalization rate/net income

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6
Q

An owner obtains a loan and gives the mortgagee a mortgage on the property as collateral. The mortgagor/owner retains title to the property, and the mortgagee records a lien. This is an example of…

A

Hypothecation

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7
Q

Disclosure of estimated closing costs is required of a lender in order to comply with…

A

the Real Estate Settlement Procedures Act

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8
Q

The capital gain on sale of an investment is computed as…

A

Net sales proceeds minus adjusted basis

net sales proceeds - adjusted basis = capital gain
NSP-AB= capital gain

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9
Q

The formula for return on equity is…

A

cash flow / equity

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10
Q

What is the formula for deriving the tax base of a jurisdiction?

A

The total of all assessed values minus exemptions

all assessed values - exemptions= jurisdiction tax base

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11
Q

The purpose of homestead tax exemption is…

A

to offer tax abatement on a principal residence

abatement is a temporary or permanent break on property taxes.

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12
Q

A homeowners tax bill for taxing a district is derived by…

A

multiplying the tax rate times the taxable value of the property.

tax rate X taxable property value

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13
Q

A prospective homebuyer offers to buy a house if the seller agrees to pay financing points at closing. The seller gets the offer, signs it and gives it to his agent to deliver. At this point the status of the offer is…

A

Still an offer, waiting until it has been delivered and the buyer receives it

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14
Q

Agent Jerry, who works for Broker Lucy, obtains an owner listing to lease a building. Lucy’s other agent, Linda, a tenant representative, locates a tenant for Lucy’s listing. If there is no arrangement to the contrary, Broker Lucy in this instance is acting as what kind of agent?

A

A dual agent, because Lucy the Broker is working dual transactions for brokers in her brokerage.

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15
Q

A transaction broker should disclose his or her agency relationship to the transaction principals…

A

upon first substantive contact

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16
Q

An agent obtains a listing which ensures compensation for procuring a customer, provided the agent is the procuring cause. This agent has entered into a…

  • exclusive right-to-sell agreement
  • exclusive agency agreement
  • open listing
  • net listing
A

open listing

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17
Q

A landlord promises to compensate a broker for procuring a tenant, provided the landlords brother decides not to rent the property within a month. This would be an example of…

  • exclusive right-to-lease agreement
  • exclusive agency agreement
  • open listing
  • net listing
A

exclusive agency agreement

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18
Q

In eliciting an offer from a buyer, an owners agent must be careful to..

  • avoid an overpriced offer
  • complete any offer the buyer might decide to make
  • disclose what price the owner will accept
  • avoid completing an offer that contains contingencies
A

complete any offer the buyer might decide to make

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19
Q

An example of conversion is…

A

spending a customer deposit on a surety bond for the agency

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20
Q

Three leading agencies charge identical commission rates for brokering office properties in Phoenix. Which is true?

  • This a perfectly legitimate business practice
  • The brokers have engaged in legal collusion
  • The brokers have allocated the Phoenix market
  • The brokers have illegally fixed prices
A

This a perfectly legitimate business practice

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21
Q

A business owner insists on a price for his enterprise that exceeds the value of the tangible assets, claiming that is a well-known family business with a loyal clientele. The excess value is known as

  • the buyer’s premium
  • goodwill
  • the risk factor
  • the profit margin
A

goodwill

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22
Q

An agent informs owners in an area that a decline in property values over the past five years is due to an influx in minority families. He suggests that the trend will continue, and advises them to sell before it is too late. This agent is probably guilty of..

  • blockbusting
  • redlining
  • discriminatory misrepresentation
  • negligent misrepresentation
A

blockbusting

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23
Q

An agent spends two hours with a minority buyer, then shows the buyer five available properties all over town. Later a similarly qualified couple enter the office. The agent spends twenty minutes with the couple, gives them the MLS book to review, and encourages then to drive by the listings on their way home. The agent could be liable for…

  • misrepresentation
  • steering
  • providing unequal services
  • nothing
A

providing unequal services

24
Q

An owner completes a contract to sell her property. Before closing, she runs into financial trouble and assigns the contracts to her mortgagor. Which is true?

  • The owner has defaulted
  • The buyer can sue to nullify the mortgage
  • The assignment takes effect after closing
  • The sale contract remains valid
A

The sale contract remains valid

25
Q

RESPA requires specific closing procedures whenever …
the loan is to be guaranteed
the loan is to be sold to the FNMA
the commercial property is to be bought by FHLMC
a borrower does not fully understand closing costs

A

the loan is to be sold to the FNMA

26
Q

The most common form of risk transference in brokerage firms is…

  • continuing education
  • errors & omissions insurance
  • company rules & regulations
  • self control
A

errors & omissions insurance

27
Q

Which of the following is a major risk in the fulfilling of listing agreements…

  • exceeding the limits of the authority granted by the agreement
  • disclosing a material defect without the seller’s permission
  • failing to receive proper compensation
  • putting the clients interest above those of the customer
A

-exceeding the limits of the authority granted by the agreement

28
Q

Why is it important for a property manager to maintain good relations with tenants…

A

unhappy tenants leads to expensive tenant turnover

29
Q

Under how many Georgia brokers may a GA associate broker be licensed at the same time?

