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Real Estate Broker > Section 3,4,5 Quiz > Flashcards

Section 3,4,5 Quiz Flashcards

1
Q

Which of the following is not a mandatory characteristic of a competent party?

a. Legal age
b. Sound mind
c. Alive at time of acceptance d. Literate (can read and write)

A

D. Literate (can read and write)

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2
Q

Which of the following list 4 essential elements of the contract?

a. Competent parties, offer and acceptance,
in writing, and signed by all parties
b. Offer and acceptance, consideration, legal
objective, and in writing
c. Competent parties, offer and acceptance,
consideration, and legal objective
d. Legal objective, in writing, signed by all parties, consideration

A

C. Competent parties, offer and acceptance, consideration and legal objective.

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3
Q

An offer can be withdrawn by the offeror:

a. at any time, for any reason
b. at any time prior to closing.
c. at any time prior to receiving notification
the offer has been accepted.
d. at any time after the expiration of the time
granted to the offeror in the contract.

A

C. At anytime prior to receiving notification

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4
Q

What is the effect on the original offer if a counteroffer is made?

a. It terminates.
b. It is still in effect if the counteroffer is
rejected.
c. It terminates only if the counteroffer is
accepted.
d. A counteroffer has no effect on the original offer

A

A. It terminates.

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5
Q

Mr. Jones, an agent for Mr. Edwards, receives an offer on Mr. Edwards property at 3:00 pm and promptly makes an appointment with Mr. Edwards for 6:00 pm to discuss the offer. Subsequently, Mr. Jones also receives offers at 4:00 pm and at 5:00 pm. What must Mr. Jones do?

a. He must present all three offers at 6:00 pm in the order in which they were received
b. He must present all three offers at 6:00 pm in the order he deems best for Mr. Edwards to make an informed decision
c. He must present the 3:00 pm offer first, have Mr. Edwards make a decision on that offer, and then tell of the others
d. He has no obligations at all in presenting the offers

A

B. He must present all three offers at 6:00pm in the order he deems best for Mr. Edwards to make an informed decision.

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6
Q

Which of the following is true with regard to the interests of the buyer following the creation of a contract?
a. The buyer has legal title to the property.
b. The buyer has naked title to the property.
c. The buyer has equitable title to the
property.
d. The buyer receives no interest in the
property at time of contract, only at closing.

A

C. The buyer has equitable title

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7
Q

The consideration in a real estate sales contract is:
a. the downpayment.
b. the loan amount.
c. the earnest money.
d. the sales price.

A

D. The sales price

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8
Q

The law that requires certain contracts to be in writing is the:
a. Statute of Frauds.
b. Laches Statute.
c. Statute of Limitations.
d. Redemption Statute.

A

A. Statue of Frauds

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9
Q

A(n) _____ contract is one created by the actions of the parties.
a. expressed
b. executory
c. implied
d. unilateral

A

C. Implied

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10
Q

Which of the following is a contract in which promises have been made but not yet completed?
a. Executory
b. Bilateral
c. Executed
d. Unilateral

A

A. Executory

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11
Q

A contract signed under duress is an example of a:
a. valid contract.
b. voidable contract.
c. void contract.
d. breached contract.

A

B. Voidable contract

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12
Q

A false statement of material fact is _____; and a subjective opinion is _____.
a. void; voidable
b. misrepresentation; puffing
c. expressed; implied
d. legal; illegal

A

B. misrepresentation; puffing

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13
Q

What term is used to describe one or both parties not performing under the contract terms?
a. Negative performance
b. Subjection
c. Breach
d. Subrogation

A

C. Breach

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14
Q

Which of the following is NOT an option to the buyer if the seller defaults in a contract?
a. Claim the earnest money as liquidated
damages.
b. Sue for specific performance.
c. Rescind the contract.
d. Sue for damages.

A

A. Claim the earnest money as liquidated damages

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15
Q

What term describes a new contract taking the place of an d contract?
a. Assignment
b. Novation
c. Sub-letting d. Discharge

A

B. Novation

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16
Q

)Which of the following is NOT applicable to an option contract?
a. Right to buy at a later date
b. Must have a definite time period c. Must have a definite sales price d. Is a bi-lateral contract

A

D. Is a bi-lateral contract

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17
Q

Which of the following describes the optionor in an option contract?
a. Does not have to buy; but does not get
money back that was paid for the option.
b. Does not have an interest or estate in
property; only the right to obtain one.
c. May sell the property prior to option being
exercised, but the option is still in effect.
d. Can sell or assign the option.

A

C. May sell the property prior to option being exercised but the option is still in effect.

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18
Q

A characteristic of a right of first refusal is:
a. definite time period.
b. potential buyer has first opportunity to buy
should seller decide to sell. c. definite sales price.
d. all of the above.

A

B. Potential buyer has first opportunity to buy should seller decide to sell.

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19
Q

The illegal practice of mixing escrow money with personal or business funds is:
a. intermingling.
b. interspersion.
c. co-depositing. d. commingling.

A

D. Commingling

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20
Q

The Civil Rights Act of 1866 banned _____ discrimination?
a. racial
b. religious
c. national origin d. all forms of

A

A. Racial

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21
Q

The Civil Rights Act of 1968 (Title VIII), commonly known as the fair housing law, covered what type of property?
a. Residential
b. Commercial c. Agricultural d. All types

A

A. Residential

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22
Q

Attempting to make a profit by inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood is an example of:
a. steering.
b. blockbusting.
c. redlining.
d. affirmative marketing.

