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GA Real Estate Sales License > Mid Term Quick Learn > Flashcards

Mid Term Quick Learn Flashcards

1
Q 
Which of the following is NOT considered to be an economic characteristic of land?
Scarcity
Improvement
Location (Situs)
Immobility
A

Immobility

Economic characteristic affect the VALUE of land are (SIPA) Scarcity, Improvements, Permanence of investment and Area of preference (location)

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2
Q

Which of the following actions COULD MOST LIKELY create an implied agency relationship?

  1. A broker shows several properties to a customer
  2. A broker orally agrees to find a buyer for a friend’s home for no commission
  3. A broker and seller sign a listing agreement
  4. A broker manages a client’s rental property
A
  1. A broker shows several properties to a customer

Implied agency is an agreement that is implied by actions not written. Occurs when the parties act as though they have mutually consented to an agency, even if they have not entered into a formal agreement. In this example, if the sales associate agrees to show a buyer a house the implication is they’re are acting as the agent for the buyer….implied.

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3
Q 
Type of real property ownership that could combine severalty and tenancy-in-common is:
A cooperative
A condominium
Joint tenancy
Tenancy by entirety
A

A condominium

In a condominium, unit owners own the common elements as tenants in common. A condominium can also be owned in Severalty because the unit can be owned by one individual as a sole owner.

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4
Q

(Actual Definition)
The legal presumption regarding a parcel of real estate that information has been obtained through due diligence in searching the public records and inspecting the property is called:

Actual notice
Priority
Constructive Notice
Delivery and acceptance

A

Constructive Notice

A document placed in the public record serves as notice to the world of an individuals right or interest in the property.

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5
Q 
The process by which private homes on adjacent property are taken to expand an airport is:
Eminent domain
Escheat
Adverse possession
Condemnation
A

Condemnation

Government agency takes private property for public use and compensates the owner. Private homes are private property and an airport is for public use.

Eminent domain is the name of this “right” and Condemnation is the actual process of taking property.

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6
Q

In a deed, which of the following is TRUE?

1) The grantee is the seller
2) The grantee can be a minor
3) The grantor records the deed
4) The grantor is the buyer

A

2) The grantee can be a minor

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7
Q

Which of the following are NOT necessarily appurtenances that pass with the transfer of real property?

Easements in gross
Fixtures
Property improvements
Water rights

A

Easements in gross

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8
Q 
An estate in land that lasts for an indeterminable length of time, such as a lifetime or forever.
Life estate
Leasehold estate
An estate in trust
Freehold estate
A

Freehold estate

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9
Q

An example of an executory unilateral contract is:

1) A purchase and sale agreement before closing
2) A lease after all parties have signed, rent has been paid and the tenant occupies the unit.
3) An exclusive agency listing agreement before a ready, willing and able buyer is procured.
4) An option that has not yet been exercised by the optionee

A

4) An option that has not yet been exercised by the optionee

Use accident insurance for example. After a fender bender, the insured has an option. As the optionee I have the “option” to use my insurance coverage to pay for damages or pay out of pocket. A unilateral contract is a one sided agreement. pg. 200 The optionee pays a fee of consideration for the option right, and must decide whether to exercise the option or allow the option to expire.

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10
Q

Which of the following practices would NOT be considered a violation of antitrust laws?

1) A broker who agrees to cooperate with competitors in establishing a standard rate of commission
2) Two brokers who agree not to do business with another brokerage company because they consider that company’s business practices to be unethical
3) A salesperson who indicates to a potential seller client that he should not consider listing his property for less than the going rate of commission because no one will show his home.
4) A broker who requires that the independent contractors within his company follow set rate of commission without deviation.

A

4) A broker who requires that the independent contractors within his company follow set rate of commission without deviation.

1) Price-fixing
2) Group Boycotting
3) Price-fixing

Antitrust violations include: price-fixing, group boycott, allocation of customers, allocation of markets and tie-in-arrangements.

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11
Q

A seller has accepted a purchase contract on the property for $80,000. Your client buyer wants to make an offer for $85,000. You should:

1) Tell your buyer the property is already under contract and you cannot present the new offer.
2) Make sure the new offer is contingent on the first offer not closing and then present it to the seller’s agent.
3) Encourage the seller to break the $80,000 contract and accept the new $85,000 offer.
4) Hold the new offer and present it only if the first contract does not close.

