Post License Flashcards
1
Q
The mix of licensed and unlicensed members of the commission is
A
5 licensed and 1 unlicensed
2
Q
The Georgia Real Estate Commission is a team that consists of
A
six (6) members
3
Q
All members of the Georgia Real Estate Commission are appointed by ________.
A
The Governor
4
Q
Are the members of the Georgia Real Estate Commission selected by vote of the public?
A
No. It’s appointed by the governor.
5
Q
The Commission has the authority to take disciplinary action for a violation of the _____________ such as ___________.
A
license law;
suspension or revocation of a license, or extra education.
6
Q
The Commission does NOT have the authority to ___________ or _____________.
A
imprison violators or issue fines greater than $1,000 for a single violation or $5,000 for multiple violations.
7
Q
What is a condition that must be followed for a person to qualify for the innkeeper’s exemption? (regarding deposits)
A
The deposit given must not exceed the cost of the rental required for the minimum rental period.
8
Q
If a person is managing rental property that is leased and occupied for more than 90-days…
A
he must have a real estate license.
9
Q
Is it true that a person who has failed to complete the Georgia post-license requirement within the one-year period can reinstate the license so long as he/she enrolls in the Post-License Course within two years of licensure.
A
No, it’s false. But that person may reinstate the license by completing the course within six months of the lapsing of the license.
10
Q
What 3 conditions need to be true for a salesperson whose license lapses for failure to complete the post-license course to reinstate the license by completing the course within six months of the lapsing of the license?
A
(1) The licensee enrolled in the post-license course within one year of the issuance of an original license
(2) He or she paid all required fees for the course
(3) The licensee failed to complete the class requirements, can produce a medical doctor’s certificate explaining the incapacitation which caused the failure to complete the course OR shows proof that the failure was due to cancellation of the course by the approved school.
11
Q
The licensee renews the license every ___ years on the _________ by showing proof of __________ and ____________.
A
4 years;
last day of the applicant’s birth month;
completion of all continuing education requirements;
paying the renewal fee
12
Q
EACH applicant for renewal of an active license must complete _____ hours of continuing education FOR EACH YEAR OF LICENSURE.
A
9 hours
13
Q
A licensee must complete_____ hours of continuing education within each 4-year license period.
The 25-hour post-license course taken within the first year of licensure counts for ____ hours of continuing education for the first license period. So, a new licensee must only take _____ additional hours of continuing education in that first renewal period.
A
36 hours;
9 hours;
27 hours.
14
Q
If a person with a record of a previous assault conviction wants to apply for a license the Commission has the authority to grant the license if…
A
the conviction was more than 10 years before the application.
15
Q
Brokerages who agree on fixed commission amounts to charge are guilty of…
A
violating the Sherman Anti-Trust Act.
16
Q
A licensee who has been convicted of embezzlement will have his license suspended for 30 days. True or false?
A
False
17
Q
What are the 5 possible actions consequent a citation issued by the Commission to a licensee who has been convicted of embezzlement
A
(1) A reprimand or censure in the case of minor offenses
(2) Periodic reports from an independent accountant on a designated trust account
(3) Required attendance at an applicable educational program or programs
(4) Fines of up to $1,000 for a single violation
(5) Fines of up to $5,000 for multiple violations.
18
Q
Renewing a license on-line will result in…
A
a discounted fee to the licensee.
19
Q
The Real Estate Education, Research and Recovery Fund will get ___ when _________.
A
$20 when an approved real estate school activates an original license.
20
Q
All money deposited in the Recovery Fund is derived from…
A
license fees collected from licensees or from income from investing the funds
21
Q
All money deposited in the Recovery Fund is given to the state treasury or is received from the state treasury. True or false?
A
False. No money is given to the state treasury.
22
Q
When a licensee decides to leave his/her brokerage and work for another agency, the former broker…
A
must sign a release form and send it to the Commission.
23
Q
To work as an agent for a client, a licensee must have a ___________ with a client.
A
written brokerage services agreement
24
Q
What’s the difference between what a transaction broker can do for a customer or consumer, and what an agent can do for a client?