A

B. Blockbusting

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23
Q

If an owner is exempt from Fair Housing Laws, he must comply with which of the following?
a. Cannot own more than two homes at once b. Must use a broker or agent in the
transaction
c. May put a For Sale sign on his property. d. An owner of property seeking to sell that
property is never exempt from the Fair Housing Laws.

A

C. May put a for sale sign on his property

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24
Q

Which of the following would NOT qualify as a protected class because of a handicap?
a. Has a mental deficiency which substantially
limits life activity.
b. Has a physical problem which substantially
limits life activity.
c. Has an illegal drug addiction which
substantially limits life activity.
d. All of the above would qualify.

A

C. Has an illegal drug addiction which substantially limits life activity

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25
Q

Which of the following would be EXEMPT under Familial Status protection?
a. Housing with 80% occupancy by persons
62 years of age or older.
b. Housing with 80% of the units occupied by
at least one person 55 years of age or older
regardless of facilities.
c. Housing totally occupied by persons 62
years of age or older.
d. Housing with 80% of the units occupied by
at least one person 55 years of age or older in which the advertising is NOT specifically aimed at older persons.

A

C. Housing totally occupied by persons 62 years of age or older.

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26
Q

What is the tax assessment rate for all real property in Georgia?
a. 35%
b. 40%
c. 45% d. 50%

A

B. 40%

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27
Q

The evidence of a debt is the _____; the security for the debt is the _____.
a. note; mortgage
b. trust deed; note
c. mortgage; note d. deed; mortgage

A

A. Note

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28
Q

The lender in a state which uses mortgages is known as the:
a. mortgagor b. mortgagee c. debtor
d. grantor

A

B. Mortgagee

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29
Q

What could happen if a property is sold at foreclosure and does not bring enough money to satisfy all of the debts secured by the property?
a. Any obligation of the debtor terminates with the sale of the property
b. Outstanding debts could be pursued as a result of a deficiency judgment
c. All monies owed must be satisfied as a result of the foreclosure sale
d. All other property owned by the debtor is automatically seized and sold at a future sale to satisfy the unpaid debt

A

B. Outstanding debts could be pursued as a result of a deficiency judgement

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30
Q

When foreclosure occurs, the payment priority of most of the outstanding debts is established by:
a. the type of lien
b. amount of the lien
c. date of recordation
d. the court

A

C. Date of Recordation

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31
Q

Selling a note for less than its face value is known as:
a. discounting
b. gerrymandering c. brokering
d. fronting

A

A. Discounting

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32
Q

With a traditional, fully amortized loan, the interest portion of a payment due and made on the first day of a month covers the interest for:
a. the month in which the payment is made b. the month prior to the month the payment
is made
c. the month following the month the
payment is made
d. the last fifteen days and the next fifteen
days

A

B. The month prior to the month the payment is made

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33
Q

What type of loan has payments of interest only with the principal paid in full at the end of the loan period?
a. Partially amortized
b. Graduated payment c. Fully amortized
d. Straight loan

A

D. Straight loan

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34
Q

A synonym for a partially amortized note is a:
a. balloon note
b. adjustable rate note c. term loan
d. package loan

A

A. Balloon Note

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35
Q

In a fully amortized note, each month’s payment is made up of a payment to principal and a payment to interest. What is the relationship, of the principal payments to the interest payments each month?
a. Interest payments are a little higher each month and principal payments are a little lower
b. Interest payments are a little lower each month and principal payments are a little higher
c. Interest payments are a little lower, but principal is repaid in the same amount each payment
d. Interest payments are level, but principal is a little higher each month

A

B. Interest payments are a little lower each month and principal payments are a little higher

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36
Q

If a loan balance is $125,000 and the interest rate is 8%, how much of the next payment is paid to interest?
a. $733.33
b. $833.33 c. $893.33 d. $793.33

A

B. $833.33

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37
Q

In a graduated payment mortgage, the _____ changes and in an adjustable rate mortgage the _____ is subject to change.
a. principal, interest rate
b. interest rate, payment
c. payment, interest rate
d. interest rate, principal

A

C. Payment, interest rate

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38
Q

What clause allows the lender to call the loan balance due and payable because of non- payment?
a. Alienation clause
b. Acceleration clause
c. Escalator clause
d. Pre-payment clause

A

B. Acceleration Clause

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39
Q

The clause that allows a lender to waive his lien priority in favor of another’s is known as the:
a. defeasance clause
b. alienation clause
c. subrogation clause
d. subordination clause

A

D. Subordination Clause

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40
Q

What term is used to describe the situation in which the original maker of a note is released from liability because another has taken over his/her loan?
a. Novation
b. Assumption
c. Hypothecation
d. Subject To

A

B. Novation

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41
Q

A purchase money mortgage is a loan made by:
a. a lender on the Secondary Mortgage
market
b. a Fannie Mae approved lender only
c. the seller in a transaction
d. the purchaser in a transaction

A

C. The seller in a transaction

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42
Q

mortgage secured by both real and personal property is a(n):
a. blanket mortgage
b. wraparound mortgage
c. package mortgage
d. open-end mortgage

A

C. Package mortgage

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43
Q

What type of mortgage exists when the lender pays the borrower a fixed amount of money every month?
a. Shared appreciation
b. Reverse Annuity
c. Growing Equity
d. There is no such mortgage, lenders don’t
pay borrowers

