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GA MLS Real Estate Practical Final Exam Questions
With Answers 2025 Solution
Safety Clause - (answers)A negotiated period after the termination of the listing
during which the listing broker may still be entitled to a commission if the
property is sold to a buyer who was shown the property during the listing
period
Survival Clause - (answers)A clause in the contract for purchase and sale that ,
unless otherwise expressly agreed to in writing by the buyer and seller, allows
certain contractual obligations to be performed after closing
Ratification - (answers)Method of creating an agency relationship in which the
principal accepts the conduct of someone who acted without prior
authorization as the principal's agent
Net Operating Income (NOI) - (answers)The income projected for an income-
producing property after deducting losses for vacancy and collection and
operating expenses.
Straight Term Loan - (answers)A loan in which only interest is paid during the
term of the loan, with the entire principal amount due with the final interest
payment.
Loan Origination Fee - (answers)A fee charged to the borrower by the lender
for making a mortgage loan. The fee is usually computed as a percentage of the
loan amount.
Adjustable Rate Mortgage - (answers)A loan characterized by a fluctuating
interest rate, usually one tied to a bank or savings and loan association cost-of-
funds index.
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Fully Amortized Loan - (answers)A loan consisting of equal, regular payments
satisfying the total payment of principal and interest by the due date.
Purchase Money Mortgage - (answers)A note secured by a mortgage or deed of
trust given by a buyer, as borrower, to a seller, as lender, as part of the
purchase price of the real estate.
Debit - (answers)On a closing statement, an amount charged; an amount the
party must pay at settlement.
Credit - (answers)On closing statement, an amount entered in a person's favor,
a party that must be reimbursed.
Acceleration Clause - (answers)The clause un a mortgage or deed of trust that
can be enforced to make the entire debt due immediately if the borrower
defaults on an installment payment or other obligation
Addendum - (answers)Any provision added to an existing contract without
altering the content of the original
Amendment - (answers)A change to the existing content of the contract, and
must be initialed by all parties.
Prepayment Penalty - (answers)A charge imposed on a borrower who pays off
the loan principal early. This penalty compensates the lender for interest and
other charges that would otherwise be lost
Private Mortgage Insurance (PMI) - (answers)Insurance provided by a private
carrier that protects a lender against a loss in the event of a foreclosure and
deficiency.
GA MLS Real Estate Practical Final Exam Questions
With Answers 2025 Solution
Safety Clause - (answers)A negotiated period after the termination of the listing
during which the listing broker may still be entitled to a commission if the
property is sold to a buyer who was shown the property during the listing
period
Survival Clause - (answers)A clause in the contract for purchase and sale that ,
unless otherwise expressly agreed to in writing by the buyer and seller, allows
certain contractual obligations to be performed after closing
Ratification - (answers)Method of creating an agency relationship in which the
principal accepts the conduct of someone who acted without prior
authorization as the principal's agent
Net Operating Income (NOI) - (answers)The income projected for an income-
producing property after deducting losses for vacancy and collection and
operating expenses.
Straight Term Loan - (answers)A loan in which only interest is paid during the
term of the loan, with the entire principal amount due with the final interest
payment.
Loan Origination Fee - (answers)A fee charged to the borrower by the lender
for making a mortgage loan. The fee is usually computed as a percentage of the
loan amount.
Adjustable Rate Mortgage - (answers)A loan characterized by a fluctuating
interest rate, usually one tied to a bank or savings and loan association cost-of-
funds index.
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Fully Amortized Loan - (answers)A loan consisting of equal, regular payments
satisfying the total payment of principal and interest by the due date.
Purchase Money Mortgage - (answers)A note secured by a mortgage or deed of
trust given by a buyer, as borrower, to a seller, as lender, as part of the
purchase price of the real estate.
Debit - (answers)On a closing statement, an amount charged; an amount the
party must pay at settlement.
Credit - (answers)On closing statement, an amount entered in a person's favor,
a party that must be reimbursed.
Acceleration Clause - (answers)The clause un a mortgage or deed of trust that
can be enforced to make the entire debt due immediately if the borrower
defaults on an installment payment or other obligation
Addendum - (answers)Any provision added to an existing contract without
altering the content of the original
Amendment - (answers)A change to the existing content of the contract, and
must be initialed by all parties.
Prepayment Penalty - (answers)A charge imposed on a borrower who pays off
the loan principal early. This penalty compensates the lender for interest and
other charges that would otherwise be lost
Private Mortgage Insurance (PMI) - (answers)Insurance provided by a private
carrier that protects a lender against a loss in the event of a foreclosure and
deficiency.
