Practice Exam #4

Question 1 of 100

1. Question

What is the minimum age for someone to legally enter in a contract for the sale of real estate in Georgia?

16
21
17
25
18

Question 2 of 100

2. Question

Which of the following is the BEST source of information for determining the cost factor in the replacement cost method?

A cost estimate handbook printed at the time the house was built
an experienced, reputable builder who built similar houses when this house was built
a current cost estimate handbook
an experienced, local, reputable builder who is currently building similar houses

Question 3 of 100

3. Question

Can a seller give a licensee a bonus check?

No, it is illegal.
Yes, the licensee is entitled to any money given to him/her from the seller.
No, the licensee can only accept compensation from his/her broker unless they have consent from their broker to accept a bonus
Yes, if the licensee receives the bonus before the house/property is sold
No, the licensee will already be compensated through commission

Question 4 of 100

4. Question

What is a Broker in terms of Real Estate?

An individual or firm who is able to buy, sell, or lease real property on behalf of others
An individual or firm who serves as a private investor and privately funds the acquisition of real property
An individual or firm who visits properties and determine the value of it based on the property’s current condition
None of these answers are correct

Question 5 of 100

5. Question

Who ultimately decides the listing price in a brokerage engagement?

the real estate broker
the brokerage engagement salesperson
the seller
certified appraiser
the broker's agent

Question 6 of 100

6. Question

A Georgia broker who manages a community association must be covered by a fidelity bond or insurance policy

if at any time the broker controls more than $60,000 of association funds
only if the broker represents more than 60 owners
only if association funds are not maintained in a trust account
if at any time the broker collects or disburses any association funds

Question 7 of 100

7. Question

What is a promise that the grantee will not suffer intergerence from others having a superior claim to the tilte?

covenant of seisin
covenant against embraces
covenant of further or future warranty
covenant of encumbrances
covenant of quiet enjoyment

Question 8 of 100

8. Question

George is showing a property to first time home buyers. The home is overpriced for the location it’s in. He wants the property to seem more desirable so he invites a few friends to come by during the showing to give off the illusion that the home is in high demand. What behavior is George engaging in?

Fraud
Careless Misrepresentation
Puffing
Scam
Negligent Misrepresentation

Question 9 of 100

9. Question

Describe which of the following typically would NOT be considered when estimating sellers’ costs

escrow refund.
mortgage insurance.
transfer tax.
mortgage rate
prepayment penalty.

Question 10 of 100

10. Question

According to common-law fiduciary principles, a real estate licensee acting solely as a buyer’s agent will not disclose any confidential information recieved from the

buyer
seller and buyer
listing agent
seller

Question 11 of 100

11. Question

Under what circumstances may a contract be terminated?

a third party intervenes
one of the parties decides not to go forward
both parties assign their rights to third parties
one party assigns their rights to another party
it is impossible for one of the parties to perform

Question 12 of 100

12. Question

There was a law that passed requiring sellers to disclose information about the use of lead based paint in properties in 1978, what was it called?

The Property Protection Laws of 1975
The 1970 Clean Air Amendment
The 1965 Air Pollution Act
The Lead Based Paint Act of 1992
The Clean Water Act

Question 13 of 100

13. Question

A natural break even point is featured in what type of lease agreement?

Sublease
Percentage lease
Index lease
Net lease
Gross lease

Question 14 of 100

14. Question

The GREC was created with the purpose of

assessing and collecting real estate tax on properties
enforcing the upkeep and appearance of properties in a given area
establishing and maintaining regulations to prevent the licensee from breaking the rules
promoting political dominance over a given territory of land
all of the answers are true

Question 15 of 100

15. Question

A ___________ is a person that provides a service to those who are interested in purchasing real estate and often influences their decisions by helping them determine the most viable option for a project or asset

Consultant
Broker
Salesperson
Real Estate Attorney
Real Estate Counselor

Question 16 of 100

16. Question

Which of the following is NOT one of the targeted responsibilities of the Georgia’s Real Estate Commission?

Communication
Staff Operations
Due Process
Social Responsibility
Fair Qualifying Process

Question 17 of 100

17. Question

What financing alternative can a borrower utilize if they want a temporary loan that provides funds in addition to an existing loan until permanent financing can be obtained?

blanket loan
package loan
bridge loan
purchase-money loan
wrap-around loan

Question 18 of 100

18. Question

In Georgia, who should ultimately determine the asking price in a seller’s brokerage engagement agreement?

the seller
the brokerage engagement broker
a fee appraiser
the brokerage engagement salesperson

Question 19 of 100

19. Question

Which of the following is a market price?

what the property sells for
the most probable price
the same as cost when used
the same as market value

Question 20 of 100

20. Question

Can a salesperson sign a listing as the agent if given permission in the affiliation agreement?

