When a broker sole proprietor has his license suspended for two years, what effect does this have on the associate brokers and salespeople affiliated with the proprietor?
A)
The affiliates' licenses must be returned to the Georgia Real Estate Commission.
A)
The affiliates' licenses must be returned to the Georgia Real Estate Commission.
When a broker's license is suspended for two years and they are a sole proprietor, any affiliate's license is on inactive status until the associate broker or salesperson
With regard to the use of a property condition disclosure form in Georgia
A)
the seller must fill out and sign the form when the property is listed.
B)
if the seller refuses to sign the form, the broker should sign on the seller's behalf.
C)
the buyer mus
D)
the use of a specific form is recommended but is not a legal requirement.
Georgia law does not require a particular seller disclosure form, but using a specific form for all sellers is recommended. It is not advisable that the broker sign the form if t
In Georgia, the real estate license law is administered by the
A)
Georgia Association of REALTORS.
B)
Georgia Governor's Office of Consumer Affairs.
C)
Georgia Real Estate Commission.
D)
Department of Housing and Urban Development
C)
Georgia Real Estate Commission.
In Georgia, the license law is administered by the Georgia Real Estate Commission. The Georgia Association of REALTORS is a trade association, not a government agency.
When should a landlord first present the rules and regulations for tenants of leased property?
A)
When the tenant requests them
B)
At any time during the rental agreement
C)
When the tenant first violates them
D)
At the time the tenant enters into the ren
D)
At the time the tenant enters into the rental agreement or at the time the rules or regulations are adopted
The landlord should present the rules when the tenant is entering into the rental agreement or whenever the rules are adopted.
If a loan amount is $210,000, the interest rate is 6%, and the closing date is March 17, what would be the buyer's adjusted interest for March? (Use the correct days of the month and a mortgage banker's calendar year of 360 days for your calculations in p
B)
$525.00
The interest on a mortgage loan is paid in arrears rather than in advance. The buyer will owe interest for March 17 through March 30, 15 days. Calculation: $210,000 (the loan amount) � 6% (.06) interest rate = $12,600 (yearly interest), � 360 d
A homeowner has a real estate license that has been on inactive status for almost 10 years. Now, she wants to sell her home. Which statement is TRUE?
A)
The licensee must state in any advertisements and in any contract that she holds a real estate license
A)
The licensee must state in any advertisements and in any contract that she holds a real estate license.
The homeowner must indicate in her ads and contracts that she holds a real estate license. This requirement applies to licensees holding active or i
A licensed real estate salesperson has recently married and, as a result, has changed both her name and home address. Notification of these changes must be made to the Georgia Real Estate Commission within
A)
30 days.
B)
15 days.
C)
10 days.
D)
3 days.
A)
30 days.
A licensee must report any name or address change to the Georgia Real Estate Commission within 30 days. The Commission provides a change application for such reporting on the Commission's website.
Georgia permits mechanic's lien rights to
A)
local building inspectors and home inspectors.
B)
building trade union officers suing for unpaid compensation from their union.
C)
residential real estate brokers suing for unpaid commissions.
D)
commercial rea
D)
commercial real estate brokers suing for unpaid commissions.
The state legislature of Georgia has extended mechanic's lien rights to commercial real estate brokers who sue for unpaid commissions. Contractors, building material providers, architects, su
Which statement is TRUE regarding the Georgia Education, Research, and Recovery Fund?
A)
If the total amount in the fund falls below $1,000,000, all licensees will contribute to the fund at their next renewal.
B)
New licensees must contribute $100 to the
A)
If the total amount in the fund falls below $1,000,000, all licensees will contribute to the fund at their next renewal.
If the total amount in the Georgia Education, Research, and Recovery Fund falls below $1,000,000, all licensees will contribute to
A husband is survived by his wife and their two daughters. The couple's community property is worth $50,000, but the husband also has left a separate estate worth $150,000. Because the husband died suddenly without leaving a will, how will his estate be d
D)
The estate will be distributed according to the state law of descent.
