GA REAL ESTATE PRACTICE QUESTIONS WITH CORRECT SOLUTIONS

GA REAL ESTATE PRACTICE QUESTIONS WITH CORRECT SOLUTIONS "Which is true concerning the Commission Chairperson? - CORRECT ANSWER He is appointed by the Commission members annually." "The Georgia Real Estate Commission is - CORRECT ANSWER comprised of 6 members appointed by the governor and confirmed by the Senate." "Which of the following best describes a brokerage agreement? - CORRECT ANSWER A written compensatory agreement between broker and seller" "The Commission's disciplinary authority includes - CORRECT ANSWER requiring periodic accounting reports related to trust violations." "One of the responsibilities of Commission members is to - CORRECT ANSWER monitor the availability of licensure to the public." "Brokerage related activities not requiring the exercise of the licensee's own judgment best describe - CORRECT ANSWER ministerial acts." "The license period in Georgia is - CORRECT ANSWER 4 years for both salesperson and brokers." "Which of the following describes the property management licensing exemption? - CORRECT ANSWER When any individual employed by a broker assists in property management services on residential property" "Concerning the Georgia licensing exam, which of the following is true? - CORRECT ANSWER A passing grade of 75% or higher is required." "Signing a Consent to Jurisdiction form relates to - CORRECT ANSWER qualifying for non-resident licensure in another state." "qualifying for non-resident licensure in another state. - CORRECT ANSWER Both brokers and associate brokers may serve as the qualifying broker with multiple licensed firms." "Which is true concerning a non-resident licensee applying for a Georgia license. - CORRECT ANSWER Must submit proof of current licensure from the applicant's state of residence" "If a broker applicant does not apply for a license within one year of passing the exam, the applicant must - CORRECT ANSWER retake the licensing exam." "Which of the following is true concerning Georgia business licenses? - CORRECT ANSWER One broker is designated as the company's qualifying broker." "One broker is designated as the company's qualifying broker. - CORRECT ANSWER a lapsed license requiring reinstatement and renewal fees." "A licensee on inactive status who changes his or her address must notify the Commission of the new address - CORRECT ANSWER within 30 days." "Which is correct concerning an original license activation? - CORRECT ANSWER Individual and firm applicants must pay an activation fee and renewal fee." "If a licensee transfers from his or her current broker to a new broker, what must the current broker do? - CORRECT ANSWER Sign a transfer and send the licensee's wall certificate to the Commission." "Which of the following may be filed online? - CORRECT ANSWER Renewing licenses" "Under which condition might the Commission choose to extend a renewal without the licensee having to pay the required fees? - CORRECT ANSWER A licensee living in a designated disaster area suffers uninsured damage to his home." "Which of the following is true concerning the qualifying broker's death? - CORRECT ANSWER The entity must secure a new qualifying broker within 60 days." "Which of the following is true concerning a transferring licensee? - CORRECT ANSWER The licensee may continue written brokerage engagements if specifically authorized by the existing broker." "A salesperson can begin working as a real estate licensee - CORRECT ANSWER once the employing broker receives her wall license." "In terms of its investigative functions - CORRECT ANSWER Commission may hire qualified outside help only for needed special expertise or circumstances." "A dual agency agreement must contain which of the following? - CORRECT ANSWER Disclosure of any material relationships existing between clients" "Under BRRETA, a broker who performs services for a client owes that client or customer - CORRECT ANSWER only the duties and obligations within this law, unless the parties expressly agree otherwise in writing and signed by the parties." "Which of the following are BRRETA facts that apply to the liability of brokers engaged by landlords? - CORRECT ANSWER A broker does not have a duty to discover any potential adverse facts affecting either the neighborhood or subject property." "Under BRRETA, a tenant's broker must disclose to a prospective landlord - CORRECT ANSWER all material facts in a timely manner." "BRRETA requires the broker to disclose which of the following to a prospective tenant? - CORRECT ANSWER All material facts within one mile of the subject property" "Examples of readily available public records for review by prospective renter would include - CORRECT ANSWER plat maps, zoning ordinances, and flood maps." "What is the name of the Georgia law that governs the agency relationships of brokers with sellers, buyers, landlords and tenants of rights and interests in real property? - CORRECT ANSWER BRRETA" "Which of the following is true concerning dual agency? - CORRECT ANSWER It must be by written consent by all parties to a transaction." "Which of the following is true pertaining to possible trust account violations? - CORRECT ANSWER Which of the following is true pertaining to possible trust account violations?" "Which of the following is true regarding earnest money accounts? - CORRECT ANSWER Earnest money may be deposited into interest bearing accounts if the contract so stipulates." "If an associate licensee owns rental property, which