No, the salesperson must have completed all of the education courses required of a broker
Yes, license law allows the salesperson to sign for the broker regardless of whether permission is granted.
No, becuase the sponsoring broker is the seller's agent.
Yes, because the salesperson was authorized to do so in the affiliation agreement
Yes, but the document would require a second signature of the broker for it to be legal.

Question 21 of 100

21. Question

One of the main goals of the FHA is to

provide homeowner's insurance
lend to veterans
develop low income housing
lend to low income people
insure home loans

Question 22 of 100

22. Question

An elderly homeowner paid off their mortgage and would like to convert the equity in their home to receive monthly payments. What would be their best option?

Open-end loan.
monthly installment loan
Blanket loan.
Reverse mortgage.
Growing-equity loan.

Question 23 of 100

23. Question

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

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

Question 24 of 100

24. Question

A ______ contract is what would be called when a minor and adult have entered into a written contract for the sale of a property.

legal
void
voidable
illegal
legally void

Question 25 of 100

25. Question

On a closing statement, earnest money will generally appear as which one of the following:

Credit the Seller.
Debit the buyer.
Credit the buyer.
Debit the seller.

Question 26 of 100

26. 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

Question 27 of 100

27. Question

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

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

Question 28 of 100

28. Question

What does it mean to have a low loan-to-value ratio?

there is more equity in the property
there is lower equity in the property
there is a greater risk of foreclosure
there is less cash tied up in the property than a high loan-to-value ratio
there is greater use of leverage

Question 29 of 100

29. Question

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

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

Question 30 of 100

30. Question

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

Question 31 of 100

31. Question

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

Question 32 of 100

32. Question

How long is a broker in Georgia required to retain copies of sales contracts?

1 year
3 years
5 years
7 years
As long as the broker is licensed

Question 33 of 100

33. Question

Of the following, which must be included in a legal description of real estate in Georgia?

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

Question 34 of 100

34. Question

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

Question 35 of 100

35. Question

The practice of persuading owners to sell property cheaply because of the fear of people of another race or class moving into the neighborhood is called

redlining
steering
filtering
blockbusting
A common real estate practice

Question 36 of 100

36. Question

How are memembers of the Georgia Real Estate Commission selected?

appointed by the governor and confirmed by the Senate.
appointed by the Senate and approved by the governor.
appointed by the other members of GREC
appointed by the Senate Judiciary Committee and approved by the Governor
a licensed real estate broker who is a resident of the state of Georgia.

Question 37 of 100

37. Question

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

"Historically African-American neighborhood"
"great for a large family"
"Traditional families preferred"
"male seeking male roommate"
"No accomodations for wheelchairs provided"

Question 38 of 100

38. Question

At closing, who can pay the intangible taxes in Georgia?

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

Question 39 of 100

39. Question

Which deed gives the buyer the best assurance that the seller has good title to the property?

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

Question 40 of 100

40. Question

When Stacy’s brother passed away 6 years ago, she had him cremated and planted a tree on his property from his remains. The tree is an example of:

Trade fixtures
Chattels
real property
personal property
familial property

Question 41 of 100

41. Question

Once a Georgia salesperson’s license is issued, how long does the salesperson have in order to complete the 25 hour course and examination?

1 year of the issuance of the license.
3 months of the date of the examination.
2 years of the issuance of the license.
30 days of the issuance of the license
1 year of the last day of the applicant's birth month

Question 42 of 100

42. Question

Is it a violation to pay a referral fee to a licensed agent who is currently on inactive status?

while not a violation of license law, it is considered unethical.
Yes – it is a Regulation Z violation
Yes – it is an unfair trade practice
No – while an agent cannot collect a commission when their license is inactive, they can accept a referral fee
Yes – It is a violation of RESPA

Question 43 of 100

43. Question

Two relatives own a parcel of property. Under some circumstances, one passes and the other relative automatically becomes the sole owner. The type of tenancy these relatives hold is

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

Question 44 of 100

44. Question

If a seller makes a counteroffer to a buyer, and she obtains a second offer from another buyer that is for a higher price, what can she do to accept the second offer?

rescind the counteroffer before accepting
raise the purchase price of the first buyer
let the counteroffer to the first buyer expire before accepting the second offer.
wait until both parties run out of counter offers
do nothing

Question 45 of 100

45. Question

What homes qualify for a VA loan?

nonowner-occupied, single family unit
owner-occupied, quadplex
owner-occupied, five unit apartment
nonowner-occupied triplex
none of the answers are correct

Question 46 of 100

46. Question

What loan would yield the lowest loan value ratio?

