Ga Real Estate Final Exam Questions & Answers

GA REAL ESTATE FINAL EXAM QUESTIONS & ANSWERS "Which of the following would not be taken into account when estimating sellers' closing costs? - CORRECT ANSWER Prepayment Penalty" "When serving solely as a buyer's agent, it is unlawful for the real estate licensee to disclose any confidential information about the _______. - CORRECT ANSWER Buyer" "A real estate licensee acting solely as a seller's agent, it is unlawful for the real estate licensee to disclose any information about the _________. - CORRECT ANSWER Seller" "What conditions must be met to terminate a contract? - CORRECT ANSWER It is impossible for one of the parties to preform." "What type of lease agreement features a natural break-even point? - CORRECT ANSWER Percentage Lease" "Which one of the following is NOT one of the six moral and ethical responsibilities that an agent owes the principal in fiduciary relationships under common and statutory law stem? - CORRECT ANSWER Responsibility" "If a salesperson's sponsoring broker mentioned in the written affiliation agreement that the salesperson could sign a listing as the agent, can the salesperson legally do so in Georgia? - CORRECT ANSWER Yes, because the salesperson was authorized to do so in the affiliation agreement" "One of the main purposes of the FHA is to: - CORRECT ANSWER Insure Home Loans" "What type of loan would be the BEST option for senior homeowners, who have paid off their loan and would like to receive monthly income? - CORRECT ANSWER Reverse Mortgage" "Land, minerals beneath the earth's surface, water on/below the earth's surface, and the air above the surface all describe what? - CORRECT ANSWER Physical boundaries of land" "A consumer can receive a free credit score: - CORRECT ANSWER Every four months from different credit reporting companies" "FICO stands for: - CORRECT ANSWER Fair Isaac and Corporation" "In a relationship between a broker and seller, what type of agency is being utilized? - CORRECT ANSWER Special" "Which defines the HUD-1 Settlement Statement? - CORRECT ANSWER That shows the charges imposed on borrowers and sellers with connection to the settlement." "_______ means that someone died after preparing a proper will that outlines how their personal and real property is to be taken care of. - CORRECT ANSWER Testate" "A mortgage lien is an example of a(n): - CORRECT ANSWER Voluntary Specific Lien" "Real estate is considered illiquid because: - CORRECT ANSWER It is often difficult to convert to cash" ""Base employment" in real estate demands means: - CORRECT ANSWER The number of persons employed in base industries in an area" "Master planning zoning is described as: - CORRECT ANSWER Land use and the master plan are kept together by use of zoning ordinances" "Select the option that does not apply to the Duties of a borrower: - CORRECT ANSWER Payment of all real estate taxes on the property used as security" "Please select one of the following that is NOT an essential difference between property management and community association management: - CORRECT ANSWER Community managers complete daily tasks contributing to the maintenance and renting of the owner's property Community association management services: The provision, for a valuable consideration, to others of management or administrative services on, in, or to the operation of the affairs of a community association, including, but not limited to, collecting, controlling, or disbursing the funds; obtaining insurance, arranging for and coordinating maintenance to the association property, and otherwise overseeing the day-to-day operations of the association." "Once a listing expires, how long does an agent have to remove an advertisement from the internet? - CORRECT ANSWER 30 days" "Which term matches the definition: ________ is the period of time that the ROI (Return on Investment) will be realized over. - CORRECT ANSWER Economic Life" "Market price is - CORRECT ANSWER What the property actually sells for" "What is defined as the covenant of a title?. - CORRECT ANSWER is usually a promise by the grantor that certain conditions of the title exist and if not the grantor must compensate the grantee for damage" "A ____ is the resolution of a fair housing complaint by obtaining assurance that the respondent will remedy the violation. - CORRECT ANSWER Conciliation" "When is designated agency most likely to occur? - CORRECT ANSWER The buyer and seller are represented by the same company." "Which of the following would most likely NOT be a valuable consideration? - CORRECT ANSWER a coupon to free car wash" "Which is a general lien - CORRECT ANSWER Judgement lien" "the trust, what is the term/ title of this position? - CORRECT ANSWER Trustee" "A potential buyer made an offer to buy a property and included, as earnest money, an antique clock accompanied by a legitmate appraisal of $2,000. The salesperson delivers the clock to the broker right away. The broker is satisfied that the clock is worth the appraised amount so the salesperson does not tell the sellers about the form of earnest money. Has the salesperson violated Georgia law - CORRECT ANSWER Yes, because the sellers must be aware of the form of earnest money being offered." "Which of the following are tax assessor's requirements? - CORRECT ANSWER Evaluate property value" "If the governor appoints 5 real estate members to the GREC, he must appoint a final member who is working in what