of the following is applicable according to Georgia law? - CORRECT ANSWER Must deposit any security or trust funds into a broker designated trust account" "Concerning abandoned trust funds disbursal, which of the following is true? - CORRECT ANSWER A licensee may disburse funds if in compliance with the Disposition of Unclaimed Property Act." "The illegal act of mixing the client's monies with the broker's or firm's funds is known as - CORRECT ANSWER commingling." "A broker's paid commission is considered in compliance with the Commission's trust account laws under which circumstances? - CORRECT ANSWER When the broker has received a separate written agreement signed by all interested parties" "Brokers must notify the Commission of the name of the bank in which each trust account is maintained and each account's name or number within how long of opening each account? - CORRECT ANSWER One month" "Which of the following is true regarding the rules governing escrow accounts? - CORRECT ANSWER A portion of the deposit may be transferred to the broker for commission payment." "Does a licensee have to disclose that he or she is a licensed real estate agent when selling his or her own home? - CORRECT ANSWER Yes, licensee must disclose on all contracts that they are licensed in real estate." "- Which of the following is true of trust accounts of brokers in Georgia? - CORRECT ANSWER The license law in Georgia requires that all real estate licensees deposit all funds or place any valuables held on the behalf of others in a trust account." "When is it permissible for a broker to maintain the broker's own funds in a designated trust or escrow account? - CORRECT ANSWER Only when the funds are clearly identified as the broker's deposit and only for specific purposes, such as paying bank fees or maintaining a minimum balance in accord with the bank's policies" "Which of the following actions may the courts impose related to housing discrimination? - CORRECT ANSWER Punitive damages to the aggrieved for willful misconduct" "The Georgia Fair Housing Law is enforced by the - CORRECT ANSWER Georgia Commission on Equal Opportunity." "Under Georgia law, advertising regulation - CORRECT ANSWER covers all media including the internet." "Which is true concerning the rules governing misleading advertising? - CORRECT ANSWER The discovering licensee must immediately take steps to stop the advertising until in compliance." "The Georgia Fair Housing Code exempts which of the following? - CORRECT ANSWER An owner's sale of a duplex if the owner occupies one of the units." "The term that refers to print, photographic, broadcast; and computer media including, but not limited to, such things as newspapers, flyers and posters is - CORRECT ANSWER media." "A licensee making unrealized promises to a prospect is an example of - CORRECT ANSWER unfair practice." "The relationship between a licensee and the broker can - CORRECT ANSWER either be that of an employer-employee or an independent contractor." "Unlicensed support personnel are permitted to perform - CORRECT ANSWER A salesperson or associate broker may" "Which of the following disclosures are not required under BRRETA? - CORRECT ANSWER That the broker has a duty to disclose any personal opinions to clients" "Which of the following is false regarding property management agreements? - CORRECT ANSWER The property management agreement does not have to be in writing to be enforceable." "Any time there is a conflict between the broker's duty not to give false information and the broker's duty of confidentiality to the owner, the duty - CORRECT ANSWER not to give false information to a customer ALWAYS prevails." "Brokers are required to review all brokerage agreements and contracts within _____________. - CORRECT ANSWER 30 days" "Which of the following is not permitted by unlicensed support personnel under the direct supervision of a licensee affiliated with a broker? - CORRECT ANSWER Hosting open houses, kiosks, home show booths, or fairs" "____________ the money or other property of the licensee's principals with the licensee's own is a violation of GA license law. - CORRECT ANSWER Commingling" "Which of the following disciplinary actions cannot be imposed by the Commission? - CORRECT ANSWER A fine of $10,000 for a single violation" "Under Georgia law, brokers are required to keep a true and correct copy of all sales contracts, closing statements, any offer or other document that resulted in the depositing of trust funds for - CORRECT ANSWER three years." "Regarding the following statements about disciplinary actions, which is most accurate? - CORRECT ANSWER Suspensions are temporary." "Which of the following activities does not fall under the heading of "unfair trade practices?" - CORRECT ANSWER Acting as a dual agent under any condition" "A broker may do which of the following? - CORRECT ANSWER Maintain and deposit in a separate, federally-insured checking account all money received as escrow agent in a real estate transaction" "It is a violation of the license law to pay a commission or compensation to any person for performing the services of a real estate licensee - CORRECT ANSWER if that person is not appropriately licensed." "Acting for more than one party in a transaction without the express written consent of all parties to the transaction is known as - CORRECT ANSWER undisclosed dual agency." "The Commission does not have the authority to - CORRECT ANSWER impose a prison sentence." "It is mandated under Georgia