Final 1/3 flash cards 101-152

Question 1

A builder tells a real estate broker that they may put a sign on the property, hold an open house, and distribute Flyers. If the broker is successful in selling the house, the builder will list other properties with her.
Which of the following is true?

a. Following such instructions may be unethical but not illegal.
b. These are legal instructions of a client and must be obeyed.
c. Such instructions should be in writing but writing is not required.
d. Permission to advertise must be in writing.

Answer 1

d. Permission to advertise must be in writing

Question 2

Which of the following persons would not meet one of the requirements of being licensed as a salesperson in Georgia?

a. A person who will turn 18 in three months.
b. A person with a GED.
c. A person who is a resident of another state.
d. A person who has completed a course approved by the commission online.

Answer 2

a. A person who will turn 18 in three months

Question 3

The Georgia Real Estate Commission is made up of six members. Which of the following is true of these members?

a. They are all licensed for at least five years.
b. They are all appointed by the governor.
c. They are all appointed for a five-year term.
d. A chairperson is elected amongst the six every other year.

Answer 3

b. They are all appointed by the governor

Question 4

The person who is the administrative head of the commission and is a full-time employee is known as the ____________________.

Answer 4

The commissioner

Question 5

For a person to be eligible to receive a broker’s license that person must. (4 things)

Answer 5

1. Be 21 years of age,
2. take a 60-hour course,
3. be actively licensed for at least three of the previous 5 years,
4. and pass an exam.

Question 6

Under what circumstances may a broker pay a commission to an unlicensed corporation as compensation for the completion of an act of real estate?

Answer 6

If at least 20% of the corporate stock is owned by a salesperson of the broker and there exists a written instruction between the salesperson and the broker

Question 7

Carol is a real estate broker and is personally financing the sale of a property. Carol is receiving payments of $1400 per month from which there are concurrent payments due of $750 per month. What amount must Carol place each month into an escrow account?

Answer 7

$750

Question 8

Which of the following is a violation of Georgia license law?

a. Acting as an undisclosed dual agent.
b. Placing Ernest Money in an interest-bearing account with notification to all parties.
c. Maintaining copies of all documents for three years.
d. A broker advertising a small ranch-style home as cozy and charming.

Answer 8

a. acting as an undisclosed dual agent

Question 9

If a licensee disagrees with the decision of the commission in a hearing, that licensee is entitled to:

a. Another hearing.
b. A judicial review.
c. A review by the attorney general
d. An appeal to the Georgia Supreme Court.

Answer 9

b. A judicial review

Question 10

If a person is doing the acts of real estate without a license and is not otherwise exempt from licensure, that person is subject to:

a. being fined by the attorney general
b. having their license revoked
c. having their license suspended subject to a hearing
d. having a cease-and-desist order filed against them by the commission

Answer 10

d. Having a cease-and-desist order filed against them by the commission

Question 11

What is the maximum liability of the Education, Research and Recovery fund in a single transaction?
a. $75,000
b. $50,000
c. $45,000
d. $25,000

Answer 11

d. $25,000

Question 12

What is the primary difference between a client and a customer?

Answer 12

A client signs a brokerage engagement; a customer does not

Question 13

After successfully completing the real estate exam, a candidate shall have what period to Activate their license?

a. 30 days
b. 3 months
c. 6 months
d. 1 year

Answer 13

d. 1 year

Question 14

Which of the following is true of a salesperson who wishes to sell their own property in their own name?

a. The salesperson must notify their broker verbally of his or her intent to sell.
b. The salesperson may offer the property for sale without first listing it with their broker.
c. The salesperson must receive verbal permission from his or her broker for any advertising they do.
d. If the salesperson is agreeing to buy a property as an inducement for the owner to enter into a listing contract with the salesperson, the salesperson may do so without informing his or her broker

Answer 14

b. The salesperson may offer the property for sale without first listing it with their broker.

Question 15

In advertising a listing, which of the following statements would be most appropriate?

a. The home is handicapped accessible.
b. Perfect for handicapped.
c. Easily accessible for those in a wheelchair.
d. Persons with disabilities are our specialty.