A
The difference is the transaction broker CANNOT suggest or offer a price or terms or participate in the negotiation process in any way other than carry the offers back and forth.
25
A licensee must get __________ to put a sign on the owner’s property offering it For Sale.
written permission from an owner
26
When working with two clients as a dual agent (after both clients have agreed in writing to the relationship) an agent cannot tell either side _______________ and cannot disclose the buyer’s _______ to the seller but CAN provide ______________.
what the other may accept or may pay for the property;
financial condition;
public information such as market data to either party.
27
Without a brokerage engagement, a licensee who is acting as a Transaction Broker, can facilitate and assist but can NOT...
offer a price or terms or otherwise help a buyer negotiate a good deal on a property.
28
A listing agent while representing the seller still has a duty to disclose to a prospective purchaser any _______ that the agent feels would be a significant factor to a buyer in making a decision to purchase or a seller in deciding to sell.
material facts.
29
A listing agent has a duty to seek ___________. Once a contract has been accepted the agent is not required to seek ____________ unless the client asked the agent to do so.
```
offers to purchase from ready, willing and able buyers;
additional offers (back-up offers)
```
30
An agent has a duty to disclose to his or her client ______________________.
An example would be disclosure of information to the agent’s seller-client that a person making an offer can afford to pay more. Another example would be to tell the seller who is considering an offer that another broker is bringing a higher offer tomorrow.
all information that the agent feels may be helpful or benefit, or conversely be harmful to the client.
31
Is there an agency relationship between a Landlord and a tenant?
No. A licensee can be an agent representing either a landlord or a tenant (or both, as a dual agent), but no agency exists between a landlord and a tenant.
32
Earnest Money must be deposited in...
a federally insured trust or escrow account on receipt unless the parties have agreed otherwise in writing.
33
Can a buyer give written permission for a broker to disburse all or parts of the earnest money from a trust account as a portion of the broker’s commission?
No. Both parties must sign a written agreement to allow the release of earnest money.
34
Real estate documents such as listings, buyer agency contracts, sales contracts and settlement statements must be retained in the brokerage files for at least...
3 years.
35
Do applications for loans have to be retained for three years?
No.
36
Internet advertising has to be removed from the posting within 15 days of the expiration of the listing. True or False?
False, a time is not specified by NAR. The licensee has to remove the listing within reasonable time.
37
A licensee can have an unlicensed support person with the broker’s full knowledge and permission. Does the brokerage have to have a written policy on support personnel for agents?
No, a written policy on support personnel is not required.
38
A personal assistant at Action Realty doesn’t need a license to perform many activities at the firm but is required to have a license to...
explaining simple contracts to prospective buyers.
39
What's the difference between property manager and resident manager?
The resident manager usually lives on the property. A property manager does not have to live on the property.
40
A legible copy of every written property agreement must be given to the owner at the time the owner signs the agreement. True or False?
True.
41
Is it possible for a licensee to be an employee of a brokerage?
Yes, but more often the agent is an independent contractor, working for the brokerage. In either case, the working relationship of the broker to the salespeople and associate brokers is like any office where there are rules and regulations (company policy) someone making decisions (the employer) and others obeying instructions (employees).
42
A brokerage commits a violation that could lead to a suspended or revoked license when one of its agents fails to include __________ in a listing or buyer agency brokerage services agreement. No automatic extensions are allowed.
an absolute expiration or termination date
43
A licensee promising or guaranteeing a buyer that the property will increase in value and the buyer can profit for a sale later, is committing a...
violation of License Law .
44
The _________________ provides resources to investigate complaints against licensees and provide reimbursement for damages caused by licensee misrepresentations of value or other financial damages to consumers by licensees.
Georgia Real Estate Education, Research and Recovery Fund
45
If a licensed community association manager wants to become a broker he or she must...
complete an additional 75 hours of real estate coursework – equivalent to the salesperson’s course.
46
A person who is hired by a community association to collect and disburse association dues is required to have a...
community association manager’s license.