A

B. Reverse annuity

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44
Q

The primary purpose of FHA is to _____ and the primary purpose of VA is to _____.
a. loan money to qualified borrowers; loan
money to qualified borrowers
b. guarantee loans to qualified borrowers;
insure loans for qualified borrowers
c. insure loans; guarantee loans
d. enforce RESPA; identify qualified veterans

A

C. Insure loans; guarantee loans

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45
Q

Which of the following loans would require the purchaser to maintain an escrow account?
a. All FHA, all VA, all conventional loans over
80%
b. Only loans in excess of 80% regardless of
type
c. Only loans in excess of 90% regardless of
type
d. FHA and VA only, conventional loans never
require escrow accounts

A

A. All FHA, all VA, all conventional loans over 80%

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46
Q

Which of the following loan types might have a pre-payment penalty?
a. FHA
b. VA
c. Conventional
d. None of the above allow prepayment
penalties

A

C. Conventional

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47
Q

On what amount of money are the discount points based?
a. Loan amount
b. Down payment
c. Sales price
d. The guarantee amount

A

A. Loan amount

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48
Q

In a Land Sales Contract, who retains legal title to the property?
a. Buyer
b. Mortgagee
c. Seller
d. Mortgagor

A

C. Seller

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49
Q

Which of the following is NOT a participant in the secondary mortgage market?
a. Fannie Mae (FNMA)
b. Fannie Pac (FNPC)
c. Freddie Mac (FHLMC) d. Ginnie Mae (GNMA)

A

B. Fannie Pac

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50
Q

Which of the following Is NOT a characteristic of Truth-In-Lending (Regulation Z)?
a. Disclosure of costs
b. Advertising
c. APR
d. Statutory redemption

A

D. Statutory Redemption

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51
Q

Under Regulation Z, which of the following would NOT be a “trigger term” and WOULD be allowed in advertising credit?
a. $5,000 down
b. 2% lower than prime
c. Low down payment
d. 15 year loans available

A

C. Low Down Payment

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52
Q

What Act has as its primary purpose to educate borrowers regarding the costs involved in a closing so that the borrowers can shop for the best situation for them?
a. Real Estate Settlement Procedures Act (RESPA)
b. Equal Credit Opportunity Act (ECOA)
c. Truth-In-Lending (Regulation Z)
d. 1968 Fair Housing Act

A

A. Real Estate Settlement Procedures Act

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53
Q

When should a licensee qualify a prospective buyer?
a. At the first significant meeting with the buyer
b. No later than signing the purchase and sale agreement
c. After the buyer has chosen the property they wish to purchase, but before the contract is signed
d. Not until after the buyer’s offer has been accepted

A

A. At the first significant meeting with the buyer

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54
Q

What determines the purchaser’s ability to repay a loan?
a. Employment history and credit history
b. Down payment and credit history
c. Down payment and monthly payment
d. Monthly payment and credit history

A

C. Downpayment and monthly payment

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55
Q

Which of the following is a FALSE statement?
a. A licensee should not make assumptions
when qualifying a buyer
b. Direct questions are the best way to
establish trust with the buyer; tact is not
required or recommended
c. Regular documentation required for loan
approval normally includes a verification of employment, verification of deposits and a credit report
d. Lenders may not be able to issue a loan commitment to a buyer as part of the qualification process; especially if the purchase and sale agreement has not been created

A

B. Direct questions are the best way to establish trust with the buyer; tact is not required or recommended

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56
Q

Which of the following is true regarding a borrower’s mortgage payment assuming the payment is made on time?
a. The payment includes a payment of
interest for the next 30 days
b. The payment includes a payment of
interest for the previous 30 days
c. The payment always includes equal
amounts to principle and interest
d. Interest is always paid in advance with the
mortgage payment

A

B. The payment includes a payment of interest for the previous 30 days

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57
Q

Each of the following pairs might be contained in an escrow account except one – which one?
a. hazard insurance and mortgage insurance
b. property taxes and mortgage insurance
c. property taxes and title insurance
d. hazard insurance and property taxes

A

C. Property taxes and title insurance

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58
Q

Professional appraisals for lenders are usually made in order to:
a. sell a loan at foreclosure
b. help the lender decide whether to make a
loan
c. establish a fair price for the purchaser d. help the salesperson set the listing price

A

B. Help the lender decide whether to make a loan

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59
Q

A market analysis on a property would be completed when:
a. the agent is attempting to list the property
b. the listing is about to expire and the agent is attempting to extend the listing
c. an offer is made after the property has been on the market for an extended period
d. All of these

A

D. All of these

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60
Q

What is the recommended minimum number of comparable properties that should be used when preparing a market analysis?
a. 2
b. 5
c. 3
d. 7

A

C. 3

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61
Q

If you have several comparable properties as a part of your market analysis, how do you combine the values reached on each in order to estimate the value of the subject property?
a. Since several are comparable, you average
them
b. Since some are more comparable than
others, you chose the one that is the closest to the subject property and use that price, throwing the others away
c. By weighing the adjusted sales prices of the comparables and adding the weighted dollar amount of the group
d. You would have to have access to an appraiser’s Elwood Tables in order to establish a value