Answer 15

a. Home is handicap accessible

Question 16

Fred is a licensed sales agent for XYZ Realty and has an opportunity to go to work for the federal government in a salaried position with benefits. The job will involve Fred negotiating real estate leases for federal agencies. What will be required for Fred to accept this position and conduct real estate activities directly for the government under the exception section of licensed law?

Answer 16

Fred must surrender his license and will have to requalify if he wishes to obtain another license in the future.

Question 17

Ron and Marie are both sales agents for Uptown Realty. Ron has entered into a listing agreement with the owners of 2447 Hope Trail. Marie has entered into a brokerage agreement to represent Sam and Lori Marshall in the purchase of a new home. The Marshall’s are interested in the Hope Trail listing and Uptown Realty does not allow dual agency. What should the broker do in this case?

Answer 17

Uptown Realty Will declare designated agency and appoint Ron the representative of the sellers and Mary to be representing the buyers.

Question 18

What is the purpose of earnest money in a sales contract?
a. To provide valuable consideration as required by contract law.
b. To show the seller is faithful in the negotiations.
c. To show the buyer is faithful in the negotiations.
d. To prove the buyer has the cash to close the transaction.

Answer 18

d. To show the buyer is faithful in the negotiations. Called Good faith.

Question 19

Of the following which is the ultimate challenge of a property manager?
a. maintain the property in pristine condition.
b. Maintain full occupancy, regardless of rents. c. Maximize net income and economic life of the property.
d. Extend the property management agreement with the owner.

Answer 19

c. Maximize net income and economic life of the property

Question 20

“Those facts that a party does not know, could not reasonably discover, and would reasonably want to know” best describes:

a. a material fact and must be disclosed to clients only
b. a material fact and must be disclosed to all parties
c. a ministerial fact and must be disclosed to clients only
d. a ministerial fact and must be disclosed to all parties

Answer 20

a. A material fact and must be disclosed to clients only

Question 21

A brokerage engagement must advise a prospective client of the types of agencies available through a broker. Advise of any conflicting relationships, advise the prospective client of compensation arrangements, and advise the client of their rights of confidentiality this disclosure is known as:

Answer 21

The office brokerage policy

Question 22

The document which discloses its essential information to prospective buyers of time-share property is?

a. The public offering statement b. Statement of due diligence.
c. Brokerage statement of essential data.
d. The statement of developer objective.

Answer 22

a. The public offering statement.

Question 23

Keith is licensed in Georgia as a community association manager. Which of the following would be TRUE of Keith’s activities?

a. Keith may lease or manage property but not negotiate sales contracts.
b. If Keith limits his activities to association management, there is no need for a broker.
c. Keith may provide such services only through a licensed broker.
d. Keith does not need to hold a license if his activities are limited to community association management.

Answer 23

Keith may provide such services only through a licensed broker

Question 24

Broker Larry is selling units in a large condominium near a university to parents of those attending. Larry is charging a sales commission of 10% of the sales price and requiring all purchasers enter into a property management agreement with a firm Larry owns as a prerequisite of purchasing the units. The activity could be construed as:

Answer 24

A tie in agreement

Question 25

Those money is available to pay the debt service and provide a profit on an incoming producing property is known as

Answer 25

Net operating income

Question 26

When providing information to a person BRRETA Says the agent is not responsible for false information if:

a. The agent did not know the information was false.
b. The agent did not know the information was false, and the person was given the source of the information.
c. The false information was provided directly to the agent by the owner of the property.
d. The information was outside the expected scope of expertise of the agent.

Answer 26

b. The agent did not know the information was false and the person is given the source of the information

Question 27

What is the best way to get detailed loan information on a seller client’s property so you may properly service the seller?

Answer 27

Send a loan information request form, signed by the client, to the client’s lender requesting the needed information,

Question 28

Under what circumstances may a broker file a lien on a property if the seller refuses to pay an earned commission?