47
When a Community Association Manager resigns or is terminated he/she has ______ days to return all records to the Community Association.
sixty (60)
48
Violating the Sherman Anti-Trust Act will result in a 5-year prison term. True or False
False. It may result in serious monetary fines, but not prison.
49
Dan and Sally purchased their first home for $95,000. They put 10% down and got a 90% mortgage. How much is the intangible recording tax on their new home?
$256.5
When calculating Intangible taxes, divide the NEW debt by $500, round up the fraction and then multiply the result by $1.50
($95,000 x 0.9 = $85,500 / $500 = 171 x $1.50 = $256.50)
50
Intangible taxes are based on the amount of...
a Mortgage Loan.
51
What is the formula for collecting a GA Intangibles Tax on NEW MORTGAGE debt?
(Deduct any assumed debt.) Divide the new debt by $500, round up the fraction and then multiply the result by $1.50 ($165,500 / $500 = 391 x $1.50 = $496.50)
52
How is the Georgia transfer tax calculated?
Multiply the sale price by .001 (1/10th percent)
$375,900 x .001 = $375.90. (Don’t deduct an original mortgage but do deduct any “assumed” loan amount from the price before calculating the tax).
53
The basic law affecting discrimination according to Race in the use or occupancy of any kind of real estate, including land, commercial and residential is...
The Civil Rights Act of 1866
54
The _____________ established the ruling that "separate but equal" was okay.
Supreme Court Case Plessy V. Ferguson in 1896
55
The 1896 Supreme Court Case Plessy V. Ferguson wasn't repealed for sixty years until the...
The Civil Rights Act of 1964
56
Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination in the sale, rental and financing of dwellings based on...
race, color, religion or national origin.
57
In 1974, Congress amended the Fair Housing Act, also known as Title VIII of the Civil Rights Act of 1968, to include prohibition of housing discrimination based on...
sex (gender).
58
Title VIII was amended in 1988 (effective March 12, 1989) by the Fair Housing Amendments Act, which expanded the coverage of the Fair Housing Act to prohibit discrimination based on ...
disability or on familial status (presence of child under age of 18, and pregnant women).
59
The agency responsible for the enforcement of the Fair Housing Act is the...
Department of Housing and Urban Development.
60
The Fair Housing Act protects a category called Familial Stratus which is any family with children under the age of 18. Denying housing to families with children is a violation of...
Fair Housing Laws.
61
A non-licensed owner with less than four properties can discriminate in all categories but ____. But no __________ can be used, and no licensee can be involved.
race;
| discriminatory advertising;
62
A shared rental apartment or living quarters is one where the required _____ of an applicant can be specified in the advertisement. But adding any other category, such as ____ or _____ in that circumstance would be a violation.
gender;
race;
religion.
63
Title 8 of the Fair Housing Act of 1968 was amended in 1988 to add two protected categories…
handicap and familial status (families with children) and handicap can mean more than physical disability.
64
Instructing a salesperson, who is an employee of the brokerage, to only show homes in minority neighborhoods to a minority client is itself a violation of the law by the broker, and a violation of...
Fair Housing Laws.
65
A bank or lending institution that has designated geographic areas of the community where it will not make loans to customers due to the blighted condition of the areas is guilty of a violation called...
redlining.
66
The process of surreptitious “testing” of a licensee’s adherence to Fair Housing laws may seem dishonest and unfair (a dirty business) but is necessary to determine...
if or when discrimination is present in a brokerage relationship.
67
Witnessing blatant discrimination is best handled as soon as possible by _________, not avoiding the issue or waiting to tell the boss.
speaking out
68
Grant sold his home for $275,650. What is the total transfer tax due on the sale?
$275.65
Multiply the sale price by .001 (1/10th percent) $275,650 x .001 = $275.65. (Don’t deduct an original mortgage but do deduct any “assumed” loan amount from the price before calculating the tax).