A

C. By weighing the adjusted sales prices of the comparable and adding the weighted dollar amount of the group

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62
Q

Real estate agents look to many different sources when working on a market analysis. Which of the following sources would have the greatest effect on establishing the property’s value estimate?
a. Recently sold comparable properties
b. Recently expired, unsold listing
c. Currently listed property
d. Court house records about foreclosed
properties

A

A. Recently sold comparable properties

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63
Q

In a market analysis, what is the purpose of weighing the adjusted sales prices of comparable properties?
a. It allows the properties that are most
similar to have a greater effect on the
estimated value of the subject property
b. It gives every comparable an equal chance
to measure up to the subject property, if the repairs listed in the adjustments are made
c. It gives the owner of the subject property the benefit of the doubt as to how high the price might go on the property
d. Comparable sales are not given weight. They are averaged

A

A. It allows the properties that are most similar to have a greater effect on the estimated value of the subject property

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64
Q

If the replacement cost method is being used to estimate the property’s value, which of the following would not be needed?
a. The original cost of the property
b. The present cost to build a replacement of the property
c. The value of the land
d. The depreciation the property has suffered

A

A. The original cost of the property

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65
Q

When using the cost approach to estimate the value of a property, which of the following statements would be true?
a. The construction cost refers to the current
cost of construction, not the original cost
of construction
b. Depreciation relates only to physical wear
and tear
c. The construction cost method looks only at
what was constructed, not at the value of
the land
d. If the land was compacted before
construction began, there is less of it than there was originally and depreciation must be allowed for that decrease

A

A. The construction cost refers to the current cost of construction, not the original cost of construction

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66
Q

Which of the following would not generally provide reliable information for a market analysis?
a. Neighbors
b. Courthouse records
c. Reporting services
d. Multiple listing service

A

A. Neighbors

67
Q

If a home sold for $62,500 on a loan assumption, how would the price of a comparable home be influenced if it is sold with a new, 100% VA loan?
a. The price would remain the same
b. The price would increase
c. The price would decrease
d. All of the above

A

B. The price would increase

68
Q

The four economic characteristics of value are: a. utility, scarcity, demand, immobility
b. demand, utility, scarcity, transferability
c. immobility, permanence, non-
homogeneity, situs
d. scarcity, demand, permanence, non-
homogeneity

A

B. Demand, utility, scarcity, transferability

69
Q

When buyer and seller operate with knowledge and no undue pressure in consummating a transaction, it is known as a(n):
a. mutual benefit agreement
b. symbiotic transaction
c. arms-length transaction
d. economically beneficial agreement

A

C. Arms-length transaction

70
Q

The apparent age of a property is known as its:
a. physical life
b. chronological age
c. economic life
d. effective age

A

D. Effective age

71
Q

The type of depreciation used by appraisers in which the amount of depreciated value is equal each year is known as the:
a. straight line method
b. accrual method
c. chronological method
d. graduated method

A

A. Straight line method

72
Q

The value principle which indicates that a buyer will not pay more for a property than a price for which he can obtain a property of equal utility is the principle of:
a. highest and best use
b. conformity
c. substitution
d. anticipation

A

C. Substitution

73
Q

When the total value of combined properties exceeds the total value of the individual properties, the result is known as:
a. plottage increment
b. contribution
c. situs
d. assemblage

A

A. Plottage Increment

74
Q

45 is what percent of 360?
a. 11.5%
b. 12%
c. 12.5%
d. 13%

A

C. 12.5%

75
Q

Based on the diagram above, which of the following statements is correct?
a. The porch has 256 square feet
b. The garage has 576 square feet
c. The living area has 2,088
d. All of the above are correct

A

D. All of the above are correct

76
Q

Which of the following best describes Transfer Tax?
a. A state tax which is based on the sales price of the property less any assumed loans at the rate of $.10/$100 of the taxable amount.
b. A state tax which is based on the sales price of the property less any assumed loans at the rate of $1.50/$500 of the taxable amount.
c. A state tax which is based on the new loan (in excess of 3 years in term) amount at the rate of $.10/$100 of the taxable amount.
d. A state tax which is based on the new loan (in excess of 3 years in term) amount at the rate of $1 .50/$500 of the taxable amount.

A

A. A state tax which is based on the sales price of the property less any assumed loans at the rate of $.10/$100 of the taxable amount.

77
Q

Which of the following best describes Intangibles Tax?
a. A state tax which is based on the sales price of the property less any assumed loans at the rate of $.10/$100 of the taxable amount.
b. A state tax which is based on the sales price of the property less any assumed loans at the rate of $1.50/$500 of the taxable amount.
c. A state tax which is based on the new loan (in excess of 3 years in term) amount at the rate of $.10/$100 of the taxable amount.
d. A state tax which is based on the new loan (in excess of 3 years in term) amount at the rate of $1.50/$500 of the taxable amount.

A

D. A state tax which is based on the new loan (in excess of 3 years in a term) amount at the rate of $1.50/$500 of the taxable amount.

78
Q

Which of the following does NOT have to be in writing to be enforceable?
a. Real Estate Sales Contract
b. Lease for less than a year
c. Deed
d. Exclusive listing

A

B. Lease for less than a year

79
Q

Anyone other than a salesperson who acts as a licensee on behalf of a broker is a(n):
a. salesperson.
b. principle.
c. broker.
d. associate broker.

A

D. Associate Broker

80
Q

Which of the following is true about the Georgia Real Estate Commission?
a. There can be six licensed commission
members.
b. There are five commission members and
the real estate Commissioner which makes
six total, voting members.
c. There are five licensed commission
members.
d. There must be at least one licensed
member of the commission.

