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Real Estate Study Materials > GA State Law > Flashcards

GA State Law Flashcards

1
Q

Which of the following satisfies the requirements for the required Postlicense course in Georgia?
A » 24-hr. course taken within one year from the date of license activation
B » 25-hr. course taken within one year from the date of the state licensing examination
C » 24-hr. course taken within one year from the date of the state licensing examination
D » 25-hr. course taken within one year from the date of license activation

A

D » 25-hr. course taken within one year from the date of license activation

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2
Q 
Upon renewal of a license, a licensee must pay all fees due and have completed how many hours of continuing education?
A  »  9
   B  »  24
   C  »  36
   D  »  39
A

C » 36

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3
Q

A licensed broker in another state may enter into a written agreement with a Georgia broker to conduct the real estate brokerage business in Georgia without first obtaining a Georgia license. The agreement between brokers must include that:
A » any listing or property management agreement on Georgia property will be in both brokers names
B » the out-of state broker may not conduct any negotiations under any circumstances if the property is located in Georgia
C » any advertising of Georgia property identifies the listing Georgia broker
D » commission must be split equally between both brokers

A

C » any advertising of Georgia property identifies the listing Georgia broker

Note: It is also necessary for the agreement to provide that any listing or property management agreement shall be in the name of the Georgia broker; and that the out-of-state broker shall conduct negotiations only with the express permission of the Georgia broker.

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4
Q 
An individual who successfully passes the state examination and has otherwise qualified for a license has how many months to activate or place inactive his/her license?
A  »  3
   B  »  6
   C  »  12
   D  »  24
A

C » 12

Note: Candidates must apply and pay licensing fees for an initial license within three months of passing the examination. After three months of passing the exam, the application fee doubles. After twelve months, if the candidates have failed to activate license, they must retake the examination.

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5
Q

If a Georgia real estate company operates as a limited partnership, which of the following is true about the qualifying broker?
A » The qualifying broker must be a general partner
B » The qualifying broker must be a limited partner
C » The qualifying broker must be either a general partner or a limited partner
D » There are no restrictions on the qualifying broker for a limited partnership other than having a broker’s license

A

A » The qualifying broker must be a general partner

Note: A limited partnership consists of both limited and general partners. General partners manage the operations and are responsible for the debts of the limited partnership. Limited partners have limited liability and act more in the capacity of investors. Georgia requires that the qualifying broker for a limited partnership must be a general partner.

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6
Q

A licensee transferring to a new broker may continue to act as a licensee for the former broker with regard to transactions begun prior to the transfer. However, Georgia requires that both brokers enter into a written agreement that provides:
A » the new broker assumes full responsibility for the acts of the licensee in matters dealing with the former broker
B » a time limit be set for the licensee to act on behalf of both brokers
C » a list of the specific transactions that the licensee will continue to act on behalf of the former broker
D » the new broker solely can compensate the licensee for the transactions begun prior to the transfer

A

C » a list of the specific transactions that the licensee will continue to act on behalf of the former broker

Note: The written agreement between the brokers must include

1) brokers agreeing to the licensee’s actions on behalf of the former broker;
2) specific transactions must be enumerated;
3) former broker agrees to be responsible for the licensee’s activities in the enumerated transactions; and 4) the terms under which the licensee will be compensated by the former broker.

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7
Q

Under what circumstances may a Georgia broker have more than one escrow account?
A » Under no circumstances; only one escrow account is allowed per the Georgia the license law.
B » Only if the broker has a separate account for property management
C » Only if one account is interest bearing and the other is non-interest bearing
D » As long as GREC is notified of the pertinent information regarding each account

A

D » As long as GREC is notified of the pertinent information regarding each account

Note: Georgia brokers are not required to have escrow accounts so long as they do not accept trust funds to be held in trust for others. However, brokers are allowed to have multiple escrow accounts as long as they notify the GREC of the pertinent information regarding each trust account in writing within 30 days of opening the account.

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8
Q

What are the requirements for salespeople and associate brokers who receive trust funds or security deposits on their own rental property?
A » They must place those funds in their broker’s trust account
B » They are unable to receive and hold any trust funds because of their licensed status
C » Since the funds are on their personally owned property, they may place those funds in any account
D » They must place those funds either in their broker’s trust account or a trust account approved by their broker

A

D » They must place those funds either in their broker’s trust account or a trust account approved by their broker

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9
Q 
The minimum balance to be maintained in the Education, Research and Recovery Fund is:
A  »  $1,000,000
   B  »  $5,000,000
   C  »  $10,000,000
   D  »  $15,000,000
A

A » $1,000,000

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10
Q 
Regarding the Recovery Fund, the limit of liability for a single transaction in which a licensee is involved and the limit of liability for multiple transactions for a single licensee is respectively how much?
A  »  $10,000; $15,000
   B  »  $25,000; $50,000
   C  »  $25,000; $75,000
   D  »  $15,000; $45,000
A

C » $25,000; $75,000

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11
Q

According to BRRETA, licensees must make a written disclosure to both buyer and seller revealing the party or parties for whom the licensee’s firm is acting as agent:
A » no later than closing
B » no later than when the first written offer is made
C » as soon as possible; preferably at first contact with all parties
D » during qualifying interview with the buyer or during listing appointment with the seller

A

B » no later than when the first written offer is made

Note: A licensee shall make a written disclosure to both buyer and seller revealing the party or parties for whom that licensee’s firm is acting as agent or dual agent and from whom that licensee’s firm will receive any valuable consideration for its efforts as agent in the transaction. The written disclosures required by this paragraph must be made in a timely manner, but in any event not later than the time that any party first makes an offer to purchase, to sell, to lease, or to exchange real property. See GREC Rules 520-1-.06 (4

