BARNEY FLETCHER REAL ESTATE EXAM
PREP 2026 PROPERTY MANAGEMENT AND
ETHICS COMPLETE SOLUTIONS
◉ The Georgia Real Estate Commission is comprised of:
Answer: 6 members
◉ A broker had several branch offices. Which is true regarding the
management?
a. He would have to have direct supervision over the main office and
branch offices
b. An Associate Broker can have direct supervision over the branch
office
c. A salesperson must have direct supervision over the branch
offices
d. Each branch office must have a full-time broker who does NOT sell
or list
Answer: An Associate Broker can have direct supervision over the
branch office
◉ A buyer signed a contract and gave the broker $5,000 in earnest
money. The offer was accepted by the seller and the earnest money
,deposited into the broker's escrow account. The buyer, however,
needed $250 to pay for an appraisal. Could the broker take $250
from the escrow account and give it to the buyer?
Answer: Yes, provided written authorization is given by all parties to
the contract
◉ A licensed salesperson put an ad in the paper for the sale of his
own house. When would he need to inform prospects that he is an
agent?
Answer: In the ad itself
◉ A salesperson decided to sell her house. She did not want to list
the house with her brokerage company. Instead, she wanted to sell
her own house as a for-sale-by-owner. Which of the following items
would the salesperson have to do?
a. List with her own brokerage company since she is licensed under
that broker
b. Put in all advertising "seller holds a real estate license", including
the yard sign
c. Put in all advertising "owner-occupant", including the yard sign
d. Use her brokerage contract forms even though she's selling the
house herself
Answer: Put in all advertising "seller holds a real estate license",
including the yard sign
,◉ An unlicensed secretary is the only one in the office as all the
licensees are out to lunch. Broker Carr from another company calls
requesting information on a property. The secretary may:
Answer: take his name and number to have a licensee return the call
◉ Broker Falk had a listing. Broker Carr found a buyer for Broker
Falk's listing. A salesperson could close the transaction if:
Answer: a salesperson can NOT close a transaction, only attorneys
can close them
◉ In dual agency, the consent form must contain all of the following
except?
a. A lot and block legal description of the property
b. A statement that the client does not have to consent to the dual
agency.
c. A statement that the agent will disclose all adverse known
material facts.
d. A statement that the agent will disclose any material
relationships.
Answer: A lot and block legal description of the property
◉ Under BRRETA, an agent's liability for disclosure:
, Answer: is limited to only information he knows to be true.
◉ Which of the following items is NOT required to be part of an
exclusive agency agreement?
a. Statement requiring owner to notify broker of the intention NOT
to renew
b. Statement that the listing is exclusive
c. Proper identification of the property
d. Commission rate to be paid
Answer: Statement requiring owner to notify broker of the intention
NOT to renew
◉ A borrower has to pay PMI all at closing on a 95% conventional
loan. How much would he pay?
Answer: 2.5 % of the loan amount
Since the loan-to-value ratio is 95% or above, the full annual private
mortgage insurance would be 2.5%. Had it been less than 95% it
would have been 2.0%.
◉ If the closing occurs on January 31 (and we assume taxes have not
been paid) which party will owe taxes at closing?
Answer: The seller
PREP 2026 PROPERTY MANAGEMENT AND
ETHICS COMPLETE SOLUTIONS
◉ The Georgia Real Estate Commission is comprised of:
Answer: 6 members
◉ A broker had several branch offices. Which is true regarding the
management?
a. He would have to have direct supervision over the main office and
branch offices
b. An Associate Broker can have direct supervision over the branch
office
c. A salesperson must have direct supervision over the branch
offices
d. Each branch office must have a full-time broker who does NOT sell
or list
Answer: An Associate Broker can have direct supervision over the
branch office
◉ A buyer signed a contract and gave the broker $5,000 in earnest
money. The offer was accepted by the seller and the earnest money
,deposited into the broker's escrow account. The buyer, however,
needed $250 to pay for an appraisal. Could the broker take $250
from the escrow account and give it to the buyer?
Answer: Yes, provided written authorization is given by all parties to
the contract
◉ A licensed salesperson put an ad in the paper for the sale of his
own house. When would he need to inform prospects that he is an
agent?
Answer: In the ad itself
◉ A salesperson decided to sell her house. She did not want to list
the house with her brokerage company. Instead, she wanted to sell
her own house as a for-sale-by-owner. Which of the following items
would the salesperson have to do?
a. List with her own brokerage company since she is licensed under
that broker
b. Put in all advertising "seller holds a real estate license", including
the yard sign
c. Put in all advertising "owner-occupant", including the yard sign
d. Use her brokerage contract forms even though she's selling the
house herself
Answer: Put in all advertising "seller holds a real estate license",
including the yard sign
,◉ An unlicensed secretary is the only one in the office as all the
licensees are out to lunch. Broker Carr from another company calls
requesting information on a property. The secretary may:
Answer: take his name and number to have a licensee return the call
◉ Broker Falk had a listing. Broker Carr found a buyer for Broker
Falk's listing. A salesperson could close the transaction if:
Answer: a salesperson can NOT close a transaction, only attorneys
can close them
◉ In dual agency, the consent form must contain all of the following
except?
a. A lot and block legal description of the property
b. A statement that the client does not have to consent to the dual
agency.
c. A statement that the agent will disclose all adverse known
material facts.
d. A statement that the agent will disclose any material
relationships.
Answer: A lot and block legal description of the property
◉ Under BRRETA, an agent's liability for disclosure:
, Answer: is limited to only information he knows to be true.
◉ Which of the following items is NOT required to be part of an
exclusive agency agreement?
a. Statement requiring owner to notify broker of the intention NOT
to renew
b. Statement that the listing is exclusive
c. Proper identification of the property
d. Commission rate to be paid
Answer: Statement requiring owner to notify broker of the intention
NOT to renew
◉ A borrower has to pay PMI all at closing on a 95% conventional
loan. How much would he pay?
Answer: 2.5 % of the loan amount
Since the loan-to-value ratio is 95% or above, the full annual private
mortgage insurance would be 2.5%. Had it been less than 95% it
would have been 2.0%.
◉ If the closing occurs on January 31 (and we assume taxes have not
been paid) which party will owe taxes at closing?
Answer: The seller
