Proctored Final Exam Attempt – #2 – Blue Apple Real Estate School

Question 1 of 150

1. Question

The capital gains homestead exemption can be best described as:

$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 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 and $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
$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

Question 2 of 150

2. Question

Through what entity are zoning ordinances typically established in Georgia?

Superior Court
town and city governments
the State of Georgia
Neighborhood Planning Units (NPUs)
the property owner

Question 3 of 150

3. Question

According to real estate license law, which of the following is a broker not allowed to do when listing a property for sale?

represent just the buyer
represent both the buyer and the seller
be the seller's agent only
buy the property
hide the seller's motivation for selling

Question 4 of 150

4. Question

Which of the following is a violation of the Sherman Act?

A broker established definitive prices for the services they offer
A broker refuses to negotiate a commission rate with a principal.
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
Two brokers agree to charge the same fees

Question 5 of 150

5. Question

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?

Consumer Protection Act
Seller Disclosure Act
statute of frauds
fiduciary relationship
Marketing Disclosure Act

Question 6 of 150

6. Question

When an adult and a minor have entered into a written agreement for the sale of a property, the contract is?

a voidable contract
a legal binding contract
an illegal contract
a voided contract
none of the above

Question 7 of 150

7. Question

How does earnest money appear on a closing statement?

Credit the buyer.
Credit the Seller.
Debit the seller.
Debit the buyer.
Debit to the lender

Question 8 of 150

8. Question

What is the difference between a bilateral contract and a unilateral contract?

relative value of the object of the contract
a unilateral contract only one party is required to perform, while in a bilateral contract, both parties must perform
type of property specified in the contract
number of parties involved
a unilateral contract requires the performance of two parties, while the bilateral contract only requires the performance of one party

Question 9 of 150

9. Question

A seller tells a buyer that they will not sell them the house unless the buyer uses a particular title insurance company. This is _____

According to Regulation Z this is illegal.
If no fee is paid directly to the seller, this practice is legal.
a violation of the Real Estate Settlement Procedures Act
According to Regulation Z this is legal.
violation of the Truth in Lending Act

Question 10 of 150

10. Question

According to real estate license law, a broker may be sanctioned for which one of the following?

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

Question 11 of 150

11. Question

A high loan-to-value ratio indicates

a lower equity in the property
a lower risk of foreclosure
a lower use of leverage
lower risk of foreclosure
None of the above

Question 12 of 150

12. Question

Which of the following may be an advantage of a buydown for a borrower?

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

Question 13 of 150

13. Question

The type of loan where the interest rate is determined by adding the margin to a publicly available index rate is _____________

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

Question 14 of 150

14. Question

A Georgia real estate license can stay inactive for

4 years
For as long as thier broker has an active license
5 years
3 years
as long as renewal fees are paid

Question 15 of 150

15. Question

If there is a title defect on a property, what would be the BEST option in the means of getting it eliminated?

estoppel
transfer the property with a quick claim deed
waiting 7 years for the issue to expire.
a quiet title lawsuit
All of the above

Question 16 of 150

16. Question

When a property in good condition value declines because it is in a declining neighborhood, what type of depreciation would that be considered?

functional obsolescence
deferred maintenance
standard depriciation
external obsolescence
social depreciation

Question 17 of 150

17. Question

A broker in Georgia must keep copies of all of their past engagements for how long?

2 years
5 years
6 years
3 years
30 years

Question 18 of 150

18. Question

In Georgia, what description of the land must be included in every legal land description?

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

Question 19 of 150

19. Question

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

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

Question 20 of 150

20. Question

The lead based paint addendum…

requires the removal of any lead from property prior to occupancy
lead paint is safe and shouldn't be a concern
establishes the seller's responsibility for any of the buyer's medical problems as a result of lead
establishes the buyer's responsibility for any of the buyer's medical problems as a result of lead
allows the buyer a chance to waive the lead paint inspection

Question 21 of 150

21. Question

Once a listing expires, how long does an agent have to remove an advertisement from the internet?

