GEORGIA REAL ESTATE SALESPERSON EXAMINATION NEWEST EVALUATED
EXAM PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS &
ANSWERS |DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. A buyer purchases a parcel described by metes and bounds. Which
element is essential for the description to be legally complete?
A. Street address
B. Beginning point and measurements using directions and distances
C. Tax identification number only
D. Name of the current owner
Answer: B. Beginning point and measurements using directions and distances
Metes and bounds descriptions identify a property through a point of
beginning followed by directions and distances until the description returns to
the beginning point.
2. A property owner grants a neighbor the right to cross the owner's land
to reach a public road. The neighbor's right is most likely a(n):
A. Encroachment
B. Easement
C. License
D. Lien
Answer: B. Easement
An easement is a nonpossessory right to use another person's land for a
specific purpose, such as access.
3. A fence constructed by a landowner extends three feet onto the
adjoining owner's property. This condition is best described as:
A. Easement
B. Encroachment
C. Deed restriction
D. Lis pendens
Answer: B. Encroachment
,An encroachment occurs when a physical improvement or structure unlawfully
extends onto another person's property.
4. Which form of ownership gives the owner the greatest bundle of legal
rights, subject to governmental powers and private restrictions?
A. Life estate
B. Leasehold estate
C. Fee simple estate
D. Estate for years
Answer: C. Fee simple estate
Fee simple ownership generally provides the broadest ownership interest
recognized by law.
5. Two unrelated individuals own a property as tenants in common. One
owner dies without a valid provision transferring the interest to the
other owner. What generally happens?
A. The surviving owner automatically receives the deceased owner's interest
B. The deceased owner's interest passes according to applicable inheritance
law or a valid estate plan
C. The property automatically becomes community property
D. The state immediately takes title
Answer: B. The deceased owner's interest passes according to applicable
inheritance law or a valid estate plan
Tenancy in common does not include an automatic right of survivorship.
6. Which governmental power permits the government to acquire private
property for a public use upon payment of required compensation?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: C. Eminent domain
Eminent domain is the government's power to take private property for a
public purpose subject to constitutional compensation requirements.
, 7. Zoning ordinances are primarily an exercise of which governmental
power?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: A. Police power
Police power allows government to regulate land use to protect public health,
safety, welfare, and related interests.
8. A property's highest and best use must generally be:
A. The use preferred by the current owner
B. Physically possible, legally permissible, financially feasible, and maximally
productive
C. The use producing the lowest tax assessment
D. The use requiring the least maintenance
Answer: B. Physically possible, legally permissible, financially feasible, and
maximally productive
Highest and best use is the reasonably probable use that satisfies these tests
and produces the greatest value.
9. A buyer purchases a property for $360,000 with a 75% loan-to-value
mortgage. How much is the loan?
A. $90,000
B. $180,000
C. $270,000
D. $300,000
Answer: C. $270,000
Loan = $360,000 × 75% = $270,000.
10. A property sells for $425,000. The brokerage commission is 6%. What is
the total commission?
, A. $21,250
B. $25,500
C. $26,500
D. $28,350
Answer: B. $25,500
Commission = $425,000 × 0.06 = $25,500.
11. A property has a monthly rent of $2,400. Using a gross rent multiplier of
125, what is the indicated value?
A. $200,000
B. $240,000
C. $300,000
D. $360,000
Answer: C. $300,000
Value = Monthly rent × GRM = $2,400 × 125 = $300,000.
12. Which appraisal approach is generally most useful when valuing a typical
owner-occupied single-family residence in an area with many
comparable sales?
A. Cost approach
B. Sales comparison approach
C. Income capitalization approach
D. Gross income approach
Answer: B. Sales comparison approach
The sales comparison approach estimates value by comparing the subject
property with recently sold similar properties.
13. A property's annual net operating income is $36,000 and the
capitalization rate is 8%. What is the indicated value?