A

C. There are five licensed commission members

81
Q

Which of the following is true about the Georgia Real Estate Commissioner?
a. He may vote only to break a tie.
b. He may hold an active real estate license. c. He is appointed by the governor.
d. He is hired by the commission.

A

D. He is hired by the comission

82
Q

Commission members are:
a. appointed by the governor and approved
by Congress.
b. appointed by the governor and approved
by the other commission members.
c. appointed by the governor and approved
by the House.
d. appointed by the governor and approved
by the Senate.

A

D. Appointed by the governor and approved by the senate

83
Q

Which of the following is a requirement to be issued a Salespersons’ license?
a. 21 years of age
b. A high school diploma
c. Completion of a 75-hr. approved, prelicense course
d. Georgia residence

A

C. Completion of a 75-hr. approved, relicense course

84
Q

Which of the following meets the minimum requirements to take the broker’s examination?
a. High school diploma or GED
b. Be 18 years old
c. Completion of a 75-hr approved, broker
prelicense course
d. Georgia residence

A

A. Highschool diploma or GED

85
Q

Which of the following satisfies the requirements for the required Postlicense course?
a. 24-hr. course taken within one year from
the date of license activation.
b. 25-hr. course taken within one year from
the date of the state licensing examination.
c. 24-hr. course taken within one year from
the date of the state licensing examination.
d. 25-hr. course taken within one year from
the date of license activation.

A

D. 25-hr. course taken within one year from the date of license activation

86
Q

Upon renewal of a license, a licensee must pay all fees due and complete _____ hours of continuing education, if education is required.
a. 6
b. 12
c. 18
d. 24

A

D. 24

87
Q

into a co-op agreement with a Georgia broker through a written agreement which includes: a. that any listing or property management
agreement on Georgia property will be in
both brokers names.
b. that the out-of-state broker may not
conduct any negotiations under any circumstances if the property is located in Georgia.
c. that any advertising of Georgia property identify the listing Georgia broker.
d. all of the above.

A

C. That any advertising of Georgia property identify the listing Georgia broker.

88
Q

An individual who successfully passes the state examination and has otherwise qualified for a license has ______ months to activate or place inactive his/her license.

a. 3
b. 6
c. 12
d. 24

A

C. 12

89
Q

If a real estate company operates as a limited partnership, which of the following is true about the qualifying broker?
a. He must be the general partner.
b. He must be a limited partner.
c. He must be a Realtor®.
d. There are no restrictions on the qualifying
broker other than having a broker’s license.

A

A. He must be the general partner

90
Q

Which of the following is required if a licensee transfers to a new broker but still has outstanding listings or contracts with the previous broker, he may continue to act for the former broker for any transaction begun prior to the transfer provided:
a. the new broker assumes all responsibility.
b. both brokers come to at least a verbal
agreement as to how this will be
accomplished, including compensation.
c. the specific transactions are listed.
d. all of the above are required.

A

C. The specific transactions are listed

91
Q

Under what circumstances may a broker have more than one escrow account?
a. Under no circumstances; only one escrow
account is allowed under the license law.
b. As long as the attorney general is notified
of all of the pertinent information
regarding the account.
c. Only if one is interest bearing and the
other is noninterest bearing.
d. As long as the Commission is notified of
the pertinent information regarding each account.

A

D. As long as the commission is notified of the pertinent information regarding each account

92
Q

There must be a minimum balance of $______ in the Education, Research and Recovery Fund at all times.
a. 500,000
b. 750,000
c. 1,000,000
d. 1,500,000

A

C. 1,000,000

93
Q

The limit of liability for a single transaction in which a licensee is involved is $_____ and the limit of liability for multiple transactions for a single licensee is $_____
a. 25,000; 75,000
b. 10,000; 30,000
c. 45,000; 15,000
d. 30,000; 10,000

A

A. 25,000; 75,000

94
Q

If the Education, Research and Recovery Fund falls below the required minimum balance, what may happen?
a. Each licensee can be assessed up to $30.
b. Each licensee can be assessed up to $100.
c. Each licensee can be assessed up to $30
per year at time of renewal.
d. Licensees have no consequence if the fund
falls below the minimum.

A

C. Each licensee can be assessed up to $30 per year at the time of renewal

95
Q

In order to bring an action against a seller for a commission, a licensee must prove:
a. that he/she actually suffered a loss.
b. that he/she was a licensed broker in
Georgia at the time the cause of action
arose.
c. that he/she was a licensed broker,
associate broker, or salesperson at the
time the cause of action arose.
d. nothing, since licensees are prohibited
from suing members of the public under the License Law.

A

B. That he/she was a licensed broker in Georgia at the time the cause of action arose.

96
Q

Which of the following is an unfair practice under the License Law if performed by a licensee?
a. Failure to maintain and deposit earnest
money in a non-interest bearing account.
b. Accepting a commission from someone
other than your broker with your broker’s
consent.
c. Representing another broker with the
written consent of your broker.
d. Paying a commission to an unlicensed
person.

A

D. Paying a commission to an unlicensed person

97
Q

Which of the following is NOT an unfair practice under the License Law if performed by a licensee?’
a. Acting as a dual agent.
b. Failure to turn over earnest money to your broker as soon as practicably possible.
c. Making a substantial misrepresentation. d. Performing brokerage activities in another
state without being licensed to do so.