30 days
48 hours
15 days
10 days
As soon as possible

Question 22 of 150

22. Question

What is it called when an agent overemphasizes a property’s positive attributes?

overstating
puffing
negligent misrepresentation
disclosure
understating

Question 23 of 150

23. Question

A method of psychological manipulation to make residents sell their property because of changing demographics is called __________?

blockbusting
redlining
filtering
A common real estate practice
none of the above

Question 24 of 150

24. Question

How can members be admitted to the Georgia Real Estate Commission which has 6 members?

appointed by the Governor and confirmed by the Senate
appointed by the other members of GREC
appointed by the General Assembly and approved by the Governor
appointed by the Senate Judiciary Committee and approved by the Governor
All of the above can appoint members

Question 25 of 150

25. Question

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

A year and a day after it has been revoked.
The first day of the next calandar year.
10 years
7 years
90 days

Question 26 of 150

26. Question

Every relationship in which a real estate broker acts for or represents another as a client by the latter’s written authority in a real property transaction.

Agency
Commission
Community Association
Firms
Representative

Question 27 of 150

27. Question

Any person who is licensed as a community association manager, salesperson, associate broker or broker.

Licensee
Commissioner
Agent
Lender
Broker

Question 28 of 150

28. Question

___ any business entity, including, but not limited to, a corporation, partnership, limited liability company, or a sole proprietorship.

Firm
Real estate
Agency
All of the above
None of the above

Question 29 of 150

29. Question

Mary is interested in buying a land to build on for her hair business. What will we say Mary is?

Purchaser
Agent
Broker
Licensee
Surveyor

Question 30 of 150

30. Question

Which of these professions are able to buy, sell or lease real property on behalf of others for a commission?

Broker
Salesperson
Appraiser
Lender
Developer

Question 31 of 150

31. Question

All of these are the physical characteristics of land EXCEPT

Immobility
Movable
Indestructibility
Uniqueness

Question 32 of 150

32. Question

Fill in the blank: Operations, such as ______, will have an influence on the surrounding properties in the neighborhood.

Airports
Industrial Plants
Recreational Facilities
All of these
None of these

Question 33 of 150

33. Question

Fill in the blank: _______ impacts the value of a commodity.

Scarcity
Improvements
Area Preference
Permanence of Investment
None of the above

Question 34 of 150

34. Question

Which term matches the definition: ________ is the period of time that the ROI (Return on Investment) will be realized over

Life of Economic
Economic of Life
Economic Life
Life Economic
None of the above

Question 35 of 150

35. Question

When does a mobile home considered a real property

Once it has been built
as soon as it is affixed to the ground
one it has been developed
it is always considered real property
once it has been purchased

Question 36 of 150

36. Question

What does FICO stand for?

Fair Isaac and Corporation
Fawn Issac Company
Fair Iceland Company
Fawn Isaac Corporation
Fair Iceland Corporation

Question 37 of 150

37. Question

Credit score usually ranges from

300 – 850
200 – 750
100 – 800
500 – 900
400 – 800

Question 38 of 150

38. Question

Which of the following is NOT one of the names of the three credit reporting companies used in the United States?

Experian
Transunion
Expedia
Equifax

Question 39 of 150

39. Question

What is the name of the website used to retrieve your annual free copy of your credit report?

annualcreditrefresh.com
annualcreditreport.com
annualcreditguru.com
officialannualreport.gov
credithero.com

Question 40 of 150

40. Question

What are the types of property ownership?

Cooperative
Timeshare
Condominium
All of the Above
None of the Above

Question 41 of 150

41. Question

Which of the following is the best way to express agency?

Through writing
Orally through professional conversation
An appointment with the broker’s office
Through a government official
All of the above

Question 42 of 150

42. Question

Another name for a listing agreement is?

Purchase contract
Seller representation agreement
Buyer representation agreement
All of the the options above are accurate
None of the above

Question 43 of 150

43. Question

The agency relationship is defined by

the Realtor Code of Ethics
the laws of agency, or in some states, by statute
the law of real estate contracts
the agreement between a prinicipal and an agent
all of the above

Question 44 of 150

44. Question

The agreement between a principal and an agent

the Realtor Code of Ethics
the laws of agency, or in some states, by statute
the law of real estate contracts
Agency relationship
is a limited relationship

Question 45 of 150

45. Question

Which of the following is not one of the kinds of laws that dictate agency relationships and the duties an agent owes to their client

Administrative law
Civil rights law
Statutory law
Common law
Usury law

Question 46 of 150

46. Question

What is the Do Not Call Implementation Act of 2003?

an act enacted to protect consumers from misleading or fraudulent advertising techniques
an act making it illegal to make a phone solicitation to any household that has listed its number in the Federal Trade Commission's Do Not Call Registry
an act that protects consumers from being bombarded with unwanted email solicitations.
an act that makes it unlawful to send an unsolicited commercial message via fax unless the sender has permission from the recipient or if both parties have an established business relationship
both A and C