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12
Q

A broker must conduct business in the name:
A » registered as the DBA (doing business as)
B » as shown on the business license
C » under which the broker’s license was issued
D » as officially registered with the Georgia Secretary of State

A

C » under which the broker’s license was issued

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13
Q

When a licensee transfers from one broker to another:
A » the property of the releasing broker must remain with the broker, but clients of the licensee may be taken to the new broker
B » the licensee must notify all clients in writing within 30 days that the licensee will be working with a different broker in order to keep those clients
C » all records of any kind used in connection with listing or selling property shall be returned in person by the licensee to the releasing broker
D » licensees may not, under any circumstances, be compensated for work begun, but not yet completed

A

C » all records of any kind used in connection with listing or selling property shall be returned in person by the licensee to the releasing broker

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14
Q

Under what circumstances may a broker refuse to sign a release/transfer form for a licensee to transfer to another firm?
A » If the licensee is indebted to the broker
B » If the licensee has transactions pending but not yet closed
C » If the licensee and broker have a dispute as to licensee’s obligations under the license law to return the broker’s property
D » Under no circumstances

A

D » Under no circumstances

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15
Q

A licensee who voluntarily surrenders their license to the GREC may be reinstated by:
A » paying a reinstatement fee
B » paying a reinstatement fee and completing 36 hours of continuing education
C » paying a reinstatement fee, missed renewal fees, and completing all required continuing education
D » qualifying as an original applicant

A

D » qualifying as an original applicant

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16
Q

When a licensee offers to purchase a property to enable the seller to purchase another property the licensee must:
A » obtain an appraisal on the property to be purchased and pay the full amount of the appraised value
B » notify the broker of the licensee’s actions
C » enter into a written contract to purchase which expresses all the terms and conditions of the licensee’s purchase prior to or at the time of the seller’s entering into a contract to purchase the new property
D » notify the GREC of the icensee’s actions

A

C » enter into a written contract to purchase which expresses all the terms and conditions of the licensee’s purchase prior to or at the time of the seller’s entering into a contract to purchase the new property

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17
Q 
The GREC maintains records so that it may certify the license history of licensees for a period of up to how many years immediately preceding the date of the request?
A  »  3
   B  »  5
   C  »  10
   D  »  Full term of licensure
A

B » 5

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18
Q

A broker may disburse trust funds under all of the following circumstances EXCEPT:
A » the broker’s reasonable interpretation of the contract which directed the funds to be deposited
B » upon withdrawal of an offer
C » at the closing of the transaction
D » upon securing written agreement from just the buyer who wants the money to pay for repairs

A

D » upon securing written agreement from just the buyer who wants the money to pay for repairs

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19
Q

Under what circumstances may a salesperson create, submit, and negotiate a contract without the broker’s prior review of the contract?
A » Only if the broker has given the agent written permission to do so
B » Never, because the GA license law dictates all sales contracts must have the broker’s signature prior to being presented
C » Never, because the broker is ultimately responsible for all contracts generated by his agents and should monitor each of them without fail
D » Under all circumstances, since the agent is never under any obligation to show contracts to his broker prior to presenting them

A

A » Only if the broker has given the agent written permission to do so

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20
Q

Every written property management agreement between the broker and owners of the property must contain all of the following provisions EXCEPT:
A » identity of the property to be managed
B » the amount of fee or commission to be paid and when it is to be paid
C » the effective date and termination date of the agreement
D » that the broker must have custody of all security deposits and pre-paid rents

A

D » that the broker must have custody of all security deposits and pre-paid rents

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21
Q

Which of the following is true about the Georgia Real Estate Commission?
A » There are six licensed members; at least five must be brokers
B » There are six licensed members plus the Commissioner
C » There are six members, one of which may not have any connection to the real estate industry
D » There are six members; at least three must be brokers

A

C » There are six members, one of which may not have any connection to the real estate industry

Note: The GREC is comprised of six members. Five shall be licensees and the sixth member shall have no connection with the real estate industry. See O.C.G.A. 43-40-2. (a)

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22
Q

Which of the following is true about the Georgia Real Estate Commissioner?
A » The Commissioner may vote to break a tie so long as there is a quorum of the commission present
B » The Commissioner may hold an active real estate license
C » The Commissioner is appointed by the governor
D » The Commissioner is hired by the commission

A

D » The Commissioner is hired by the commission

Note: The Commissioner does not vote and may not hold an active real estate license.

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23
Q

The Georgia Real Estate Commission members are:
A » appointed by the governor and confirmed by the Georgia House for a term of five years
B » appointed by the governor and confirmed by the Georgia Senate for a term of five years
C » appointed by the governor and confirmed by the Georgia House for a term of six years
D » appointed by the governor and confirmed by the Georgia Senate for a term of six years

A

B » appointed by the governor and confirmed by the Georgia Senate for a term of five years

Note: The Georgia Real Estate Commission is composed of six members, each of whom is appointed by the governor, approved by the Senate for a term of five years. See O.C.G.A. 43-40-2. (a)

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24
Q 
How many commission members must be present for the commission to conduct official business?
A  »  3
   B  »  4
   C  »  5
   D  »  6
A

B » 4

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25
Q

Which of the following is a requirement to be issued a Salesperson’s license in Georgia?
A » Must be 21 years of age
B » Must have received a high school diploma
C » Must have completed a 75-hr approved, prelicense course
D » Must be a resident of Georgia

A

C » Must have completed a 75-hr approved, prelicense course

Note: Residency is not required.