Because the husband died suddenly without leaving a will, the estate will be distributed according to the state law of descent. The surviving spouse and the children will be the domi
The area designated to be billed for a special assessment under property tax law to pay for construction of a new sidewalk, sewer, or street lighting is called a(n)
A)
construction zone.
B)
urban renewal project.
C)
special tax zone.
D)
improvement distri
D)
improvement district.
The area designated to be billed for a special assessment is called an improvement district or assessment district. The property within that district bears the cost of specific improvements benefitting the people of that district.
What is the redemption period after a foreclosure sale is complete?
A)
One year
B)
Six months
C)
No redemption period
D)
Three years
C)
No redemption period
The equity of redemption on a loan foreclosure ends when the property is sold. The borrower has a right of redemption anytime between delinquency on the loan and the actual foreclosure sale. If no redemption is made at the time of
A seller has been presented with an offer to purchase that includes a provision that the seller will be willing to make a 20% purchase money mortgage loan. The seller asks the listing broker for advice about any risk involved with taking back purchase mon
D)
it would be best to consult an attorney.
Because the seller is asking a legal question, the broker should advise the seller to consult with an attorney. Providing advice on this matter to the seller would be an unauthorized practice of law and a violat
A salesperson with LMN Realty has a buyer prospect who wishes to be shown a property listed by XYZ Realty. All of the following statements are true EXCEPT
A)
the salesperson can acquire an agency relationship with the buyer by way of an express, verbal co
A)
the salesperson can acquire an agency relationship with the buyer by way of an express, verbal contract.
BRRETA requires a written, not a verbal, contract to establish an agency relationship. The salesperson can act as a subagent of the seller with the
Georgia real estate salespersons may lawfully collect compensation from
A)
their employing broker only.
B)
any party to the transaction or the party's representative.
C)
a licensed real estate broker only.
D)
either a buyer or a seller.
A)
their employing broker only.
Salespeople may only collect compensation from their employing brokers. They may not receive compensation from parties to a transaction or another broker.
Under Georgia law, an applicant who passes the state licensing exam may begin practicing real estate
A)
as soon as the broker with whom the new licensee will affiliate receives the wall license.
B)
after 60 days.
C)
after 45 days.
D)
after 30 days.
A)
as soon as the broker with whom the new licensee will affiliate receives the wall license.
Under Georgia law, an applicant can begin practicing real estate as soon as the broker receives the applicant's wall license.
VA loans in Georgia may be made by
A)
the Veterans Administration.
B)
a local mortgage banker or lending institution.
C)
HUD.
D)
Fannie Mae.
B)
a local mortgage banker or lending institution.
In Georgia, any private local mortgage lender or lending institution approved by the VA may make a VA loan.
A homeowner wants to sell her own house. Which statement is TRUE?
A)
She may sell her house without obtaining a real estate license only if she is a licensed attorney.
B)
She does not need a real estate license to sell her house on her own.
C)
The individ
B)
She does not need a real estate license to sell her house on her own
In Georgia, property owners selling their own property are exempt from real estate licensing requirements.
Applicants for a real estate salesperson license in Georgia must
A)
be at least 21 years old.
B)
have completed at least two years of college.
C)
have the signature of the broker with whom they will affiliate on the application.
D)
show proof of passing t
C)
have the signature of the broker with whom they will affiliate on the application.
Applicants for a real estate salesperson license in Georgia must be at least 18 years old and have the signature of the broker with whom they will affiliate on the appli
In the purchase and sales agreement, the responsibility for a satisfactory inspection for termites and other wood-destroying insects rests with
A)
the listing company.
B)
no one, as the inspection is no longer deemed necessary.
C)
the buyer.
D)
the seller
C)
the buyer.
Georgia law does not require a standard contract form be used in all real estate transactions. The purchase and sales agreement provided by the Georgia Association of REALTOR�, commonly used in transactions in Georgia, includes due diligence
The principal method of delineating property boundaries or legal descriptions in Georgia is known as the
A)
system of principal meridians and base lines.