Question 47 of 150

47. Question

A licensed salesperson may work only for

a client who has signed a listing agreement with a licensed broker
a single employing broker who has an active broker's license
a client who has signed an authorization agreement with a licensed salesperson
an employer who has an active or inactive broker's license
a client that's looking to purchase or sell their property

Question 48 of 150

48. Question

Who pays a salesperson when a transaction involved a listing agent, a selling agent, and several subagents

The listing agent
The selling agent
The seller
The employing broker
The escrow account's manager

Question 49 of 150

49. Question

What is the name of the party that is licensed to sell, purchase, or lease real property on behalf of others?

The Real Estate Broker
The Investor
The Real Estate Licensee
The Seller
The Property Manager

Question 50 of 150

50. Question

Which of these professions are able to buy, sell or lease real property on behalf of others for a commission?

Broker
Salesperson
Appraiser
Lender
Attorney

Question 51 of 150

51. Question

What did the Federal Trade Commission Act want to encourage?

Truthful ads
non-deceptive ads
Fair advertising
All of the above
none of the above

Question 52 of 150

52. Question

Which statement defines a deceptive ad?

an ad that will cause or is likely to cause substantial, unavoidable consumer injury.
an ad that contains statements that consumers cannot understand
an ad that contains or omits statements that will likely mislead reasonable consumers.
An ad that cannot be backed up by proof
none of the above

Question 53 of 150

53. Question

What is a cease-and-desist order?

an order requiring you to stop running the deceptive ad or engaging in deceptive practices
an order to take educational classes
an order to refund all money back to consumers for a deceptive product
a fine
none of the above

Question 54 of 150

54. Question

What is the Do Not Call Implementation Act of 2003?

an act that protects consumers from being bombarded with unwanted email solicitations.
an act that makes it unlawful to send an unsolicited commercial message via fax unless the sender has permission from the recipient or if both parties have an established business relationship
an act enacted to protect consumers from misleading or fraudulent advertising techniques
an act making it illegal to make a phone solicitation to any household that has listed its number in the Federal Trade Commission's Do Not Call Registry
none of the above

Question 55 of 150

55. Question

What is the CAN-SPAM Act of 2003?

an act making it illegal to make a phone solicitation to any household that has listed its number in the Federal Trade Commission's Do Not Call Registry
an act that protects consumers from being bombarded with unwanted email solicitations.
an act enacted to protect consumers from misleading or fraudulent advertising techniques
an act that makes it unlawful to send an unsolicited commercial message via fax unless the sender has permission from the recipient or if both parties have an established business relationship
none of the above

Question 56 of 150

56. Question

When two or more parties share ownership of a property and an owner’s interest in the property is known as

Interest in Real Estate
Undivided Interest
Agent’s Interest
Public Interest
None of the above

Question 57 of 150

57. Question

___ represents a private interest holder whom does not have the right to possess.

Estate in Land
Encumbrance
Agent's interest
Public Interest
Zone

Question 58 of 150

58. Question

The highest form of ownership interest one can acquire in real estate is

Joint tenancy
Eminent domain
Estate in land
Equal ownership
Fee simple estate

Question 59 of 150

59. Question

Define an easement

An interest in real property that gives the holder the right to use portions of the legal owner’s real property in an undefined way
An interest in real property that gives the holder the right to use portions of the legal owner’s real property in a defined way
A Timeshare in real property that gives the holder the right to use portions of the legal owner’s real property in a defined way
A lien on real property that gives the holder the right to use portions of the legal owner’s real property in a defined way
An interest in real property that gives the holder the right to use all of the legal owner’s real property in a defined way

Question 60 of 150

60. Question

Which of the following is not a requirement for the government’s right to take a property voluntarily from an owner ?

The property must be used for the public good
The owner must have due process in the courts system
The property owner must be paid compensation for the property
The property must be used for the private good
All of the above

Question 61 of 150

61. Question

Who will receive the property if the owner passes away without heirs and a will

The State
Parents
A Buyer
Closest Friends
Distant Relatives

Question 62 of 150

62. Question

What term describes real or personal property acquired by either spouse during marriage

Joint Tenancy
Community Property
Land Trust
Land Trust and Joint Tenancy
None of the above

Question 63 of 150

63. Question

In a situation where legal title to a property is held and is entrusted, carrying out the trustor’s instructions regarding the purpose of the trust, what is the term/title of this position?