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26
Q

A Georgia residence that was the site of a homicide is listed for sale. What are the broker’s obligations to disclose that fact to prospective purchasers?
A » The disclosure must be made at the first meaningful encounter with prospective purchasers
B » The disclosure must be made prior to accepting the first written offer
C » The disclosure must be made only if asked
D » The disclosure must be made prior to showing the property

A

C » The disclosure must be made only if asked

Note: If asked, brokers and affiliated licensees must answer truthfully unless the answer to such question would violate other state or federal law such as such the federal Fair Housing Act - in which instance they would not be required to answer.

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27
Q

If the Education, Research, and Recovery Fund falls below the required minimum balance, what action may be taken by the Georgia Real Estate Commission?
A » Each licensee can be assessed up to $30 to immediately restore the fund
B » Each licensee can be assessed up to $100 to immediately restore the fund
C » Each licensee can be assessed up to $30 per year at time of renewal to restore the fund
D » Each licensee can be assessed up to $100 per year at time of renewal to restore the fund

A

C » Each licensee can be assessed up to $30 per year at time of renewal to restore the fund

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28
Q

To bring a legal action against a seller to collect a commission a licensee must first prove:
A » that the licensee suffered monetary damages in excess of $500
B » that the licensee was licensed as broker at the time the cause of action arose
C » that the licensee was licensed as a broker, associate broker, or salesperson at the time the cause of action arose
D » nothing, since the Georgia License Law does permit licensees to sue their clients.

A

B » that the licensee was licensed as broker at the time the cause of action arose

Note: No person may bring any action in the courts of Georgia for the collection of compensation as a real estate licensee without alleging and proving that person was a licensed broker in Georgia at the time the alleged cause of action arose. See O.C.G.A. 43-40-24.

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29
Q

An advertisement which fails to disclose that the owner is being represented by a licensed real estate practitioner is considered to be a:
A » blind ad
B » hidden ad
C » permissible ad with the client’s permission
D » permissible ad with the broker’s permission

A

A » blind ad

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30
Q

Which of the following is an unfair practice under the GA License Law if performed by a licensee?
A » Not accepting trust funds and not maintaining an escrow account
B » Accepting a commission from someone other than your broker with your broker’s consent
C » Representing another broker with the written consent of your broker
D » Paying a commission to an unlicensed person who has performed services of a licensee

A

D » Paying a commission to an unlicensed person who has performed services of a licensee

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31
Q

Which of the following is NOT a requirement for a licensed salesperson to qualify as an applicant for a broker or associate broker’s license in Georgia?
A » Must have completed a 75-HR approved broker pre-license course
B » Must have attained the age of 21
C » Must be a high school graduate or holder of certificate of equivalency
D » Must have maintained a real estate license in active status for at least three of the five years immediately preceding the filing of the application

A

A » Must have completed a 75-HR approved broker pre-license course

Note: Candidates must have completed a 60-hr broker relicense course. IF they’re a non-resident they must comply with special provisions.

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32
Q

Any licensee whose license lapses for failure to pay a renewal fee may reinstate the license within two years of the date of the license lapsing by:
A » paying the total amount of renewal fees and late charges
B » paying the total amount of renewal fees and late charges plus a reinstatement fee
C » paying the total amount of renewal fees and late charges plus a reinstatement fee; and complete any education courses that the GREC may require
D » meeting the education and examination requirements of a new applicant

A

B » paying the total amount of renewal fees and late charges plus a reinstatement fee

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33
Q

Any licensee whose license lapses for longer than five years for failure to pay a renewal fee may reinstate the license by:
A » paying the total amount of renewal fees and late charges
B » paying the total amount of renewal fees and late charges plus a reinstatement fee
C » paying the total amount of renewal fees and late charges plus a reinstatement fee; and complete any education courses that the GREC may require
D » meeting the education and examination requirements of a new applicant

A

D » meeting the education and examination requirements of a new applicant

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34
Q

Any licensee whose license lapses for greater than two years and less than five years solely for failure to pay a renewal fee may reinstate the license by:
A » paying the total amount of renewal fees and late charges
B » paying the total amount of renewal fees and late charges plus a reinstatement fee
C » paying the total amount of renewal fees and late charges plus a reinstatement fee; and complete any education courses that the GREC may require
D » meeting the education and examination requirements of a new applicant

A

C » paying the total amount of renewal fees and late charges plus a reinstatement fee; and complete any education courses that the GREC may require

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35
Q

If a licensee is found guilty (or pleads guilty) to a felony or crime involving moral turpitude, the licensee must:
A » notify the commission within 10 days after the conviction and request a hearing to avoid the possibility of having the license revoked 60 days after the date of the conviction
B » notify the commission within 30 days after the conviction and request a hearing to avoid the possibility of having the license revoked 60 days after the date of the conviction
C » notify the commission within 60 days after the conviction and request a hearing to avoid a revocation 60 days after the date of conviction
D » all real estate licenses are revoked automatically upon conviction of a felony or crime involving moral turpitude

A

A » notify the commission within 10 days after the conviction and request a hearing to avoid the possibility of having the license revoked 60 days after the date of the conviction

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36
Q

A broker or qualifying broker shall be responsible for license law violations by all affiliated licensees unless the broker or qualifying broker can demonstrate that:
A » there were reasonable procedures in place for supervising the actions of the affiliates
B » there were reasonable procedures in place for supervising the actions of the affiliates, and that the broker or associate broker did not participate in the violation.
C » there were reasonable procedures in place for supervising the actions of the affiliates, that the broker or associate broker did not participate in the violation or ratify the violation
D » there were reasonable procedures in place for supervising the actions of the affiliates, that the broker or associate broker did not participate, ratify, or profit from the violation

A

C » there were reasonable procedures in place for supervising the actions of the affiliates, that the broker or associate broker did not participate in the violation or ratify the violation

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37
Q

The qualifying broker for a firm operating as a corporation must have signatory powers on all trust accounts maintained by the firm and be:
A » an officer of the corporation
B » a general partner of the corporation
C » a managing member of the corporation
D » a limited partner of the corporation

