Ga Real Estate Final Exam Questions With Detailed Verified Answers

GA REAL ESTATE FINAL EXAM QUESTIONS WITH DETAILED VERIFIED ANSWERS "Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) - CORRECT ANSWER A federal law enacted by Congress in 1980 to create a tax on the chemical and petroleum industries and provided broad authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or the environment. Also known as Superfund." "Home Rule - CORRECT ANSWER In Georgia, this rule allows a county or municipality legislative power to adopt reasonable ordinances and regulations including, but not limited to, property affairs, and local government for which no provision is in place." "Georgia Uniform Deceptive Trade Practices Act (UDTPA) - CORRECT ANSWER A real estate anti-trust law focused on price fixing and collusion between brokers" "Georgia Fair Housing - CORRECT ANSWER Law that guards against a licensee, either by direct response or by implication, suggesting that information regarding protected classes is ever used by a broker or salesperson to search for property or to evaluate the demographics of an area." "License law in Georgia requires brokers to deposit transactional funds into a trust account: - CORRECT ANSWER Promptly unless the contract states otherwise" "The statute of frauds... - CORRECT ANSWER must be in writing to avoid fraud and misunderstanding." "The statute of limitations... - CORRECT ANSWER Puts a time limit on filing real estate actions." "Which of the following is NOT true regarding Georgia's Fair Business Practice Act (FBPA)? - CORRECT ANSWER The FBPA involves real estate anti-trust violations and may be invoked only if a specific transaction has taken place. This act primarily involves a narrow focus of deceptive advertising." "Before being granted an active salespersons license, an applicant must - CORRECT ANSWER Georgia Real Estate Exam after completing the required course and have a broker to work for." "A real estate listing is an agreement between - CORRECT ANSWER The broker and the Owner. The owner is the client of the broker who is the agent." "The Georgia Real Estate Commission might revoke a broker's license in all of the following circumstances EXCEPT: - CORRECT ANSWER Negotiation of commission rates is always permissible and is not a violation of license law; however, the Commission does have authority to revoke the license of a broker convicted of a felony or engaged in false advertising or the commingling of funds." "Home and subdivision developers in Georgia have in recent years been subject to certain regulatory fees they must factor into their building costs. With regard to these costs: - CORRECT ANSWER Impact fees are fees imposed by local jurisdictions to pay for such things as utilities, roads, schools, and other services that an increase in population and traffic will bring." "A Georgia resident dies without a will and is survived by his wife and four children. The couple has community property worth $250,000 and the husband has a separate estate of $300,000. How will this estate be distributed? - CORRECT ANSWER Divided by intestate succession. As Georgia does not recognize community property law, the estate will be distributed by the laws of descent and distribution under intestate succession." "If a Georgia licensee fails to renew his or her license by the appropriate time period, which of following could occur? - CORRECT ANSWER The licensee, within this two year period, would not have to retake the state exam nor would the license be placed on inactive status. The licensee would, however, be responsible for all appropriate fees and charges as well as showing proof of adequate CE requirements." "What is true regarding any funds paid from the Georgia Real Estate Education, Research, and Recovery Fund? - CORRECT ANSWER Only non-licensees who have been "injured" by the actions of a licensee may seek payment from this Fund. They must have been awarded a court judgment against the licensee and have been unsuccessful in their attempts to collect this full judgment. The liability for each licensee shall not exceed $75,000." "A Georgia real estate company hires an office manager to run one of the branch offices. The office manager's duties include downloading information from agent listings to the local MLS, supervising clerical personnel, and making sure agents adhere to office policy in filling out their independent contractor compensation forms. In these capacities, the office manager: -Only needs a salesperson's license -Must have a broker's license -Would need no real estate license -Violates Georgia license law - CORRECT ANSWER The office manager is performing ministerial, non-real estate activities and, therefore, is exempt from licensing requirements." "The Georgia Real Estate Commission's Education, Research, and Recovery Fund is used to compensate: - CORRECT ANSWER The Recovery Fund only pays out money to non-licensees. Brokers and real estate salespeople are ineligible to collect from this Fund." "Continuing education courses in Georgia - CORRECT ANSWER CE courses are taught in classrooms as well as offered