Beneficiary
Trustee
Trustor
Adjustor
Trustor and trustee

Question 64 of 150

64. Question

Which are types of property ownership

Cooperative
Timeshare
Condominium
All of the Above

Question 65 of 150

65. Question

The “bundle of rights” refers to a set of rights

Enjoyed by the owner of a property
That is a synonymous with the Bill of Rights.
Guaranteed to citizens by the Statute of Rights
Specified in a deed or land contract.
Outlined in the Broker's handbook

Question 66 of 150

66. Question

What’s a primary purpose of zoning power?

The separation of residential properties from commercial and industrial uses.
To preserve high density land uses.
To discourage industrial and commercial users from relocating.
To ensure that a variety of building structures are available in the community.
All of the above

Question 67 of 150

67. Question

What is the difference that the consideration of a variance and exception may be based on?

Variance is based on hardship while special exceptions may be based on the interest of the governing authority
Variance is based on the public interest and special exceptions are based on hardship
Variance is based on hardship while special exceptions may be based on the public interest
Both variances and special exceptions are based on the public interest
None of the above is correct

Question 68 of 150

68. Question

How is the intensity of land usage regulated?

limiting the number of residential building lots per acre.
limiting the area of store or office per site area, minimum parking requirements, and building height restrictions, etc.
limiting the number of building permits issued per year within a zoning jurisdiction.
limiting the number of people per square mile.
limiting the number of people living in one house

Question 69 of 150

69. Question

An owner of a hotel is wondering whether to demolish or keep operation in a zoning ordinance that no longer allows commercial activity. In this situation the hotel most likely represents?

legal nonconforming use
special exception
a variance
illegal nonconforming use
a historic landmark

Question 70 of 150

70. Question

The municipality or county will issue a _____ which officially clears the property for occupation and use.

Certificate of Occupancy
Inspection Report
Satisfiaction Bond
User Permit
Health Inspection Review

Question 71 of 150

71. Question

The ____ is protected under a vendee’s lien

Seller
Property
Buyer
Creditor
Developer

Question 72 of 150

72. Question

What type of lien can be placed on your property if you default on payment for work that you have done on your property.

Mortgange Lien
Mechanic's lien
Vendee's Lien
Attachment Lien
Contractor's Lien

Question 73 of 150

73. Question

A mortgage lien is an example of a(n)

voluntary junior lien
involuntary specific lien
voluntary specific lien
involuntary superior lien
involuntary second position lien

Question 74 of 150

74. Question

A federal income tax lien, a federal estate tax lien, a state intangible tax lien, and a mechanic’s lien are recorded against a property. Which lien will be paid first when the property is sold?

Federal Income Tax Lien
Federal Estate Tax Lien
State Intangible Tax Lien
Mechanic's Lien
All of these will be paid at the same time

Question 75 of 150

75. Question

What sets liens apart from other types of encumbrance?

It lowers the property value.
It is created by the property owner voluntarily.
Rather than attaching to the owner of the property, it attaches to the property itself.
It involves a monetary claim against the value of a property.
Both A and B

Question 76 of 150

76. Question

All of the following actions or circumstances can terminate an offer EXCEPT?

The seller listing the property for buyers to make offers
The buyer's death
Buyer's counteroffer
Lapse of time
One of the parties to the transaction is a minor

Question 77 of 150

77. Question

An offer is made to a seller with no stated time frame what can the offeree assume about the time to accept?

Twenty-four hours from the time of the offer's delivery to the seller.
Before the listing expires
Forty-eight hours from the time of the offeror's signing of the offer.
The offeree shouldn't assume anything and should get a definited expiration date
A reasonable time to accept

Question 78 of 150

78. Question

Which of the following situations makes a contract enforceable?

A written contract conveys interest in real estate but there is no legal description of property and no signatures of either party
A written contract that conveys interest in real estate with legal description of property but no signatures of either party
A oral contract that conveys interest in real estate with a picture of the property signed by both parties
A nonwritten contract that conveys interest in real estate with a legal description and signatures of all parties
A written contract that conveys interest in real estate with a legal description of property and signed by one or more parties

Question 79 of 150

79. Question

Which of the following would most likely NOT be a valuable consideration?

money
promised services
a coupon to free car wash
merchandise

Question 80 of 150

80. Question

Larry listed his home for sale with a real estate broker for a period of 120 days. No buyer was found within this period. On the 212st day the listing would be terminated by:

I. rescission ;

II. expiration of time;

III. mutual agreement;

IV. destruction

I, II and III only
IV only
II only
I and II only
I only

Question 81 of 150

81. Question

In order to claim legal title, what must an adverse processor demonstrate?

openly processing and claiming the property without the owner's consent
occupying the property without an occupancy permit
occupy the property indefinitely
be using the property intermittently and without permission over a period of years
Occupying the property with the owners permission

Question 82 of 150

82. Question

If one in a tenancy in common, who will receive their property if they die without implanting a will?

the heirs or the deceased recieve it based on laws of descent and distribution
pass to the surviving spouse
pass to the surviving tenants
pass to whomever is recorded in the will
the state assumes ownership

Question 83 of 150

83. Question

Bill has been secretly living in a property for 10 years. He has decided to make a claim of ownership in order to clear trees in the surronding land to make room for a guest house. Will the claim the declined or upheld?

upheld through adverse possession
declined because possession was secretive
upheld because he met the length requirement for possession
declined because he did not rightfully buy the property
upheld through adverse possession and because he met the length requirement for possession

Question 84 of 150

84. Question

What Will must you receive from an attorney that is recognizable in any state?

Holographic
Nuncupative
Formal
Oral
All of the above

Question 85 of 150

85. Question

When dealing with transfer by will which of the following is not the proper title for a transfer

Oral
Formal
Nuncupative
Holographic
All of the above are acceptable

Question 86 of 150

86. Question

The purpose of a deed restriction is to enable an owner to specify

the form of ownership in which a property may be held.
how long a property must be owned before it can be legally transferred.
what groups of people are legally excluded from future ownership of a property.
how a property may be used and what improvements may be built on it.
the quality of the property before they purchased it versus the quality of it now

Question 87 of 150

87. Question

A property owner who is selling her land wants to control how it is used in the future. She might accomplish her aim by mean of

an injunction
a deed restriction
an easement
a land trust
leaving a will

Question 88 of 150

88. Question

Voluntarily transferred ownership of real estate can be transferred by

escheat, deed, and covenant.
title certificate, deed, and warrant of seizin.
sale contract, will, and deed.
grant, deed, and will.
time, value, and cost

Question 89 of 150

89. Question

Recording a deed has what function?

It passes as a title
It gives constructive notice of ownership
All prior recorded encumbrances are removed
The deed is valid after recording

Question 90 of 150

90. Question

The only clause that is actually required in a deed is the

habendum clause
granting clause
reserving clause
tenendum clause
interest clause

Question 91 of 150

91. Question

Fill in the blank. The primary benefits that contribute to __________________ are appreciation, income, tax benefits, and use.

market price
market value
real estate value
real estate taxation
appraisals

Question 92 of 150

92. Question

Which term most accurately describes this definition? ” Critical in the transfer of real property, since the value of a parcel establishes the general price range for the principles parties to negotiate”

Valuation
Depreciation
Taxation
Pricing real property
Arbitration

Question 93 of 150

93. Question

Under the Federal Housing Administration (FHA) – insured, what percentage is needed for a down payment and what is the minimum credit score required?

2% down and 750 credit
0% down payment, and 620 credit score
3.5% down payment and 580 credit score
5% down payment and 480 credit score
10% down payment and 540 credit score

Question 94 of 150

94. Question

Select the option that does not apply to the Duties of a borrower

Payment of the loan in accordance with the terms of the promissory note
Payment of all real estate taxes on the property used as security
Maintenance of adequate insurance to protect the lender in the event that the property is destroyed or damaged by fire, hazard or other natural catastrophes
to reduce the amount of interest paid over the life of a loan
Receipt of lender authorization before making any major alterations on the property

Question 95 of 150

95. Question

How many dicount points make up 1% of the term balance?

8 points
3 points
10 points
100 points
2 points

Question 96 of 150

96. Question

The RESPA act establishes

Eliminates referral fees or kickbacks
Protects borrowers from unnecessarily expensive settlement charges
Ensures borrowers are provided with more information in a timely manner
All of the above
None of the above

Question 97 of 150

97. Question

Which is a loan that is not federally related

Are insured or guaranteed by VA, FHA, or HUD-administration loans
Are insured by federal agency
That involves first or second mortgages
A will being sold to Frannie Mae, Freddie Mac or Ginnie Mae
All of the above are related

Question 98 of 150

98. Question

The statement that discloses whether the lender will service the loan is ___

Servicing Transfer Statement
Settlement Statement
Initial Escrow Statement
Mortgage Servicing Disclosure Statement
None of the above

Question 99 of 150

99. Question

Which defines what the HUD-1 Settlement Statement

That itemizes the estimated taxes, Insurance premiums and other charges
That summarizes all escrow account deposits and payments during the servicer's computation year (12 months).
That shows the charges imposed on borrowers and sellers with connection to the settlement
None of the above
All of the above

Question 100 of 150

100. Question

RESPA stands for?