A

One

30
Q

When an affiliated licensee goes inactive, the licensee may…

A

continue to work with the property owned by the licensee

31
Q

The total number of continuing education hours required for license renewal is…

A

36

32
Q

Salespersons renewing for the first time must complete…

A

36 hours of continuing education credits in addition to the post-licensing course.

33
Q

Georgette received her real estate license on April 1. When will her license expire?

A

On April 30 of the fourth year after issue.

34
Q

Claims against the Real Estate Education and Recovery Fund may be made by…

A

an individual harmed by a violation of the license law.

35
Q

While the physical maintenance of the property is a primary function of the property manager, the level of maintenance performed must be balanced with..

  • the cost of services and time available
  • the managers monetary incentives
  • owner objectives and tenant demands
  • the managers skill and the condition of the property
A

-owner objectives and tenant demands

36
Q

What kind of insurance would provide coverage for loss of income when a rental property is damaged so badly that it cannot be used?

  • Casualty
  • Consequential Loss
  • Fire and Hazard
  • Liability
A

-Consequential Loss

37
Q

Which of the following statements about GA Estate Commission members is True?

  • They serve for life or until retirement
  • They may be removed by the governor for incompetency
  • They must be actively engaged in the real estate business
  • They must pass the licensing exam
A

-They may be removed by the governor for incompetency

38
Q

How many members are there in the Real Estate Commission?

  • Six appointed by the governor and confirmed by the state
  • Six appointed by the Division of Business Professionals
  • Six elected by the body of active licensees
  • Five appointed by the Senate
A

-Six appointed by the governor and confirmed by the state

39
Q

License law conveys to the Commission the authority to..

  • enact license laws as a subcommittee of the state legislature
  • adopt rules and regulations to clarify the license law
  • decide whether a law is in conflict with a regulation
  • override a provision of the license law when circumstances warrant.
A

-adopt rules and regulations to clarify the license law

40
Q

The Commissioner may not….

A

own any business related to real estate while serving as Commissioner

41
Q

A category of appraiser who may appraise only properties that are not the subject of a federally-related transaction (FHA, VA, HUD) is the…

  • State Licensed Appraiser
  • State Registered Appraiser
  • State Certified General Appraiser
  • State Certified Residential Appraiser
A

State Registered Appraiser

42
Q

Unless otherwise specified by contract, brokers are required to deposit earnest money and security deposits…

A

within 3 business days of receipt

43
Q

The retention period for transaction records is…

A

3 years

44
Q

How long does a broker have to notify the Commission of a change of address?

A

30 days

45
Q

The latest time that a licensee can make a written agency disclosure is…

A

when any party first makes an offer

46
Q

Under BRRETA, a broker engaged by a seller must..

  • follow the directions of the client, even when they violate fair housing law
  • seek the highest price the market will bear, even when the listing price is lower.
  • present all offers made, even when the property is under contract
  • continue to seek additional offers, even when the property is under contract.
A

-present all offers made, even when the property is under contract

47
Q

How long can a brokerage company operate without a new qualifying broker after the previous one quits?

A

60 days

48
Q

Before beginning brokerage activities, a newly licensed salesperson must..

A

wait until the broker receives the salespersons wall certificate.

49
Q

TRUE or FALSE

An individual actively licensed with one firm may not work as a support personnel for a different firm.

A

FALSE

50
Q

A licensee who maintains a website for the brokerage must…

A

remove outdated information within 30 days.

51
Q

In GA, the taxable value of most residential property is

A

40% of fair market value

52
Q

What is an “intangible recording tax”?

  • A tax on long-term notes secured by real estate, based on the loan amount
  • A tax on the recording of intangible property, based on the number of documents recorded
  • A tax on any kind of intangible property
  • A surtax on property tax
A

A tax on long-term notes secured by real estate, based on the loan amount

53
Q

What right does a property owner in GA have in a foreclosure proceeding?

A

An equitable right to redeem the property before the foreclosure sale.

54
Q

A distinct feature of a joint tenancy is that joint tenants

A

cannot will their interest to a party outside the tenancy

55
Q

The secondary mortgage market organizations do all of the following except…

  • guarantee performance on mortgages
  • buy pools of mortgages from primary lenders
  • sell securities based on pooled mortgages
  • directly originate loans
A

-directly originate loans

GA Real Estate Sales License (37 decks)

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