Barney Fletcher Real Estate Questions with CORRECT
Answers (Grade A+)
Question 1:
deed
Answer:
Document/instrument used to transfer title to REAL property
Question 2:
A broker started a real estate company wanting to use the name ABC Realty. What is true regarding
this situation?
Answer:
The broker must file a request with the secretary of state
Question 3:
A citizen phoned the GREC with a complaint on a licensee. The GREC sent him a form to fill out.
However, he never followed up the complaint in writing. What would the GREC do?
Answer:
Even though he did not put it in writing, the GREC may investigate anyway at their own discretion
Question 4:
A handicap person wants to rent a home that has steps to the front door. What best describes the
situation?
Answer:
The tenant can, at their expense, install the ramp and must remove it at the end of the lease
Question 5:
Which of the following does a broker NOT have to keep for the GREC auditors? a. Listings b.
Contracts c. Advertising copy d. Closing statements
Answer:
Advertising copy
,Question 6:
Which of the following items could the GREC require of a person before issuing a license?' a. A
driver's license b. The person must be a resident of Georgia c. Georgia Crime Information Center report
d. U.S. citizenship
Answer:
Georgia Crime Information Center report
Question 7:
A salesperson was involved in a transaction that consisted of a 6 month lease and an option to purchase.
Which of the following statements best describes how the salesperson should handle the documents? a.
Fill in the lease but not the option b. Send the documents to an attorney and have the attorney prepare
the forms c. Fill in the option but not the lease as the lease was for 6 months or less d. Fill in both the
lease and the option on standard forms and take to the broker for review
Answer:
Fill in both the lease and the option on standard forms and take to the broker for review
Question 8:
A secretary of a real estate company has passed the state exam but not yet received her license. Which
of the following activities could she do? a. Give out information on listings to the public b. Pass out
business cards with her name on it c. Give another agent in the office an address of a listing d. List but
not show property
Answer:
Give another agent in the office an address of a listing
Question 9:
Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted
the seller and told him he had a buyer moving in one month after the listing terminates and asked the
seller to sign an agreement to take effect after the listing expires. This is:
Answer:
a violation of state law
Question 10:
To supervise a branch office, you must be:
Answer:
a Broker or Associate Broker To supervise in Georgia one must have some type of broker's license,
such as an Associate Broker or Qualifying Broker.
,Question 11:
Which of the following is not found in a property management agreement?
Answer:
The property manager conducting an appraisal on the property once a year
Question 12:
A borrower applied for a VA first mortgage for $100,000. However, the property appraised for
$80,000. If the buyer still wished to buy the property, which could happen? a. The veteran could not get
the VA loan because the price was higher than the appraisal. b. VA would require the veteran to get a
second mortgage for the difference. c. VA could allow the veteran to make up the difference in cash. d.
The broker could write up a different contract for a different sales price to take to the lender.
Answer:
VA could allow the veteran to make up the difference in cash.
Question 13:
Interest that is calculated every month based on the remaining loan balance is best referred to as?
Answer:
Simple Interest
Question 14:
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of
7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were
$1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this
informa-
Answer:
$212.33 (Closing after July 1st, paid in full. Seller credited 62 days - October 31st-December 31st)
tion, answer the following question. What was the $ 1,250 (annual tax) / 365 amount of the property tax
proration? (days in year) = $ 3.4246 per day x 62 days = $ 212. 3287 = $ 212.33
Question 15:
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of
7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were
$1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this
information, answer the following question. How much was the transfer tax?
Answer:
$225.00 NO LOAN BEING ASSUMED $225, = 2250 x .10 = $225.00
, Question 16:
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of
7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were
$1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this
information, answer the following question. How much was the accrued interest and to whom was it
paid?
Answer:
$259.58 (30 days = October 30th = Day of closing is included) $ 44,500 (loan amount) x 7% (interest
rate) = $ 3, = 8.6527 x 30 days = $ 259.5833 = $259.58
Question 17:
Which of the following would not be covered under RESPA?
Answer:
A buyer assumed a $40,000 FHA insured first mortgage on a $50,000 single-family residence.
Question 18:
A broker obtains an open listing on a piece of property. In order to collect a commission on the sale of
this property, the broker must be able to prove which of the following?
Answer:
All of the above a. He was licensed at the time of the sale b. He was employed at the time of the sale c.
He was the procuring cause of the sale d. All of the above
Question 19:
A buyer requests the broker take a listed property off the market until his wife sees the property. Should
the broker do this?
Answer:
No, this would violate the agency agreement.
Question 20:
A person owned a house which had been built over underground springs. This was a well-known fact in
the area. The broker sold the property to a buyer but did not inform the buyer about the underground
springs. Six months later, the back corner of the house was found to have structural damage caused by
the springs. Which of the following is true?