A

2) Make sure the new offer is contingent on the first offer not closing and then present it to the seller’s agent.

The seller cannot break an accepted contract.

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12
Q

Ch. 3 The terms “remainder” or “reversion” are associated with which of the following types of estates:

1) Fee simple absolute
2) Legal life estates
3) Defeasible fee estates
4) Conventional life estates

A

4) Conventional life estates

Conventional Life Estate breaks into two parts

1) Ordinary Life Estate with Remainder or Reversion
2) Pur Autre Vie with Remainder or Reversion

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13
Q

The deed says that a property is held in severalty. This means that the property is owned by:

1) One person or entity
2) Two or more people
3) The grantor’s two children
4) A spouse before a divorce

A

1) One person or entity

Severalty means to sever yourself from the others, severalty means one.

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14
Q

When two people each have 100% ownership of a property, they are:

1) Life estate tenants
2) Tenants by the entirety
3) Joint tenants
4) Tenants in common

A

2) Tenants by the entirety

Allows a spouse to inherit the other spouses ownership upon death. Each spouse has an equal, undivided interest in the property. Early common law view a married couple as one. Spouses are tenants by entirety and have the right of survivorship.

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15
Q

An adult buyer who is illiterate signs a contract to purchase property from a seller. They buyer understands the nature of the contract because the terms were explained orally. Is the contract binding?

1) Yes, because the buyer understands the terms of the contract
2) Yes, because all adults are considered legally competent
3) No, because the buyer is illiterate and, therefore, legally incompetent
4) No, because a guardian must sign for the buyer

A

1) Yes, because the buyer understands the terms of the contract

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16
Q 
Which of the following is a physical characteristic of land?
Destructibility
Mobility
Scarcity
Uniqueness (non-homogeneity)
A

Uniqueness (non-homogeneity)

(IIU) Immobility, Indestructibility and Uniqueness

17
Q

To create joint tenancy, four “unities” are needed. Which of the following is NOT one of them?

Unity of interest
Unity of survivorship
Unity of possession
Unity of time

A

Unity of survivorship

To create Joint Tenancy PITT is needed:
Possession
Interest 
Time
Title
18
Q

The statute of Frauds:

1) Requires real estate contracts and deeds to be in writing in order to be legally enforceable
2) Protects the public with real estate licensing laws
3) Requires licenses to disclose property defects to prospective buyers
4) Protects lenders from dishonest appraisers

A

1) Requires real estate contracts and deeds to be in writing in order to be legally enforceable

19
Q 
A permanent, physical reference marker used to establish elevations and altitudes above sea level:
Benchmark
Datum
Monument
POC
A

Benchmark

20
Q

A provision added to an existing contract without altering the content of the original. Must contain a reference to the original contract and be signed by all parties.

Addendum
Amendment
Reversion
Remainder

A

Addendum

21
Q 
The obligations an agent owes to a customer include all of the following EXCEPT:
Reasonable skill and care
Confidentiality 
Disclosure of material facts
Honesty
A

Confidentiality

22
Q

A parcel of property is described as follows: Starting point running north 2,200 feet the pin, running east 1,500 to the pin, running south 2,200 feet to the pin running west to the point of beginning. Approximately how many acres are contained in this parcel of land?

A

76

Solve for area (LxW) first…
1500 X 2200= 3,300,000

Take the area and divide by acres (43,560)
3,300,000/43,560 = 76

23
Q

Units and Measurements:

Mile
Square Mile
Acre

A

Mile: 5,280 ft
Square Mile: 640 acres
Acre: 43,560 sq ft

24
Q

A minor signed a written sales contract to purchase a parcel of property from an adult seller. After the contract was signed, the seller learned the buyer was a minor and declared the contract void. Is the seller’s action permissible?

  1. Yes, the buyer is not competent and the seller can declare the contract void.
  2. Yes, the buyer violated the Statute of Frauds by not disclosing his age
  3. No, in this situation, only the buyer could void the contract
  4. No, both the buyer and seller would have to agree to void the contract
A
  1. No, in this situation, only the buyer could void the contract
25
Q

A co-owner of a property held in joint tenancy conveyed his interest to a buyer by general warranty deed without obtaining the signatures of the other joint tenants. Which of the following is TRUE?