$25,000 loan on a $100,000 house
$60,000 loan on a $300,000 house
$45,000 loan on a $200,000 house
$76,000 loan on a $80,000 house

Question 47 of 100

47. Question

32% to a decimal.

3.2
0.32
0.032
32

Question 48 of 100

48. Question

What is 1 square foot?

144 square inches
140 square inches
120 square inches
133 square inches

Question 49 of 100

49. Question

Equation for total commission?

Commission = Sales Price – Commission rate
Commission = Sales Price ÷ Commission rate
Commission = Sales Price x Commission rate
Commission = Sales Price + Commission rate

Question 50 of 100

50. Question

Your seller wants to net $65,000 after the 6% commission is paid, but before other closing costs are factored in. What price does the home need to sell for the seller to net this amount?

$69,149.94
$69,148.98
$69,128.94
$69,148.94

Question 51 of 100

51. 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.

$4,000
$8,000
$7,800
$3,900

Question 52 of 100

52. Question

If you attempt to acquire or succeed to an interest in land what are you?

Ministerial Acts
Broker
Tenant
Purchaser

Question 53 of 100

53. Question

Those acts related to real estate brokerage activities, which a licensee or a licensee’s employee perform and which do not require discretion or the exercise of the licensee’s own judgment:

Borrowing
Agent Acts
Ministerial Acts
Broker Acts

Question 54 of 100

54. 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 55 of 100

55. Question

“Regardless of any man-made or natural changes, land remains basically the same.” best describes which physical characteristic?

Immobility
Indestructibility
Uniqueness
B and C
All of the above

Question 56 of 100

56. Question

Identify loan program available for clients.

Rural Housing Service
Homestyle Renovation
Good Neighbor Next
Home Ready Mortgage
All of the above

Question 57 of 100

57. Question

Which of these is a major determining factor in whether a loan applicant will receive a home loan?

Insurance premiums
Monthly Income
Medical expenses
Debt to income ratio
Student loan

Question 58 of 100

58. Question

When posting online, you should never what?

No answer is correct
obtain the client’s permission
get the post reviewed for risks
make posts that show them in a negative light

Question 59 of 100

59. 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

Question 60 of 100

60. 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

Question 61 of 100

61. Question

Statutory laws are

Are rules established by customs and judicial decisions
Laws ratified by the legislature
Are rules and regulations created by real estate commissions and departments as authorized by the legislature.
None of the above

Question 62 of 100

62. Question

Under the statute of Fraud, GA law does not requires that any contract or interest be in writing and signed by the person against whom the contract is enforced or by the party representing that person

True
False

Question 63 of 100

63. Question

The statute of fraud, written agreement must include which of the following.

Legal description of the property
How the price will be paid
A & B
Limitations on the properties internet advertisement if the seller wants
None of the above

Question 64 of 100

64. Question

Which is a general lien

Judgement lien
Property Tax lien
Mechanic lien
Attachment lien

Question 65 of 100

65. Question

A lienee is a(n) ___

Agent
Creditor
Government employee
Judge
Debtor

Question 66 of 100

66. Question

Ownership of benefits within a trust us received by

Lender
Beneficiary
Partnership
A buyer

Question 67 of 100

67. Question

Erica and Jasmine’s parents pass away leaving them with the family home. Each holds an undivided interest in the entire property and there’s no right of survivorship. If one of them dies, that sister’s share will go to whoever she’s stipulated in her will. What type of ownership does this situation describe?

Estate in Severalty
Tenancy by the Entirety
Joint Tenancy
Tenancy in Common

Question 68 of 100

68. Question

All are examples of non- ad valorem
taxes except

road, maintenance tax
security tax
property tax
landscaping tax
trash disposal tax

Question 69 of 100

69. Question

A homestead exemption is

Tax forgiveness
Federal loan to encourage homeownership
A reduction in property taxes
Tax cancelation
A and B

Question 70 of 100

70. Question

How does Planned Unit Development zoning vary from ordinary zoning?

It applies only to office parks.
It incorporates a number of different zones within a single property boundary.
It requires that multiple tracts of land be developed according to a single design.
It requires developers to obtain a separate building permit for every structure.

Question 71 of 100

71. Question

Which of the following situations is most likely to represent an illegal nonconforming use?

A homeowner is a residential zone converts her residence to a private school.
A homeowner builds a tool-shed in a neighborhood where there are on tool sheds.
A store-owner remodels a storefront in accordance with regulations, and then the zoning is changed to residential.
A new zoning ordinance outlaws two-story additions after a homeowner completes an addition.