69
The Statute of Frauds requires that contracts involving the transfer of land or an interest in land (a lease more than a year or an easement) be ______ to be enforceable.
in writing
70
Licensees are engaged in a profession called brokerage and are not builders, surveyors, inspectors or lawyers. Therefore, licensees are advised when preparing a lease or a contract to use __________ and not try to draft legal documents.
standard forms and clauses
71
A factory-outlet store, whether located in a shopping center or at a factory is considered to be...
retail.
72
The type of ownership of an office building will affect the amount of rent being charged tenants. True or False?
False. Market conditions and competition will determine the rental rates.
73
The means by which a hazardous substance travels from its safe containment to, and then into, a human being is called an...
exposure pathway.
74
When environmental issues arise, clients invariably turn to the real estate professionals. It is a licensee’s responsibility to...
be somewhat knowledgeable of the issues and resources related to environmental concerns
75
Seller’s disclosures can be a valuable tool to assist buyers in understanding the property. But agents should advise buyer clients to...
verify all information provided by the seller and always have a professional inspection.
76
Licensees, even though referred to as agents, to stay out of trouble, should limit involvement to providing __________, not making decisions for the client.
knowledgeable assistance and giving advice to the client
77
The level of Radon that is considered elevated is described as...
4 pCi/L or greater.
78
_______ states utilize a Deed of Trust rather than a mortgage as security for a loan.
Title Theory
79
By using a _______ the borrower (Trustor) actually transfers the title to the property to the Trustee for the Beneficiary (the lender) to hold until the debt is paid off. When paid, the Trustee will record a _______, transferring the title back to the borrower.
Deed of Trust (or Trust Deed);
| Reconveyance Deed
80
Pension funds are NOT participants in the Primary Lending Market like Credit Unions, Savings Associations and Commercial Banks. True or False?
True
81
When an individual applies his experience with one member of a group to all members of the group this is known as...
Stereotyping
82
A ___________ is required by TRID to disclose the anticipated closing costs that a buyer/seller will have at a closing.
Closing Disclosure form
83
It is rarely seen but some states allow a form of ownership by married couples called _____________. The concept is derived from the religious concept that a married couple become one person. Therefore, each party owns 100% of the property.
Tenancy by the Entirety
84
The Fair Credit Reporting Act requires that lenders:
(1) Keep all credit information confidential (2) Obtain authorization from a consumer to seek the customer's credit information and (3) Reveal the sources of the credit information to the consumer.
85
The __________ provides benefits for persons selling their personal residence and/or investments by reducing the capital gains tax on the sale of property
Tax Relief Act of 1997 (TRA '97)
86
A loan that is interest only or is only partly amortized when the term is over and has a large payment at the end of the term, is called a...
Balloon Loan.
87
A __________ is neither insured by the FHA nor guaranteed by the VA. But if the amount of the loan exceeds 80% of the property’s value private mortgage insurance may be required.
Conventional Loan
88
One of the advantages of an amortizing loan is the payments (which include interest and principal) are....
the same for the life of the loan.
89
An FHA 203K Rehabilitation loan amount is determined by...
the value before rehab plus the cost of rehab or 110% appraised value after the rehab, whichever is less.
90
Loans requiring minimal documentation from the borrower usually require a...
large down payment.
91
The Funding Fee charged on VA loans is similar to the...
FHA Mortgage Insurance Premium
92
One important distinguishing feature of a VA loan is that lenders can lend four times the amount of the...
VA entitlement.
93
When a person cannot qualify for financing often the owner will agree to a __________. This is a contract where the purchaser, after paying a down payment, can move into the property under a lease and pay rent. He also has the obligation (not the option) to close on the property on or before a certain date. Title does not transfer until the end of the lease period by which time closing must have occurred.
lease purchase agreement;
94
Risk, by definition, is...
“The chance of experiencing a loss.”
95
The ultimate outcome of a decision or series of decisions is the possibility of...
risk.
96
A game room added directly onto a house with a separate central heat/AC system would be considered...
additional living area.
97
There are a number of ways to manage RISK, but three proven methods are:
avoid the risk, share the risk and transfer the risk.