on computer for independent study; those individuals who were licensed prior to January 1, 1980 would be exempt from continuing education requirements. CE courses do not have to have license law as a subject matter and do not have to taught by approved instructors." "How long may someone place his/her Georgia real estate license on inactive status? A maximum of five years There is no time limit For no more than two license renewal periods 10 years for a salesperson, 4 years for a broker - CORRECT ANSWER There's no time limit. Any type of Georgia real estate license may remain on inactive status indefinitely as long as it is renewed regularly on inactive status. Thus, the renewal fees must continue to be paid even though the license remains inactive." "Under what conditions might a licensed salesperson in Georgia hold an active license with more than one Georgia broker? By signed agreement between the two Georgia brokers With the written permission of the Georgia Real Estate Commissioner If the salesperson is not a full-time affiliate Under no conditions - CORRECT ANSWER Under no conditions" "A real estate developer of Mexican descent hires a broker to market his new subdivision. The developer asks the broker to give first preference to Latino homebuyers. Under these conditions, which of the following statements is true? `As long as the broker does not use any discriminatory advertising, no Fair Housing laws will be violated `The broker should make sure that a Spanish-speaking salesperson heads the marketing team `The broker should refuse to market the subdivision under these circumstances `As long as the request is not in writing as part of the listing agreement, the broker may follow the instructions - CORRECT ANSWER Refuse to market the new subdivision In this scenario, giving priority to any minority group defined under Fair Housing guidelines would clearly violate the law without exception." "To satisfy license renewal requirements in Georgia, a real estate salesperson or broker must: -Hold an active real estate license and have completed a minimum of 36 hours of approved continuing education -Have completed a minimum of 24 hours of approved continuing education -Hold an active real estate license -Have participated in a minimum of 15 real estate transactions - CORRECT ANSWER A salesperson or broker in Georgia must complete 36 hours of continuing education courses for each license renewal period of four years. The license must be active, although the licensee does not have to be working full time, nor is there a transaction requirement." "Under Georgia law, a business formed as a limited partnership that plans to sell shares of real property stock to attract other members to this partnership: -Needs only have a real estate license -Must have a real estate license in addition to a securities license -Needs either a real estate license or a securities license -Needs only a securities license - CORRECT ANSWER Under Georgia law, a business formed as a limited partnership that plans to sell shares of real property stock to attract other members to this partnership: Needs only have a real estate license Must have a real estate license in addition to a securities license Needs either a real estate license or a securities license Needs only a securities license" "A real estate license is necessary for persons involved in which of the following business activities? -Someone who owns and personally manages a 10-unit apartment complex -A woman who has power of attorney to negotiate the sale of her brother's home -The director of the local MLS -An individual who, for compensation or the promise of compensation, assists in the buying, selling, leasing, exchange, or auctioning of real property - CORRECT ANSWER Georgia law requires a real estate license for any situation where persons are engaged in real estate activity for compensation or the promise of compensation. Exempt from licensing requirements are owners who manage their own properties. Personnel who manage or work for multiple listing services, or individuals who have written authority to negotiate the sale of a relative's property." "If the Real Estate Commission votes to revoke a license, Georgia law gives the licensee the right to: Bring the case before the Real Estate Commissioner incorrect! Appeal to the courts Have the Secretary of State interplead on the licensee's behalf Pay damages in lieu of surrendering the license - CORRECT ANSWER Appeal to the courts" "A real estate license would automatically be revoked under which of the following circumstances? - CORRECT ANSWER A licensee having been found guilty for acts that result in a payout from the Georgia Real Estate Recovery Fund" "The Rules passed by the Georgia Real Estate Commission: - CORRECT ANSWER Must be based on license law" "Wrap-around Mortgage - CORRECT ANSWER A financing arrangement in which an existing loan on a property is retained while the lender gives the borrower another, larger loan." "Uniform Commercial Code - CORRECT ANSWER A general set of laws adopted by most states with the purpose of providing uniformity and fairness in