A

A. Acting as a dual agent

98
Q

About the chairperson of the Georgia Real Estate Commission?
a. He/She is appointed by the governor and
approved by the commission members.
b. He/She has to have at least two year’s
previous service on the commission.
c. He/She is elected at the first regularly
scheduled meeting each calendar year and must have at least one year’s previous service on the commission.
d. Any commission member may be elected chairperson.

A

D. Any commission member may be elected chairperson

99
Q

In Georgia, net listings are:
a. permissible with the written authorization
of the broker.
b. require the written permission of the seller
and written authorization of the broker.
c. legal, but not recommended.
d. illegal.

A

D. Illegal

100
Q

Which of the following is required or true when salespersons or associate brokers are advertising to buy or sell their own properties in their own name?
a. A brokerage fee must be paid and there must be a brokerage engagement agreement with the other party.
b. All advertising must be done in the broker’s name.
c. The broker has been notified in writing of the specific property involved.
d. All of the above are required.

A

C. The broker has been notified in writing of the specific property involved

101
Q

Which of the following is a true statement?
a. A non-resident broker may not serve as a
qualifying broker for any corporation
licensed by the Commission.
b. Each firm has only one qualifying broker
and each licensed broker can be the
qualifying broker for only one firm.
c. A person licensed as an associate broker with one firm may also be the qualifying
broker with one or more other firms as
long as he notifies his broker in writing. d. None of the above statements are true.

A

C. A person licensed as an associate broker with one firm may also be the qualifying broker with one or more other firms as long as he notifies his broker in writing

102
Q

Written disclosure of the party for whom the broker is acting as agent must be made:
a. no later than closing.
b. no later than the time a written offer is
made.
c. as soon as possible; preferably at first
contact with all parties.
d. during the qualifying interview with the
buyer or during the listing appointment with the seller.

A

B. No later than the time a written offer is made

103
Q

A broker must conduct his business in the name:
a. he is “doing business as” (DBA).
b. registered with the appropriate business
license office.
c. under which his license was issued.
d. officially registered with the Attorney
General.

A

C. Under which his license was issues

104
Q

When a licensee transfers from one broker to another:
a. all property owned by the broker must remain, but business generated by the licensee during his term of employment may be taken to the new broker.
b. all listings and names of prospects and sellers must be left with the broker, but copies of same may be taken.
c. all records of any kind used in connection with listing or selling property shall be returned in person by the licensee to the releasing broker.
d. he/she cannot, under any circumstances, be compensated for work begun, but not yet completed.

A

C. All records of any kind used in connection with listing or selling property shall be returned in person by the licensee to the releasing broker

105
Q

Under what circumstances may a broker refuse to sign a release/transfer form for a licensee to transfer to another firm?
a. If the licensee owes money to the broker
b. If the licensee has unfinished work which must be completed before transfer can occur
c. If the broker has brought an action for misconduct against the licensee
d. Under no circumstances

A

D. Under no circumstances

106
Q

How may a license be reinstated after a licensee has voluntarily surrendered it?
a. By paying past fees and a reinstatement
fee
b. By paying past fees, a reinstatement fee
and completing 24 hours of continuing
education
c. By paying all past fees, a reinstatement
fee, and completing the prelicense and
postlicense courses.
d. By qualifying as an original applicant.

A

D. By qualifying as an original applicant

107
Q

If a licensee promises, as an inducement to list, to buy a property from a seller in the event the property does not sell during the listing period, which of the following is true?
a. The licensee must put the offer to purchase in writing prior to listing the property.
b. The offer to purchase must contain all the terms and conditions of the purchase.
c. A firm purchase price must be negotiated
prior to taking the listing.
d. All of the above are true.

A

D. All of the above are true

108
Q

A broker may disburse funds under any of the following circumstances, except:
a. upon rejection of an offer.
b. upon withdrawal of an offer.
c. in a manner contrary to the terms of the contract.
d. upon court order.

A

C. In a manner contrary to the terms of the contract

109
Q

Every written property management agreement must contain all of the following provisions, except:
a. Identity and specification of the property
to be managed
b. The amount of fee or commission to be
paid and when it is to be paid
c. The effective date and termination date of
the agreement
d. A listing of the types of buyers normally
recognized as protected classes which will be excluded from rental

A

D. A listing of the types of buyers normally recognized as protected classes which will be excluded from rental

110
Q

Under what circumstances can a broker’s agent initially place and negotiate a sales contract without the broker seeing it?
a. Only if the broker has given the agent
permission to do so.
b. Never, because the license law dictates all
sales contracts must have the broker’s
signature prior to being presented.
c. Never, because the broker is ultimately
responsible for all contracts generated by his agents and should monitor each of them without fail.
d. Under any circumstances, since the agent is never under any obligation to show contracts to his broker prior to presenting them.

A

A. Only if the broker has given the agent permission to do so.

111
Q

What is the best policy when an agent is contemplating seeking legal advice on a brokerage issue or transaction?
a. Never to do so unless instructed by his/her
broker.
b. Do so whenever he/she feels the action
required is beyond his/her expertise and
legal advice is needed.
c. Do so as needed, but the agent should
always inform the broker he/she has done
so.
d. Only if the agent has asked the broker to
resolve the issue and the broker has failed to do so.