law that - CORRECT ANSWER It is mandated under Georgia law that" "The minimum balance of the Recovery Fund must be at least - CORRECT ANSWER $1,000,000." "If at any time the money deposited in the Fund is insufficient to satisfy any claim, the Commission will later pay the past due monies, plus accumulated interest - CORRECT ANSWER at the rate of 4 percent a year." "If the Commission must make a payment from the Fund in the settlement of a claim or judgment against a licensee, - CORRECT ANSWER that licensee's license will be automatically revoked." "The Commission cannot use any of the funds from new licensee payments to the Real Estate Education, Research and Recovery Fund or from the accrued interest earned on the fund to - CORRECT ANSWER pay real estate lobbyists." "Which of the following is commonly delegated to the community association manager? - CORRECT ANSWER Conducting membership meetings for the association" "Only the ___________ has the authority to sign a contract to provide CAM services for to a community association for a fee. - CORRECT ANSWER broker" "Since 1997, Georgia real estate license law has made it mandatory for ____________ to hold a real estate license. - CORRECT ANSWER someone engaged in community association management" "Who would not be exempt from the CAM licensing requirements under Georgia law? - CORRECT ANSWER A person that provides CAM services for multiple associations, and is not a member of those associations" "Associations of homeowners within certain subdivisions, townhouse developments, condominium complexes, cooperatives, or other planned developments are known as - CORRECT ANSWER community associations." "A common community association manager duty is - CORRECT ANSWER to hire and supervise clerical employees." "The community association manager must - CORRECT ANSWER prepare and submit a budget." "Which brokers are exempt from the law requiring community association managers to carry fidelity insurance? - CORRECT ANSWER Those who never handle more than $60,000 at one time" "Bob is completing his listing presentation when the seller asks what commission he will be charging. Bob answers "Everyone charges the same so you can list with me and keep it simple." Bob has - CORRECT ANSWER made a statement which violates the Sherman Anti-trust Act" "Because of the 1866 Civil Rights Act you can never discriminate on _________ for any reason. - CORRECT ANSWER race" "If an agent states "this house has a fantastic view of the lake," when in fact the lake is not visible from the property, this is - CORRECT ANSWER misrepresentation." "Under antitrust laws, which of the following parties cannot be held liable? - CORRECT ANSWER Lawyers" "Security deposits must be held in trust for the tenants in _____________ account specifically for that purpose. - CORRECT ANSWER a separate escrow" "What is the name of the law, administered by the governor through the Office of Consumer Affairs, that is designed to protect the public by focusing on deceptive advertising? - CORRECT ANSWER The Georgia Fair Business Practices Act" "Georgia law allows licensees to complete listing or sales contracts or leases - CORRECT ANSWER whose form has been prepared by legal counsel." "Which of the following is not prohibited by the Sherman Antitrust Act? - CORRECT ANSWER Which of the following is not prohibited by the Sherman Antitrust Act?" "____________ was created to ensure that the buyer and seller in a residential real estate transaction involving a new first mortgage loan have knowledge of all settlement costs. - CORRECT ANSWER The Real Estate Settlement Procedures Act" "John bought an odd-shaped lot that was 100 feet deep, but the front footage was 160 feet and the length of the back side of the lot was 80 feet. What is the square footage of his lot? - CORRECT ANSWER 12,000 SF" "A rancher has a rectangular 40 acre piece of property fronting a highway. He wants to put a barbed-wire fence along his road frontage. How much fence does he need if his property depth is 1,200'? - CORRECT ANSWER 1,452'" "An A-frame house has a front facade measuring 30' across and 20' in height. What is the area of the facade? - CORRECT ANSWER 300 SF" "If a rectangular house is 50 feet wide and contains 2,500 sq/ft, what is its depth? - CORRECT ANSWER 50'" "What is the GIM of a gas station with Annual rent of $104,400 and a value of $970,000? - CORRECT ANSWER 9.3" "What is the GRM of a condominium with monthly rent of $1,700 and a value of $240,000? - CORRECT ANSWER 141.2" "A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $40,000, vacancy and credit losses of $3,500, and operating expenses of $16,000. Using a capitalization rate of 8%, what is the indicated value (to the nearest $1,000)? - CORRECT ANSWER $256,000" "A property's value is $400,000 and its land value is $75,000. Assuming a depreciation term of 39 years, what is the amount of annual depreciation? - CORRECT ANSWER $8,333" "A loan applicant has an annual gross income of $76,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 30%? - CORRECT ANSWER $1,900" "A loan applicant has an annual gross income of $42,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 32%? - CORRECT ANSWER $1,120" "If you owe $14,000 on a new loan and pay $880 of interest for the year, your interest rate is? - CORRECT ANSWER 0.063" "Ginnie has an interest-only home equity loan at an annual interest rate of 7%. If her monthly payment is $1,458, how much is the loan's principal balance? - CORRECT ANSWER $250,000" "Jackie obtains a 60% LTV loan on her new $250,000 home with an annual interest rate of 5.5%. What is the first month's interest payment? - CORRECT ANSWER $688" "An office building sells for $979,000 at a cap rate of 8.3%. What is its NOI? - CORRECT ANSWER $81,257" "A condominium unit has $30,000 net income and sold for $500,000. What was the rate of return? - CORRECT ANSWER 0.06" "An investment property generates a cash flow of $550,000 and has a ROI of 12%. What is the value of the property assuming the numbers above (to the nearest thousand)? - CORRECT ANSWER $4,583,000" "A home appreciated 8.2% one year, then 2.4% the next year, then 7.2% the third year. What was the average annual rate of appreciation over the 3-year period? - CORRECT ANSWER 5.93%" "Brittany bought a house five years ago for $100,000 and obtained an 80% loan. Now the home is worth $125,000, and her loan balance has gone down $5,000. What is Brittany's current equity? - CORRECT ANSWER $50,000" "A homeseller wants to net $75,000. The commission is 9%, the loan payoff is $450,000, and closing costs are $36,000. What must the price be (to the nearest $100)? - CORRECT ANSWER $616,500" "A $340,000 property sells at a 7% commission with a 50-50 co-brokerage split and a 50% agent split with her broker. What is agent's commission? - CORRECT ANSWER $5,950" "A homeowner receives a tax bill that includes an amount for the library district, taxed at $2.00 per $1,000, and the fire protection district, taxed at $3.00 per $1,000. How much does the taxpayer have to pay for these two items if the property's taxable value is $78,000? - CORRECT ANSWER $390" "A home sells for $125,000 in United County. The agent's commission is 7.4%, and the mortgage balance is $98,000. The seller has $5,900 in other closing costs. If the seller pays all of these expenses, what will she net at closing? - CORRECT ANSWER $11,850" "A home sells for $330,000 and has a loan balance of $260,000 at closing. The commission is 6% and other closing costs are $14,000. What is the seller's net? - CORRECT ANSWER $36,200" "If the taxes for the current year WERE NOT paid and the property sold during the year, how would the entry appear on a full settlement statement? - CORRECT ANSWER Debit the seller and credit the buyer" "How does the judicial system influence real estate ownership? - CORRECT ANSWER By making decisions based on case law and common law." "Littoral rights concern which of the following bodies of water? - CORRECT ANSWER Navigable lakes, seas, and oceans." "What is characteristic of the allodial system of ownership? - CORRECT ANSWER Individuals own land directly." "The right to build a taller structure on top of an existing structure is an example of - CORRECT ANSWER air rights." "If a tenant farmer's lease expired, but several months later he is able to go back and harvest the corn crop, the crops would be known as what? - CORRECT ANSWER Emblements" ""Real estate" includes such things as - CORRECT ANSWER fences, sidewalks, and piers on a parcel of land." "The legal concept of land does NOT include - CORRECT ANSWER man made improvements." "What is a "fixture?" - CORRECT ANSWER An item of personal property that has been converted to real property" "All property in the United States is owned under the - CORRECT ANSWER allodial system." "A lease is an example of a(n) - CORRECT ANSWER transfer of a portion of the bundle of rights." "Which of the following is considered to be real property? - CORRECT ANSWER Permanent fixtures." "What are riparian rights concerned with? - CORRECT ANSWER Properties adjacent to flowing bodies of water." "The right to encumber a property means that the owner can - CORRECT ANSWER use the property as collateral for debt." "A property owner has the right to transfer water rights - CORRECT ANSWER only if there are water rights attached to the property." "An "improvement" is - CORRECT ANSWER a structure intended as a permanent attachment to land." "The level of government that is the primary regulator of the real estate business is - CORRECT ANSWER the state." "Which of the following is considered to be real property? - CORRECT ANSWER Permanent fixtures." "How does the judicial system influence real estate ownership? - CORRECT ANSWER By making decisions based on case law and common law." "In a sale transaction, all fixtures are - CORRECT ANSWER included in the sale unless named as exceptions." "Which would NOT be considered real property? - CORRECT ANSWER Trade fixtures" "The essential criterion for an acceptable legal description is that it - CORRECT ANSWER accurately locates and identifies the parcel." "A benchmark - CORRECT ANSWER provides a reference for indicating elevation in a survey." "What is a guide meridian? - CORRECT ANSWER A meridian every 24 miles east or west of a principal meridian to correct for the curvature of the earth" "To make it easier to describe elevations, surveyors refer to standard elevation points called - CORRECT ANSWER benchmarks." "As a legal descriptor of land, a township area consists of - CORRECT ANSWER thirty-six square miles." "How are directions described in a metes and bounds survey? - CORRECT ANSWER In terms of degrees east or west of an imaginary north-south axis" "A range is defined by - CORRECT ANSWER two consecutive meridians." "What is the difference between a fee simple determinable estate and a fee simple condition subsequent estate? - CORRECT ANSWER Reversion of ownership is automatic in the determinable estate." "Which of