field? - CORRECT ANSWER Consumer Affairs" "Select one of the following offers Community Association Manager certificate exam in Georgia? - CORRECT ANSWER Applied Management Professionals" "A chronological summary of the properties title records and other public records affecting interests in the property is known as - CORRECT ANSWER Abstract of title" "Redlining has which of the following negative results? - CORRECT ANSWER It is a major contributor to the deterioration of older neighborhoods" "An installment sale is - CORRECT ANSWER refers to a promissory note from the buyer for an initial payment at the time of the sale and then future payments with interest" "A lienee is a(n) ___ - CORRECT ANSWER Debtor" "James wants to know how much a house costs and if he can afford one. He has a gross income of $5,350. If the required down payment can be made, what is James's allowable housing expense? - CORRECT ANSWER 36% x 5350 gross monthly income = $1,926 - Total housing and other debt expense allowed 28% x 5350 = $1,498 - Total housing expense allowed. If actual monthly non-housing debts exceed 8% of gross income (36%-28%), and the borrower is unable to reduce that amount, the monthly payment must be lowered proportionately because the debts and housing payment combined cannot exceed 36% of gross monthly income." "Which of the following situations is the contract enforceable? - CORRECT ANSWER A written contract that conveys interest in real estate with a legal description of property and signed by one or more parties" "Which statement defines a deceptive ad? - CORRECT ANSWER an ad that contains or omits statements that will likely mislead reasonable consumers.Correct" "Which type of property manager is most likely to work for real estate developers and investors? - CORRECT ANSWER Real estate development" "How many discount points make up 1% of the term balance? - CORRECT ANSWER 8 points" ""Regardless of any man-made or natural changes, the land remains basically the same." This best describes which physical characteristic? - CORRECT ANSWER Indestrucibility" "The location of land cannot be changed" best describes which physical characteristic? - CORRECT ANSWER Immobility" "The following examples are defined as what kind of property: canals, ponds, machinery, and buildings. - CORRECT ANSWER Real Property" "VA loans in Georgia may be made by: - CORRECT ANSWER A local mortgage banker or lending institution." "If a licensee decides to take a listing from a friend who lives 3 hours away and does not market the property, then they are violating the ______. - CORRECT ANSWER Fidicuary Relationship" "What is the process known as "due diligence" used for? - CORRECT ANSWER It makes all parties (buying and selling) responsible for their own mistakes" "If an associate broker is offered a position for the qualifying broker of another firm then what must they do? - CORRECT ANSWER must give the broker holding their license notice" "What determines the max commission rate that a broker may charge on the sale of a property he or she has listed is: - CORRECT ANSWER whatever amount the seller and broker agree on" "How should a realtor respond when questioned about the commission rate they are quoting seeming somewhat high in listing presentation? - CORRECT ANSWER It is the going rate in our market" "Why does the FTC pay close attention to ads that involve health/safety and evaluation issues? - CORRECT ANSWER These ads for reasonable consumers would likely have trouble evaluating them for themselves." "Which type of Estates Associated with Real Properties best describes the current owner(s) have a deed or irrevocable trust that allows future interest owners to inherit the property? - CORRECT ANSWER Future interest ownership" "______ represents a private interest holder who does not have the right to possess. - CORRECT ANSWER Encumbrance" "What is an encumbrance in real estate? - CORRECT ANSWER A claim against, limitation on, or liability against real estate" "Which is not an example of a concurrent relationship? - CORRECT ANSWER Tenancy in partnership" "Ownership of benefits within a trust is received by? - CORRECT ANSWER A beneficiary is any person who gains an advantage and/or profits from something. A beneficiary typically refers to someone eligible to receive distributions from a trust." "Which of the following qualifies as concurrent ownership? - CORRECT ANSWER Joint tenancy Tenancy in partnership Community property Tenancy in common All of these would apply*****" "Joint tenancy can create which intentional act(s)? - CORRECT ANSWER Living trust" "When a property is owned by two people and one owner dies the property is transferred automatically to the second owner, how is the title held? - CORRECT ANSWER joint tenancy with survivorship" "Henry is using a rectangle survey system to measure a parcel of real estate, what is he likely to use to put it together? - CORRECT ANSWER two consecutive meridians" "Which of the following is a basis for appeal? - CORRECT ANSWER Denial of homestead exemption Taxability Uniformity of taxation All of the above**" "Which of the following is considered a general lien? - CORRECT ANSWER Judgement lien" "What is the most common type of tax sale? - CORRECT ANSWER Non-judicial tax sale" "Once a property is sold, the past owner has another opportunity to get the property back through? - CORRECT ANSWER Redemption" "When a _____ occurs in Georgia, a tax sale is held and a one-year redemption