Georgia Exam Prep: Real Estate Practice

Question 1

After a fierce bidding war with three other potential buyers, the Carsons enter into an agreement that includes $2,000 earnest money. When the sale is later terminated, the earnest money goes to ______.

Answer 1

The purchase agreement terms determine which party gets the earnest money if the contract falls through.

Question 2

Suppose your buyer clients has failed to perform the duties set out in the GAR Exclusive Buyer Brokerage Agreement form. What does the form provide for in such circumstances?

Answer 2

The agreement provides that you’ll find a mutually agreeable arbitrator to help you resolve disputes. The arbitrator’s decision will be final, and the arbitrator will have the authority to include attorney’s fees or any other arbitration costs in the final decision and award.

Question 3

Kristin is going over an exclusive buyer brokerage agreement with potential buyer client Beau. Which of these is NOT a feature of the agreement?

Answer 3

Resolving issues or disagreements is not a feature of an exclusive buyer brokerage agreement.

Question 4

What is a binder?

Answer 4

A written outline of the sales transaction

Question 5

Within a brokerage, who’s responsible for supervising a team’s unlicensed personal assistant?

Answer 5

The broker is responsible for supervising the day-to-day activities of all brokerage locations, and all licensees and unlicensed personnel associated with the broker.

Question 6

How long does a broker have before notifying the commission that a trust fund account has been established?

Answer 6

30 days

Question 7

What’s a major disadvantage of a non-exclusive buyer brokerage agreement?

Answer 7

The disadvantage of of a non-exclusive agreement is that agents are more likely to put your needs behind those of their clients who have signed exclusive buyer brokerage agreements with them.

Question 8

What does the Exclusive Buyer Brokerage Agreement state about dual agency?

Answer 8

Buyers don’t have to consent to dual agency.

Question 9

A good offer must contain three elements

Answer 9

an adequate description of the property, a proper method of payment, and any special stipulations that express the conditions that the prospective buyer wants to include.

Question 10

If the buyer stops payment on a check or if the bank returns the check for insufficient funds, Georgia law says this contract is

Answer 10

still enforceable, which sellers may find problematic.

Question 11

When the buyer breaches the contract, the earnest money often serves as

Answer 11

liquidated damages for the seller and the listing broker, who’ve spent time, effort, and money to market and try to sell the property.

Question 12

The broker as dual agent will disclose all known adverse material facts pertinent to the transaction to all parties EXCEPT

Answer 12

CONFIDENTIAL INFORMATION

Question 13

it is a broker who works in an agency capacity with both the buyer and the seller (or lessor and lessee) in the same transaction.

Answer 13

A dual agent

Question 14

Agency agreements with unspecified termination dates end in ___________, per BRRETA.

Answer 14

one year

Question 15

Barb is a qualifying broker in Georgia. She must ensure that all contracts prepared by her licensees are reviewed ______.

Answer 15

within 30 days

Question 16

Sub-agency is a legal form of agency in Georgia, ______.

Answer 16

but is barely used

Question 17

a real estate licensee who provides real estate services to a buyer while actually representing the seller in a real estate transaction

Answer 17

subagent

Question 18

What does UDTPA stands for?

Answer 18

the Georgia Uniform Deceptive Trade Practices Act. it addresses price fixing and other deceptive practices that restrict free trade competition.

Question 19

it engage a broker as a seller client’s sole agent, and the seller agrees to pay the broker a commission regardless of who finds a buyer or lessee, even if it’s the seller himself. This is the most common listing agreement.

Answer 19

Exclusive right-to-sell listing agreements

Question 20

it engage a broker as a seller client’s sole agent, but if the seller sells or leases the property without the agent’s help, the seller has no obligation to pay a commission to the listing broker. If another licensee brings the buyer, the seller will owe a commission to the listing broker.

Answer 20

Exclusive agency listing agreements

Question 21

In this type of agreement, the seller may retain one or more brokers and still maintain the right to sell or rent the property without a broker’s help and avoid paying a commission to the broker(s). If a broker brings the buyer to the transaction, that broker will receive a commission.

Answer 21

open listing agreement

Question 22

it permit the seller to set a specific amount for the property sale or rental. The broker gets to keep any amount over that set amount. These listings can create conflicts between the client’s interests and the broker’s self-interest, so they’re illegal in Georgia, as well as in many other states.

Answer 22

Net listing agreements

Question 23

it gives the broker the right to a commission when the property sells after the agreement terminates if the buyer was exposed to the property during the listing agreement’s term

Answer 23

The safety clause,

Question 24

it declares that the seller owns the property and has title to it

Answer 24

The seller warranty

Question 25

it is an agreement to cooperate with the broker by referring all sale-related inquiries to the broker during the agreement term period

Answer 25

Seller cooperation clause

Question 26

When it comes to special stipulations

Answer 26

handwritten provisions supersede typewritten provisions, which supersede preprinted provisions.

Question 27

The listing agreement engages two parties:

Answer 27

the seller (aka the principal) and the broker (the agent).

Question 28

A listing agreement that involves both a broker and the broker’s sales associate comprises two agency relationships:

Answer 28

one between the broker and seller and one between the broker and the sales associate.

Question 29

According to Georgia license law, only a broker has an agency relationship with

Answer 29

the seller. So, although a sales associate may find the seller who signs the listing agreement, the listing is a contract between the seller and the broker.

Question 30

Sales associates should make written disclosures to both the broker and the client during the sale process, such as:

Answer 30

Comparative market analyses
Names of buyer prospects
Copies of all ads and marketing materials
Statuses of offers and counter-offers

Question 31

Sales associate duties for the seller client include:

Answer 31

.Creating advertising
. Showing the property
. Communicating with other licensees
. Negotiating with prospective buyers
, Maintaining the seller’s confidential information
. Treating all parties with fairness and honesty

Question 32

Sellers don’t need to disclose that the property:

Answer 32

. Was ever occupied by someone who had a disease

. Was the site of a murder, suicide, accidental or natural death, or a felony

Question 33

Potential buyers need to know ahead of time all of the costs associated with the property in order to make an informed decision as to the property’s overall affordability. These costs include:

Answer 33

Property taxes
Insurance premiums
Utility fees
Mandatory association fees

Question 34

The Property Management Contract must have an

Answer 34

offer and acceptance,
 consideration,
reality of consent, 
legality of object, 
and competent parties

Question 35

The Property Management Contract should include

Answer 35

The competent parties’ names and signatures
A property description
The agreement’s term
The property manager’s responsibilities
The owner’s responsibilities and obligations
Compensation for management services

Question 36

Condominiums are regulated by

Answer 36

state law and can be any type of property.

Question 37

Two different forms of ownership interests in a condominium exist:

Answer 37

1 Units are distinct segments of space to which each owner holds fee simple title individually from all the other owners.
2 Common elements belong to all the owners, such as the lobby, gym, clubhouse, stairwells, etc.

Question 38

Which clause in the sales contract says that all dates in the contract are strictly enforceable?

Answer 38

Time is of the Essence

Question 39

Which section of the sales contract says that certain unmet obligations will continue or be completed even after closing?

Answer 39

Survival of the Agreement

Question 40

Francine moved out of the Georgia property she was renting, and she left it in pristine condition when she returned the keys. How long after she moves out does the property manager have to return her security deposit?

Answer 40

One month