EXAM 1ST ATTEMPT

Which of the following is an accurate summary of the capital gains tax homestead exemption:

$250,000 for a couple if the couple has owned the house for at least two years and it was their primary residence for two of the last five years
$500,000 for a couple if the couple has owned the house for at least two years and it was their primary residence for two of the last five years
$250,000 for a single person if the individual has owned the house for at least two years and it was their primary residence for two of the last five years
$500,000 for a single person if the individual has owned the house for at least two years and it was their primary residence for two of the last five years
Both B and C

Who establishes zoning ordinances in Georgia?

The Supreme Court
The state
Neighborhood Planning Units (NPUs)
The Federal government
town and city governments

A broker who has listed a property for sale CANNOT legally

exclusively represent the buyer
buy the property
become a dual agent
be the seller's agent only
hide the seller's motivation for selling

Which of the following is prohibited under the Sherman Act?

A broker refuses to negotiate a commission rate with a principal.
Two or more brokers agree to charge the same fees
a licensed agent with an inactive license receives a referral fee
a buyer does not receive a closing disclosure more than 3 days prior to closing
A broker established definitive prices for the services they offer

A licensee takes a listing of a family friend even though the property is 2 hours away. If the licenseee does not market the property, what has the agent violated?

fiduciary relationship
statute of frauds
Unfair Trade Practice Act
RESPA
Marketing Disclosure Act

What type of contract is it when a minor and adult have entered into a written contract for the sale of a property?

an illegal contract
a void contract
a binding contract
a voidable contract
implied contract

How does earnest money appear on a closing statement?

As a debit to the buyer
As a debit to the seller
As a credit to the seller
As a credit to the buyer

What makes a bilateral contract different from a unilateral contract?

a unilateral contract only one party is required to perform, while in a bilateral contract, both parties must perform
a unilateral contract requires the performance of two parties, while the bilateral contract only requires the performance of one party
a bilateral contract gives a timeline of the events from the perspective of both sides, while the unilateral contract only provides the perspective of one of the parties
a bilateral contract gives a timeline of events from the perspective of one of the parites, while a unilateral contract requires the perfomance of two parties
number of parties involved

A seller is requiring that the buyer use a particular title insurance company and the buyer is paying for the title insurance. This is ______

a VA loan violation
a Regulation Z violation
a violation of the Real Estate Settlement Procedures Act
an added incentive for the buyer
violation of the Truth in Lending Act

Which of the following would be a violation of license law by a broker?

requiring a prospective agent to be an independent contractor in order to hold their license
requiring that one of their agents not manage properties without their permission
keeping multiple trust accounts
not submitting records to GREC
refusing to let one of their salespeople take a listing with them

What is the result of a low loan-to-value ratio?

higher liklihood of foreclosure
less equity in the property
more equity in the property
greater use of leverage
has less cash tied up in the property than a high loan-to-value ratio

What is the advantage to a buyer utilizing a buydown?

saves the buyer money on their income taxes
reduces private mortgage insurance
smaller interest rate for the buydown period
smaller interest rate after the buydown period has ended
loan is paid off more quickly

________ is a type of loan that is calculated based off of public index that fluctuates based on market conditions.

Budget mortgage
Graduated payment mortgage
Renogotiable rate mortgage
Reverse annuity mortgage
Adjustable rate mortgage

How long may Georgia licensees keep their license on inactive status?

For as long as their broker's policies allow
For as long as the Governor allows each individual to do so
for up to 3 years
for up to 5 years
as long as renewal fees are paid

The best way of eliminating a title defect on a property is

a quiet title lawsuit
estoppal
quick claim deed
conducting a quiet transfer on the property

What type of depreciation occurs due to forces outside of the property

Deferred maintenance
Functional obsolescence
Standard depreciation
External obsolescence
internal obsolescence

A broker in Georgia must keep copies of unaccepted offers for how long?

there is no time period for unaccepted offers
5 years
10 years
3 years
Until the broker is no longer actively licensed

What must be included in a legal description of real estate in Georgia?

land lot number
name of the county
parcel ID number
district number
the school district

A broker advertises a property for rent only in a Japanese website. The advertisement contains the fair housing logo and no discriminatory language. This is _____

acceptable because it is not print media
illegal because it is sellecting where to advertise based on a protected class.
the only appropriate way to market property in this neighborhood.
Unacceptable because it is not print media
acceptable if the advertisement includes no preferential language.

A purpose of the Lead-Based Paint Disclosure regulation is

establish the seller's responsibility for any of the buyer's medical problems as a result of lead
require to remove any lead from the property prior to occupancy
allow the buyer a chance to waiver the lead paint inspection
require the removal of all lead paint prior to the closing
prohibit the transaction if any children will be occupying the property

How long after the expiration of the listing must a Georgia licensee remove an advertisement from the internet?