commercial transactions, including the sale and financing of personal property." "Package Mortgage - CORRECT ANSWER A mortgage where personal property (e.g., appliances) is included in a real estate sale and financed with one contract." "Round Table Closing - CORRECT ANSWER A closing conducted with all parties present. Also called a Face-to-Face Closing." "Reserves - CORRECT ANSWER Cash on deposit or other highly liquid assets a borrower must have in order to cover two months of PITI mortgage payments, after they make the cash down payment and pay all closing costs." "Closing Officer - CORRECT ANSWER The person or business charged with coordinating the activities and documentation necessary for completing a real estate transaction; usually the one who prepares the settlement statement and conducts the closing. In Georgia, this must be an attorney. Also called Settlement Officer." "A homebuyer is assuming the seller's hazard insurance policy of $650, which was paid in advance for one year beginning on February 15. If the closing of the sale occurs on December 31 of the same year, how much of the prorated policy would the buyer owe the seller? Use the exact number of days in a month to count prorated days and a normal calendar year. $80.14 $568.08 $83.70 $81.91 - CORRECT ANSWER $80.14 The buyer will owe the seller for prorated days beginning on January 1 through the ending day of the policy on February 14, for a total of 45 days. So, the policy ($650) is divided by 365 to equal $1.7808 per day x 45 for a total of $80.14 owed by the buyer to the seller." "A buyer pays $185,000 for a house using a maximum FHA loan. How much intangible tax would be due on this transaction? $185 $535.50 $555 $542.40 - CORRECT ANSWER $535.50 $185,000 x 96.5% = $178,525(rounding down to the nearest 100 dollar amount)--$178,500 divided by 500 = $357 --$357 x 1.50 = $535.50." "Regarding the financing of a home loan in Georgia: -None of the answers -The contract between borrower and lender consists of the promissory note and the mortgage, which secures the note -A defaulting borrower would be subject to a foreclosure law suit -The grantor conveys title to the grantee - CORRECT ANSWER The grantor conveys title to the grantee Georgia is a title theory state with non-judicial foreclosure, no lawsuit need be filed by the lender to capture the deed, as the borrower would have transferred title to the lender at closing. The security instrument in Georgia is called a security deed, not a mortgage, and the borrower is called the grantor while the lender is the grantee receiving title from the borrower." "On a home with a $200,000 sales price that a buyer wants to finance with an 80% conventional loan, what is the maximum purchase money mortgage (PMM) most Georgia lenders might allow the seller to consider taking? Under these circumstances, no purchase money mortgage would be allowed by the lender -$15,000 -$20,000 -$10,000 - CORRECT ANSWER $20,000 The 80/10/10 formula would apply here and the seller would be allowed to take a PMM, or second mortgage, of 10% of the sales price--$200,000 x 10% = $20,000." "In an FHA loan used to buy a property in Georgia, the mortgage insurance premium(MIP) might be: -Financed over the loan term by the buyer -Spread out by paying 1.5% of the MIP amount at closing, and the balance paid on a monthly basis -Paid in full at closing by either the buyer or seller -All of the answers - CORRECT ANSWER All of these" "How would the sale of a home in Georgia, paid for in cash, affect the payment at closing of the transfer tax and the intangible tax? -It would have no affect on the payment of either tax -Only the transfer tax would have to be paid -Because the home is sold for cash, neither tax would be required -An intangible tax would have to be paid, but no transfer tax would be necessary - CORRECT ANSWER Only the transfer tax would have to be paid. Since there is no loan involved in this transaction and an intangible tax is calculated only on new loans obtained for home purchase, there would be no intangible tax. But, as any new loans are irrelevant to the assessment of the transfer tax, which is based on the sales price of a home, this tax would still be assessed regardless of whether it was a cash transaction." "All of the following would appear as a debit on the seller's closing statement EXCEPT: -Prepaid property taxes -Accrued mortgage interest -Rent prorations -Commission incorrect! - CORRECT ANSWER Prepaid property taxes. ommissions are paid by the seller to the broker; rent prorations are paid by the seller to the buyer at closing; accrued interest on the existing home loan is paid by the seller to the lender at closing; the seller, however, would receive a refund or credit from the buyer at closing for the purchaser's share of the year's property taxes since the seller has already paid these taxes for the entire year." "In Georgia, a homebuyer financing a purchase through a conventional loan that will close on October 1 will make the first monthly payment to the lender on: -Whatever date is negotiated between buyer and seller in the contract -Dec. 1 -Oct. 