A

A » an officer of the corporation

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38
Q

Which of the following is true regarding a Georgia real estate broker who does not maintain a trust account?
A » The broker must open a trust account within 24 hours of receipt of trust funds
B » The broker must open a trust account within one business day of receipt of trust funds
C » The broker must open a trust account within five business days of receipt of trust funds
D » All brokers in Georgia must maintain at least one trust account

A

B » The broker must open a trust account within one business day of receipt of trust funds

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39
Q

If a judgment against a licensee is paid in full or in part out of the real estate education, research, and recovery fund, upon issuance of the court order directing payment:
A » The licensee has 30 days to pay the judgment in full or risks having their license revoked
B » The licensee has 60 days to pay the judgment in full or risks having license revoked
C » The licensee has 30 days to pay the judgment in full and 60 days to request a hearing to prevent their license from being revoked
D » The licensee’s license is automatically revoked

A

D » The licensee’s license is automatically revoked

Note: The license of the licensee is automatically revoked upon issuance of a court order to pay money out of the real estate education, research, and recovery fund on behalf of said licensee. See O.C.G.A. Section 43-40-22.(d)(6).

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40
Q

A licensee received a $5,000 cash earnest money deposit on a Friday evening. With concern for the safety of the money, the licensee placed the cash into the night depository for his personal checking account and immediately wrote a check to the firm for the $5,000 which he delivered to the office the following Monday morning. The licensee:
A » acted responsibly so long as the broker was aware of the actions
B » acted responsibly so long as the check cleared after the firm deposited it
C » acted responsibly so long as any interest received was paid to the owner of the funds
D » was guilty of commingling

A

D » was guilty of commingling

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41
Q

Which of the following is NOT a violation of the real estate license law in Georgia?
A » Offering real estate for sale or lease without the consent of the owner
B » Failing to remove a “for sale” or “for rent” sign within 10 days after the expiration of a listing
C » Failing to include a listed property in the local Multiple Listing service
D » Inducing a party to a contract to break the contract for the purpose of entering into another contract with a different principal

A

C » Failing to include a listed property in the local Multiple Listing service

42
Q

In Georgia, acting for more than one party in a transaction is:
A » permitted so long as all parties agree in writing
B » permitted so long as the brokerage engagement expressly states that dual agency is permissible
C » not permitted as dual agency is a violation of Georgia law
D » not permitted under BRETTA

A

A » permitted so long as all parties agree in writing

43
Q

Which of the following is true regarding advertising in Georgia?
A » Signs must be removed from the property within 10 days after the expiration of the listing; Internet advertising must be removed within 10 days of the date that the information is no longer current
B » Signs must be removed from the property within 10 days after the expiration of the listing; Internet advertising must be removed within 30 days of the date that the information is no longer current
C » Signs must be removed from the property within 30 days after the expiration of the listing; Internet advertising must be removed within 30 days of the date that the information is no longer current
D » Signs must be removed from the property within 10 days after the expiration of the listing; Internet advertising must be removed within 30 days of the after the expiration of the listing

A

B » Signs must be removed from the property within 10 days after the expiration of the listing; Internet advertising must be removed within 30 days of the date that the information is no longer current

44
Q

In Georgia, a tenant may terminate a residential lease effective 30 days after providing the landlord with a written notice of termination and a copy of a civil or criminal family violence order. The termination of the lease applies when the tenant is::
A » the victim and damages to the property may be recovered
B » the victim and damages to the property may not be recovered
C » either the victim or abuser and damages to the property may be recovered
D » either the victim or abuser and damages to the property may not be recovered

A

C » either the victim or abuser and damages to the property may be recovered

Note: Effective July 1, 2018 - applicable to all residential leases. A tenant may terminate a residential lease agreement effective 30 days after providing written notice of termination to the landlord along with the appropriate evidence of family violence. The law allows either the victim or the abuser to terminate the lease without being “liable for any other fees, rent, or damages due to the early termination of the tenancy.” However, tenants may still be liable for damages to the property. See O.C.G.A. 44-7-23.

45
Q 
Per the Georgia Real Estate law, real estate brokers may employ salespersons as:
A  »  employees
   B  »  independent contractors
   C  »  both a and b
   D  »  neither a nor b
A

C » both a and b

Note: There is no restriction on the form of working relationship between broker and licensee. See O.C.G.A. 43-40-30.1.

46
Q

If an active licensee who is affiliated with a broker rents his personal home, must security deposits be held by the broker?
A » No, not when a licensee is renting a home owned personally
B » No, so long as the deposit slip used when depositing the money into the licensee’s personal checking account clearly indentifies the money as the tenant’s security deposit
C » Yes, all trust funds must be held by the broker
D » Yes, unless the licensee has written permission from the broker to deposit such funds into the licensee’s own trust account which would have to be properly registered with the GREC

A

D » Yes, unless the licensee has written permission from the broker to deposit such funds into the licensee’s own trust account which would have to be properly registered with the GREC

47
Q

Which of the following is not an exception from the licensure requirements of the Georgia real estate license law?
A » Property owner’s wife offers their property “for sale” and negotiates a contract
B » Person receives fees every quarter for referring renters to apartment complexes
C » A hotel manager
D » A full-time employee of General Motors who manages all General Motors real property leases, purchases, and sales

A

B » Person receives fees every quarter for referring renters to apartment complexes

Note: Referral agents are exempt from the license law if they do not receive a fee for the referral, do not charge an advance fee, and do not act as a referral agent in more than three transactions per year. See O.C.G.A. 43-40-29(a)(9).

