Page 1 of 170
# TABLE OF CONTENTS
| Section | Topic | Questions |
|---------|-------|-----------|
| **Section 1** | Property Ownership & Estates | 1-25 |
| **Section 2** | Land Use Controls & Zoning | 26-45 |
| **Section 3** | Real Estate Contracts | 46-70 |
| **Section 4** | Agency Relationships & Fiduciary Duties | 71-95 |
| **Section 5** | Property Valuation & Appraisal | 96-120 |
| **Section 6** | Real Estate Financing & Mortgages | 121-145 |
| **Section 7** | Deeds, Titles, & Recording | 146-165 |
| **Section 8** | Closing Procedures & Settlement | 166-185 |
| **Section 9** | Fair Housing & Anti-Discrimination Laws | 186-205 |
| **Section 10** | Georgia Real Estate License Law (State-Specific) | 206-230 |
| **Section 11** | Ethics, Disclosures, & Professional Conduct | 231-250 |
| **Section 12** | Brokerage Operations & Property Management | 251-270 |
,Page 2 of 170
SECTION 1: PROPERTY OWNERSHIP & ESTATES
**Question 1**
A person who owns a fee simple absolute estate has which of the following rights?
A. The right to use the property only during their lifetime
B. The maximum possible estate in land, including the right to sell, lease, or bequeath the
property
C. Only the right to lease the property to others
D. An estate that automatically terminates upon the owner's death
**Correct Answer: B**
**Rationale:** Fee simple absolute is the highest and most complete form of property
ownership. The owner possesses the full "bundle of rights": the right to possess, use, exclude
others, transfer (sell or gift), lease, mortgage, and bequeath to heirs. The estate is of indefinite
duration and does not terminate upon death. A life estate (option A) terminates upon the death of
the measuring life. A leasehold estate (option C) grants only possession and use, not ownership.
Option D describes a life estate, not a fee simple.
---
**Question 2**
The government's power to take private property for public use, with payment of just
compensation, is called:
A. Escheat
B. Police power
C. Eminent domain
,Page 3 of 170
D. Taxation
**Correct Answer: C**
**Rationale:** Eminent domain is the inherent power of the government to take private property
for public use, provided just compensation is paid to the property owner. The Fifth Amendment
to the U.S. Constitution (the Takings Clause) requires just compensation. Examples include
taking land to build highways, schools, or public utilities. Condemnation is the legal process by
which eminent domain is exercised. Escheat is when property reverts to the state if the owner
dies without a will and without heirs. Police power is the government's authority to regulate for
public health, safety, and welfare. Taxation is the government's power to levy taxes on property.
---
**Question 3**
Which of the following is NOT a test used to determine whether an item is a fixture?
A. Manner of attachment
B. Agreement between the parties
C. Time of attachment
D. Manner of adaptation
**Correct Answer: C**
**Rationale:** The four traditional tests for determining whether an item is a fixture are: (1)
Manner of attachment—how firmly the item is attached to the property; (2) Adaptability—
whether the item is specially adapted to the property; (3) Relationship of the parties—the
intention of the party who installed the item; and (4) Agreement between the parties—any
express agreement regarding the item. "Time of attachment" is not a recognized test for fixtures;
when the item was attached does not determine its status as a fixture.
, Page 4 of 170
**Question 4**
Riparian rights are associated with property that:
A. Borders a navigable lake
B. Borders a flowing watercourse such as a river or stream
C. Is located in a coastal area
D. Has underground water sources
**Correct Answer: B**
**Rationale:** Riparian rights refer to the rights of landowners whose property borders a
flowing watercourse, such as a river or stream. These rights include reasonable use of the water.
Littoral rights (option A) pertain to landowners whose property borders a navigable lake, sea, or
ocean. Coastal areas (option C) involve tideland or shoreline rights. Underground water rights
(option D) are governed by different legal doctrines.