A. $288,000
B. $360,000
C. $450,000
D. $480,000
EXAM PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS &
ANSWERS |DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. A buyer purchases a parcel described by metes and bounds. Which
element is essential for the description to be legally complete?
A. Street address
B. Beginning point and measurements using directions and distances
C. Tax identification number only
D. Name of the current owner
Answer: B. Beginning point and measurements using directions and distances
Metes and bounds descriptions identify a property through a point of
beginning followed by directions and distances until the description returns to
the beginning point.
2. A property owner grants a neighbor the right to cross the owner's land
to reach a public road. The neighbor's right is most likely a(n):
A. Encroachment
B. Easement
C. License
D. Lien
Answer: B. Easement
An easement is a nonpossessory right to use another person's land for a
specific purpose, such as access.
3. A fence constructed by a landowner extends three feet onto the
adjoining owner's property. This condition is best described as:
A. Easement
B. Encroachment
C. Deed restriction
D. Lis pendens
Answer: B. Encroachment
,An encroachment occurs when a physical improvement or structure unlawfully
extends onto another person's property.
4. Which form of ownership gives the owner the greatest bundle of legal
rights, subject to governmental powers and private restrictions?
A. Life estate
B. Leasehold estate
C. Fee simple estate
D. Estate for years
Answer: C. Fee simple estate
Fee simple ownership generally provides the broadest ownership interest
recognized by law.
5. Two unrelated individuals own a property as tenants in common. One
owner dies without a valid provision transferring the interest to the
other owner. What generally happens?
A. The surviving owner automatically receives the deceased owner's interest
B. The deceased owner's interest passes according to applicable inheritance
law or a valid estate plan
C. The property automatically becomes community property
D. The state immediately takes title
Answer: B. The deceased owner's interest passes according to applicable
inheritance law or a valid estate plan
Tenancy in common does not include an automatic right of survivorship.
6. Which governmental power permits the government to acquire private
property for a public use upon payment of required compensation?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: C. Eminent domain
Eminent domain is the government's power to take private property for a
public purpose subject to constitutional compensation requirements.
, 7. Zoning ordinances are primarily an exercise of which governmental
power?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: A. Police power
Police power allows government to regulate land use to protect public health,
safety, welfare, and related interests.
8. A property's highest and best use must generally be:
A. The use preferred by the current owner
B. Physically possible, legally permissible, financially feasible, and maximally
productive
C. The use producing the lowest tax assessment
D. The use requiring the least maintenance
Answer: B. Physically possible, legally permissible, financially feasible, and
maximally productive
Highest and best use is the reasonably probable use that satisfies these tests
and produces the greatest value.
9. A buyer purchases a property for $360,000 with a 75% loan-to-value
mortgage. How much is the loan?
A. $90,000
B. $180,000
C. $270,000
D. $300,000
Answer: C. $270,000
Loan = $360,000 × 75% = $270,000.
10. A property sells for $425,000. The brokerage commission is 6%. What is
the total commission?
, A. $21,250
B. $25,500
C. $26,500
D. $28,350
Answer: B. $25,500
Commission = $425,000 × 0.06 = $25,500.
11. A property has a monthly rent of $2,400. Using a gross rent multiplier of
125, what is the indicated value?
A. $200,000
B. $240,000
C. $300,000
D. $360,000
Answer: C. $300,000
Value = Monthly rent × GRM = $2,400 × 125 = $300,000.
12. Which appraisal approach is generally most useful when valuing a typical
owner-occupied single-family residence in an area with many
comparable sales?
A. Cost approach
B. Sales comparison approach
C. Income capitalization approach
D. Gross income approach
Answer: B. Sales comparison approach
The sales comparison approach estimates value by comparing the subject
property with recently sold similar properties.
13. A property's annual net operating income is $36,000 and the
capitalization rate is 8%. What is the indicated value?
A. $288,000
B. $360,000
C. $450,000
D. $480,000
