Post License Flashcards
A licensee who acts on behalf of a broker is a(n)
associate broker
Which of the following statements about the chairperson of the Real Estate Commission is TRUE?
Commission members appoint their own chair person every year
A Georgia broker may share a real estate commission with an out-of-state broker if
out-of-state broker is acting as a referral agent involving only the referral of one person to another.
Which of the following statements is TRUE concerning affiliation of a Georgia broker with an out of state licensee?
The licensee may sell Georgia real estate only on behalf of the Georgia broker.
A ministerial act is one that
may be performed by a licensee’s employee.
In the case of a revocation, the person is not allowed to apply for a new license for a minimum of:
10 years
A person who auctions real estate is considered
a broker
Mae is a nonresident licensee affiliated with Georgia-licensed broker Mabel. What happens to Mae’s license if the affiliation with Mabel is terminated?
It terminates unless put on inactive status or Mae affiliates with another broker within 30 days.
A nonresident broker may conduct real estate brokerage business in Georgia without obtaining a Georgia license if
the nonresident broker has a written agreement with a Georgia broker for each transaction.
For how many firms may a broker serve as managing broker at any one time?
No limit
The Commission must retain paper or electronic licensing application records for a period of
15 years
If an application for a salesperson or community association manager license omits the signature of an employing broker,
An inactive license will be issued
Under which condition might the Commission choose to extend a renewal without the licensee having to pay the required fees?
A licensee living in a designated disaster area suffers uninsured damage to his home.
Which one of the following will result in a $100 fee by the Commission?
Submitting a check that is returned unpaid
If a license has been lapsed for longer than 10 years for nonpayment of a renewal fee, what must the licensee do to reinstate it?
Take the pre-license course and pass the license exam
If an applicant requests a hearing after the Commission has refused a license, where will the hearing be held?
In the county of domicile of the Commission.
If a licensee is convicted of an offense named in the license laws, what happens to the license?
It is automatically revoked after 60 days unless the licensee requests a hearing
Mary’s inactive license lapsed when she failed to pay a renewal fee. She can reinstate it to active status by paying required fees and completing continuing education courses if
the license has been on inactive status for less than two years.
An application for a Commission action regarding a license may be submitted by fax, provided
it does not require payment of a fee
When must an applicant for licensure obtain a criminal history report?
Within 60 days of applying for a license
If an otherwise qualified broker applicant applies for the license eight months after completing the examination,
the license will be issued
Unless the brokerage agreement contains instructions to the contrary, after presenting a letter of intent to lease, the landlord’s broker must
continue to present all offers to lease
A broker in Georgia has a fiduciary duty to
No one
Those facts that a party does not know, could not reasonably discover, and would reasonably want to know, are known as:
Material facts
What is the name of the Georgia law that governs the agency relationships of brokers with sellers, buyers, landlords and tenants of rights and interests in real property?
BRRETA
A buyer’s broker can NOT be held liable for revealing the buyer’s information if
the disclosure was required by law
If a tenant client informs his broker that certain financial facts are confidential and then proceeds to reveal them to a landlord,
the broker has no further duty to keep the information confidential.
A brokerage engagement must disclose all of the following EXCEPT
the broker’s marketing budget for the engagement.
Unless otherwise indicated in the contract, a brokerage engagement terminates
one year after the beginning date of the agreement
Which of the following will invalidate a brokerage engagement contract?
lack of an expiration date
A brokerage engagement includes
the client’s promise to pay the broker or allow payment to the broker.
A transaction broker would be liable for failure to disclose
a known structural flaw that is not readily visible.
A brokerage engagement includes
the client’s promise to pay the broker or allow payment to the broker.
If a broker’s affiliated licensee reveals confidential client information to avoid giving false information to a customer,
neither broker nor affiliate is liable for any violation.
A broker is released from the duty to maintain client confidentiality in any of the following circumstances EXCEPT:
three years have passed since the termination of the brokerage engagement.
Which of the following is NOT a requirement of a brokerage engagement?
A declaration that the agent has no other clients
How is a dual agency created in Georgia?
A written agreement and written consent of all parties allow the broker to represent both sides in a transaction.