B)
colonial block grant system.
C)
rectangular survey system.
D)
system of metes and bounds.
D)
system of metes and bounds.
The principal method of delineating property boundaries or legal descriptions in Georgia is known as the system of metes and bounds. Two forms of legal description are used in Georgia: (1) metes and bounds, and (2) the recor
In Georgia, a real estate license might lapse for any of the following reasons EXCEPT
A)
failure to pay the required renewal fee when it was due.
B)
failure to complete the required salesperson post-licensing course in the first year of licensure.
C)
fail
C)
failure to score a passing grade on continuing education courses.
There is no exam requirement for continuing education courses. A license may lapse for failure to pay the required renewal fee when it was due, failure to complete the required approved
The Georgia Real Estate Commission can refuse to grant a license to an applicant who
A)
is not a resident of Georgia.
B)
has a record of traffic violations.
C)
makes a false statement on the application.
D)
does not plan to work full-time.
C)
makes a false statement on the application.
The Commission may deny a license to a person making a false statement on a license application. The Commission does issue out-of-state licenses. Georgia law does not regulate the work hours for licensees. Wh
The required salesperson postlicense course in Georgia
A)
is available online or in a classroom.
B)
may be completed only through public agencies or nonprofit entities.
C)
may be completed through any public educational institution.
D)
is only offered in
A)
is available online or in a classroom.
While schools offering this course do not have to be an accredited college, university, public agency, or nonprofit organization, they must have a license from the Georgia Real Estate Commission.
Twenty-one years ago, a homeowner acquired a conventional 30-year fixed-rate loan to purchase her current home. She now wants to pay off her loan early, before the end of the 30-year term. Does Georgia allow for her to repay her loan early?
A)
The homeown
D)
The original loan documents will state whether prepayment of this loan is possible and if there is any financial penalty for early repayment.
There are no laws or rules in Georgia stating that a borrower may prepay any loan. The original loan documents
A borrower signs a security deed on a residential property. The deed requires the borrower to occupy the property for at least one year as her primary residence. The borrower, however, intends to use the property as an investment and rent it as soon as po
B)
has committed fraud and may be subject to prosecution.
A security deed for a residential property in Georgia usually requires the borrower to occupy the property within 60 days after closing, and to occupy the property for at least one year as the borr
The written opinion of title identifying the fee owner of a property and naming anyone with a legitimate right or interest in the property is a(n)
A)
abstract of title.
B)
lender's title insurance policy.
C)
certificate of title.
D)
buyer's title insuranc
C)
certificate of title.
The certificate of title is a written opinion, signed by an attorney, and attached to an abstract of title. The certificate names the fee owner of a property and any other persons with legitimate interests in the property. Title i
A person applying for a broker's license in Georgia must meet all of the following requirements EXCEPT
A)
having been actively engaged as a licensed salesperson for at least two years.
B)
having successfully completed 60 hours of an approved broker prelic
A)
having been actively engaged as a licensed salesperson for at least two years.
In order to obtain a broker's license in Georgia, an individual must have had an active license for at least three years, have successfully completed 60 hours of an approved
The use of the security deed in Georgia
A)
requires a process of judicial foreclosure.
B)
does not allow for any right of redemption by the borrower.
C)
creates a statutory right of redemption for the borrower.
D)
allows lenders to foreclose without going
D)
allows lenders to foreclose without going to court
Through the security deed, the borrower conveys legal title to a property to the lender, allowing for a non-judicial foreclosure process in which the lender does not have to go to court to foreclose on
The Georgia intangibles tax is assessed at a rate of
A)
$3.00 per $1,000 on the sales price of the property.
B)
$1.50 per $500 on a new loan.
C)
$1.00 per $500 on a new loan.
D)
$3.00 per $500 on the sales prices of the property.
B)
$1.50 per $500 on a new loan.