98
__________ is the most often observed area of unintentional misrepresentation in real estate lawsuits, because most licensees are not skilled in floor areas, etc.
Measuring the structure of a property
99
There are many ways for licensees to transfer risk. When citing facts about a property, _____________;
refer clients to ________ to obtain specific information and, of course, have ____________ insurance.
attribute the source of the information;
public sources;
errors and omissions
100
There are three distinct age groups among “seniors.” There is the ___________ (85+), the ___________ (65-85) and the ____________ (45-65).
GI Generation;
Silent Generation;
Baby Boomers
101
This group of people is motivated to relocate due to all of these reasons
(1) Safety
(2) great ease in living and
(3) getting closer to their children
GI Generation/Silent Generation
102
Are the following items included in the estimation of the asset value basis for tax purposes:
(1) Fire insurance premiums;
(2) Rent for occupancy of the house before closing;
(3) Charges for utilities for use before closing.
No, they are not included.
103
Property that is conveyed by will receives a stepped-up basis to fair market value at the time of ________
death of the decedent.
104
A document called a ______________ is one that gives authority to another person to make financial or legal decisions on behalf of a principal.
durable power of attorney
105
A new way to view the traditional Golden Rule is...
Treat Others How They Want to Be Treated!
106
If a person stands 4 feet away from you when talking to you, it probably indicates that she __________
likes that much personal space.
107
Diversity can be either a good thing or a bad thing, depending on...
how your organization chooses to treat it.
108
Examples of unequal references include White and Hispanic or...
Caucasian and Black
109
A person must have a Georgia real estate licensed when representing _____________ in selling the _________ in exchange for________.
a/an (unrelated) property owner;
property owner’s home;
compensation.
110
Members of the Real Estate Commission in Georgia are appointed by
the Governor.
111
A Member of the Georgia Real Estate Board is appointed for a...
five (5) year term
112
There is one Member of the Real Estate Commission who comes from...
the general public and does not have a real estate license.
113
The basic responsibility of the Real Estate Commission _____________. It is NOT the responsibility of the Commission to represent the RE industry.
is to protect the public through the licensing and regulating of licensees.
114
A company that charges a fee to help individuals exchange properties MUST HAVE a real estate license. True of False?
True
115
A licensee cannot allow a non-licensed assistant to negotiate with buyers or pay an unlicensed assistant a sales commission based on sales activities. True or False?
True
116
When an applicant has passed the licensing exam he/she has ____ months to apply for a license.
AFTER getting the license the licensee has ______ months to finish and receive credit for completing a Post License Course.
three (3);
| twelve (12)
117
A salesperson must have taken and passed a ____ hour broker course, passed a state broker license exam AND held an ACTIVE sales license for at least _____ years when applying for a broker’s license.
sixty (60);
| three (3).
118
After receiving a Georgia Salesperson’s license, the licensee has exactly __________ to finish and receive credit for completing a Post License Course.
twelve (12) months
119
A licensee whose license has lapsed for failing to complete the Post License Course or failing to renew the license as required and the license has been lapsed for more than two years and less than five years can...
request reinstatement but will have to retake the pre-license course.
120
Licenses must be renewed every ___ years with credit for ___ hours of Continuing Education. Since the Post License course provides credit for ___ hours of CE, the remaining requirement for the first renewal period is ___ hours.
4;
36;
9;
27
121
A GA licensee can relocate to another state and become a ______ GA licensee. But if she/he becomes actively licensed in the new state the ______ license is terminated and he/she will have to apply for a ______ license.
Non-resident;
non-resident;
reciprocal.
122
```
Whenever an affiliate joins a firm, a written _________ is required.
It should contain, at the least:
(1) _________
(2) _________
(3) _________
```
Employment agreement;
1) How the licensee is to be compensated while working for the broker;
2) How the licensee will be compensated for work begun but not completed if the affiliation ends and
3) What accounting will take place for listings, records, signs, prospects, plats and keys when the affiliation ends.
123
An applicant with a prior record of criminal activity must provide the necessary information so the Commission can get...
an FBI report.