A transaction broker
has no written agency agreement with any party to a transaction.
Because of the doctrine of actual vs. imputed knowledge,
designated agents are considered to possess only the knowledge they actually possess.
At what times is the Real Estate Commission authorized to examine a broker’s designated trust accounts?
During each renewal period and whenever the Commission has reasonable cause.
When is it permissible for a designated trust account to contain the broker’s personal funds?
When the funds are for a specific purpose such as maintaining a minimum balance and are identified as belonging to the broker.
If funds designated as the broker’s are to be withdrawn from a trust account, the withdrawal must be made
by a check made payable to the broker
Brokers must notify the Commission of the name of the bank in which each trust account is maintained and each account’s name or number within how long of opening each account?
One month
If the Commission requests copies of a licensee’s trust records,
the licensee must provide them at a reasonable cost to the Commission.
If the Commission finds, on investigating, evidence of a trust account violation, it must immediately
inform the Georgia Attorney General
The accounting system a licensee uses for trust fund operations must be
accessible to the Commission
A nonresident broker
may maintain trust funds in a bank in the state of residence if specifically permitted to do so.
What must a salesperson do if a customer or client requests a refund of earnest money?
Refer the party to the employing broker
In a case of a trust account violation, a court-appointed receiver has the power to
liquidate the offender’s business
If a broker’s designated trust account contains commission funds that are due the broker, they must be removed
monthly
A broker/property manager may keep security deposits in a designated rental account provided
the account balance is always equal to the total of the security deposits.
The trust account requirements enabling a broker to claim earnest money as commission are met if
all parties to the transaction have signed a written agreement stating that the broker is entitled to a commission.
Broker Beaufort refuses to allow an examiner sent by the Commission to look at his financial records. As a result, the Commission is likely to
inform the Attorney General that Beaufort’s trust account is in an “unsafe or unsound condition.”
A broker who fails to disburse trust funds according to the terms of the contract creating the trust account will be
deemed by the Real Estate Commission to have demonstrated incompetence.
If a broker refuses to submit trust account records for inspection,
the Commission must immediately report the situation to the Georgia Attorney General.
In advertising a property for sale, the name of the licensed firm offering the property
must appear in a font at least as large as that used for any affiliated licensees or groups.
The definition of discrimination in Georgia law includes
failing to provide accommodations for wheelchair users in a multifamily dwelling built after 1991.
$10,000 is the fine for which of the following?
A first-time conviction for a discriminatory housing practice.
A first-time conviction for committing a discriminatory housing practice may be punished with a fine of
$10,000
Unlicensed support personnel
must comply with the license law
To allow an affiliated licensee to engage a support person, the brokerage firm must have
written authorization agreements with the licensee and the support person.
A property management contract in Georgia must contain all of the following EXCEPT
a certificate of the property’s initial condition
In the case of an independent contractor, the broker can still be held liable unless certain rules are followed. One such rule says that the broker must review all contracts within how many days?
30 days
A claimant against the Recovery Fund has to prove that
he or she is not a relative of the licensee named as debtor in the judgment.
Before a licensee can legally refer a prospective client to another licensee for relocation services, the licensee must
obtain the prospective clients agreement
All of the following are considered unfair trade practices EXCEPT
Depositing trust funds in a federally-insured checking account maintained by the broker.
Every license applicant pays how much into the Real Estate Education, Research and Recovery Fund for a new license?
$20
What happens if a licensee fails to appear at a hearing after proper notification by the Commission?
The Commission may conduct the hearing and take action as if the licensee were present.
In the case of a fraudulently obtained license, the Commission has the right to take any of the following actions EXCEPT
revoke the licenses of everyone associated with the licensee.
Once all the appropriate steps have been taken, the aggrieved party can apply to the court for an order directing the payment out of the Real Estate Education, Research, and Recovery fund of the amount unpaid upon the judgment, with how many days written notice to the Commission?
10
Under Georgia license law, a licensee must remove any sign placed on a property, offering it for sale, within how many days of the expiration of the listing?
10 days
The Commission has the authority to skip the hearing process when investigating
a minor violation license law
Before an aggrieved person can receive a payment from the Real Estate Recovery fund,
a court must issue a judgment against the offending licensee.