period follows the sale. - CORRECT ANSWER Tax delinquency" "A contract is unenforceable when: - CORRECT ANSWER Neither party can sue the other to force performance" "What is a new offer substituted for the original offer? - CORRECT ANSWER Counteroffer" "The buyer can rescind a contract or ____ if detects are not disclosed about the property and the property is misrepresented. - CORRECT ANSWER money to repair the defect" "Which of the following describes how unilateral and bilateral contracts are different? - CORRECT ANSWER Only one party is required to perform in a unilateral contract, while both parties are required to perform in a bilateral contract" "What category do nonresidential properties fall into? - CORRECT ANSWER Agricultural, Industrial, Special Use buildings with no use for single-family units or mix-use buildings." "What is real property? - CORRECT ANSWER means one or more defined interests, benefits, and rights inherent in the ownership of real estate." "The four characteristics of Value in the Real Estate Market are: - CORRECT ANSWER Demand, Utility, Scarcity, and Transferability" "In which system is a recorded subdivision plat used? - CORRECT ANSWER The Lot and Block System" "What is an appurtenance in real property? - CORRECT ANSWER Trees, buildings, or ownership rights" ""The location of land cannot be changed" best describes which physical characteristic? - CORRECT ANSWER Immobility" "Which is a property improvement? - CORRECT ANSWER Artificial Attachments" "Which term matches the definition: ________ is the period of time that the ROI (Return on Investment) will be realized over. - CORRECT ANSWER Economic life" "A fixture becomes real estate by: - CORRECT ANSWER Method Adaptability Agreement" "What is not covered by Hazard Insurance? - CORRECT ANSWER Damage from wild life" "Express Agency - CORRECT ANSWER established by either oral or written agreement, is a contract between the principal and the agent. The written agreement is the most appropriate way to create an agency relationship to ensure the agent receives a fee for services performed." "listing agreement (or seller representation agreement) - CORRECT ANSWER An expressed agency relationship between a seller and an agent" "What are the 6 duties of fidicurary relationship? - CORRECT ANSWER 1. Care 2. Obidence 3. Loyalty 4. Disclosure 5. Accounting 6. Confidientiality ACRONYM: COLD-AC" "General agents - CORRECT ANSWER Authorized to act on behalf of the principal for a broad range of business matters. Property managers are..." "Dual Agents - CORRECT ANSWER simultaneously have a client relationship with both the seller, buyer or both tenant and landlord, in the same transaction." "Transaction coordinator - CORRECT ANSWER non agent who acts merely as a facilitator to a party. Often this entails assisting the parties with paperwork, but not acting as a fiduciary to either one" "Single Agency - CORRECT ANSWER In a single agency, only one party is represented by the agent in a transaction. The real estate professional owes the principal fiduciary responsibility under the umbrella of the Common Law." "Designated Agency - CORRECT ANSWER which is also called assigned/appointed agency, is an in-house sale where two agents of the same broker represent the seller and the buyer individually." "Undisclosed Agency - CORRECT ANSWER a broker may unintentionally create a dual agency." “Two days after closing, the seller gives a $500 bonus check to the selling agent. The agent should: - CORRECT ANSWER Instruct seller that bonuses are illegal" "When should a Georgia broker who manages a community association be covered by a fidelity bond or fidelity insurance? - CORRECT ANSWER If at any time the broker has access to $60,000 or more of association funds" "A buyer sued a licensee for fraud in a real estate transaction and received a judgment in the amount of $15,000. The licensee owns, free and clear, a cabin in Georgia valued at $10,000. For the buyer to file a claim against the Real Estate Education, Research and Recovery Fund he must: - CORRECT ANSWER Have the property levied upon and sold, then file a claim against the Fund for the balance remaining to satisfy the judgment." "What is an annual debt-to-service on a mortgage? - CORRECT ANSWER The monthly mortgage payment multiplied by the number of months in a year." "Define separate property: - CORRECT ANSWER Property owned by one spouse before marriage or acquired by one spouse during marriage by gift, inheritance, or with the proceeds of a separate propertyCorrect" "What does the due diligence period in the GAR contract mean? - CORRECT ANSWER The buyer can terminate the contract for any reason during this period" "Which of the following are known as an economic characteristic(s)? - CORRECT ANSWER Scarcity Improvements Area Preference Permanence of Investment" "A federal income tax lien, a federal estate tax lien, a state intangible tax lien, and a mechanic's lien are recorded against a property. Which lien will be paid first when the property is sold? - CORRECT ANSWER Federal Estate Tax Lien The superior/senior lien has priority over the inferior/junior lien which puts the superior lien is first in line to receive proceeds of a foreclosure. In this kind of situation, the inferior lien would be considered subordinate to a superior lien regardless of the recording date." "What sets liens apart from other types of encumbrance? - CORRECT ANSWER It involves a monetary claim