7 days
10 days
14 days
30 days
As soon as possible

In advertising, what is it called when a home’s positive attributes are overemphasized?

fraud
negilent misrepresentation
overstating
puffing
understating

Encouraging residents to sell now because of minorities moving to the area is called

redlining
steering
filtering
blockbusting
A common real estate practice

How are members of the Georgia Real Estate Commission appointed?

appointed by the other members of GREC
appointed by the General Assembly and approved by the Governor
appointed by the Lieutenant Governor and approved by the Governor
appointed by the Governor and confirmed by the Senate
appointed by the Senate Judiciary Committee and approved by the Governor

Vincent’s license is revoked by the Georgia Real Estate Commission, how long will Vincent have to wait to reapply for a new real estate license?

1 year
a year and one day after it has been revoked
7 years
It takes 10 years before you're cleared to reapply for a license.
Once your license is revoked, you will never be able to get another real estate license

Martha bought a house in Georgia in 2007 and by 2009 she no longer could afford the mortgage payments and ultimately defaulted on her loan. Her house has been put up for foreclosure. What was she able to do to recover her property?

Deed in Lieu of Foreclosure
Deed to Purchase at Sale
Deficiency Judgment
It's too late to recover the property once it's been put up for foreclosure.
Redemption

GREC commission members must focus on all of the following areas of responsibility EXCEPT:

evaluating staff operatings
communicating with the industry and public
establishing a fair qualifying process
establishing a fair and unbiased hearing process
representing the real estate industry

Engaging in activities that require a real estate license without a real estate license is ___________ in Georgia.

a felony
a judgment
misrepresentation
a misdemeanor
punitive

When working with an African American client, Nancy makes an effort to show them homes in primarily African American communities. What is this an example of?

steering
redlining
puffing
blockbusting
Nothing

Which one of the following advertisements is not prohibited under the Fair Housing Act?

"male roommate wanted"
"no pets or children allowed"
"no wheelchairs"
"Christian Housing"
"great for a small family'

In Georgia who can pay the intangible taxes at closing?

Only the lender
Who pays is decided between the buyer and seller
Intangible taxes cannot be paid at closing.
Only the buyer
Only the seller

What deed provides the MOST protection for a purchaser of real estate?

Security Deed
General Warranty Deed
Quitclaim Deed
Trustee's Deed
Special Warranty Deed

When Henry’s father passed away 20 years ago, he had him cremated and planted a tree on his property from his remains. The tree is an example of:

real property
familial property
personal property
trade fixture
chattels

Which of the following must an associate broker do if offered a position as the qualifying broker for another firm?

do nothing
association with two firms is a violation of license law
must give notice to the broker holding their license
must choose one of the firms to leave affiliation from
must have been a broker for at least 3 years to be a qualifying broker

In Georgia, how long does a salesperson have to complete the 25 hours postlicense course?

1 year from passing the state real estate exam
2 years from passing the state real estate exam
2 years from hanging their license with a broker
2 years after the issuance of the license
1 year after the issuance of the license

What is wrong with a Georgia Salesperson providing money to unlicensed people in exchange for referals that could result in a sale?

Yes – It is a violation RESPA
unethical practice however not a violation
Violation of Regualtion z
good business practice
unfair trade practice

What determines the max commission rate that a broker may charge on the sale of a property he or she has listed is

determined by the Georgia Association of Realtors
fixed by state law
fixed by state laws and regulations.
the amount that the buyer and seller are willing to agree on
whatever amount the seller and broker agree on

The loan amount will influence all of the following with the exception of

survey costs
attorney's fees
origination fees
lender's title insurance

A piece of property is owned by two people together. If one of the owner dies and the property automatically transfers to the other owner, how is title held?

severalty.
tenancy in common.
tenancy in the entirety
partnership
joint tenancy with survivorship.

What happens when a listing agent transfers to a new firm while a property they listed is still active?

The rules determining whether or not the agent is entitled to a commission are determined by the polices of the firm.
You cannot move brokerages while you have a current lising.
It is your listing so you will automatically get the listing commission regardless of the change of brokerage companies when the property sells.
You are no longer entitled to any commission if you switch brokerages.
If you informt the seller and your current broker, you can continue to represent the client.

A seller sends a counteroffer to a buyer, and then the seller obtains an offer for a higher price from another buyer and wants to accept it. What can the seller do to accept the second offer?

do nothing
let the counteroffer to the first buyer expire before accepting the second offer.
rescind the counteroffer before accepting
wait for a reply from the second buyer
wait for a reply from the first buyer

What type of housing is permitted for a VA loan?

tenant occupied single family home
tenant occupied quadplex
owner-occupied five unit apartment
owner occupied quadplex
none of the above

What clause in a loan provides that when the property is sold, the lender may either declare the entire debt due immediately?

