In Georgia, the transfer tax is paid at the rate of
A)
$0.10 per $100 on any assumed loan.
B)
$0.50 per $100 on the sales price of the property.
C)
$0.10 per $100 on the sales price of the property.
D)
$0.50 per $100 on any assumed loan.
C)
$0.10 per $100 on the sales price of the property.
The transfer tax is a state tax charged at a rate of $.10 per $100 or portion thereof of the sales price of a property. The tax is usually charged to the seller, and the amount of any assumed loan is d
The acceleration clause in a security deed
A)
requires the borrower to reinstate a defaulted loan before foreclosure.
B)
permits a lender to demand an immediate payment of the debt in the event of default.
C)
requires the lender to cancel a security instr
B)
permits a lender to demand an immediate payment of the debt in the event of default.
The acceleration clause in a security deed allows a lender to demand immediate payment of the debt in the event of the borrower's default. An alienation clause permits
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 listing broker must give permission for the showings.
B)
the salesperson can act as a subagen
D)
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
If a nonresident Georgia real estate licensee moves to Georgia and wants to acquire a resident license in Georgia, the licensee must
A)
be a resident of Georgia for one year before applying for a resident license.
B)
be a resident of Georgia for six month
D)
file a change of status with the Commission.
ensee is not required to retake any examination or course of study, or to wait for a period of time to apply for a resident license.
Routine real estate services that do NOT require a licensee's professional judgment or skill are referred to as
A)
transactional brokerage acts.
B)
ministerial acts.
C)
routine brokerage acts.
D)
material acts.
B)
ministerial acts.
BRRETA defines ministerial acts as acts that do not require a licensee's professional judgment or skills. A real estate license is required to perform brokerage acts for a client or to act as a transaction broker or agent for parties
Under Georgia law, written disclosure of an agency relationship must be made
A)
at the closing table.
B)
as soon as reasonably possible.
C)
at an open house.
D)
at the time an offer is made.
D)
at the time an offer is made.
In Georgia, a buyer who is getting a mortgage loan will be signing which document at the closing?
A)
Security deed and note
B)
Note and mortgage
C)
Warranty deed
D)
Limited warranty deed
A)
Security deed and note
In Georgia, a borrower will sign a promissory note, which establishes the amount of the debt, the terms of repayment, and the interest rate for the loan. The security deed provides collateral for the loan. With the security deed,
All of the following are exempt from the provisions of the Georgia license law EXCEPT
A)
individuals who receive compensation for procuring prospective buyers or renters of real estate.
B)
utility employees responsible for negotiating easements.
C)
proper
A)
individuals who receive compensation for procuring prospective buyers or renters of real estate.
Anyone receiving compensation for procuring prospective buyers or renters of real estate must first obtain a real estate license. Owners, utility employees
VA loans in Georgia may be made by
A)
a local mortgage banker or lending institution.
B)
the Veterans Administration.
C)
Fannie Mae.
D)
HUD.
A)
a local mortgage banker or lending institution.
An individual has sued a licensee for fraud and has been awarded a judgment in the amount of $65,000. An attempt to collect on the judgment lien was unsuccessful, so now the Commission's recovery fund might pay
A)
a maximum of $25,000.
B)
a maximum of $50
A)
a maximum of $25,000.
In Georgia, the term homestead exemption relates to
A)
the fact that the property tax on the home is an exemption to federal income tax.
B)
a deduction that an owner-occupant can take from assessed value before calculating a property tax.
C)
an exemption
B)
a deduction that an owner-occupant can take from assessed value before calculating a property tax.
The principal method of delineating property boundaries or legal descriptions in Georgia is known as the
A)
rectangular survey system.
B)
system of metes and bounds.
C)
colonial block grant system.
D)
system of principal meridians and base lines.
B)
system of metes and bounds.
A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to the prospective tenant; rather, the licensee receives a commission from the landlord. The licensee tells t
B)
the licensee has violated his statutory duties owed to the tenant.
In Georgia, the real estate license law is administered by the
A)
Georgia Real Estate Commission.
B)
Department of Housing and Urban Development.
C)
Georgia Association of REALTORS.
D)
Georgia Governor's Office of Consumer Affairs.
A)
Georgia Real Estate Commission.
In Georgia, properties are assessed for tax purposes at
A)
75% of market value.
B)
market value, as established by the assessor.
C)
25% of market value.
D)
40% of market value.
D)
40% of market value.
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)
Her license will soon expire, because she cannot be inactive for more than 10 years.
B)
She must activ
D)
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
Members of the Georgia Real Estate Commission are
A)
elected in statewide elections every six years.
B)
appointed by the commissioner of real estate.
C)
elected by licensees.
D)
appointed by the governor.
D)
appointed by the governor.
In regard to a tenant's security deposit, all of these statements are true EXCEPT
A)
the landlord may deduct for the cost of repairing damage.
B)
the tenant may use the deposit for paying the rent for the last month of the lease.