the following rights is conveyed with a leasehold estate? - CORRECT ANSWER The right to possess and use the premises." "Which best describes a tenancy at sufferance? - CORRECT ANSWER When the tenant stays beyond her lease without consent." "When the tenant stays beyond her lease without consent. - CORRECT ANSWER Passage of zoning ordinances to control land use" "Of the two kinds of fee simple estate, the kind that is a perpetual estate with no usage restrictions is the - CORRECT ANSWER fee simple absolute." "Which of the following is NOT an example of an interest in real estate? - CORRECT ANSWER A real estate agent's right to advertise a property for sale." "Which of the following statements about eminent domain is TRUE? - CORRECT ANSWER No private property is exempt from the exercise of this power." "Why is a fee simple estate called the highest form of ownership interest? - CORRECT ANSWER It includes the complete bundle of rights with virtually unlimited duration." "If a party has an interest in real estate that includes the right of possession, the party owns - CORRECT ANSWER an estate in land." "A life estate is classified as which of the following? - CORRECT ANSWER A freehold estate" "A partition suit is used for which of the following? - CORRECT ANSWER To force a division of property without all the owner's consent" "A kind of trust that can only be used with real property is the - CORRECT ANSWER land trust." "How many owners can there be in a tenancy in severalty? - CORRECT ANSWER One" "In a condominium, who is responsible for maintaining the internal systems of an individual unit? - CORRECT ANSWER The individual unit owner" "Time-share "ownership" is - CORRECT ANSWER fee or leasehold ownership." "A condominium owner actually owns - CORRECT ANSWER a fee simple interest in an airspace and tenancy in common interest in a share of common elements." "Which of the following is TRUE of a tenancy in common? - CORRECT ANSWER The tenants share an indivisible interest." "A condominium owner's assessments for maintenance and operation are based on - CORRECT ANSWER the unit's pro rata share of the property value as defined in the declaration." "One of the benefits offered by ownership in a tenancy by the entireties is - CORRECT ANSWER the estate is subject to foreclosure only for jointly incurred debts." "The owner of a unit within a cooperative actually owns - CORRECT ANSWER shares in a corporation or association and a proprietary lease in a physical unit." "What type of lease does a cooperative stockholder have? - CORRECT ANSWER Proprietary lease" "A condominium owner can - CORRECT ANSWER sell or mortgage the condominium unit without hindrance from individual owners of neighboring units." "The most common form of co-ownership when the owners are not married is - CORRECT ANSWER tenancy in common." "The party who holds title to real estate placed in a living trust is - CORRECT ANSWER the trustee." "An improvement which crosses over the property line without permission is called a(n) - CORRECT ANSWER encroachment." "A film company wants to rent a farm from the farm owner for a two-week film shoot. What type of agreement should be used? - CORRECT ANSWER License" "Which would terminate an easement? - CORRECT ANSWER Merger of the two properties" "How can a junior lien's priority be changed? - CORRECT ANSWER A lienor can voluntarily agree to subordinate its lien to another lien." "A court might grant an easement by prescription if - CORRECT ANSWER an intruder has been using an owner's property for a certain period with the owner's knowledge but without permission." "Other than its categorization as inferior or superior, a lien's priority is generally determined by the - CORRECT ANSWER date of recordation." "How is a lien terminated? - CORRECT ANSWER Payment of the debt that is the subject of the lien and recording of the satisfaction" "Which of the following circumstances is likely to render a will invalid? - CORRECT ANSWER The will is unsigned." "Where would one find information based on constructive notice? - CORRECT ANSWER Court House Records" "In general terms, a person who possesses the complete bundle of rights to a property owns - CORRECT ANSWER legal title." "What document shows legal alienation of a property? - CORRECT ANSWER Deed" "What are the two forms of owner's title insurance? - CORRECT ANSWER Standard and Extended" "A person receives defective title to a property. The grantor of the title later cures the defect and tries to reclaim the property. The doctrine that may prevent the grantor from succeeding in reclaiming the property is - CORRECT ANSWER estoppel." "Which record would show you who owned a property back in 1940? - CORRECT ANSWER Chain of Title" "Title to a certain real property is being held in a trust as collateral for a loan. What kind of deed will the trustee use to convey the title to the borrower when the loan terms are satisfied? - CORRECT ANSWER Reconveyance deed" "Someone who possesses all ownership interests in real property owns - CORRECT ANSWER legal title to the real property." "The property transferred by a will is called the - CORRECT ANSWER devise." "A municipality wants to build a water treatment facility, and requires some privately owned land to do so. What procedure enables the municipality to buy the property, even against the owner's wishes? - CORRECT ANSWER Eminent domain" "A break in the chain of title to a property results in - CORRECT ANSWER a clouded title." "Adverse possession is a