Answer 28

Only on commercial properties not residential

Question 29

In Georgia who can legally conduct a closing

Answer 29

Only practicing attorneys

Question 30

In order to have a valid and enforceable sales contract for real estate that contract must contain

Answer 30

Offer, acceptance, and communication along with a legal description

Question 31

The primary focus of the Fair Business Practices Act of 1975 is:

Answer 31

Advertising

Question 32

Differentiation between a client and a customer in a transaction is primarily identified by

Answer 32

One signed a brokerage engagement agreement

Question 33

While dual agency is legal in Georgia, with the proper disclosure, it does bring along with it conflict. What is the conflict?

Answer 33

The duty of full disclosure while maintaining confidentiality

Question 34

Property manager who hires a contractor on an annual basis to pressure wash all painted surfaces of an apartment building is an example of:

Answer 34

Preventative maintenance

Question 35

Which of the following is true of the Georgia property owners association act?
a. Being subject to the act is mandatory.
b. This act binds all developments created after 1994. c. Liens for non payment of dues are automatic.
d. If association dues are not paid, the listing broker will be responsible.

Answer 35

c. Liens for non payment of dues are automatic

Question 36

Out the following which would most likely require the representation of a real estate broker?
a. A buyer of commercial property.
b. A buyer which requires anonymity.
c. A buyer for a property that the broker has listed. d. A Buyer that is an investor.

Answer 36

b. A buyer which requires anonymity

Question 37

When a licensee lists a property for sale there are certain disclosures that must be made. Which of the following would not be one of those disclosures?
a. The fact that a previous occupant of the property was murdered.
b. The seller has knowledge of a property defect.
c. The seller has personal knowledge of a landfill planned one mile from the property.
d. The seller’s spouse died in the home and the buyer inquires to confirm a rumor.

Answer 37

a. The fact that a previous occupant of the property was murdered

Question 38

The closing of a real estate transaction is governed by:

Answer 38

RESPA

Question 39

What is a closing document CD?

Answer 39

Is provided to the borrower by the lender or closing attorney. The settlement costs disclosed for the closing.

Question 40

At closing in Georgia, a buyer was required to sign a security deed. This buyer would not be expected to sign:

a. a HUD-1 closing statement.
b. A note.
c. A truth in lending statement.
d. a mortgage

Answer 40

d. a mortgage

Question 41

The primary purpose Georgia uses a security deed is to:

Answer 41

Allow a lender to foreclose non judicially.

Question 42

When a borrower uses an FHA loan to purchase a property
a. the loan is insured for the lender,
b. the loan is insured for the borrower,
c. no down payment is required,
d. the seller must pay all closing costs

Answer 42

a. The loan is insured for the lender

Question 43

A contract includes a clause which would require the seller to complete repairs promised in the contract after the closing. This is known as:

Answer 43

Survival Clause

Question 44

If a closing is scheduled for September 20th and the property bill of $1975 has been paid for the year how will the property tax proration be stated on the closing statement?

Answer 44

Taxes of $551.92 will be credited to the seller and debited to the buyer.

Question 45

A closing of September 20th has been scheduled and the seller paid the homeowners insurance premium of $575 on July 15th. The insurance carrier will refund the unused portion of the premium to the seller after closing. What would that amount of proration for the insurance be?

Answer 45

The seller will be credited with $467.88

Question 46

As of April first, a seller’s loan balance is $115,400 and has an interest rate of 5.5%. Closing is set for April 20th. The accrued interest proration would be:

Answer 46

$352.61

Question 47

A buyer is set to close a purchase on November 20th. The purchase price is $170,000 and they have been approved for a 90% conventional loan at 6.5% with a 30 year amortization what is the interest adjustment?

Answer 47

$303.88

Question 48

A buyer is under contract to purchase a property. The purchase price is $170,000 and the buyer has been approved for 90% conventional loan. The lender will require private mortgage insurance and the rate is .7% of the loan amount per year. Which of the following is true of the private mortgage insurance?
The monthly amount will be:

a. $89.25
b. $267.75
c. $99.67
d. $297.50

Answer 48

$89.25

Question 49

Closing is set for October 5th and the lender requires a property tax escrow of four months at closing. The annual property taxes are $1975. What is the amount of the tax escrow requirement?

Answer 49

$658.33

Question 50

If a purchase price is $170,000 and the buyer is approved for a 90% conventional loan, what is the intangible tax?

Answer 50

$459