A

A. Never to do so unless instructed by his/her broker

112
Q

What is the proper procedure if the “form” contract does not suit the needs of the parties to the transaction?
a. The agent should use his/her expertise to
modify the contract to express the terms
desired.
b. The agent should seek legal help since
agents are not authorized to create legal
documents.
c. The agent should consult with his/her
broker before proceeding.
d. The “form” contract should always be used
unmodified since it was prepared by attorneys and real estate practitioners to reflect the needs of buyers and sellers.

A

C. The agent should consult with his/her broker before proceeding

113
Q

If a property is being sold “As Is,” what is the effect on the agent’s responsibilities?
a. An “As Is” contract, by definition, invokes
“caveat emptor” and an agent’s duty of
property disclosure is terminated.
b. An agent only has the responsibility to
disclose property defects to his principle/client, not 3rd parties under an “As Is” contract.
c. An agent must explain to all parties that an “As Is” contract means that property disclosures are not required and all parties should beware.
d. An “As Is” contract has no effect on a agent’s responsibility to disclose all known defects to all parties in the transaction.

A

D. An “As Is” contract has no effect on a agent’s responsibility to disclose all known defects to all parties in the transaction

114
Q

Which of the following statements about earnest money is true?
a. Earnest money is acceptable business
practice, but is not required.
b. Georgia law requires earnest money to
create a legal and binding sales contract.
c. The consideration in a sales contract is the
earnest money.
d. The amount of the earnest money is
strictly up to the policy of the brokerage company.

A

A. Earnest money is acceptable business practice, but is not required.

115
Q

Which of the following forms of earnest money is acceptable under the law?
a. Cash
b. Services
c. Chattel
d. All are acceptable.

A

D. All are acceptable

116
Q

If the contract calls for the earnest money to be held until the contract has been accepted, who is authorized to hold the earnest money?
a. Only the broker in an approved escrow
account
b. Anyone, other than a salesperson or
associate broker, designated in the
contract to hold the earnest money
c. The buyer must hold it if contract
acceptance is required.
d. The seller must hold it.

A

B. Anyone, other than a salesperson or associate broker, designated in the contract to hold the earnest money

117
Q

Which of the following is true if an agent is buying a property listed by him/her?
a. This is a form of dual capacity and is not
allowed.
b. As long as the seller is aware of it and
agrees, no one else need be aware.
c. This is a form of dual agency and is
permissible as long as it is disclosed to the
seller in writing and the broker is notified.
d. The license law prohibits an agent buying
the subject of his agency.

A

C. This is a form of dual agency and is permissible as long as it is disclosed to the seller in writing and the broker is notified

118
Q

Which of the following is NOT a reason for a sales contract to be in writing?
a. To make it valid
b. To make it enforceable
c. To guide an attorney in preparation for closing
d. To help assure performance after closing with a proper survival clause

A

A. To make it valid

119
Q

When may one spouse sign a binding sales contract for another spouse?
a. Never
b. Only if they hold title to the property as
joint tenants
c. Only under a power of attorney
d. Only if a divorce is contemplated

A

C. Only under a power of attorney

120
Q

If a written offer is made after the property is under contract, but before closing, what is the proper action?
a. There is no requirement to place the
contract since the seller cannot accept it
anyway.
b. The contract does not have to be accepted
or placed, but the seller must be made
aware of this second, potential buyer.
c. It must be placed, but the seller is
prevented from responding to it until his
first contract is terminated.
d. It must be presented to the seller.

A

D. It must be presented to the seller

121
Q

What is the term used to describe those acts which a broker or affiliated licensee performs for a non-client which do not require discretion and do not create a brokerage relationship?
a. Non-agency acts
b. Non-discretionary acts
c. Administered acts
d. Ministerial acts

A

D. Ministerial acts

122
Q

Under BRRETA, what is the term used to identify the agreement in which a buyer and a broker establish an agency affiliation?
a. Buyer brokerage engagement
b. Exclusive listing
c. Brokerage affiliation
d. Brokerage contract/agreement

A

A. Buyer brokerage engagement

123
Q

Which of the following statements is true about subagency?
a. Subagency is created when a listing company offers an opportunity to the selling company to represent the seller in a transaction and the selling company accepts.
b. Subagency is the relationship between a selling broker and its buyer/client.
c. Subagency is automatic if a selling broker shows a client or customer a property that is listed in MLS.
d. Subagency is the relationship between the listing broker and the buyer/client of the selling broker.

A

A. Subagency is created when a listing company offers an opportunity to the selling company to represent the seller in a transaction and the selling company accepts.

124
Q

Which of the following is NOT a reason that the seller in a transaction might wish to control where the purchaser obtains the new loan?
a. The seller has agreed to pay mortgage
points and wants to shop for the best
situation.
b. The seller, perhaps a builder, has entered
into a contractual obligation with a particular lender to secure permanent financing.
c. The broker representing the seller is receiving an undisclosed referral fee from a particular lender which he is sharing with the seller.
d. The seller has a pre-payment penalty on his/her existing loan which may be waived if the new loan is obtained through the same lender.

A

C. The broker representing the seller is receiving an undisclosed referral fee from a particular lender which he is sharing with the seller.

125
Q

Which of the following is true regarding a licensee selling his/her own property which is listed with his/her firm?
a. Advertising may be done in the agent’s
name as long as the broker gives written
permission.
b. The agent may sell one property per year
through his/her company without paying a
commission.
c. There must be a clause in the contract
disclosing the agent’s license status.
d. All of the above are true.