Real Estate Settlement Processing Act
Real Estate Settlement Procedures Act
Real Estate Situation Procedure Act
Real Estate Statement Processing Act
Real Estate Systems and Procedures Act

Question 101 of 150

101. Question

All expenses related to a property such as taxes, insurance and maintenance in a gross lease are paid by?

The Landlord
The Court
The Insurance
The Tenant
The Mortgage Company

Question 102 of 150

102. Question

Natural break even point is in what lease

Percentage Lease
Index Lease
Net Lease
Note Lease
Ballon Lease

Question 103 of 150

103. Question

A tenant and a landlord had an oral lease that stated that the tenant would reside at the property for 2 year. Can the tenant legally leave before 2 years?

No, because the length of two years is the standard term
Yes, but only after staying for a year
Yes, because the lease is invalid
Yes, because leases over a year must be in writing to be enforceable
No, verbal contracts are still enforced

Question 104 of 150

104. Question

A lease contract is best described as

A conveyance of a possessory interest
An instrument of conveyance of limited title
A temporary transfer of legal title
All of the above are accurate
None of the above is true

Question 105 of 150

105. Question

The percentage use is most often used by

Retail landlords
Office landlords
Industrial landlords
Residential landlords
Residential Appraisers

Question 106 of 150

106. Question

What is the difference between market value and market price, if any?

Market value gives the minimum value it would cost to build a similiar property; market price is the price it would be acceptable to sell the property for
Market value is a broker's estimate; market price is a precise number derived by a licensed appraiser
Market value is an average price derived from comparable sales; market price is a price based on the cost of creating the property
Market value is an estimate; market price is the price at which the property is sold
There is no difference

Question 107 of 150

107. Question

Which of the following statements properly describes the central methodology of the cost approach to appraisal?

Apply a depreciation factor to the reported actual cost of acquiring and improving the subject property
Estimate the cost of building the improvements on the subject property
Estimate the land value and add to this the actual cost of the improvements adjusted for competitive differences with similiar properties
Add the estimated land value and cost of improvements and subtract the accrued depreciation of the improvements

Question 108 of 150

108. Question

One of the strengths of the cost approach is that it

takes into account the amount of money required to develop a similar property
is very accurate for a property with new improvements that represent the highest and best use
results in an actual price in dollars instead of an estimated value
reveals the owner's return on money invested in the cost of development
it takes into account the amount of money lost when leaving the property vacant

Question 109 of 150

109. Question

The act that required federally-related appraisals to be conducted by a certified appraiser is known as

The Financial Institutions Reform, Recovery and Enforcement (FIRREA)
The Uniform Standards of Professional Appraisal Practice Act (USPAPA)
The Appraisal Foundation Authorization and Reform Act (AFAR)
The Federal Institution for Regulation and Enforcement of Appraisal Act (FIREAA)
National Association of Realtors and Appraisers (NARA)

Question 110 of 150

110. Question

As a component of real estate, the principle of substitution states that

if two similar properties are for sale, a buyer will purchase the cheaper of the two
if one of two adjacent homes is more valuable, the price of the other home will tend to rise
if too many properties are built in a market, the price will tend to go down
people will readily move to another home if it is of equal value
people will rather purchase homes that cost more

Question 111 of 150

111. Question

Who controls land use at the local level?

only state governments
only federal governments
only county governments
county and city governments

Question 112 of 150

112. Question

What could the government do to force an owner to sell their property?

evict them without proper cause
randomly raise their property tax for no reason
exert their power of eminent domain
threaten to arrest the owner if they don't sell
all of the above

Question 113 of 150

113. Question

Why do communities require building permits?

to promote development
to establish the basis for an inspection
to promote certificates of occupancy
to ensure that improvements comply with codes
to ensure they operate in respect to normal work hours

Question 114 of 150

114. Question

What is the purpose of residential zoning?

to increase home values in a neighborhood
to regulate the density of dwellings in the residential zone
to prevent families from residing in commercial and industrial sites
to maximize intensity of usage
all of the above

Question 115 of 150

115. Question

A non-profit organization wants to erect an urgent care facility in a residential zone. Given other favorable circumstances, the local authorities may grant permission by allowing

a special exception
an illegal nonconforming use
an easement
a license
none of the above

Question 116 of 150

116. Question

____ prohibits discrimination based on disability in programs, services, and activities provided or made available by public entities.

