GEORGIA REAL ESTATE COMPLETE 2026-2027 EXAM PAPER- REVISION
QUESTIONS & SOLUTIONS
Accountability
Confidentiality
Types of real estate ( SIR MAC)
Special purpose
Industrial
Residential
Mixed use
Agricultural
Commercial
PITI
Principle
Interest
Taxes
Insurance
Diminishing returns
The point when additional improvements do not increase value
Increasing returns
Produces an increase in income and value
Cancel a contract
Stop where you are
Recind contracts
Start over back to starting place
Fee simple determinable
A fee simple estate qualified by a special limitation
"So long as"
"While"
"During"
Automatically reverts back to owner .
, Fee simple subject to a condition subsequent
If an estate is no longer used for the purpose conveyed , it reverts back to the original grantor
by the right of re-entry. Have to go to court
Fee simple defeasible
Subject to the occurrence or non occurrence of a specified event. Ex. Land for a church can only
be used for religious reasons
Easement by prescription
Easement acquired by continuous open and hostile use of the property for the period of time
prescribed by state law
Easement by necessity
Easement allowed by law as necessary for the full enjoyment of parcel of real estate .(right of
ingress and egress over a grantors land)
Rescission
The practice of one party canceling or terminating a contract.
Mortgagee
The bank(receiving the house)
Tax prorations
Taxes are paid July 1st, 365 days, seller pays the day of closing.
Alienation clause
Clause stating that the balance of the secured debt becomes immediately due and payable at
the lenders option if the property is sold by the borrower. Prevents the borrower from assigning
the debt without the lenders approval.
Deed
Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS)
Location
Improvements
Permanence of investment
Scarcity
QUESTIONS & SOLUTIONS
Accountability
Confidentiality
Types of real estate ( SIR MAC)
Special purpose
Industrial
Residential
Mixed use
Agricultural
Commercial
PITI
Principle
Interest
Taxes
Insurance
Diminishing returns
The point when additional improvements do not increase value
Increasing returns
Produces an increase in income and value
Cancel a contract
Stop where you are
Recind contracts
Start over back to starting place
Fee simple determinable
A fee simple estate qualified by a special limitation
"So long as"
"While"
"During"
Automatically reverts back to owner .
, Fee simple subject to a condition subsequent
If an estate is no longer used for the purpose conveyed , it reverts back to the original grantor
by the right of re-entry. Have to go to court
Fee simple defeasible
Subject to the occurrence or non occurrence of a specified event. Ex. Land for a church can only
be used for religious reasons
Easement by prescription
Easement acquired by continuous open and hostile use of the property for the period of time
prescribed by state law
Easement by necessity
Easement allowed by law as necessary for the full enjoyment of parcel of real estate .(right of
ingress and egress over a grantors land)
Rescission
The practice of one party canceling or terminating a contract.
Mortgagee
The bank(receiving the house)
Tax prorations
Taxes are paid July 1st, 365 days, seller pays the day of closing.
Alienation clause
Clause stating that the balance of the secured debt becomes immediately due and payable at
the lenders option if the property is sold by the borrower. Prevents the borrower from assigning
the debt without the lenders approval.
Deed
Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS)
Location
Improvements
Permanence of investment
Scarcity