124
Whenever an applicant submits an original application on paper for licensure, the Commission must maintain the paper record for a period of...
15 years.
125
The Universal strategy for managing risk is...
education.
126
A licensee with a written brokerage services agreement with a client needs to maintain ________ of any information that would not be beneficial to the client’s interest. But he/she owes the client ________ of information learned relative to the transaction that would be beneficial to the client.
confidentiality;
| disclosure.
127
A property manager who maintains property and collects rent ______ a license.
does not need
128
A property manager who conducts or participates in negotiating leases...
must be licensed as a real estate salesperson or broker.
129
What are the duties a broker with an engagement agreement with a seller has under BRRETA?
Exercise reasonable skill and care in performing the duties under the law in Georgia AND Comply with all requirements of BRRETA, as well as all applicable statutes and regulations, including but not limited to fair housing and civil rights statutes.
130
When a licensee with agency agreements with a seller and a buyer find that the buyer-client wants to make an offer on the seller-client’s home the brokerage must obtain...
written consent to DUAL AGENCY from both parties to be able to represent both parties in the transaction.
131
When a licensee with agency agreements with a seller and a buyer find that the buyer-client wants to make an offer on the seller-client’s home the brokerage must obtain written consent to DUAL AGENCY from both parties to be able to represent both parties in the transaction BUT neither party is required to...
consent to DUAL AGENCY.
132
When two licensees in a brokerage, one representing a seller and one representing a buyer find that the buyer-client wants to make an offer on the seller-client’s home the broker may establish each agent as a __________ to act solely in the interest of that agent’s client. The broker will be a _________.
DESIGNATED AGENT;
| dual agent.
133
All licensees when acting as transaction brokers, must treat all consumers, customers and clients honestly and fairly, and disclose _________ (defects, etc.) that are known to the licensee about the property.
material facts
134
There is no obligation to disclose everything that the licensee knows about a property or the owner of the property if the licensee is not acting under a ___________.
brokerage services agreement (agency relationship).
135
Security deposits must be held in ___________ in a separate _____________ specifically for that purpose.
trust for tenants;
| escrow account.
136
An individual who owns and manages property can post a bond rather than maintain a trust fund. True or False?
True.
137
A licensee who owns rental property can post a bond in lieu of maintaining the security deposits in a designated trust account.
True or False?
False. A licensee cannot post a bond in lieu of maintaining the security deposits in a designated trust account.
138
A broker with a trust account must maintain an ____________, whether sophisticated or not, to detail all account __________.
accounting system
| deposits and disbursements.
139
When does a broker have to deposit all funds received on behalf of principals?
As soon as possible after receipt.
140
If a non-resident licensee has a trust account in Georgia he or she _____ have or maintain another trust account in his or her state.
CANNOT
141
When a buyer client believes that the seller lied to him about the condition of the property he is purchasing and asks for a refund of his earnest money, the buyer’s agent should immediately _______.
involve his/her supervising broker in the situation.
142
Items included in advertising for licensee-owned property must include the fact that the owner is ___________.
a licensed real estate broker or sales person.
143
The language in advertising regarding housing needs to be very generic and carefully selected to avoid violating ____________. The phrase “mature persons” implies that children are not welcome, a violation based on _________.
The Fair Housing Law;
| familial status.
144
If the name of the brokerage firm appears only once at the top of an advertisement in equal or greater prominence and print size than any of the listing agent's names, the advertisement is...
compliant with advertising laws.
145
Without a license, an unlicensed support personnel may perform only ____________ and may NOT perform any of the duties and tasks that require a _____________.
clerical or ministerial duties;
| real estate license.
146
Among other duties, without the direct supervision of a licensee affiliated with a broker, an unlicensed support personnel may...
answer the phone, assemble documents for closings, or check on the status of a loan commitment after a contract has been negotiated.
147
A Georgia property management agreement should be a clear statement outlining _________ and specifying __________. (This part should address duties such as rent collection, employee supervision and training, repairs to the property, etc.)
the duties and responsibilities of the manager;
| the manager’s authority.