1 -Nov. 1 - CORRECT ANSWER November 1st. -When a home loan closes on the 1st of the month, the borrower's first payment will be due on the 1st day of the next month. Any other day for closing in the month, the buyer will not make a payment in the next month, but the first payment will be due on the 1st day of the following month. Negotiations between the buyer and seller have nothing to do with this matter." "In a Georgia real estate closing, the transfer fee: Is the same as the transfer tax incorrect! Is a fee assessed by the closing attorney Is a fee assessed by the lender on a loan assumption Will appear on the settlement statement as a debit to the buyer - CORRECT ANSWER Fee assessed by the lender. The transfer fee is a lender charge to the seller for transferring the existing loan to the buyer who is assuming this loan. It is a debit to the seller." "The power of sale clause in the Georgia security deed requires the lender to: File suit before initiating foreclosure proceedings Examine the title and notify other lienholders of the pending foreclosure sale Advertise the pending foreclosure sale All of the answers - CORRECT ANSWER Advertise the pending foreclosure. Georgia is a non-judicial foreclosure state and the power of sale clause in the security deed requires only that the lender advertise the pending foreclosure sale. Filing suit and notifying junior lien holders is not necessary in Georgia." "A mortgage lender in Georgia makes a loan at 7 1/4 percent. If the lender's yield on this loan is actually 8 percent, how many loan discount points will be charged on this loan? - CORRECT ANSWER 6 - Each discount point bought affects the lender's yield by 1/8 of 1 percentage point. So, if the yield increases from the interest rate of 7 1/4 or 7 2/8 to 8% or 7 8/8, six discount points would be required." "In attempting to verify that all existing recorded liens have been removed from the title of real property in Georgia, a closing attorney would look for a: -Satisfaction of the mortgage -Defeasance or cancellation clause -Any of the answers -Reconveyance of the trust deed - CORRECT ANSWER Defeasance or cancellation clause. Once a home loan is paid off in Georgia, the borrower would thus defeat the lender's right of holding title to the home as security and would return legal title to the borrower. This release would be transacted through a defeasance clause, also known as a cancellation clause in Georgia." "The Statute of Frauds in Georgia requires that all real estate contracts must be in writing to be enforceable with two exceptions. What are they? A net listing and a lease for more than a year None of the answers incorrect! A transactional listing and a ministerial agreement An open listing and a lease for a year or less - CORRECT ANSWER An open listing and a lease for a year or less" "In a Georgia purchase and sale real estate contract, earnest money serves what function? All of the answers As a means of offering the purchaser's "good faith" to the seller To provide the necessary valuable consideration in a contract To satisfy the legal requirement of a contract involving real property - CORRECT ANSWER As a means of offering the purchaser's good faith to the seller." "A seller signs an exclusive listing agreement in Georgia with a broker, but reserves the right to sell the property himself and not be liable for a real estate commission. With what type of listing might this occur? Exclusive agency Listing in severalty Exclusive right to sell Open listing - CORRECT ANSWER Exclusive Agency" "In a dispute over the terms and/or language of the real estate sales contract in Georgia, what is true? The contract becomes voidable automatically Handwritten language will take priority over typed material, which takes priority over preprinted language The preprinted language of the contract will always prevail over any added typewritten or handwritten language Typed language will take priority over handwritten - CORRECT ANSWER Handwritten language takes priority over typed material, which takes priority over preprinted language." "Point of beginning refers to the intersection of a principal meridian with its baseline. a benchmark. the first corner of the parcel to be surveyed. a permanent reference marker. - CORRECT ANSWER the first corner of the parcel to be surveyed." "As amended in 2000, BRRETA allows that if a broker practices designated agency: The broker is, by definition, practicing dual agency The broker is violating agency law Two brokers must be involved: the listing broker and the cooperating selling broker The broker is not, by law, practicing dual agency - CORRECT ANSWER The broker is not, by law practicing dual agency." "An assessor's parcel number is reference number for county tax records. final authority for the legal description of land. used as a legal description. not a legal description. - CORRECT ANSWER a reference number for county tax records" How would an unmarried couple take ownership to real property if they want a full ownership immediately upon the death of the other Co-Owner? A. Tenancy By The Entirety B. Joint Tenancy C. Tenancy