against the value of a property. A lien is a creditor's claim against personal or real property as security for a debt of the property owner. If the owner defaults, the lien gives the creditor the right to force the sale of the property to satisfy the debt. Liens do not necessarily alter the property value. Liens can be involuntary as well as voluntary. Finally, liens attach to the property, but so do other encumbrances." "The statute of fraud, a written agreement must include which of the following. - CORRECT ANSWER To fight against fraud and abuse in making binding agreements, involving selling of real estate GA law requires any contract or interest be in writing and signed by the person against whom the contract is enforced. This agreement must include, identification of the buyer and seller, legal description of the property, the price to be paid for the property, and how the price will be paid." "A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were for members only. Is the club in violation of the Federal Fair Housing Act, and if so, how? - CORRECT ANSWER No. A private club may restrict the rental of its own lodgings to its members as long as the lodgings are not operated commercially." "To be legitimate, a claim to any real property must be accompanied by a blank. - CORRECT ANSWER Legal Description" "Which person in the following scenarios holds a real estate license? - CORRECT ANSWER Linda works for more than one owner for a fee." "Select one of the following for the required continuing educational amount for a community association manager? - CORRECT ANSWER 36 hours every four yearsCorrect" "_______ it required a 90% reduction in pollution emission and expected manufactures to comply within 5 years. - CORRECT ANSWER The Clean Air Amendment was passed in 1970 which allowed the EPA to create air quality standards and rules. Under this amendment, it required a 90% reduction in pollution emission and expected manufactures to comply within 5 years." "Define a ministerial act, within the state of Georgia. - CORRECT ANSWER Responding to general questions about the price and location of a specific property Ministerial Acts: Those acts related to real estate brokerage activities, which a licensee or a licensee's employee perform and which do not require discretion or the exercise of the licensee's own judgment. This includes responding to general questions about the price and location of a specific property." "Which would be regarded as a true statement? - CORRECT ANSWER Brokers are obligated to be loyal to a seller" "The listing agreement does what? - CORRECT ANSWER It authorizes the agent to perform designated duties to find a buyer or tenant for the seller's property." "What is the CAN-SPAM Act of 2003? - CORRECT ANSWER An act that protects consumers from being bombarded with unwanted email solicitations" "Rent control can be defined as: - CORRECT ANSWER restriction of the rent that can be charged by the state" "What is a specific lien? - CORRECT ANSWER A general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property A general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property. A general lien affects all of a debtor's property, both real and personal. A specific lien affects only a particular piece of real or personal property. Both general and specific liens may be enforced in court." "Which are examples of the types of trusts (and business organizations)? - CORRECT ANSWER Real Estate Investment A trust is a device by which one person transfers ownership of the property to someone else to hold or manage for the benefit of a third party: LAND TRUSTS; TESTAMENTARY TRUSTS; LIVING TRUSTS; REAL ESTATE INVESTMENT TRUSTS." "A legal description in Georgia would MOST commonly be found in a? - CORRECT ANSWER Seller's warranty deed" "Which of the following is FALSE about an expressed contract? - CORRECT ANSWER -Is created by the acts of the parties*** -Maybe a contract for forbearance -Can be written or oral -Arises from the stated intent of the parties" "Option contract means - CORRECT ANSWER unilateral contract binding on the seller with an obligation to sell for a set price if the buyer decides to buy" "For which of the following reasons would a real estate sales contract not be considered an executory contract anymore? - CORRECT ANSWER all the promises and obligations have been performed and the transaction has closed" "Material Facts - CORRECT ANSWER A fact that is important, significant or essential to a reasonable person in deciding whether to engage or not to engage in a particular transaction, issue or matter at hand" "Ministerial Fact - CORRECT ANSWER Acts that a broker can accomplish that does not require knowledge." "Transaction Broker - CORRECT ANSWER one who facilitates a transaction without functioning as an agent, preforms ministerial acts." "Implied Agency - CORRECT ANSWER created through the actions of both parties. This occurs when both the principal and agent consciously or unconsciously exhibit behavior as if they have mutually consented to an agreement." "Special agents, or limited agents - CORRECT ANSWER empowered to represent the principal in a single transaction. Once the transaction is completed, the agency is automatically terminated. Real Estate Agents are..." "Universal Agents - CORRECT ANSWER has practically unlimited authority being that they are permitted to do anything the principal could do personally. A court appointed guardian...."