Americans with Disabilities Act
Housing of older Persons Act
Equal Credit Opportunity Act
Fair housing Act
Civil Rights Act

Question 117 of 150

117. Question

Which of the following is a negative consequence of redlining?

Appraisers have a difficult time evaluating properties in the area
It is a major contributor to the deterioration of older neighborhoods
Real estate salespeople are not able to advertise in local newspapers
Redlining has no negative effect

Question 118 of 150

118. Question

What must an agent do if a seller tells them to not show their house to anyone born outside of the US?

Take the listing and hope that no foreigners want to see the property
Take the listing and not follow the instructions
Decline to take the listing
Show the house to everyone who wants to see it
Only host open houses with the property

Question 119 of 150

119. Question

How long does someone have to file a discrimination complaint with HUD?

1 month
6 months
1 year
8 weeks
There is no time limit

Question 120 of 150

120. Question

Which of the following is NOT a member of a protected class?

A millionaire
A member of alcoholics anonymous
A person diagnosed with AIDS
A 76 year old man
All of the above

Question 121 of 150

121. Question

Which federal agency passed the R-value rule?

Federal Trade Commission(FTC)
International Consumer Protection
Consumer Protection Committee
U.S consumer Product Safety Commission
Consumer Action

Question 122 of 150

122. Question

____ must be disclosed according to a New Home Insulation Addendum.

R-values
Thickness of insulation
Type of insulation used
All of the above

Question 123 of 150

123. Question

How many days do tenants/buyers have to conduct a lead assessment?

5
7
10
15
30

Question 124 of 150

124. Question

What documents must be attached to the contract or lease?

Records and reports of lead based paint
Lead based paint disclosure form
EPA approved pamphlet
A Lead Warning Statement
All of the above

Question 125 of 150

125. Question

What is a fungus that grows in the presence of moisture and oxygen on virtually any kind of organic surface?

Mold
Carbon Monoxide
Radon
Lead
Formaldehyde

Question 126 of 150

126. Question

A certain item is to be prorated between a buyer and seller. If no outside party is concerned, which of the following statements is true?

The item must be prorated and recorded as a debit to one party and a credit to the other party for the same amount.
The item must be prorated and recorded as a debit to one party; the reaminder is recorded as a credit to the other party.
The party who is owed money receives a credit for the entire item and a debit for the prorated amount.
The party who owes money receives a debit for the portion owed and a credit for the portion that is not owed.
Noone owes anything

Question 127 of 150

127. Question

An item is said to be paid in arrears if it is normally paid

On a monthly or yearly basis.
At some time after the expense is incurred.
Only after it is billed.
Whenever it is incurred.
Before the expense is billed

Question 128 of 150

128. Question

A certain item is to be prorated between a buyer and seller. If no outside party is concerned, which of the following statements is true?

The item must be prorated and recorded as a debit to one party and a credit to the other party for the same amount.
The item must be prorated and recorded as a debit to one party; the reaminder is recorded as a credit to the other party.
The party who is owed money receives a credit for the entire item and a debit for the prorated amount.
The party who owes money receives a debit for the portion owed and a credit for the portion that is not owed.
No one owes anything

Question 129 of 150

129. Question

A seller received a rental payment of $900 in advance. At closing, the seller has earned only $320 of this rent. What should appear on the closing statement?

A debit to the seller and credit to the buyer for $320.
A debit to the seller for $580 and credit to the buyer for $320.
A debit to the seller for $320 and a credit to the buyer for $900.
A debit to the seller and credit to the buyer for $580.
No one owes anything

Question 130 of 150

130. Question

A buyer will receive a water bill for an estimated $100 at the end of the month. At closing, the seller has used an estimated $43 in water. What should appear on the closing statement?

A debit to the seller and credit to the buyer for $57.
A debit to the seller and a credit to the buyer for $43.
A debit to the buyer and credit to the seller for $57.
A debit to the buyer and credit to the seller for $43.
No one owes anything

Question 131 of 150

131. Question

What is the renewal period in Georgia and how many hours of approved continuing education class is required?