C)
the amount of a securi
B)
the tenant may use the deposit for paying the rent for the last month of the lease
The tenant may not use the deposit for paying the rent for the last month of the lease. The landlord may deduct from the security deposit for the cost of repairing damag
A listing broker delivers a buyer's contract to her seller, and the seller accepts the offer. The next day, the seller notifies the broker that he withdraws the acceptance of the buyer's offer. In this situation, the broker
A)
may retain the deposit as co
D)
is entitled to collect a commission.
The broker earned the commission since she has procured a ready, willing, and able buyer for the seller. The deposit must be returned to the buyer. The broker may not take her commission from the earnest money that
In Georgia, the responsibility for ensuring the accuracy of any promissory notes involved in a closing belongs to the
A)
buyer or buyer's broker.
B)
seller's broker.
C)
closing attorney as a representative of the lender.
D)
closing attorney as representat
C)
closing attorney as a representative of the lender.
The responsibility for making sure any promissory note involved in a closing is accurate belongs to the closing attorney as a representative of the lender. The closing attorney represents the lender,
A real estate salesperson is representing a buyer in the buyer's search for a new home. After helping the buyer negotiate for his dream home, the salesperson might perform other services, including
A)
accepting a gratuity from the lender chosen by the buy
B)
recommending several sources for mortgage loans.
The buyer's agent may recommend several sources for mortgage loans. Accepting a gratuity from the lender who is chosen by the buyer would be an illegal kickback. Salespersons may only receive compensatio
In Georgia, the closing costs for a real estate transaction include an intangibles tax in the amount of
A)
$2.50 per $500 of the value of personal property accompanying the transaction.
B)
$1.50 per 500 square feet of land.
C)
$1.50 per $500 or part there
C)
$1.50 per $500 or part thereof of the new loan amount.
In Georgia, the closing costs for a real estate transaction include an intangibles tax in the amount of $1.50 per $500 or part thereof of the new loan amount. If there is no new loan involved in th
The transfer tax stamp for a recently sold property indicates that $192.50 was paid for the county transfer tax. What was the sales price of the property?
A)
$192,500
B)
$211,750
C)
$200,000
D)
$175,000
A)
$192,500
In Georgia, any interest earned on a tenant's security deposit
A)
must be repaid to the tenant.
B)
is illegal, since security deposits must be kept in non-interest-bearing accounts.
C)
should be distributed as stated in the lease agreement.
D)
is shared e
C)
should be distributed as stated in the lease agreement.
Unless a lease contract states otherwise, interest earned on a tenant's security deposit will belong to the landlord. A lease agreement specifies how any interest on a tenant's security deposit wi
A broker is convicted on May 1 of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the Georgia Real Estate Commission and leaves a message informing the commissi
C)
The broker was required to notify the commission within 10 days after the conviction.
Georgia license law requires that the Commission be notified within 10 days. The licensee's license is automatically revoked within 60 days of the conviction unless t
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
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)
$202
B)
$245
C)
$606
D)
$546
A)
$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
A salesperson may accept compensation from someone other than the broker with whom the salesperson is affiliated only if
A)
the compensation comes from a former employing broker as a commission earned on a contract negotiated before the change of employme
A)
the compensation comes from a former employing broker as a commission earned on a contract negotiated before the change of employment.
A salesperson may accept compensation from someone other than the broker with whom the salesperson is affiliated only
The grantor of a security deed in Georgia is the
A)
seller.
B)
lender.
C)
title company.
D)
borrower.
D)
borrower.
The grantor is the party giving the deed, the borrower, who transfers the interest in the property to the lender with the right to non-judicial foreclosure in the event of a default. The lender is the grantee, the party receiving the deed and
A licensed salesperson is holding an open house in a property he has listed. A couple, who are prospective buyers and not represented by a licensee, visits the property and shows some interest. In this situation, the salesperson
A)
becomes a dual agent.
B
C)
should explain that he represents the seller and will be treating the couple as customers.
The salesperson represents the seller and will be treating the buyers as customers. He should disclose his agency relationship with the seller to the couple befo
The Georgia Real Estate Commission's rules regarding advertising require that
A)
property listings on websites be removed within 30 days of the expiration date of the listing.
B)
For Sale signs always contain the name and phone number of the listing sales
C)
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
Twenty years ago, a homeowner obtained a 30-year mortgage loan to purchase a home. The interest rate on the loan was 9.275%. Today, the homeowner is prepared to pay off the loan early. Based on these facts, which statement is TRUE in Georgia?
A)
The loan
A)
The loan documents will determine if prepayment is possible and whether a penalty can be imposed
The loan documents will determine if prepayment is possible and whether a penalty can be imposed. Lenders typically permit prepayment of a loan but may imp
Which statement regarding the Georgia Real Estate Commission is FALSE?
A)
The commission makes and enforces the rules by which all real estate licensees must abide.
B)
All of the members of the real estate commission must hold active real estate broker's
B)
All of the members of the real estate commission must hold active real estate broker's licenses.
How soon must deeds of conveyance be recorded after closing?