The intangibles tax is assessed against any new loan of more than $1,500 with a repayment period of more than three years. The tax is paid by either the seller or the buyer at a rate of $1.50 per $500 or portion thereof of
A buyer who is a broker's client wants to purchase a house that the broker has listed with a seller. In this situation,
A)
the buyer should not have been shown a house listed by the broker.
B)
the broker should refer the buyer to another broker to negotia
D)
the broker may proceed with the transaction if both parties give informed, written consent.
BRRETA, Georgia's agency law, does not explicitly forbid dual agency. However, a broker may represent both parties to a transaction only with the informed, writ
A broker manages three properties for the same owner. One property is in need of emergency repairs, but there is not enough money in the management account to cover the cost. The broker borrows money from the trust account of one of the other properties t
A)
The broker has violated regulations by improperly handling escrow funds.
The broker has violated Georgia law by using funds from one property to make repairs on another property. There must be enough money credited to a property owner's account to pay
If a broker with a Tennessee broker license has a client who wishes to purchase a home in Georgia, the broker may legally do any of the following EXCEPT
A)
petition the Georgia Real Estate Commission for a temporary license.
B)
by agreement work under the
A)
petition the Georgia Real Estate Commission for a temporary license.
There is no temporary license. By agreement, the Tennessee broker may work under the direction of a Georgia broker if the Georgia broker agrees to be responsible for the Tennessee bro
A broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers and encouraging them to accept the s
D)
not pay a commission to an unlicensed person, and the broker may be subject to disciplinary action because of the actions of the unlicensed assistant.
Unlicensed support personnel are not permitted to advise or negotiate with buyers. Both the unlicense
A buyer purchases a home in Georgia for $260,000. The sales contract states that the buyer will assume the existing seller's home loan of $58,000. How much is the Georgia transfer tax in this transaction?
A)
$245
B)
$202
C)
$546
D)
$606
B)
$202
The transfer tax in Georgia is a state tax paid in the county in which the property is located when title is transferred. The tax is charged at a rate of ten cents (0.10) per $100 of the sales price or portion thereof of the property, minus the am
When a real estate sale closed on November 30, the sellers had paid their yearly hazard insurance premium at a cost of $1,500 a year, and the policy anniversary date was May 10. At the closing, the sellers would receive a refund for the unused portion of
B)
$657.53
Policy days refunded to the seller will be counted from the day after closing, December 1, to and including the last day of the policy, May 9, for a total of 160 days. The amount of the policy, $1,500, � 365 days = $4.1095 per day, � 160 days,
In Georgia, errors and omissions insurance is
A)
required for all companies with more than one office.
B)
required for all licensees.
C)
not required.
D)
required for all companies with more than ten licensees.
C)
not required.
In Georgia, errors and omissions insurance is not required. However, may brokers carry the insurance as a cost of doing business, as the insurance company will defend the broker and pay legal costs and judgments in a lawsuit against the b
The Georgia Real Estate Commission's rules regarding advertising require that
A)
when advertising in any media, the name and telephone number of the firm be at least as large as the name of any agent.
B)
property listings on websites be removed within 30
A)
when advertising in any media, the name and telephone number of the firm be at least as large as the name of any agent.
Commission rules do not require that salespersons' names be on signs. The rules require that listings on the internet must be remove
Contract forms in general use in Georgia make use of the concept of "due diligence." How does "due diligence" affect the purchase and sales agreement?
A)
It assures the buyer that the title search will be reliable.
B)
It obligates the buyer to remove cont
B)
It obligates the buyer to remove contingencies within a stated time frame or cancel the contract.
Due diligence requires that a person use good-faith efforts to perform any obligations stated in a purchase and sale agreement. Sales contracts usually in
Which type of agency is recognized in Georgia?