form of - CORRECT ANSWER involuntary title transfer." "When a lender is required to foreclose on a deed of trust, the lender does not have to go through the courts to foreclose if the deed of trust contains a power of sale clause. This kind of foreclosure is known as - CORRECT ANSWER non-Judicial foreclosure." "The completion of a foreclosure sale would terminate which of the following? - CORRECT ANSWER Equitable redemption rights" "What provision is required in a mortgage to allow a non-judicial foreclosure to force a sale without a foreclosure suit? - CORRECT ANSWER A power of sale clause." "In a strict foreclosure, - CORRECT ANSWER a lender takes title to the liened property directly." "Which type of foreclosure involves a court-ordered transfer of the mortgaged property to the lender? - CORRECT ANSWER Strict" "All of the following are common consequences suffered by a mortgagor in a foreclosure procedure EXCEPT - CORRECT ANSWER the borrower is not allowed to apply for another mortgage for the rest of his or her life." "One reason a deed in lieu of foreclosure is attractive to some borrowers is that it - CORRECT ANSWER minimizes the damage to the borrower's credit." "Which of the following situations is most likely to represent an illegal nonconforming use? - CORRECT ANSWER A homeowner in a residential zone converts her residence to offices." "As evidence that building inspectors have found that a structure complies with building codes and is ready for use, the municipality or county issues a(n) - CORRECT ANSWER certificate of occupancy." "Which of the following is NOT normally a basic land use consideration of master planners? - CORRECT ANSWER Building codes and code enforcement" "In what year was the use of lead in paint banned? - CORRECT ANSWER 1978" "Which of the following is NOT a way of terminating a restrictive covenant? - CORRECT ANSWER A suit for partition filed by a majority of property owners in a subdivision." "Why are volatile organic compounds (VOCs) considered an environmental hazard? - CORRECT ANSWER They emit toxic fumes." "What guarantees the right of individual land ownership? - CORRECT ANSWER The United States Constitution" "Which of the following was an important result of the National Environmental Policy Act of 1969? - CORRECT ANSWER The Environmental Protection Agency was created." "How many hours of continuing education must a licensee complete for each year of licensure? - CORRECT ANSWER How many hours of continuing education must a licensee complete for each year of licensure?" "Which of the following is NOT true about business licenses? - CORRECT ANSWER A sole proprietorship needs only one broker license." "Under what conditions could Bill be affiliated with more than one broker? - CORRECT ANSWER If the broker is in another state which allows affiliation in both states and Bill has his Georgia broker's written permission" "Any salesperson can legally receive his or her share of the commission on a sale from - CORRECT ANSWER His or her employing broker only" "Broker Will's trust accounting system must include all of the following details of each transaction EXCEPT: - CORRECT ANSWER Mortgage lender for the transaction" "Gary got his license in May of 2005. His birthday is September 28. When will his license expire? - CORRECT ANSWER September 30, 2009" "Salesperson Mona is selling her own home. Which of the following is always true? - CORRECT ANSWER Mona's ownership of the property and licensed status must be disclosed to all parties to the transaction." "According to the Sherman Antitrust Act, which of the following statements is legal? - CORRECT ANSWER "Our company pays 3% of the sale price to subagents."" "Which of the following in not a protected class under Georgia Fair Housing? - CORRECT ANSWER Sexual preference" "When Jane, a new licensee, finishes her 25-hour post-license course, which of the following actions is NOT required? - CORRECT ANSWER Take 9 hours of continuing education during her first year of licensure." "Broker Jones has given salesperson Amanda permission to hold trust funds in a designated trust account that she owns. Broker Jones is obligated to give all of the following information to the Commission EXCEPT - CORRECT ANSWER A quarterly reconciliation statement on the account" "Broker Jane has been accused of a law violation regarding commissions. Which of the following might result in her being found guilty? - CORRECT ANSWER Jane paid a commission to a Florida licensee who is not licensed in Georgia, for licensing activity in Georgia." "Money deposited in the Recovery Fund can come from all but which of the following sources? - CORRECT ANSWER Excess funds transferred from the state treasury at the end of each year" "In Georgia, a landlord cannot add which of the following to a lease? - CORRECT ANSWER Waiver of his duty to make property improvements" "Seller Gordon refuses to accept an offer to purchase his home from buyer Juan Valdez of Columbia, South America because Gordon feels the earnest money of $100 is not enough. Which of the following statements about Gordon's refusal is correct? - CORRECT ANSWER Since Gordon refused on the basis of the earnest money, he is not in violation of Fair Housing." "Which of the following situations would NOT result in the initiation of a licensing action against a licensee? - CORRECT ANSWER A salesperson does not present an offer to a seller after the seller has accepted a previous offer." "Sam is an inactive licensee. He just moved to a new