---
**Question 5**
A life estate pur autre vie is:
A. A life estate measured by the life of the tenant
B. A life estate measured by the life of a person other than the tenant
C. A life estate that cannot be sold or transferred
D. A life estate that automatically converts to a fee simple
**Correct Answer: B**
# TABLE OF CONTENTS
| Section | Topic | Questions |
|---------|-------|-----------|
| **Section 1** | Property Ownership & Estates | 1-25 |
| **Section 2** | Land Use Controls & Zoning | 26-45 |
| **Section 3** | Real Estate Contracts | 46-70 |
| **Section 4** | Agency Relationships & Fiduciary Duties | 71-95 |
| **Section 5** | Property Valuation & Appraisal | 96-120 |
| **Section 6** | Real Estate Financing & Mortgages | 121-145 |
| **Section 7** | Deeds, Titles, & Recording | 146-165 |
| **Section 8** | Closing Procedures & Settlement | 166-185 |
| **Section 9** | Fair Housing & Anti-Discrimination Laws | 186-205 |
| **Section 10** | Georgia Real Estate License Law (State-Specific) | 206-230 |
| **Section 11** | Ethics, Disclosures, & Professional Conduct | 231-250 |
| **Section 12** | Brokerage Operations & Property Management | 251-270 |
,Page 2 of 170
SECTION 1: PROPERTY OWNERSHIP & ESTATES
**Question 1**
A person who owns a fee simple absolute estate has which of the following rights?
A. The right to use the property only during their lifetime
B. The maximum possible estate in land, including the right to sell, lease, or bequeath the
property
C. Only the right to lease the property to others
D. An estate that automatically terminates upon the owner's death
**Correct Answer: B**
**Rationale:** Fee simple absolute is the highest and most complete form of property
ownership. The owner possesses the full "bundle of rights": the right to possess, use, exclude
others, transfer (sell or gift), lease, mortgage, and bequeath to heirs. The estate is of indefinite
duration and does not terminate upon death. A life estate (option A) terminates upon the death of
the measuring life. A leasehold estate (option C) grants only possession and use, not ownership.
Option D describes a life estate, not a fee simple.
---
**Question 2**
The government's power to take private property for public use, with payment of just
compensation, is called:
A. Escheat
B. Police power
C. Eminent domain
,Page 3 of 170
D. Taxation
**Correct Answer: C**
**Rationale:** Eminent domain is the inherent power of the government to take private property
for public use, provided just compensation is paid to the property owner. The Fifth Amendment
to the U.S. Constitution (the Takings Clause) requires just compensation. Examples include
taking land to build highways, schools, or public utilities. Condemnation is the legal process by
which eminent domain is exercised. Escheat is when property reverts to the state if the owner
dies without a will and without heirs. Police power is the government's authority to regulate for
public health, safety, and welfare. Taxation is the government's power to levy taxes on property.
---
**Question 3**
Which of the following is NOT a test used to determine whether an item is a fixture?
A. Manner of attachment
B. Agreement between the parties
C. Time of attachment
D. Manner of adaptation
**Correct Answer: C**
**Rationale:** The four traditional tests for determining whether an item is a fixture are: (1)
Manner of attachment—how firmly the item is attached to the property; (2) Adaptability—
whether the item is specially adapted to the property; (3) Relationship of the parties—the
intention of the party who installed the item; and (4) Agreement between the parties—any
express agreement regarding the item. "Time of attachment" is not a recognized test for fixtures;
when the item was attached does not determine its status as a fixture.
, Page 4 of 170
**Question 4**
Riparian rights are associated with property that:
A. Borders a navigable lake
B. Borders a flowing watercourse such as a river or stream
C. Is located in a coastal area
D. Has underground water sources
**Correct Answer: B**
**Rationale:** Riparian rights refer to the rights of landowners whose property borders a
flowing watercourse, such as a river or stream. These rights include reasonable use of the water.
Littoral rights (option A) pertain to landowners whose property borders a navigable lake, sea, or
ocean. Coastal areas (option C) involve tideland or shoreline rights. Underground water rights
(option D) are governed by different legal doctrines.
---
**Question 5**
A life estate pur autre vie is:
A. A life estate measured by the life of the tenant
B. A life estate measured by the life of a person other than the tenant
C. A life estate that cannot be sold or transferred
D. A life estate that automatically converts to a fee simple
**Correct Answer: B**