1) The general warranty deed conveyed the ownership interest of all joint tenants
2) The rights of the other co-owners were not transferred by the general warranty deed
3) Owners in a joint tenancy cannot convey their interest without the consent of all co-owners
4) The warranty deed made no warranties to the new buyer

A

2) The rights of the other co-owners were not transferred by the general warranty deed

26
Q

The survey that uses the terms “range lines”, “township”, and “sections” is the:

Lot and block survey
Metes- and-bounds
Government survey
Cartographic survey

A

Government survey

27
Q 
The legal remedy of terminating a contract and restoring the parties to their original position prior to contract is called:
Default
Rescission
Reversion
Assignment
A

Rescission

28
Q 
Fructus naturales is classified as:
Non-transferable property
Personal property
Intangible property
Real property
A

Real property

29
Q

Which of the following relationships BEST describes a general agency?

  1. A broker working for a buyer
  2. A broker working for a seller
  3. A broker working for an owner as a property manager
  4. A broker working for both a buyer and a seller in the same real estate transaction
A
  1. A broker working for an owner as a property manager
30
Q

A builder has seven homes under construction and hires a real estate agent to find buyers for two of them. The type of agency relationship established was MOST LIKELY a(an).

Dual agency
General agency
Special agency
Universal agency

A

Special agency

Dual agency-represents two principals in the same transaction
General agency- represents in a broad range of matters
Special agency-limited for one specific act
Universal agency-power of attorney

31
Q

An owner transfers property to a buyer with a special warranty deed. Which is these is TRUE:

  1. The owner is making additional warranties beyond those given in a warranty deed.
  2. The property is Torrens property
  3. The owner is warranting that no encumbrances have ever been placed against the property that have not been satisfied or released.
  4. The owner warranties are limited to the time he owned the property.
A
  1. The owner warranties are limited to the time he owned the property.

Only a general warranty deed warrants the property from the time of its origin. In a special warranty deed, the title is transferred by warranting that the grantor received title and the property was not encumbered during the time the grantor held title.

32
Q

A fee simple DETERMINABLE estate involves all of the following EXCEPT:

  1. A special limitation described with words such as while, during, or so long as.
  2. Automatic transfer of title if the special limitation is violated.
  3. The former owner retains a possibility of reverter
  4. The former owner retains a right of reentry, which requires court action to assert.
A
  1. The former owner retains a right of reentry, which requires court action to assert.

If the limitation is violated, the holder of the possibility of reverter (or heir or successor) can require full ownership with no need to bring a legal action in court. The title is automatically transferred to the person who holds the possibility of reverter.

33
Q

An Administration Law Judge (ALJ) can impose a penalty for a first-time violation of the Fair Housing Act up to:

$16,000
$70,000
$50,000
$100,000

A

$16,000

34
Q

P.351 EXEMPTIONS from the Fair Housing Act include all the following EXCEPT:

  1. Rentals in owner-occupied buildings with no more than four units.
  2. Housing operated by non-discriminating private clubs that limit occupancy to members
  3. Violations based on race
  4. Single-family homes when fewer than 3 homes are owned by that owner, discriminatory advertising is not used, and a real estate professional is not involved in the transaction.
A
  1. Violations based on race
35
Q

Abstract of title can BEST be described as:

  1. A marketable title that has no serious defects
  2. A summary report of what the title search found in the public records
  3. A search of public records to determine whether any defects exist in the chain of title.
  4. A certificate used to prove ownership
A
  1. A summary report of what the title search found in the public records

The abstract of title is a summary report that includes transfers, grants, wills and conveyances, liens and encumbrances. It also provides any evidence or proof of satisfaction or other facts or information pertinent to a piece of property.

36
Q 
How many feet are in ten miles?
43,560
5,280
435,600
52,800
A

52,800

miles x 10
5,280 x 10= 52,800

37
Q 
A device by which a person transfers ownership of property to someone else to hold or manage for the benefit of a third party is a:
Deed
Trust
Title
Cooperative
A

Trust

GA Real Estate Sales License (37 decks)

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