Barney Fletcher Test Review Questions (2024) Satisfaction Guaranteed Pass

Barney Fletcher Test Review (2023 – 2024) Satisfaction Guaranteed 1. Open Listing (Non -Exclusive) - May be given to many brokers. Only the broker who is the "procuring cause" gets paid. 2. Truth in Lending Act (Regulation Z) - Requires meaningful disclosure of cost of credit including APR (Annual Percentage Rate). 3. Trust Accounts - Holding valuables for others; Commingling -illegal mixing trust funds and own private funds; Can't be used for broker purposes; Can't be seized to use for Firm needs; Broker must complete monthly reconciliation and hold statements for 3 years. Broker can have more than 1 account. 4. Market Data Approach to Value - Value estimate based on comparable comps; Adj factors: Market Conditions, Location, Physical Characteristi cs, Financing. Making adjustments: Subtracts or Add to be more like SUBJECT Property "Steel from reach" - if Future Comp more desirable than Subject, then SUBTRACT from value from sale price of COMP "give to poor" If Future Comp less desirable than subjec t, then ADD value to comp. Residential - 3.8 Comps. Not avg - Weight Adj Value X Confidence Factor=Value INCOME Approach -CAP RATE - —- PGI-VAC -OPER Loss= NOI NOI:% Rate=Value Property NOI:Value=% Rate. 5. Specific Lien - Encumbers only ONE property. exampl e: Mortgage, Property Tax & Mechanics Lien. 6. True or False? Listings and offers will automatically end with the death of the seller or broker, destruction of the property, but not death of the salesperson. - True 7. Commissions - SELLER PAYS FULL commi ssion to the LISTING BROKER, then it is divided among the companies. 8. What are the parts and requirements of Joint Tenancy? - Joint Tenancy - Automatic right of survivorship, cannot will. Four Unities (TTIP): *Time: All owners got title at the same time *Title: All owners named in same deed *Interest: Must have equal ownership shares *POSSESSION: All owners may posses entire property. Barney Fletcher Test Review Questions and Answers 9. Ministerial Acts - Acts which do not require licensee's judgment or s kill. Ministerial Acts are for clients and customers. 10. True or False: In GA, once a home is under contract, you must only present all written offers. - True - You must present all offers until the close of the sale. 11. True or False: Employees of the real estate commission (GREC) may have a real estate license but must remain inactive while working for the commission. - True 12. Sara is a new licensee who paid for and enrolled in an approved post -license course 10 months after her license was issued, but has failed to complete the course within the allowed 1 year. Sara has one client who is looking at several properties and one client who has signed a contract on a house. A) Sara Can present the contract to the seller as long as she has the permissio n of her broker, and she finishes her course within 6 months; B) Sara's broker must present the contract, but Sara can continue to show houses as long as she completes her course within 6 months; C) Sara cannot present the contract, and cannot show house s, and must complete her course within 18 months of her license issue date; D)Sara must pay all penalties and fees to re -qualify as a licensee. - C) Sara cannot present the contract, and cannot show houses, and must complete her course within 18 months of her license issue date; 13. Net Listing - Listing brokers commission is anything over a target price. Illegal in most states including Georgia. 14. Can you ask other agents for advice? - You CANT ask for advice from other agents when you are working as a designated agent. Only can ask your BROKER. 15. True or False: If you pass the state exam, you must activate your license within 12 months or retake the state board. - True 16. Blanket Mortgages - Developers use Blanket Mortgages WITH Partial Release Clauses to allow them to sell off one lot at a time without having to pay off the full development loan. 17. When should a broker interplead in court? - When a deal falls apart and buyer and seller cant agree on earnest money dispersal. 18. Lead Paint - Any home built prior to 1978 requires disclosure, lead pamphlet and exhibit in contract also giving buyer the right for an assessment.