Answer:
The agent and seller could be responsible because they did not disclose to the buyer about the house
being built over the springs
Answers (Grade A+)
Question 1:
deed
Answer:
Document/instrument used to transfer title to REAL property
Question 2:
A broker started a real estate company wanting to use the name ABC Realty. What is true regarding
this situation?
Answer:
The broker must file a request with the secretary of state
Question 3:
A citizen phoned the GREC with a complaint on a licensee. The GREC sent him a form to fill out.
However, he never followed up the complaint in writing. What would the GREC do?
Answer:
Even though he did not put it in writing, the GREC may investigate anyway at their own discretion
Question 4:
A handicap person wants to rent a home that has steps to the front door. What best describes the
situation?
Answer:
The tenant can, at their expense, install the ramp and must remove it at the end of the lease
Question 5:
Which of the following does a broker NOT have to keep for the GREC auditors? a. Listings b.
Contracts c. Advertising copy d. Closing statements
Answer:
Advertising copy
,Question 6:
Which of the following items could the GREC require of a person before issuing a license?' a. A
driver's license b. The person must be a resident of Georgia c. Georgia Crime Information Center report
d. U.S. citizenship
Answer:
Georgia Crime Information Center report
Question 7:
A salesperson was involved in a transaction that consisted of a 6 month lease and an option to purchase.
Which of the following statements best describes how the salesperson should handle the documents? a.
Fill in the lease but not the option b. Send the documents to an attorney and have the attorney prepare
the forms c. Fill in the option but not the lease as the lease was for 6 months or less d. Fill in both the
lease and the option on standard forms and take to the broker for review
Answer:
Fill in both the lease and the option on standard forms and take to the broker for review
Question 8:
A secretary of a real estate company has passed the state exam but not yet received her license. Which
of the following activities could she do? a. Give out information on listings to the public b. Pass out
business cards with her name on it c. Give another agent in the office an address of a listing d. List but
not show property
Answer:
Give another agent in the office an address of a listing
Question 9:
Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted
the seller and told him he had a buyer moving in one month after the listing terminates and asked the
seller to sign an agreement to take effect after the listing expires. This is:
Answer:
a violation of state law
Question 10:
To supervise a branch office, you must be:
Answer:
a Broker or Associate Broker To supervise in Georgia one must have some type of broker's license,
such as an Associate Broker or Qualifying Broker.
,Question 11:
Which of the following is not found in a property management agreement?
Answer:
The property manager conducting an appraisal on the property once a year
Question 12:
A borrower applied for a VA first mortgage for $100,000. However, the property appraised for
$80,000. If the buyer still wished to buy the property, which could happen? a. The veteran could not get
the VA loan because the price was higher than the appraisal. b. VA would require the veteran to get a
second mortgage for the difference. c. VA could allow the veteran to make up the difference in cash. d.
The broker could write up a different contract for a different sales price to take to the lender.
Answer:
VA could allow the veteran to make up the difference in cash.
Question 13:
Interest that is calculated every month based on the remaining loan balance is best referred to as?
Answer:
Simple Interest
Question 14:
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of
7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were
$1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this
informa-
Answer:
$212.33 (Closing after July 1st, paid in full. Seller credited 62 days - October 31st-December 31st)
tion, answer the following question. What was the $ 1,250 (annual tax) / 365 amount of the property tax
proration? (days in year) = $ 3.4246 per day x 62 days = $ 212. 3287 = $ 212.33
Question 15:
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of
7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were
$1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this
information, answer the following question. How much was the transfer tax?
Answer:
$225.00 NO LOAN BEING ASSUMED $225, = 2250 x .10 = $225.00
, Question 16:
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of
7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were
$1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this
information, answer the following question. How much was the accrued interest and to whom was it
paid?
Answer:
$259.58 (30 days = October 30th = Day of closing is included) $ 44,500 (loan amount) x 7% (interest
rate) = $ 3, = 8.6527 x 30 days = $ 259.5833 = $259.58
Question 17:
Which of the following would not be covered under RESPA?
Answer:
A buyer assumed a $40,000 FHA insured first mortgage on a $50,000 single-family residence.
Question 18:
A broker obtains an open listing on a piece of property. In order to collect a commission on the sale of
this property, the broker must be able to prove which of the following?
Answer:
All of the above a. He was licensed at the time of the sale b. He was employed at the time of the sale c.
He was the procuring cause of the sale d. All of the above
Question 19:
A buyer requests the broker take a listed property off the market until his wife sees the property. Should
the broker do this?
Answer:
No, this would violate the agency agreement.
Question 20:
A person owned a house which had been built over underground springs. This was a well-known fact in
the area. The broker sold the property to a buyer but did not inform the buyer about the underground
springs. Six months later, the back corner of the house was found to have structural damage caused by
the springs. Which of the following is true?
Answer:
The agent and seller could be responsible because they did not disclose to the buyer about the house
being built over the springs