A)
A reasonable time
B)
One business day
C)
One month
D)
Three business days
A)
A reasonable time
Deeds must be recorded within a reasonable time. Recording a deed is not required for the deed to be valid between the parties, but recording the deed provides constructive notice of the owner's interest in the property.
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 broker who wishes to place a For Sale sign on a listed property must first
A)
obtain the written consent of the owner of the property.
B)
obtain the permission of any adjacent neighbors.
C)
sell the property.
D)
ensure that there are no more than three
A)
obtain the written consent of the owner of the property.
After obtaining written permission, the broker may erect a For Sale sign on the property. The broker does not have to obtain permission from the neighbors, sell the property, or count the number
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
B)
it would be best to consult an attorney.
In Georgia, which statement is TRUE regarding instructors who teach prelicense classes?
A)
Instructors wishing to teach prelicense classes must be licensed by the Commission.
B)
Prelicense instructor licenses must be renewed every two years.
C)
A school m
A)
Instructors wishing to teach prelicense classes must be licensed by the Commission.
A person teaching Georgia prelicense courses must be approved by the Commission as a prelicense instructor. Prelicense instructors renew their approval every four years
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 obligates the seller to make all necessary repairs.
B)
It assures the buyer that the title search
D)
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
Under Georgia license law, a partnership, association, or corporation will be granted a license only if
A)
all papers are filed with the secretary of state.
B)
every member and officer actively participating in the brokerage business has a broker's licens
C)
there is one individual who holds a broker's license and who will be named the qualifying broker.
In Georgia, the closing of a real estate transaction may be conducted by a
A)
salesperson.
B)
licensed attorney.
C)
lender.
D)
broker.
B)
licensed attorney.
In Georgia, only a licensed attorney may conduct a closing. The closing attorney represents the lender. A broker or salesperson may attend the closing but may not conduct the closing.
Georgia law requires that a buyer be informed of any adverse conditions of which the agent is aware, and that cannot be discovered by the buyer in a diligent inspection, concerning the
A)
land, improvements, and area up to one mile away.
B)
land only.
C)
A)
land, improvements, and area up to one mile away.
Georgia law specifically requires that buyers be informed of any adverse conditions of which their agent is aware that cannot be discovered by the buyers with a diligent inspection of the land, improvem
A real estate license is NOT required for an individual who is
A)
selling real properties at auction sales.
B)
marketing new homes for various builders.
C)
listing luxury properties.
D)
selling mobile homes that are not attached to the land.
D)
selling mobile homes that are not attached to the land.
How must a landlord handle a security deposit in Georgia?
A)
Landlords must pay tenants interest on their security deposits.
B)
At the end of the lease, the landlord cannot apply the security deposit to rent owed by the tenant.
C)
Unless there have been d
C)
Unless there have been damages or other charges, the landlord must return the security deposit to the tenant within 30 days of the end of the lease.
Security deposits may be required for the rental of any kind of property. The landlord does not have to
If a closing in Georgia occurs on March 12 and the loan balance as of the March 1 payment was $210,400 with an interest rate of 5%, how much accrued interest does the seller owe at closing? (Use the correct days of the month and a mortgage banker's calend
C)
$350.67
The interest on a mortgage loan is paid in arrears. The seller's March 1 loan payment paid for interest due in the month of February, but the seller still owes interest for March, including for the day of closing, March 12. The seller owes inte
A closing in Georgia involving rental property takes place on December 15. Tenants pay rent on the first day of each month. At the closing, the
A)
seller will owe the buyer for 17 days' rent.
B)
buyer will owe the seller for 16 days' rent.
C)
buyer will o
D)
seller will owe the buyer 16 days' rent.
As rent is paid at the first of the month, the seller has received rent payments for the entire month of December. The seller may keep the prorated rent from the first through and including the day of closing, D
A leasing agent's primary responsible is to
A)
hire the owner's employees.
B)
find a qualified tenant.
C)
make property repairs.
D)
spend the profits.
B)
find a qualified tenant.
The total amount that can be paid out of the Georgia Education, Research, and Recovery Fund on behalf of one licensee who may have defrauded many people is
A)
$75,000.
B)
$15,000.
C)
$25,000.
D)
$45,000.
A)
$75,000.
The total amount that can be paid out of the Georgia Education, Research, and Recovery Fund on behalf of one licensee who may have defrauded many people is $75,000. No individual person may receive more than $25,000 from the fund.
In Georgia, which statement is TRUE in regard to local jurisdictions that impose a business license fee?
A)
Real estate companies are exempt from business license fees.
B)
Real estate companies must pay for the business license in jurisdictions where they
B)
Real estate companies must pay for the business license in jurisdictions where they have offices.
Real estate companies must pay for the business license in jurisdictions where they have offices. A business license may be imposed by a local city, count
When a salesperson decides to terminate affiliation with the employing broker,
A)
the transferring broker may forward the license to the new broker and notify the Commission in writing of that action.
B)
the salesperson is entitled to take her own active
A)
the transferring broker may forward the license to the new broker and notify the Commission in writing of that action.