48
Q

Is it permissible for an inactive licensee to be employed by a home builder?
A » Yes, but only if the inactive licensee is full-time and compensated hourly
B » No, an inactive licensee may not be employed by a home builder
C » Yes, but only if the inactive licensee is on commission
D » Yes, but only if the inactive licensee performs services other than those typically performed by a real estate licensee

A

D » Yes, but only if the inactive licensee performs services other than those typically performed by a real estate licensee

Note: Inactive licensees may only do ministerial tasks.

49
Q

Per the Georgia Real Estate Commission, ministerial acts:
A » are not permitted in Georgia
B » do not require discretion or exercise of the licensee’s judgment
C » require written authorization from the broker
D » are permitted only when acting as a dual agent

A

B » do not require discretion or exercise of the licensee’s judgment

50
Q

The Georgia Real Estate Commission defines a “firm” as:
A » a corporation or limited liability company
B » a corporation, limited liability company, and general partnership
C » a corporation, limited liability company, and general or limited partnership
D » a corporation, limited liability company, general or limited partnership and sole proprietor

A

D » a corporation, limited liability company, general or limited partnership and sole proprietor

Note: A “firm” means a sole proprietorship, partnership, limited liability company, or corporation licensed by the GREC as a broker. See GREC Rules 520-1-.02(2)(k)

51
Q

Which of the following is true regarding the use of brokerage “trade names” in Georgia?
A » Trade names are not permitted in Georgia
B » All licenses must be issued in trade names
C » Trade names are the names issued to a firm by the Secretary of State
D » If a firm operates its real estate brokerage in a trade name than the trade name must be on the broker’s license

A

D » If a firm operates its real estate brokerage in a trade name than the trade name must be on the broker’s license

52
Q

Which of the following is true regarding active associate brokers, salespersons, and community association managers in Georgia?
A » All must be licensed under an active Georgia broker; none are allowed to be licensed under more than one Georgia broker during the same time period
B » All must be licensed under an active Georgia broker; all are allowed to be licensed under more than one Georgia broker during the same time period if all Georgia brokers agree in writing.
C » Associate brokers may be licensed under more than one broker at the same time.
D » Community association managers may be employed by more than one association at a time.

A

A » All must be licensed under an active Georgia broker; none are allowed to be licensed under more than one Georgia broker during the same time period

53
Q 
Net listings in Georgia are:
A  »  encouraged by the GREC
   B  »  permitted by the GREC with written disclosure
   C  »  discouraged by the GREC
   D  »  prohibited by the GREC
A

D » prohibited by the GREC

54
Q

A person licensed as a Georgia broker or qualifying broker for a licensed firm may serve as a broker or qualifying broker with:
A » one firm only
B » up to three different licensed firms
C » up to five different licensed firms
D » one or more other licensed firms

A

D » one or more other licensed firms

55
Q

A person licensed as a Georgia associate broker for a licensed firm may serve as a broker or qualifying broker with:
A » one additional firm only
B » up to three different licensed firms
C » no other firm, as a licensee can only be active with one brokerage firm
D » one or more other licensed firms

A

D » one or more other licensed firms

Note: The GREC places no limit on the number of firms that an associate broker can be broker or qualifying broker for so long as the broker associated with the associate broker’s license has been notified in writing

56
Q

Which of the following tasks may NOT be performed by unlicensed support personnel in Georgia?
A » Submit data on listings to a multiple listing service
B » Place signs on real estate and remove signs
C » Make cold calls to secure prospects for listings
D » Arrange dates and times for inspections

A

C » Make cold calls to secure prospects for listings

57
Q

Which of the following tasks may be performed by unlicensed support personnel in Georgia?
A » Show real estate
B » Discuss attributes or amenities of real estate with a prospective purchaser
C » Host open houses
D » Assemble documents for closing

A

D » Assemble documents for closing

Note: Considered a ministerial act.

58
Q

What action is required when a licensee becomes aware that a principal with whom the licensee’s firm has a listing is advertising to sell in a misleading manner?
A » The licensee has no control over the principal so no action is necessary
B » The licensee must immediately terminate the listing
C » The licensee must report the violation to the GREC
D » The licensee must immediately take steps to stop the advertising

A

D » The licensee must immediately take steps to stop the advertising

59
Q 
Copies of documents related to a real estate transaction must be maintained in the broker's file for a minimum of:
A  »  three years
   B  »  five years
   C  »  seven years
   D  »  ten years
A

A » three years

60
Q

Is it permissible for a licensee to rebate to a principal any part of the commission received by the licensee as a result of a real estate transaction?
A » Yes, as It is the principal’s money and there are no restrictions
B » Yes, but only if disclosed on the closing statement and so long as the rebate does not mislead other parties
C » Yes, but only if the principal also holds a real estate license
D » No, as licensees cannot give rebates to principals

A

B » Yes, but only if disclosed on the closing statement and so long as the rebate does not mislead other parties

61
Q

Which of the following requirements is necessary to qualify as an applicant for a Georgia real estate broker’s license?
A » High school diploma or GED
B » Be 18 years old
C » Completion of a 75-hr. approved, broker prelicense course
D » Georgia residence

A

A » High school diploma or GED

Note: Applicants must be 21, complete 60-HR broker pre-license class, be a Georgia resident unless complying with non-resident status, and must have complete high school or have a general equivalency certificate (GED)

62
Q

Which of the following is NOT an unfair practice in Georgia if performed by a licensee?
A » Acting as a dual agent
B » Failure to turn over earnest money to your broker as soon as practicably possible
C » Making a substantial misrepresentation
D » Performing brokerage activities in another state without being licensed to do so

A

A » Acting as a dual agent

63
Q

Which of the following is NOT exempt under provisions of the Georgia real estate license law?
A » An attorney-in-fact under a duly executed power of attorney
B » A practicing attorney acting strictly as a broker or salesperson
C » An officer or employee of a government agency in the conduct of his/her official business
D » The owner or full-time employee of the owner of property