On the day of receiving their original license, a license holder must have completed 25 hours of an approved continuing education course.
On the first day of the license holder’s birth month they must have completed 36 hours of an approved continuing education course.
On the birthday of the license holder they must have completed 25 hours of an approved continuing education course.
On the last day of the license holder’s birth month they must have completed 36 hours of an approved continuing education course.
On the first day of the year for all practicing agents in Georgia

Question 132 of 150

132. Question

Define a lapse in a license

When a license holder is not active for a certain amount of time and is on the path to being put in an inactive status.
When not all of the criteria for keeping and maintaining a license are met and the license is stripped from the license holder.
When the post-licensure educational requirement is not met and a license holder must turn in their wall certificate of licensure as well as their pocket card to the Commission. They have 6 months to complete any required course to reinstate their license meeting certain conditions.
When the post-licensure educational requirement is not met and a license holder must turn in their credentials. They have a year to satisfy any missing requirements to reinstate their license.
all of these are true

Question 133 of 150

133. Question

Inactive status is offered when ___

This is only for the use of the Commission.
This is for license holders who would like to temporarily discontinue actively pursuing real estate.
This is not offered, it is assigned due to certain stipulations.
This is for license holders who would like to move towards exiting the real estate industry.
This is an alternative to license suspensions when facing accusations

Question 134 of 150

134. Question

Define a pocket card

A form of identification that someone is licensed in real estate and is used for the purposes of filing with the Commission
Certification verifying an individual as a broker
A certificate that verifies an individual as a licensed real estate agent and must be held by that person’s broker
A form of identification that someone is licensed in real estate and is kept by the corresponding agent
Certification verifying an individual as a buyer

Question 135 of 150

135. Question

When should the criminal history report be submitted?

50 days of the initial application
60 days of the initial application
50 days before the application
60 days before the application
the same day the application is submitted

Question 136 of 150

136. Question

What’s a “point”?

a fee equal to 0.5% of the loan amount.
a fee equal to 1% of the loan amount.
a fee equal to 5% of the loan amount.
a fee equal to 2% of the loan amount.
a fee equal to 8% of the loan

Question 137 of 150

137. Question

What is an annual Debt-to-service on a mortgage?

the monthly mortgage payment multiplied by the number of months in the term.
the monthly mortgage payment divided by the number of months in a year.
the monthly mortgage payment multiplied by the number of months in a year.
the monthly principal payment multiplied by the number of months in a year.
the monthly mortgage payment divideded by the term of the loan.

Question 138 of 150

138. Question

How do you calculate the annual property tax?

take your calculated mill rate and divide it by the average millage rate in the area.
take your calculated mill rate and multiply it by the average millage rate in the region.
take your calculated mill rate and divide it by the average millage rate in the state.
take your calculated mill rate and multiply it by the average millage rate in the area.
none of the above

Question 139 of 150

139. Question

Jake pays 4,250 a year in property taxes. He decides to sell the property to Mary. The sell closes August 5th. What is the proration?

Jake owes Mary $2,833.28
Jake owes Mary $2,833.36
Mary owes Jake $2,833.36
Mary owes Jake $1416.84
no one owes anything

Question 140 of 150

140. Question

You have a property listed at $130,000. The commission rate listed in the listing agreement is 6%, which you will split evenly with the buyer’s representative. What’s your share.

7800
3900
4000
8000
3783

Question 141 of 150

141. Question

One of these is not a characteristic of brokerage agreement

It outlines the broker's compensation
It has a definite expiration date
It fully set forth the broker and the clients’ terms
All brokerage relationships held by the broker with other clients of his/hers, if any
Promises the client that property will be sold within a week

Question 142 of 150

142. Question

Created when a broker has a client relationship with both parties involved in a transaction is:

Designated agency
Presupposition agency
Dual agency
Predefine agency
Agency by agreement

Question 143 of 150

143. Question

A broker who’s not entered brokerage relationship yet but who performs ministerial acts is: >

BRRETA
Transaction broker
Duel Agent
Designated agent
Simplified broker

Question 144 of 150

144. Question

All the following is true of independent contractors EXCEPT:

They have more freedom than employees
Employer controls their work hours
They pay their Social Security income taxes
They agree with employer on terms of their relationship
None of the above is wrong

Question 145 of 150

145. Question

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

Question 146 of 150

146. Question

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

Question 147 of 150

147. Question

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

Question 148 of 150

148. Question

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

Question 149 of 150

149. Question

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

Question 150 of 150

150. Question

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

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