A

C. There must be a clause in the contract disclosing the agents license status

126
Q

Which of the following is true regarding an inactive licensee selling his/her own property?
a. If the license is inactive, the requirements
of the license law do not apply.
b. If the inactive licensee is advertising the
property without listing it with a broker, he is not obligated to disclose his licensed status in the ad.
c. If the inactive licensee is handling the transaction without the aid of a broker, he may hold the earnest money in his personal account if the buyer does not object.
d. None of the above statements is true.

A

D. None of the above statements is true

127
Q

Which of the following would be an acceptable action of a broker who represents a seller in a transaction?
a. Ordering the termite letter prior to closing. b. Contracting with a carpenter for repairs
the seller has committed to perform
according to the contract.
c. Purchasing a Home Owner’s Warranty for
the seller prior to closing if called for in the
contract
d. None of the above actions would be
acceptable.

A

D. None of the above actions would be acceptable

128
Q

Who is responsible, under the license law, for seeing that both the purchaser and seller obtain a copy of the closing statement?
a. The broker
b. The closing attorney c. The lender
d. The notary public

A

A. The broker

129
Q

Which of the following is true regarding the disposition of earnest money at the closing?
a. The broker holding the earnest money may
retain the earnest money as a portion of
his commission.
b. The broker holding the earnest money may
bring a check to closing made out to the closing official for the amount of the earnest money.
c. Neither of the above situations could occur.
d. Either of the above situations could occur.

A

D. Either of the above situations could occur

130
Q

Typically, which of the following documents is least likely to require a signature at closing?
a. The closing statement
b. The warranty deed
c. The promissory note
d. The sales contract

A

D. The sales contract

131
Q
A
132
Q

What is Georgia’s assessment rate?

A

40% for All taxable properties

133
Q

In Georgia, __________ estate is considered real property

A

Leasehold estate

134
Q

Georgia uses the _________ as our security instrument with the ________________ clause which gives the lender the right to sell the property if the borrower defaults.

A

Security deed, power of sale clause.

135
Q

We are a ________ state with ________ foreclosure rights.

A

Title theory, non-judicial foreclosure rights.

136
Q

Intangibles tax is charged to record the ________

A

Security Deed

137
Q

We charge intangibles tax on? What is the formula

A

New loans, not any loan assumptions.

$1.50/500

138
Q

_________ is a state collected tax at the county when the warranty deed is recorded. What is the formula?

A

Georgia transfer tax, 100/.10

138
Q

Abstractor is required to search back title for _____ years in Georgia.

A

50

139
Q

Only a licensed _______ can conduct a closing in GA.

A
140
Q

If a broker is not available to assist a license with questions, salesperson must follow _______ policy.

A

Company Policy

141
Q

All licenses are required to take a minimum of ____ hours of continuing education.

A

36 Hours

142
Q

Regarding any conflicts in contracts, ______ will take precedent over ______ or _________ and typewritten will take precedent over _________

A

Handwritten over preprinted and typewritten or preprinted; typewritten over preprinted

143
Q

There is no longer a _______ ceiling for mortgage loans in GA.

A

Ursury

144
Q

State law requires that purchasers of a timeshare project in GA have ___ days to rescind.

A

7

145
Q

Georgia recognizes the _________ will that has ___ witnesses and a nuncupative will if put into writing in 30 days and witnessed by two objective witnesses.

A

Formal will, two witnesses

146
Q

Georgia does not require a brokerage or licensees to have __________ insurance but it is good practice.

A

Errors and omission.

147
Q

Georgia does not require a Seller’s _________ statement

A

Disclosure

148
Q

There are three legal life estates, Georgia practices:

A

Dower, Curtsey and Homestead Protection. GA practices homestead protection.

149
Q

If a wife dies instate husband will get _____ and kids will get ______

A

1/3; 2/3

150
Q

A person can petition ________ in Georgia with _____ years with continuous, open, hostile and notorious.

A

Prescriptive easement, 7 years.

151
Q

A person can petition ________ possession in Georgia after ____ years of continuous, open, notorious and exclusive use.

A

Adverse possession; 20 years.

152
Q

Adverse is can be granted by the court through _______

A

Quiet Title Suite

153
Q

Adverse possession may be shortened to ___ years, if person seeking has ______ and payment of ______ may assist with this.

A

7 years, color of title. Payment of taxes.

154
Q

VA can only make a loan for up to ______ years

A

30

155
Q

FHA can make loans up to _____ years although not recommended.

A

40

156
Q

All elevations throughout the country are measured by ______.

A

New York Harbor

157
Q

____ is the basic point in which land (air and mineral rights)

A

Datum

158
Q

______ is permanent marker by geologist or surveyors.

A

A benchmark

159
Q

Georgia uses two legal descriptions:

A

Metes and Bounds; Lot/Block or short form.

160
Q

Developers of new homes and subdivisions in GA are sometimes required to pay ________ fees.

A

Impact

161
Q

Three ways someone can take title In GA

A
  1. Severalty
  2. Tenants in Common
  3. Joint Tenancy (with the right of survivorship)
162
Q

Federal Fair housing of 1988 regarding the _____

A

Disabled, cannot deny or discriminate against disability.

163
Q

Multi family built after 1991 of 4 or more units must:

A

Must be constructed to be adaptable to the needs of a disabled person.

Real Estate Broker (2 decks)

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