A

B » A practicing attorney acting strictly as a broker or salesperson

64
Q

Which of the following statements is true about the chairperson of the Georgia Real Estate Commission?
A » The chairperson is appointed by the governor and approved by the commission members
B » The chairperson is must have served on the commission for at least two years
C » The chairperson is elected by the GREC members at the first regularly scheduled meeting each calendar year
D » The senior GREC member becomes the chairperson in January of each year

A

C » The chairperson is elected by the GREC members at the first regularly scheduled meeting each calendar year

65
Q

Which of the following is NOT true regarding brokerage relationships in Georgia?
A » Broker must perform all services in a fiduciary capacity
B » Broker must timely present all offers
C » Broker must exercise reasonable skill and care in performance of duties
D » Broker must disclose to the seller material facts which the broker has actual knowledge

A

A » Broker must perform all services in a fiduciary capacity

Note: A brokers duties and responsibilities are specifically outlined in BRRETA

66
Q

Which of the following is required when active salespersons or associate brokers are advertising to buy or sell their own properties in their own name?
A » A brokerage fee must be paid
B » All advertising must be done in the broker’s name
C » The broker has to be notified in writing of the specific property involved
D » A salesperson cannot list their home for sale with a different brokerage company

A

C » The broker has to be notified in writing of the specific property involved

67
Q

Which of the following is a true statement?
A » A non-resident broker may not serve as a qualifying broker for any corporation licensed by the GA Commission
B » Each firm has only one managing broker and all licensed brokers for the firm can be qualifying brokers
C » A person licensed as an associate broker with one firm may also be the qualifying broker with one or more other firms as long as he notifies his broker in writing
D » An associate broker cannot affiliate with another brokerage firm in a different state

A

C » A person licensed as an associate broker with one firm may also be the qualifying broker with one or more other firms as long as he notifies his broker in writing

68
Q

If a property is being sold “As Is”, what is the effect on the agent’s responsibilities?
A » An “As Is” contract, by definition, invokes “caveat emptor” and an agent’s duty of property disclosure is terminated
B » An agent only has the responsibility to disclose property defects to his principal/client, not 3rd parties under an “As Is” contract
C » An agent must explain to all parties that an “As Is” contract means that property disclosures are not required and all parties should beware
D » An “As Is” contract has no effect on an agent’s responsibility to disclose all known defects to all parties in the transaction

A

D » An “As Is” contract has no effect on an agent’s responsibility to disclose all known defects to all parties in the transaction

69
Q

Which of the following statements about earnest money is true?
A » Earnest money is acceptable business practice, but is not required
B » Georgia law requires earnest money to create a legal and binding sales contract
C » The consideration in a sales contract is the earnest money
D » The amount of the earnest money is strictly up to the policy of the brokerage company

A

A » Earnest money is acceptable business practice, but is not required

70
Q

Georgia real estate license law limits what can be used as earnest money to:
A » cash, checks, and money orders
B » cash, checks, money orders, and services
C » cash, checks, money orders, services, and personal property
D » Georgia real estate license law does not address what may be used as earnest money

A

D » Georgia real estate license law does not address what may be used as earnest money

Note: Earnest money is not required for contracts to become binding.

71
Q

If the contract calls for the earnest money to be held until the contract has been accepted, who is authorized to hold the earnest money?
A » Only the broker and only in an approved escrow account
B » Anyone designated in the contract to hold the earnest money other than an associate broker, salesperson, or community association manager
C » The buyer must hold it if the contract acceptance is required
D » The seller must hold it

A

B » Anyone designated in the contract to hold the earnest money other than an associate broker, salesperson, or community association manager

72
Q

If a brokerage engagement in Georgia does not specify an expiration date and engagement has not otherwise been terminated, by law it will continue until:
A » One month from its initiation
B » Three months from its initiation
C » Six months from its initiation
D » One year from its initiation

A

D » One year from its initiation

73
Q 
A broker may perform acts for customers which do not require professional judgment or skill, these acts may be classified as:
A  »  insignificant acts
   B  »  ministerial acts
   C  »  administrative acts
   D  »  inconsequential acts
A

B » ministerial acts

74
Q

Information to be disclosed by a broker to a prospective client regarding
1) the types of brokerage relationships available through the broker;
2) other brokerage relationships held by the broker which may conflict with the interests of the prospective client; and
3) the broker’s compensation and whether the broker will share that compensation with other brokers who may represent other parties to the transaction - will be found in:
A » the office brokerage policy
B » the standard agency policy
C » BRRETA
D » the limited agency disclosure

A

A » the office brokerage policy

75
Q 
BRRETA uses which of the following terms to identify the agreement in which a buyer and a broker establish an agency relationship?
A  »  Listing agreement
   B  »  Brokerage relationship
   C  »  Brokerage affiliation
   D  »  Brokerage engagement
A

D » Brokerage engagement

76
Q

Which of the following is true regarding a licensee selling his/her own property which is listed with his/her firm?
A » Advertising may be done in the agent’s name as long as the broker gives written permission
B » The agent may sell one property per year through his/her company without paying a commission
C » There must be a clause in the contract disclosing the agent’s license status
D » The agent must verbally disclose of the license to any prospective buyer

A

C » There must be a clause in the contract disclosing the agent’s license status

77
Q

Which of the following is true regarding an inactive licensee selling his/her own property?
A » If the license is inactive, the requirements of the license law do not apply
B » If the inactive licensee is advertising the property without listing it with a broker, he is not obligated to disclose his licensed status in the advertisement
C » If the inactive licensee is handling the transaction without the aid of a broker, he may hold the earnest money in his personal account per the contract if the buyer does not object
D » The inactive licensee cannot list the property with a different brokerage company