home across town. What must he do? - CORRECT ANSWER Send a written notice to the Commission within 30 days." "A tenant's broker knows that his client (the tenant) has recently lost his job and that his financial situation is less than perfect. The tenant is interested in a landlord's property but the rent is so high the broker does not think the tenant would be able to afford it for very long. Can the broker tell the landlord about the tenant's financial situation? - CORRECT ANSWER Yes, the broker must tell the landlord." "The Georgia Real Estate Commission has the authority to - CORRECT ANSWER Make and enforce the rules for real estate licensees" "The term "imputed knowledge" means what an agent: - CORRECT ANSWER Should have known about a property because his or her broker knew it" "A home sold for $175,000. The buyers assumed a $60,000 mortgage. What will the transfer tax be on this sale? - CORRECT ANSWER $115" "Melinda lives in South Carolina. She wants to get a Georgia real estate salesperson's license. Which of the following is NOT a requirement for Melinda? - CORRECT ANSWER She must establish residency in Georgia." "What happens to the wall license and pocket card when they are issued? - CORRECT ANSWER They are issued to the employing broker's business address." "Jim Hall has had his license suspended. By law, Jim's name will be published on the Georgia Real Estate Commission website after how long? - CORRECT ANSWER 60 days" "Karen just bought and closed on a new home that cost $195,000. Her mortgage amount is $165,500. How much is the intangible recording tax on Karen's property? - CORRECT ANSWER $496.50" "Jack is a new member of the Commission. How long a term will he serve? - CORRECT ANSWER 5 years" "Which of the following situations is NOT a proper situation for earnest money disbursal? - CORRECT ANSWER Buyer withdraws a purchase offer two days after acceptance." "Commission members must be Georgia residents for at least how long before they are eligible for appointment? - CORRECT ANSWER Five years" "The phrase "engaging in the real estate business" means acting for another in exchange for a fee in all but which of the following situations? - CORRECT ANSWER Building a home for another" "Broker John and landlord Bob have a property management agreement. This agreement does all of the following EXCEPT: - CORRECT ANSWER Establishes John's responsibility to maintain Bob's confidentiality at all costs." "Ben is a broker who is selling his own home. When advertising his home for sale, all of the following is true about the ad EXCEPT that it - CORRECT ANSWER Must use the firm's name" "Which type of agency is NOT recognized in Georgia? - CORRECT ANSWER Undisclosed dual agency" "The Department can revoke salesperson Tom's license if he does which of the following actions? - CORRECT ANSWER Deposits an earnest money check in his personal account." "Broker Larry received an earnest money check from a buyer for $3000. He needed the money - so he cashed the check. At closing, he gave the seller a check for $3,180, the amount of the original check plus 6% interest. Which statement is true? - CORRECT ANSWER Larry should have deposited the earnest money in a federally-insured account with other escrow funds." "Jake and Hal are partners in a real estate firm. Jake, the qualifying broker, dies unexpectedly. Which of the following statements is false? - CORRECT ANSWER Only Hal has the authority to disburse trust funds from the designated accounts." "Which of these persons would require a real estate license? - CORRECT ANSWER Jack refers clients to his licensed broker brother and receives a fee from the parties he refers." "Why was the Real Estate Education, Research and Recovery Fund established? - CORRECT ANSWER To compensate consumers damaged by licensees' practices" "Theresa wants to apply for a community association manager's license. She must meet all but which one of the following requirements? - CORRECT ANSWER Theresa must pass the written real estate exam with a score of 70% or higher." "Broker Hammond has developed a web site to advertise his services. What does he need to include on his site? - CORRECT ANSWER Brokerage name and office telephone number" "Broker Tara has an offer to purchase a home listed with her firm. After the buyers sign all the paperwork and Tara accepts their earnest money, what must she do? - CORRECT ANSWER Give the buyers a copy of the agreement right away." "What is true about brokerage engagements in Georgia? - CORRECT ANSWER They must be in writing to be enforceable." "When Sam Jones applies for his original license as a salesperson, how much of his license fee will go to the Real Estate Education, Research, and Recovery Fund? - CORRECT ANSWER $20" "Harry is working with his buyers to draw up a written offer on a property they want to purchase. Which of the following items is not required to be part of the offer? - CORRECT ANSWER The mortgage lender" "Jim is a community association manager and Dick is a property manager. Which of the following statements is NOT true? - CORRECT ANSWER Dick must have day-to-day contact with his client." "Which of the following statements is true of Georgia support personnel? - CORRECT ANSWER They may insert factual information into form contracts under the supervision of the employing broker." "Broker James has a listing based on net price. Which statement is true? - CORRECT ANSWER This listing is illegal in Georgia." "Salesperson Martha has signed a brokerage engagement