148
Occasionally a client will want to express thanks for a job well done by giving the agent a bonus. When this happens, the money must be delivered to ________ who can reward the agent in accordance with company policy regarding gratuities.
the Broker
149
A False statement that may cause the rescission of a contract or even result in damages is __________________.
misrepresentation.
150
A broker or an agent of a brokerage who mishandles, co-mingles or otherwise violates license law regarding trust funds may be punished in many ways, including ______________ but NOT with ______________.
license suspension, revocation or monetary fines;
| imprisonment.
151
A person may feel discriminated against if denied housing, but unless the denial involves one of the _______________ , there is no violation. A Hispanic woman with a child who is a lawyer and is denied housing because she is a lawyer has not been discriminated against.
seven protected categories
152
If the brokerage is not in the Multiple Listing Service where commission-sharing is a contractual requirement, there is no law or rule mandating that a commission ____________ in any amount. All commissions are ___________.
must be shared;
| negotiable.
153
Is there any requirement that the seller must attach an inspection report to a listing agreement?
No. There is NO REQUIREMENT that the seller must attach an inspection report to a listing agreement. Inspections are typically carried out by buyers.
154
License law requires that all brokerage service agency agreements have a clearly defined _________. An automatic renewal clause in a listing agreement would be _______.
termination date;
| illegal.
155
If a licensee is subject to a hearing before the commission and is not satisfied with the result, he can...
request a rehearing or a judicial review.
156
Hearing can be held _____________, not necessarily in the licensee’s county of residence.
wherever the Commission wants to meet
157
The Georgia Real Estate Education, Research and Recovery Fund exists to ______________ suffered by _____________ due to misconduct or deliberate unprofessional actions by ______ who complain to the Commission or win judgements in a court of proper jurisdiction.
reimburse monetary damages;
consumers and clients;
licensees
158
Of the initial license fee paid by a licensee, ______ will be allocated to the Real Estate Education, Research and Recovery Fund.
$20.00
159
Money deposited in the Real Estate Education, Research and Recovery Fund can be used to conduct research on computer hardware.
True or False?
False
160
Brokers who never handle more than ______ in trust funds at one time are exempt from having to carry Fidelity Insurance.
$60,000
161
___________ are associations of homeowners within certain subdivisions, townhouse developments, condominium complexes, cooperatives, or other planned developments and are designed to:
Community associations;
(1) preserve and improve the homes and property within that development
(2) enforce covenants for the community.
162
Individual violators of the Sherman Antitrust Act can be fined up to ________ for each offense.
$350,000
163
The Georgia Fair Business Practices Act, or FBPA deals mostly with ____________.
fraudulent or otherwise misleading advertisements.
164
When an agent has entered into a written brokerage services listed agreement that stipulates that the agent will sell the house for as much as possible, the seller will a get a fixed amount of net proceeds and the agent will keep the remainder as his/her commission it is an illegal agency arrangement called a ________.
Net Listing.
165
The clause used to safeguard the broker from unscrupulous buyers or sellers, who would take the broker’s generated leads, but then buy or sell the property once the listing agreement has expired to avoid paying the commission to the licensee is known as an ______________.
Extender Clause or Carryover Clause.
166
A home sold for $375,900. The buyers obtained a mortgage for $305,750. What will the transfer tax be on this sale?
$375.90
| To determine a transfer tax multiply the contract price by 1/10 of One Percent (.001) $375,900 x .011 = $375.90
167
A tenant can sign a lease that has language stating that the tenant waives his right to return of the security deposit. Is the lease enforceable? Is that clause enforceable?
While the lease is enforceable, that particular clause is not enforceable.
168
Alex bought a condo for $110,750 and put $11,500 down. What would the intangible recording tax be?
$298.5
Divide the new loan amount, not the price (and don’t include assumed loan amounts) by 500 then multiply the result by $1.50. ($110,750 - $11,500 = $99,250 / 500 = (198.5 round up to 199 x $1.50 = $298.50).
169
When a Fair Housing Complaint is filed it may be tried...