A

C » If the inactive licensee is handling the transaction without the aid of a broker, he may hold the earnest money in his personal account per the contract if the buyer does not object

Note: An inactive licensee is subject to the GA license law and must disclose his license status on all contracts

78
Q

When is the BEST time for a selling broker or his/her agent to qualify a potential purchaser?
A » Prior to writing an offer to purchase
B » Over the phone prior to any person-to-person meeting
C » At the first significant meeting with the buyer, but prior to showing property
D » After looking at property and deciding, for sure, that the buyer has found a suitable property

A

C » At the first significant meeting with the buyer, but prior to showing property

79
Q

Which of the following would be an acceptable action of a GA broker who represents a seller in a transaction?
A » Ordering the termite letter prior to closing
B » Contracting with a carpenter for repairs the seller has committed to perform according to the contract
C » Purchasing a Home Owner’s Warranty for the seller prior to closing if called for in the contract
D » None of the above actions would be acceptable

A

D » None of the above actions would be acceptable

80
Q 
Who is responsible, under the Georgia real estate license law, for seeing that both the purchaser and seller obtain a copy of the closing statement?
A  »  The broker
   B  »  The closing attorney
   C  »  The lender
   D  »  The notary public
A

A » The broker

81
Q

Which of the following is true regarding the disposition of earnest money at the closing?
A » The broker holding the earnest money may retain the earnest money as a portion of his commission
B » The broker holding the earnest money may bring a check to closing made out to the closing official for the amount of the earnest money
C » Neither of the above situations could occur
D » Either of the above situations could occur

A

D » Either of the above situations could occur

82
Q

As a result of BRRETA, which of the following statements would NOT be true in Georgia regarding a broker’s legal relationship to customers or clients?
A » A broker would only owe the client or customer duties set forth in BRRETA, unless the parties agree in writing otherwise
B » A fiduciary relationship would occur
C » For a customer, a broker would have to exercise reasonable care provided for in BRRETA
D » For a client, a broker would have to exercise reasonable care provided for in BRRETA as well as specified duties in the brokerage agreement

A

B » A fiduciary relationship would occur

83
Q 
A broker is required to submit:
A  »  all written offers
   B  »  all written and oral offers
   C  »  all reasonable written offers
   D  »  all reasonable written and oral offers
A

B » all written and oral offers

Note: BRRETA requires all offers to be presented

84
Q

Which of the following determines the amount of compensation that a salesperson would receive for a real estate transaction?
A » The agreement with the broker
B » The average of the standard commission rates in the area
C » The amount specified by the state licensing board
D » The amount specified by the local board

A

A » The agreement with the broker

85
Q 
A salesperson sold a property listed by the salesperson's company. In the sales contract, the buyer agreed to assume the obligation to pay the commission involved. From whom should the salesperson collect the commission?
 A  »  Seller
   B  »  Buyer
   C  »  His or her broker
   D  »  The buyer's broker
A

C » His or her broker

86
Q

After an owner has accepted an offer, a licensee should tell a second offeror that:
A » there is a contract on the property and the second offer cannot be presented
B » she will present the second offer and try to get the owner to cancel his existing contract
C » she will present the second offer for consideration since the title has not yet been transferred
D » the second offer can be presented as a back-up offer only

A

D » the second offer can be presented as a back-up offer only

Note: BRRETA requires all offers to be submitted even after the property is under a contract.

87
Q

A business owner asks a licensee to assist in the sale of stock in the business. The licensee should:
A » obtain legal counsel
B » decline and refer the business owner to a securities dealer
C » seek broker assistance to determine the best form of agreement
D » inquire as to whether the stock is publicly traded

A

B » decline and refer the business owner to a securities dealer

Note: selling stocks and/or bonds require a separate securities license.

88
Q

A salesperson with AREA Realty takes a 90-day exclusive right-to-sell listing. Two weeks later, the salesperson moves to another state and places his Georgia license “inactive”. Which best describes the status of the listing?
A » The listing contract expires
B » The listing contract expires but the seller is owed compensation for the breach
C » The Georgia Real Estate Commission requires that the listing be assigned to another agent
D » It remains a valid exclusive right-to-sell listing with AREA Realty

A

D » It remains a valid exclusive right-to-sell listing with AREA Realty

89
Q

A property owner who has just given you a listing on his property asks that you not advertise his property in a local newspaper because the property owner does not agree with the political positions taken by the newspaper. Failure to advertise will significantly limit your ability to market the property, but the seller insists you refrain from advertising in the paper. Should you advertise in the paper?
A » No, because as a licensee, you must obey all lawful instructions of your client
B » No, because the listing agreement provides that the client is in control of marketing the property
C » Yes, because it is in the client’s best interest
D » Yes, because it is your professional judgment and reputation are at stake

A

A » No, because as a licensee, you must obey all lawful instructions of your client

90
Q

A buyer’s broker showed the buyer the property boundaries but did not disclose that the boundaries may not be precise. After purchasing the property and acting on the broker’s representations, the buyer builds a shed. A survey later reveals that the shed is on the neighbor’s property. Can the broker be held accountable for the misrepresentation?
A » No, because caveat emptor applies - let the buyer beware
B » No, because the broker was not a surveyor and is outside the scope of his duties
C » Yes, because the broker knew a survey was required before constructing the shed
D » Yes, because the broker showed the boundaries and did not recommend the buyer contact a surveyor for verification

A

D » Yes, because the broker showed the boundaries and did not recommend the buyer contact a surveyor for verification