Question 72 of 100

72. Question

An extended coverage protects

Protects against unnecessary title insurance coverage.
It protects against all coverages
It protects against title defects such as incompetent grantors.
Protects against liabilities that may have not been public records such as fraud.
C & D

Question 73 of 100

73. Question

A cloud on title can be defined as

a visible mass of condensed water vapor floating in the atmosphere
a promise by the grantor that certain conditions of the a title exist
A cloud on title is any encumbrance that delays the conveyance of a property
None of the above

Question 74 of 100

74. Question

A seller must show that the title is free of what to show marketable title

Claims that could affect value and an attorney's opinion
A title certificate and claims that could affect value
Doubts about the identity of the current owner and defects
None of the above

Question 75 of 100

75. 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

Question 76 of 100

76. 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 means of

An injunction
A deed restriction
An easement
A land trust

Question 77 of 100

77. Question

Through FHA, a buyer can deposit a 12.0% down payment.

TRUE
FALSE

Question 78 of 100

78. Question

True or False? On a Reverse Annuity Mortgage, the homeowner’s equity diminishes as the loan amount increases?

TRUE
FALSE

Question 79 of 100

79. 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 610 credit score

Question 80 of 100

80. Question

The borrower makes only interest payments in a loan known as

Reverse mortgage
Fixed-rate loan
Adjustable-rate mortgage
Straight term loan
Equity mortgage

Question 81 of 100

81. Question

Usually, one can assume that if the price of an item is increasing then

Supply of the item is increasing
Demand for the item is decreasing in relation to supply of the item
Demand for the item and supply of the item are increasing
Demand for the item is increasing in relation to supply of the item

Question 82 of 100

82. Question

Which of the following is true when a market is in equilibrium

Demand will slowly taper off, driving the price down
Supply and demand are equal, and the price and value are equal
New suppliers will enter the market and drive the price down
Unmet demand for the item is directed toward demand for some other item

Question 83 of 100

83. Question

_______ leasehold estate lacks a specific term.

Estate by entireties
Estate at will
Estate for years
Estate from period to period

Question 84 of 100

84. Question

For a mortgage that does not contain power of sale clause the lien holder will have to

Obtain a quit claim deed
File a deficiency suit
File a foreclosure suit
File a suit to quiet title

Question 85 of 100

85. Question

Which of the following laws extended housing discrimination protections to families with children and persons with disabilities?

Housing and Community Development Act of 1974
Civil Rights Act of 1866
Fair Housing Amendments Act of 1988
Civil Rights Act of 1968
None of the above

Question 86 of 100

86. Question

Which of the following is an established set of rules and regulations, that further interpret the practices affected by law?

Department of Justice
Office of Equal Opportunity
Department of Housing and Urban Development
Federal court system
None of the Above

Question 87 of 100

87. Question

The resolution of a fair housing complaint by obtaining assurance that the respondent will remedy the violation is called

A judgment
Civil action
Administrative proceedings
Conciliation
None of the Above

Question 88 of 100

88. Question

A seller tells an agent not to show their house to anyone not born in the United States. The professional

May take the listing and hope that no foreigners want to see the property
May try to convince the seller to make their home open to everyone
May take the listing and not follow the instructions
Must show the house to everyone who wants to see it
Must decline to take the listing

Question 89 of 100

89. Question

Which of the following is included in the management agreement?

Agreement termination
Reporting requirements
Restrictions regarding ages of children
A & B
B & C

Question 90 of 100

90. Question

The main responsibility of a property manager is to

Finance reporting to the owner
Obtain construction loans for the owner
Find a buyer for the property
None of the above
All of the above

Question 91 of 100

91. Question

The buyer/ tenant is given ___ days to conduct
a lead assessment?

7
10
15
30
60

Question 92 of 100

92. Question

All the following documents must be attached
to a contract or lease except

"A Lead Warning Statement "
"General property history"
"Records and reports of lead based paint "
"EPA approved pamphlet"
"Lead based paint disclosure form "

Question 93 of 100

93. Question

Some activities that may not require a real estate license include?

Selling houses
Representing an agent
Attorneys acting as brokers
None of the above

Question 94 of 100

94. Question

Ricardo has completed all pre-licensing requirements, and has sent in an application to GREC. Ricardo was convicted of petty larceny 20 years ago. Will the Commission still grant Lana a license?

Yes
No

Question 95 of 100

95. Question

change 32% to a decimal.

0.032
32
3.2
0.32

Question 96 of 100

96. Question

Convert 0.7564 to a fraction.

0.7564%
75.64%
756.4%
7.564%

Question 97 of 100

97. Question

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

Question 98 of 100

98. 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

Question 99 of 100

99. Question