In ______________, the occupancy is by those prospects that subscribe to the purchase of stock and sign a proprietary lease on their individual units in the complex.
cooperative ownership
Membership in a home owners association in a Georgia subdivision is
dependent on how the subdivision is organized
To apply for a community association manager’s licenses, an individual must
have a high school degree or equivalent
A proper community association management agreement should include
provisions for termination of the agreement.
Associations of homeowners within certain subdivisions, townhouse developments, condominium complexes, cooperatives, or other planned developments are known as:
Community associations
A person prosecuted under the Uniform Deceptive Practices Act may be punished with any of the following EXCEPT
jail
Which of the following is NOT required to be in a sales contract?
evidence of title
What period is covered by a title search in Georgia?
50 years
What period is covered by a title search in Georgia?
50 years
What kind of tax is a transfer tax?
excise
A landlord may lawfully cut off the utilities to a tenant
only after the final disposition of eviction proceedings.
Regulation Z requires a lender to
disclose to a borrower the true annual interest rate of a loan before closing.
When is a real estate transfer tax paid?
Before recording a deed or security instrument
Salesperson J.T. Land interferes with a consumer making a fair housing complaint against him. He has no prior fair housing violations. If convicted, what is the maximum penalty J.T. could faces?
Criminal charges
What is the maximum penalty licensees face when they breach fair housing laws?
Criminal charges
Each of these parties is included under the familial status class, except:
Married couples
Which is false about the requirements for new housing under the federal Fair Housing Act as amended?
These requirements supersede state and local law, even when the state or local stipulation is more stringent.
Which is true about the initial Fair Housing Act?
Any exemptions it provides never pertain to race.
The Fair Housing Act protects seven classes on a national level. This is not one of them:
Marital status
What is true about fair housing “testers”?
Violations are frequently proved through their testimony.
Seller Anne Land believes her agent has breached fair housing laws. In terms of filing a complaint, which is false?
If her state has equivalent anti-discrimination judicial rights and remedies, she must first go through HUD.
High-Rise Office Buildings are those structures which are more than:
Nine-stories tall
A written or oral contract between a landlord and a tenant, through which the right to exclusive possession and use of the landlord’s property is transferred to the tenant for a specified period of time, and for a stated amount of rent, is known as:
A lease
The transfer of a tenant’s remaining rental rights in a property to a third party is known as:
Assignment
The transfer of all title, right and interest that a lessee possesses in certain real property is known as:
The assignment of a lease
Many states now impose a burden on the ______ to discover any existing problems and to raise the red flags.
agent
Your job is as which of the following in the realm of environmental issues?
An educator
Radon-resistant construction techniques provide the homeowner with an average yearly energy savings of _____.
$65
Which of the following is NOT true of radon?
It occurs only in certain geographical areas.
The EPA and the Surgeon General recommend testing which of the following homes for radon?
All homes below the third floor
Two simple methods of mitigating radon levels in a home include:
Installing a sub-slab depressurization system and sealing cracks and other openings in the floors and walls.
In which year did Environmental Defense Fund attorney Robert Yuhnke first bring radon to national attention?
1985
When radon gas moves up through the soil into the atmosphere, rather than into a building:
The radon is diluted and is of little concern.
The amount of radon transferred from water to air depends on all of the following EXCEPT:
the soil saturation level
EPA models say that radon kills one person every:
20 minutes
Radon is created in the ground where ______ exist(s).
radium and uranium
One way the Federal Reserve tries to boost the economy is by
lowering reserve requirements for banks.
Deposits in savings associations are insured by FDIC up to the amount of
$250,000.00
Which of the following groups was created in 1913?
The Federal Reserve System
ECOA’s role in mortgage financing is to
Protect the public from discriminatory lending
Which of the following is not a responsibility of HUD?
Regulating the Fannie Mae and Freddie Mac operations.
In order to qualify for the reduced capital gains tax rate, an investment property must be held for a minimum of:
12 months
The law enacted to keep credit information confidential is known as the
Fair Credit Reporting Act
Owners who can sell or convey their equal or unequal property interest to third parties are most likely
tenants in common
What is a “soft” second mortgage?