In Common D. Severalty - CORRECT ANSWER Joint Tenancy" "In a trust, legal title to real property is transferred to a person to be held and managed by the person *for the benefit of the:* A. Trustee B. Trustor C. Beneficary D. Grantor - CORRECT ANSWER Beneficiary" "A person who purchases shares of stock in a corporation that owns a building and recievs a proprietary lease to specific unit within the building has purchased a A. Timeshare B. Cooperative C. Condominium D. Limited Partnership - CORRECT ANSWER Cooperative" "Undet cooperative ownership the least that grants occupancy of a specific unit to the stockholders is called a A. Percentage Lease B. Proprietary Lease C. Sublease D. Net lease - CORRECT ANSWER Proprietary Lease" "which of the following would best describe interval ownership? A. A timeshare Ownership in which the owner aciqures title to a specific property for a certain period of each year B. An Ownership interested in a limited partnership C. A leasehold inerest in a cooperative D. Trust ownership, whereby legal title to the property is transferred to a trustee to be hekd and manged for the benfit of another - CORRECT ANSWER A timeshare ownership in which the owner acquires title to a specific property for a certain period of the year." "which of the following transactions with most likely to be subject to the states blue sky laws? A. Sale of a single of a single family residential home B. Sale of a limited partnership interest or condominium C. Purschase Securites in a timeshare ownership plan D. Rental of a commercial office building - CORRECT ANSWER Purachase securities in a timeshare ownership plan" "The owner of a residential condominium unit and a tenant under lease both have: A. A lien on the property B. An estate in the property C. A lis pendens D. the right of refusal - CORRECT ANSWER An estate in the property" "an item of personal property that, by the process of attachment and by intent, has become real property is called: A. An estate B. A fixture C. An emblement D. Chattel - CORRECT ANSWER A Fixture" "in Georgia, the legal description section of a listing agreement would NOT contain information about the following items: A. State and County B. City and State C. Plat book and page D. Range and townships - CORRECT ANSWER Range and Townships" "in Georgia, the Georgia timeshare act requires developers of timeshare projects make disclosures to prospective buyers of all material facts about the property, including the buyers right to resend the contract within seven days. This information will be contained in the A. Purschase and sale agreement B. Public Offering Statemnt C. Seller's Property Disclosure D. Warranty Deed - CORRECT ANSWER Public Offering Statement" "in Georgia, the principal source of the legal description is A. The seller's warranty deed B. Public Record C. The listing company D. The plat map - CORRECT ANSWER The seller's warranty deed" "in Georgia, when locating the point of beginning in a meats and bounds legal description in which of the following terms will NOT render the legal description void? A. Approximately B. More or less C. Exactly D. About - CORRECT ANSWER Exactly" "in Georgia, the prevailing legal description is A. Lot and Block Method B. Recatngular survey C. Metes and bound D. Street Address - CORRECT ANSWER Metes and bound" "in Georgia, when a corporation owns property, the listing agreement must have the corporate seal affixed and the signature of an authorized officer. in the absence of the corporate seal the listing must be signed by: A. the corporate president amd treasurer B. two authorized officers C. A notary D. a superior court judge - CORRECT ANSWER Two authorized officers" “Anti-Trust - CORRECT ANSWER An area of law concerned with maintaining competition in private markets by prohibiting any restraint on trade." "Georgia Real Estate Commission - CORRECT ANSWER Pass rules and regulations that govern real estate licensees" "Homestead Exemption - CORRECT ANSWER refers to a property tax reduction available to a homeowner/occupant who files for the deduction within the tax jurisdiction's specified time limit." "A real estate license would automatically be revoked under which of the following circumstances? - CORRECT ANSWER Once any money is paid out from the Recovery Fund as the result of a licensee's actions, the real estate license will be AUTOMATICALLY revoked." "All Georgia real estate offices must: - CORRECT ANSWER License law requires brokers to keep transactional records for at least three years" "Regarding trust accounts and real estate brokerage offices in Georgia, all of the following statements are true EXCEPT: - CORRECT ANSWER Only brokerage offices that choose to handle trust funds need open these accounts." "As an inducement to acquire listings, a broker advertises that he will buy any property he lists if that property does not sell in 120 days. Would this type of promise be a violation of license law in Georgia? - CORRECT ANSWER The plan is not a violation of real estate law in Georgia as long as two contracts are created at the same time: one, a purchase and sale commitment from