Real Estate Practice

Question 1

The death of either the tenant or the landlord will terminate the lease and the party’s heirs will NOT be bound by its terms is called

Answer 1

Tenancy at will

Question 2

Appraisal method that includes depreciation in estimating property value is

Answer 2

Cost/summation Method

Question 3

VA loans in Georgia are typically made by who?

Answer 3

Private lenders approved by the Department of Veterans Affairs.

Question 4

Consideration for the use of real property is

Answer 4

Rent

Question 5

An agreement in which the tenant pays a fixed rent and some or all of the utilities and the landlord pays all taxes, insurance, and expenses related to the property.

Answer 5

Gross Lease

Question 6

The Clause in a contract that makes timely performance a condition of the agreement is

Answer 6

Time is of the essence clause

Question 7

To insert additional terms or supporting documentation into an original offer, a buyer’s agent would most likely use

Answer 7

Addenda/Exhibit

Question 8

If the buyer makes the offer to the seller he/she is

Answer 8

Offeror while the seller is Offeree

Question 9

If the Seller makes the offer to the buyer

Answer 9

The seller is the Offeror while the buyer is the offeree

Question 10

1. A lease that has a definite starting and ending date.
2. If it is for more than one year it must be in writing to be enforceable.
3. Notice to terminate is not required by the landlord or tenant cos the tenant is expected to vacate the property once the lease ends.
4. It is terminated by the sale of property
5. Death of the Landlord or the tenant does not end the agreement.

Answer 10

Estate For Years

Question 11

The minute the buyer counters the offer from the seller, the buyer becomes the

Answer 11

The Offeror while the seller becomes the Offeree

Question 12

When legal action is unavailable to force performance of a contracts term, the agreement is said to be

Answer 12

Unenforceable

Question 13

The primary purpose of closing is to

Answer 13

Transfer title

Question 14

An executed sales contract is one in which:

Answer 14

All parties have fulfilled their promises

Question 15

The term “Meeting of the minds” is refers to:

Answer 15

Mutual assent of the contractual parties

Question 16

Which of the following must be included in a valid real estate sales contract?

Answer 16

Consideration

Question 17

Which of the following contracts would be considered a unilateral agreement?

Answer 17

An option agreement which expires in six months.

Question 18

The legal remedy of terminating a contract and restoring the parties to their original position prior to the contract is called.

Answer 18

Rescission

Question 19

Option contracts are unilateral contracts where the seller is

Answer 19

Optionor and the buyer is Optionee

Question 20

In land or installment contracts

Answer 20

The seller holds the legal title and the buyer holds the equitable title until the contract has been satisfied.

Question 21

A change or modification to an existing accepted /binding contract is called?

Answer 21

Amendments

Question 22

On an estimate of Net to Seller Worksheet, a purchase money mortgage would be entered as:

Answer 22

A debit

Question 23

For a Georgia lender, private mortgage insurance (PMI) would typically be assessed for

Answer 23

95% Conventional loans

Question 24

Lease tied to index or contain predetermined rental increases through escalator clauses are typically identified as

Answer 24

Graduated leases

Question 25

A broker has an ongoing contract to manage an office park complex for a real estate investor, implement marketing decisions to attract long-term quality tenants, and set rents appropriate to the market. What type of relationship does the brokerage company has with the owner?

Answer 25

General agency

Question 26

Georgia law requires what type of insurance coverage for a broker who manages a community association?

Answer 26

Fidelity bond if the broker handles more than $60,000

Question 27

The holder of a leasehold estate has what type of interest in the property?

Answer 27

A possessory interest in property which may continue for a definite or indefinite period of time.

Question 28

What Clause in a rental contract would commonly protect a tenant’s leasehold rights if the landlord defaults on a loan secured by the rental property

Answer 28

Non-disturbance clause.

Question 29

Commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant’s gross receipts exceeding $5,000 is called

Answer 29

A percentage lease

Question 30

A tenancy in which the tenant continues in possession after the lease has expired without the landlord’s permission is

Answer 30

An estate at sufferance

Question 31

A lessee has a one-year leasehold interest in a house. The lease automatically renews itself at the end of each year. The lessee’s interest is

Answer 31

Periodic tenancy or An estate from period to period.

Question 32

A lease in which the tenant pays rent, plus some or most of the operating expenses related to the property and landlord paying some property expenses is called

Answer 32

A net lease