A second mortgage that requires no payments for a certain number of years or until the mortgaged property is sold.
Which of the following is true regarding FNMA conforming loans?
There is a limit to the total amount of the loan
A conventional nonconforming loan is a loan
Where underwriting standards are outside of FNMA standards
The minimum down payment requirement for a conventional conforming loan is
3%
Any loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac is called:
A jumbo loan
The amount of a mortgage insurance premium is a function of
the size of the down payment
The original conforming loan guidelines required the borrower to have the equivalent of two months’ PITI payment in reserve. This requirement has been since changed to which of the following?
This requirement has been eliminated in the majority of cases.
What is true of a lease-purchase?
The tenant executes a sale contract at the beginning of the lease period
The amount of entitlement shown on a Certificate of Eligibility for a VA-guaranteed loan is based on
time spent in the service
Which of the following transactions is similar to an installment sale except that in the beginning the seller retains title to the property and the purchaser is in effect a tenant?
a lease-purchase
The Economic Recovery Act of 2008 eliminated:
Seller-funded down payment assistance.
The amount of the basic entitlement for a VA-guaranteed loan is
$36,000.00
A veteran wishes to purchase a home in which the sales price exceeds the Certificate of Reasonable Value. In this case, the veteran
Must pay the difference between the two in cash
The FHA loan program that covers loans on owner-occupied dwellings of one to four units is the
203(b)
The maximum loan guarantee for a VA-guaranteed loan as of 2007 is
$104,250.00
If the brokerage or agent receives a commission for the sale of a home warranty, the fact of the commission must be disclosed to the:
party paying for the warranty
A good risk management policy regarding documentation does not include:
Only using standardized contracts as mandated by federal law.
Salesperson Donna Lycensee tells her client that “my brokerage firm charges X%, which is the same rate as every other broker in the county.” Donna and her broker:
Face antitrust charges
Although not required by state law, this transaction information should also be conveyed for the benefit of all parties:
Contact information of the loan processor and appraisers.
Anne Howzer is a licensed real estate salesperson while her husband Ben sells homeowner’s insurance. Which of the following statements is false?
Under no circumstances can Anne and Ben deal with the same client at the same time because of the clear conflict of interest.
Which is true about real estate documentation and paper trails?
When important transaction information is being conveyed verbally, real estate professionals should take detailed notes.
Which is false regarding misrepresentation in the area of structure measuring?
Because most licensees know how to accurately calculate the square footage of a structure, these law suits mainly concern intentional misrepresentation.
Errors and omissions insurance:
Transfers risk from the licensee to the insurer in the case of unintentional misrepresentation.
Which licensee is measuring correctly?
Jeanne is rounding to the nearest 1/10 of a foot
There will always be a client who suffers from an inability to make a decision and insists that the licensee select someone from the list of competent providers. In this situation, the real estate professional should:
Select several from the list with the highest customer recommendations.
Salesperson Carl Howzer decides to provide a list of property inspectors for his client Ken Bier. In terms of risk management, Carl should:
Ask licensees and consumers who have dealt with the inspectors to rate their level of satisfaction with them.
To avoid misrepresenting the dimensions of a structure, licensees should:
Obtain professional structure measurement training.
The largest segment of today’s seniors is:
the silent generation
According to the U.S. Census Bureau, how many children are currently being raised by or in the home of grandparents?
More than 1,000,000
There is a great interest among which generation in obtaining a second home at the beach, in the mountains, or in a golfing community?
The baby boomers
Men over the age of 55 are more likely than women in respective age groups to be in:
The civilian labor force
With the changes provided by TRA ’97, there is an exemption from capital gains tax on profit from the sale of a personal residence of up to how much per couple?
Up to $500,000.00
To establish basis, you may NOT include any of the following EXCEPT:
Abstract of title fees
Which of the following is the trustee for a living trust empowered to do?
Authorize payments for medical treatment.
Under which of the following accounts must the spouse must be named as beneficiary unless they choose to give up that right?
A 401(k) account
Within many cultures, this group of people regards itself as the “right” culture, when in reality, this culture is only the majority.
The predominant culture
As a group, white middle-class men still:
Significantly impact business attitudes and practices.