the broker for a specific price on a specific date; and two, a listing contract between seller and broker." "If a broker submits a contract to a lender that is different from the binding agreement signed by the buyer and seller: - CORRECT ANSWER his type of situation involves mortgage fraud; the broke" "The law will act to end a listing agreement if, - CORRECT ANSWER If the broker dies, the house burns down, or if the owner declares bankruptcy." "A salesperson refers a home seller to the Acme Pest Control Company to obtain a contractually required termite letter. The salesperson has a longstanding relationship with this company and Acme Pest Control pays the salesperson a fee for every customer referral. Would this payment be a violation of license law in Georgia? - CORRECT ANSWER Yes, A salesperson may only receive payments from the employing broker and, in this situation, the employing broker could not receive compensation from a non-licensee." "One who sells real estate for others - CORRECT ANSWER Hold an active real estate license in the State of Georgia." "A home seller has sued her listing agent for fraud and the court has awarded the plaintiff a judgment in the amount of $50,000. However, the plaintiff was only able to collect $25,000 from the assets of the licensee. In this situation, what would be the maximum amount that this individual could expect from the Real Estate Education, Research, and Recovery Fund? - CORRECT ANSWER $25,000 No individual may ever collect more than $25,000 from the Fund. Also, no more than $25,000 may ever be paid out for misdeeds in a single transaction." "Under what circumstances might a broker in Georgia pay an unlicensed assistant a real estate commission? - CORRECT ANSWER Under No circumstances" "Which of the following persons would NOT be required to possess a valid real estate license in Georgia? - CORRECT ANSWER GA Power employee who handles the acquisitions and a business owner who sells or leases his property. A real estate license is required for all persons in Georgia who receive compensation for procuring buyers, sellers, renters, etc. Property owners selling their own real estate or utility company employees engaged in company business that involves real estate do not need licenses." "All of the following are true regarding Fair Housing laws EXCEPT: - CORRECT ANSWER Fair Housing laws only cover residential real estate, not commercial. HUD courts were set up under the 1988 Amendment. Race is the only non-exception to the laws. Violations of Fair Housing involve state, federal, and license law." "A salesperson might be in violation of Fair Housing laws in all of the following circumstances EXCEPT: - CORRECT ANSWER A licensee may be found in violation of Fair Housing laws if no attempt is made to work with minority prospects, even if language issues are present. Licensees must use their best efforts with ALL prospects. ALL prospects must be treated fairly and equally regarding property information; a licensee is NOT in violation of Fair Housing if the licensee does not accept work outside areas with which the licensee is familiar." "To receive a broker's license in Georgia, an applicant must:o receive a broker's license in Georgia, an applicant must: Successfully complete 75 hours of state-approved real estate courses Be at least 20 years of age Have held an active real estate license for two years incorrect! Present an acceptable GCIC report to the Commission correct! - CORRECT ANSWER Acceptable GCIC To receive a broker's license in Georgia, one must be actively engaged in real estate for three years, complete a 60-hour prelicense course, and pass a GCIC background check." "A property owner asks a licensed salesperson to find someone to lease his home. Interviewing potential tenants, the licensee would NOT be in violation of Fair Housing laws if he refused to rent to which of the following? A pregnant single woman Two college students A person infected with the AIDS virus A nonresident couple from China - CORRECT ANSWER Two college students. Handicapped/disabled, familial status, and national origin are all protected classes under Fair Housing laws. College students are not." "Which of the following penalties would the real estate commission NOT have authority to impose on a person found to be practicing real estate activities without a license? -$ 1,000 fine -Additional fines for each day that the unauthorized person ignores the cease and desist order -A six-month jail term -An order for the individual to "cease and desist" the unauthorized activity - CORRECT ANSWER Impose a Jail term.The Georgia Real Estate Commission has no authority to impose jail terms; it may issue a cease and desist order, assess an initial fine up to $1,000, and then impose an additional daily fine if the cease and desist order is ignore" "A real estate salesperson wants to sell investment property that he owns but decides not to use his broker's name in advertising the property. Under these circumstances, what would be true? -The salesperson may deposit any earnest money received in his personal bank account -The salesperson must