Release of the Mortgage Clause
Alienation Clause
Prepayment Clause
Condemnation Clause
Defeasance Clause

Which of the following can BEST describe an objective of the Sherman Act?

protect against inaccurate and unfair credit billing and credit card practices
to make activities that restrict competition in the marketplace illegal
prohibit acts of fraud against buyers
prohibit kickbacks in the provision of settlement services.
none of the above

How long after being originally licensed does a salsesperson license lapse?

four years after original licensure
four years from the last day of the licensee's month of birth
three years from the last day of the licensee's month of birth
three years from passing their 25 hour post licnse course
two years from passing their 25 hour post licnse course

Which of these is typically true about judgment liens?

can only affer real property.
can only affect real property.
should be cancelled upon being paid off.
are superior to IRS liens
none of the above

Which of the following most frequently provides the funding for a purchase money mortgage?

the buyer
an insurance company
a mortgage company
a commercial bank
the agent

Which of the following loans would result in the lowest LTV ratio.

$90,000 loan on a $100,000 house
$45,000 loan on a $90,000 house
$30,000 loan on a $80,000 house
200,000 loan on a $410,000 house

In what situation would the Georgia Real Estate License Laws apply to someone?

an agent on inactive status
an attorney-in-fact
full time employee of a federal agency
a referral agent who receives no fees and is not involved in the negotiations
none of the above

What is the most accurate way in estimating the value of a 6-unit apartment complex?

gross rent multiplier
income
cost
market data

A buyer signs an offer and their agent emails it to the seller. The seller signs it and gives it to their friend to give to the buyer but the friend never delivers the contract to the buyer. Which of the following statements about this example is true?

the contract is not binding until the buyer is aware that it has been signed
Equitable title has been passed to the buyer.
The contract is binding because it was signed by both parties
The buyer can sue for a specific perfomance.
None of the above

Which of the following is a home warranty most likely to cover?

The water heater goes out 60 days after closing
the true owner was Bob Davis Senior but Bob Davis Junior signed the warranty deed
While the county taxes were paid off at closing, the city taxes were not
a water bill was not paid off
an undisclosed homicide occurred at the property

A construction company agrees to lease an empty lot from a local business for 6 months and parks it’s equipment in the lot. After 6 months the lease is not renewed but the construction company continues to make rental payments and the lessor continues to accept the rent. According to Georgia law what must now be done to evict the construction company?

The tenant is a tenant at will and the landlord must give a 30 day notice
The tenant is a tenant at will and the landlord must give a 60 day notice
The tenant is a holdover and while the landlord cannot immediately evict, they can immediately file for eviction
The tenant is a tenant at sufferance and the landlord must give the tenant a 30 days notice
The tenant is a tenant at sufferance and the landlord must give the tenant a 60 day notice

According to license law, which of the following is permitted by a broker?

disclose a material defect in a property they are listing
not presenting a low ball offer to a seller
accepting purchase offer before informing the seller because the offer was "exactly what they were looking for"
listing the property on the MLS before the seller signs a brokerage agreement

What would a mortgage lender rely on when deciding how much to lend on a parcel of real estate?

Price determined by the Appraisal report
Price listed in a Comparative Markey Analysis
Price listed on the Purchase and Sale Agreement
Price listed in the Broker's Price Opinion
Price on the Sales contract

What are the consequences of a short sale for the seller

the lender could issue a 1099 to the seller
the lender could obtain a deficiency judgment against the seller
there are no significant negative effects of a short sale. That is why they are more desirable than a regular foreclosure.
Lenders are not allowed to take less than is owed due to truth in lending laws
Both A & B

Which of the following would not be allowed as like kind 1031 exchange?

an apartment building for vacant land
a duplex for a large apartment building
a rental property for a personal residence
vacant land for an industrial building
a single family home in Georgia for a single family home in Texas

A house is appraised at $275,000. After a bidding war the house sells for $295,000 and the buyer pays 15% as well as 3 discounts points. How much will the buyer owe for points?

7250
7012.5
8108.25
7721
7522.5

Assuming a .65 LTV ratio, a buyer purchases a home for $675,000 and the lender charges an origination fee of 3.5%. How much is the origination fee?

8269
15356
23625
13635
10356

EXAM 1ST ATTEMPT

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question

24. Question

25. Question

26. Question

27. Question

28. Question

29. Question

30. Question

31. Question

32. Question

33. Question

34. Question

35. Question

36. Question

37. Question

38. Question

39. Question

40. Question

41. Question

42. Question

43. Question

44. Question

45. Question

46. Question

47. Question

48. Question

49. Question

50. Question

51. Question

52. Question

53. Question

54. Question

55. Question

56. Question

57. Question

58. Question

59. Question