91
Q

Which of the following is TRUE regarding the employees of the Georgia Real Estate Commission?
A » All employees must have an active real estate license
B » All employees must have an inactive real estate license
C » If licensed by the GREC, they must inactivate licenses
D » If licensed by the GREC, they must maintain active licenses, however renewal fees are waived

A

C » If licensed by the GREC, they must inactivate licenses

92
Q

A Georgia broker may assign different licensees affiliated with the broker to exclusively represent different clients in the same transaction. This practice in Georgia is referred to as:
A » dual agency but it is not permitted in Georgia
B » dual agency and it is a practice permitted in Georgia
C » designated agency
D » delegated agency

A

C » designated agency

93
Q

Which of the following is TRUE regarding a broker who is working with a buyer as a client and a seller as a customer when the purchase is to be financed?
A » The broker may not disclose to the seller material adverse facts about the buyer’s ability to finance the transaction
B » The broker must timely disclose to the seller material adverse facts known to the broker about the buyer’s ability to finance the transaction
C » The broker must timely disclose to the seller material adverse facts known or unknown to the broker about the buyer’s ability to finance the transaction
D » If the broker makes any disclosures to the seller about the client-buyer’s ability to finance the purchase the broker will be liable to the buyer for any losses incurred

A

B » The broker must timely disclose to the seller material adverse facts known to the broker about the buyer’s ability to finance the transaction

94
Q

Must a broker, representing a buyer as a client who is purchasing a house from a seller with whom the broker is working with as a customer, disclose to the seller whether the buyer intends to occupy the residence as a principal residence?
A » No, as the broker representing a buyer may not discuss the finances of the buyer with the seller
B » No, as the broker has a fiduciary duty to maintain the buyer’s confidentiality
C » Yes, as BRRETA requires such disclosures
D » Yes, as the Transparency in Transactions section of the Georgia license law required no secrets or confidential information between the parties

A

C » Yes, as BRRETA requires such disclosures

95
Q

A broker is working with a seller-client and the property listed for sale is located within one mile of the Dixie Speedway which is noted for late night car racing. Is the broker required to disclose the existence of the race track to the prospective purchaser?
A » No, because the existence of the race track would be discovered by the buyer with a diligent search of the neighborhood and/or available maps or government land use documents
B » No, because the broker has a fiduciary responsibility to the seller not to disclose information that would detrimental to the seller
C » Yes, because anything about the neighborhood that could be perceived as detrimental to the property must be brought to the attention of all prospective buyers
D » Yes, because anything about the neighborhood within one mile of the house that could be perceived as detrimental to the property must be brought to the attention of all prospective buyers

A

A » No, because the existence of the race track would be discovered by the buyer with a diligent search of the neighborhood and/or available maps or government land use documents

Note: Disclosure of material adverse physical conditions within a mile of the property is required when the broker has actual knowledge and the condition is not discoverable by the buyer doing a diligent inspection of the neighborhood and/or available maps or other documents. See O.C.G.A. 10-6A-5.(b)

96
Q

In Georgia, common law as applied to agency has been superseded by:
A » RESPA
B » Georgia Real Estate License Law and the rules of the GREC
C » BRRETA
D » no law has altered the common law on agency in Georgia

A

C » BRRETA

97
Q

A broker has a listing to sell a stigmatized property that was the scene of a recent suicide. The broker is aware that questions by prospective purchasers must be answered honestly, however the broker is trying to decide whether to make an affirmative disclosure of this information prior to being asked. Which of the following states the law in Georgia and follows the best practices of the GREC?
A » The broker has an obligation to disclose all adverse material facts affecting the property at the first meaningful contact with a prospect. Therefore, GREC recommends placing the fact in the listing on the multiple listing services
B » The broker has an obligation to disclose all adverse material facts prior to the first written offer. Therefore, GREC recommends placing the fact in the contract
C » The broker has no obligation to disclose unless questioned. The broker may be sued by the buyer for failing to disclose. Therefore, GREC recommends that the broker only disclose if asked
D » The broker has no obligation to disclose unless questioned. The broker should advise the seller-client that affirmatively disclosing the event to a prospect can eliminate future problems

A

D » The broker has no obligation to disclose unless questioned. The broker should advise the seller-client that affirmatively disclosing the event to a prospect can eliminate future problems

98
Q

A business owner who also owns the building in which the business is located employs a business broker to sell the business and the building. Does the business broker have to hold a real estate license?
A » No, because business brokers are an exception to the real estate license law
B » No, but only because the building houses the business being sold
C » Yes, because the business transfer involves the transfer of an interest in real estate
D » Yes, because all business brokers must hold real estate licenses

A

C » Yes, because the business transfer involves the transfer of an interest in real estate

99
Q

A broker may allow an affiliated licensee to open their own escrow account to hold trust funds associated with the affiliated licensee’s personal property. The commission will deem a property “owned” by the licensee if:
A » the deed for such property is in the name of the associated licensee only or in the name of a business owned 100% by the associated licensee
B » the deed for such property is in the name of the associated licensee only or both associated licensee and his/her spouse; or in the name of a business owned entirely by the associated licensee or the associated licensee and his or her spouse
C » the deed for such property grants more than 50% ownership to the associated licensee only or in a business in which the associated licensee has a controlling interest
D » the deed for such property shows any ownership by the associated licensee or the name of business in which the associated licensee has any interest

A

A » the deed for such property is in the name of the associated licensee only or in the name of a business owned 100% by the associated licensee

100
Q

When a Georgia licensee changes residency from Georgia to another state:
A » their Georgia license is automatically revoked
B » their Georgia license is automatically placed on inactive status
C » no action is necessary to keep and maintain the licensee as long as the GREC is notified within 30 days of the address change
D » must make application to change license status from resident to non-resident

A

D » must make application to change license status from resident to non-resident

Real Estate Study Materials (11 decks)

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