A)
Undisclosed dual agency
B)
Designated agency
C)
Transaction brokerage
D)
Fiduciary agency
B)
Designated agency
In Georgia, designated agency is specifically recognized and defined. Dual agency is permitted only if both parties agree to the dual representation. BRRETA defines the duties of agents and does not use the term "fiduciary" as found i
Georgia's Brokerage Relationships in Real Estate Transactions Act (BRRETA) requires that certain disclosures must be made to any client with whom a licensee is entering into a brokerage engagement. These disclosures include
A)
whether the brokerage firm h
A)
whether the brokerage firm has a conflict of interest in the transaction.
The licensee does not have to identify the names of the real estate company's officers and directors, the name of the financial institution where trust funds are held, or the num
A homebuyer financing a purchase in Georgia with a conventional loan that will close on September 1 will make the first monthly payment to the lender on
A)
October 1.
B)
the date negotiated between the seller and the buyer in the purchase contract.
C)
Nov
A)
October 1.
When a loan closes on the first day of the month, the borrower's first mortgage payment will be due on the 1st of the next month. If the loan closes on any other day of the month, the buyer's first mortgage payment will not be due in the nex
The qualifying broker of a real estate corporation in Georgia must
A)
be named to the board of directors.
B)
hold a majority interest in the corporation's stock.
C)
hold at least one share of stock in the corporation.
D)
be named an officer of the corpora
D)
be named an officer of the corporation.
The qualifying broker of a real estate corporation in Georgia must be named an officer of the corporation. Georgia law does not specify the interest in stock or the shares of stock that the qualifying broker must
A Georgia real estate licensee who is guilty of illegal discrimination may have violated
A)
federal law only.
B)
state law only.
C)
local law only.
D)
federal, state, local, and license law.
D)
federal, state, local, and license law.
A violation of fair housing law can bring about action under federal, state, and local laws and can also result in disciplinary action by the Commission against the real estate licensee. Commission regulations pr
An owner tells a listing broker that his property is connected to the city sewer system, when in fact it is not. A buyer purchases the property relying on that information, and shortly after the closing, discovers that the sewer connection does not exist.
A)
Both the owner and the broker may be subject to legal action.
In this situation, both the owner and the broker may be subject to legal action by the buyer because of misrepresentation about the sewer connection. The owner is guilty of not disclosing th
A leasing agent's primary responsible is to
A)
make property repairs.
B)
hire the owner's employees.
C)
find a qualified tenant.
D)
spend the profits.
C)
find a qualified tenant.
A property manager's first duty is to find qualified tenants, collect rents, and be sure the principal makes money. Property repairs may or may not be done by the property manager. A property manager would not be responsible fo
How old must a citizen of Georgia be before he may prepare a legally binding will?
A)
14 years old, provided real property is not involved
B)
21 years old
C)
Any age, as long as the will is legally witnessed and recorded
D)
18 years old
A)
14 years old, provided real property is not involved
A Georgia citizen must be at least 14 years old in order to prepare a legally binding will. In many states, the legal age to prepare a will is 18.
The redemption period for a tax sale in Georgia is
A)
two years.
B)
six months.
C)
one year.
D)
nine months.
C)
one year.
In Georgia, when a tax delinquency occurs, a tax sale is held and the redemption period follows the sale. The redemption period for a tax sale in Georgia is one year. At the tax sale, a tax certificate or certificate of sale in the amount of
Which statement regarding the Georgia Real Estate Commission is FALSE?
A)
All of the members of the real estate commission must hold active real estate broker's licenses.
B)
The commission makes and enforces the rules by which all real estate licensees mu
A)
All of the members of the real estate commission must hold active real estate broker's licenses.
One member of the commission is always an unlicensed person who represents consumers. The commission makes and enforces the rules by which all real estate
A broker has converted an older house into small apartments for students at a nearby college. When a blind student asks to rent a unit on the third floor, the broker rejects his application because he feels it would be too risky for the blind student to n
B)
No, because he is discriminating on the basis of handicap.
Although the broker may feel that he is acting in the best interests of the blind student, this refusal would be a violation of the Fair Housing Act. Disabled people are a protected class under