(1) in Federal District Court
(2) before a HUD administrative judge or
(3) in State Court
170
Familial Status, Handicap, and Religion are three of the seven protected categories under _________
Fair Housing Law.
171
Under Federal and Georgia Fair Housing Laws there are SEVEN protected categories of people. They are:
Race, Religion, National Origin, Color, Gender, Familial Status and Handicap.
172
An agent who refuses to show property to someone who is not financially qualified to buy has ________ Fair Housing Laws.
NOT violated
173
People are often engaged to “test” or “check” a licensee’s approach to consumers when selling homes. “______” or “_______” is a standard procedure by HUD or other public and private entities (which are interested in enforcing _____________).
Testing;
Checking;
Fair Housing Laws
174
When someone in a Fair Housing protected class is treated differently or unfairly when seeking to purchase, sell, rent, occupy or finance housing they have been a victim of ___________.
discrimination.
175
Most states require that rental agreements that are longer than a year be ________ to be enforceable.
in writing
176
Property managers and agents should require every applicant for a lease to provide _____________ including credit histories. Then the information provided should be researched and verified before ____________.
references and background information;
| signing a lease
177
Listing undeveloped property requires knowledge of matters such as
(1) ____________
(2) ____________
(3) ____________,
among other potential problems for the buyer.
(1) Wetlands
(2) Endangered species
(3) Water supply sources, and storage tanks, both above and underground,
178
Every buyer must be notified that a resident property may present exposure to lead from lead-based paint if the property was built prior to ______.
1978.
179
Radon is a problem where there are ________.
basements
180
Radon is only a problem in newer homes. True or False?
False. It is NOT true that Radon is only a problem in newer homes.
181
The financing instrument that pledges the real property as collateral for a debt that is described in the note is known as a _______ and is filed as a _________ against the title.
Mortgage;
| lien, or cloud.
182
Documents, which provide full disclosure of any special requirements from, restrictions on, or liabilities incurred by the borrower, are known as...
Riders.
183
A ___________ is a financing instrument that does not require a judicial foreclosure in case of default by the borrower. A _________ would require a judicial foreclosure proceeding.
Deed of Trust;
| Mortgage
184
A loan that will be gradually paid off in equal payments over a set number of years is referred to as a...
Fully Amortizing Loan.
185
A loan where only interest is charged with all the principal paid in a “balloon payment’ at a future date is a...
Straight Loan.
186
There are documentation and underwriting standards set by Fannie Mae & Freddie Mac. Any loan that falls outside those standards is considered to be a...
Non-Conforming Loan.
187
Loans which require minimum documentation or no documentation, usually have a...
large down payment.
188
A ____________ is charged on 30-year FHA loans where the debt is greater than 80%. The fees are usually ______ up front and ___ annually.
Mortgage Insurance Premium (MIP);
1. 5 points;
0. 5%.
189
Under the Tax Relief Act of 1997 (TRA ’97) there is an exemption from capital gains tax on profit from the sale of a personal residence of up to _______ for a couple and _______ for a single person
$500,000;
| $250,000.
190
About two-thirds of ___________ will buy houses when they decide to downsize.
older sellers
191
The first step in the process of making decisions is to__________.
identify all the alternative decisions that could be made.
192
The best way to “manage” risk is not to avoid risk but to _____________ concerning the risk.
become educated
193
When responding to a request that you recommend lenders, inspectors, surveyors and other service providers, a licensee should _____________________ before deciding about which provider(s) to recommend.
consider all the alternatives and their consequences
194
The Silent Generation refers to people who were born between ______________. There are several theories as to where the label 'Silent Generation' originated. The children who grew up during this time worked very hard and quiet and generally very successful, in most cases finding themselves in a much better financial position than their grown children.
1925 and 1945
195
Baby boomers are the demographic group born during the post–World War II baby boom, approximately between the years _______. They are the most likely to be looking for second homes.
1946 and 1964
196
In a business situation, it’s important to use ___________ of the other person’s culture
the accepted protocol