have the written consent of his employing broker and must also disclose that he is a licensed real estate salesperson -The salesperson need only inform his employing broker in writing of his plans -The salesperson must list the home with a broker - CORRECT ANSWER if a licensee wants to sell personal property without using the employing broker's name in advertising the property, the licensee must receive written permission from the broker as well as disclose his or her real estate license status in any advertising. The salesperson, though, is not under any obligation to list the home with any broker." "A real estate salesperson wants to sell investment property that he owns but decides not to use his broker's name in advertising the property. Under these circumstances, what would be true? - CORRECT ANSWER The salesperson must have the written consent of his employing broker and must also disclose that he is a licensed real estate salesperson" "Federal law, implemented as Regulation X, dealing with real estate closings that provides specific procedures and guidelines for the disclosure of settlement costs. - CORRECT ANSWER Real Estate Settlement Procedures Act (RESPA)" "Generally describes a mortgage used to finance the purchase of property; may specifically refer to a situation where the seller finances all or part of the sale price of a piece of property for the buyer, in which case may be called a Seller Held Mortgage. - CORRECT ANSWER Purchase Money Mortgage" "Escrow Closing - CORRECT ANSWER A closing by a disinterested third party, often an escrow agent. In Georgia, this must be an attorney." "POC - CORRECT ANSWER Any expenses associated with a real estate transaction that are paid outside of closing. Such payments should be noted on a settlement statement, but would not be considered debits or credits to the buyer or seller." "At a real estate closing in Georgia, which of the following would be true? -It is the seller's responsibility to provide evidence of marketable title for the buyer -Closings may be conducted, at times, by a real estate broker -It is the buyer's obligation to search the title and bear the expense of acquiring proof of marketable title -In the transfer of a rental property, the buyer would be credited rent collected for the day of closing - CORRECT ANSWER Its the buyers obligation to search the title- Nothing in the warranties given by the seller in the general warranty deed at closing assures the buyer of acquiring clear title. In Georgia, it is the buyer's obligation to acquire any evidence of marketable title." "Regarding the seller's net estimate form that a listing agent might prepare, this document: -Is not official, so it should not be relied on by the seller -Should only be prepared after there is a binding agreement -Might be useful for a seller once a listing price has been determined for the home, once an offer has been received, and after a binding agreement has been reached with a buyer -Should only be prepared by a broker - CORRECT ANSWER Might be useful - Knowing how to prepare this form adds additional value to those services an agent might perform for a client. Preparing this form is not limited to the broker and can be effectively done at the time of the listing, when any offer is submitted on the property, and after a binding agreement has been negotiated." "What is NOT true of a prepayment penalty on an existing loan? -It will appear as a credit to the seller on the closing statement -It will appear as a debit to the seller on the closing statement -The penalty and its amount must be disclosed in the original loan documents signed by the borrower -Prepayment penalties are prohibited in VA and FHA loans - CORRECT ANSWER It will appear as a credit to the seller. n a real estate transaction, an existing loan would belong to the seller and if the seller's existing loan agreement imposes a penalty for paying off the loan before it matures, then this charge will be assessed to the seller at closing." "In the preprinted real estate sales contract customarily used in most brokerage offices in Georgia, there is a clause that provides that duties stipulated to be performed by either party may be designated by agreement of buyer and seller to be enforceably performed even after the closing. This clause is referred to as the: Good faith clause Warranty clause Safety clause Survival clause - CORRECT ANSWER Survival Clause" "Several persons own a property as tenants in common. One of the owner dies and the heirs want to sell the property, where as the other owners prefer to retain the property. If the parties cannot reach an agreement, which of the following actions would most likely be taken by the heirs who want to sell? A. File a partition Action B. File a foreclosure Action C. File a Quiet Title Action D. Force the remaining owners to buy his or her interest - CORRECT ANSWER File a partition action" "A father conveyed the family property to his daughter by will as a pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property? A. Remainderman B. Mother C. Father D. Daughters Heirs - CORRECT ANSWER Daughter's Heirs"