with tenant Gale to find her an apartment to rent. Martha doesn't charge her tenant clients a fee because she gets her commission from the landlords. Martha tells one of the landlords that Gale can pay more rent than what the landlord is asking for. Which statement is true? - CORRECT ANSWER Martha violated her duty of confidentiality to her client, Gale." "Sarah wants to sell her own home. Which statement is true? - CORRECT ANSWER She does not need a license to sell her own home." "Christine has monthly loan payments of $1,857. Her loan is for $300,000 @ 6.3% interest. How much of her first payment goes towards interest? - CORRECT ANSWER $1,575" "If a borrower had an interest rate of 5 1/4 percent and refinanced, lowering the interest rate by 3/8 percent, what is the amount of interest after refinancing? - CORRECT ANSWER 4 7/8 percent" "The subject has $8,000 pool and a $2,000 chimney but no porch. A comparable that sold for $199,000 has a $3,000 porch but no pool or chimney. Assuming all else is equal, what is the adjusted value of the comparable? - CORRECT ANSWER $206,000" "A house sells for $237,000. What would Jane's commission rate be as a percent if she received a check for $11,400? - CORRECT ANSWER 4.8%" "A home costing $540,000 is worth $588,000 two years later. What is the one-year appreciation rate? - CORRECT ANSWER 4.4%" "Jerry recently obtained an 65% loan on his $295,000 home, and he had to pay $4,300 for points. How many points did he pay? - CORRECT ANSWER 2.2 points" "A shopping mall grosses $625,000 / month. If the market value of this property is $52,000,000, what is its Gross Income Multiplier (GIM)? - CORRECT ANSWER 6.9" "If an investor wants to combine a 5/8 acre parcel with a 3.9 acre parcel, how big will the parcel be, expressed as a decimal? - CORRECT ANSWER 4.525 acres" "Seller David requires a 4% deposit on all offers. Buyer Jack wants to offer $115,000 for the property. The property was appraised at $122,000. What must the earnest money deposit be if Jack presents his current offer? - CORRECT ANSWER $4,600" "Seller Trevor receives an offer of $181,000 on a property he listed at $193,000. The property has been appraised at $198,000. How much is the offer as a percent of the listing price? - CORRECT ANSWER 93.8%" "A $150,000 loan has monthly interest-only payments of $1,000. Its annual interest rate is - CORRECT ANSWER 8 percent." "Debra wants to net $100,000 on her house. Her closing costs will be 15,000 plus a 6% commission. She owes $310,000 on her loan. What is the minimum listing price that Debra can agree to? - CORRECT ANSWER $452,127.66" "Stacey owns a lot that has 180 feet of front footage and contains 36,000 square feet. He purchases two identically-sized lots adjacent to each side of his lot. These side lots are each 200 feet deep and each side lot contains 19,000 square feet. What is the total front footage of all three lots? - CORRECT ANSWER 370" "A sale transaction on rental property closes on December 10th. The landlord received the December rent of $4,400 on December 1. Assuming the closing day is the seller's, and that the 360-day method is used for prorating, how much will the seller owe the buyer? - CORRECT ANSWER $2,933" "Assuming that the listing broker and the seller broker in a transaction split their commission equally, what was the sales price of the property if the commission rate was 6 ½ percent the listing broker received $5,187? - CORRECT ANSWER $159,600" "If a corporate building has nine office suites that rents for $14,800 per month each, but suffers from a 14% vacancy rate and annual expenses of $21,100, what is the NOI of the building (round to the nearest $100)? - CORRECT ANSWER $1,353,500" "A seller wants to net $55,614 from the sale of her house after paying a 7% commission. Her minimum sales price will have to be? - CORRECT ANSWER $59,800" "The current value of a property is $60,000. For real estate tax purposes, the property is assessed at 30 percent of its current value, with an equalization factor of 1.25 applied to the assessed value. If the tax rate is $4 per $100 of assessed valuation, what is the amount of tax due on the property? - CORRECT ANSWER $900" "A sale transaction closes on April 15th. The day of closing belongs to the seller. Real estate taxes for the year, not yet billed, are expected to be $2,110. According to the 365-day method, what is the seller's share of the tax bill? - CORRECT ANSWER $607" "A fine jewelry store leased a space at the mall with a base rent of $1,800 a month, plus 4% of all sales over $200,000. If the gross sales were $325,000, what was the total amount of rent paid by Heinz Fine Jewelry at the end of the year? - CORRECT ANSWER $26,600" "A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability? - CORRECT ANSWER $2,385" "If a hotel has an annual Net Operating Income of $812,000 at a 9.35% cap rate, what is its current value (to the nearest thousand)? - CORRECT ANSWER $8,684,000" "A buyer secured a $‎125‎,‎000 ‎loan at ‎4‎.‎5‎% ‎interest rate‎. To receive a lower interest rate, the buyer was required to buy down three discount points. How much were the discount points? - CORRECT ANSWER $3,750.00" "Land sells for $9,000 an acre. What will 750,000 SF of land sell for? Round to the nearest thousand. - CORRECT ANSWER $155,000" "A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)? - CORRECT ANSWER $368,000" "Violet has a FHA loan for $90,000. The lender is requiring a 1% discount point to the lower the interest rate. What amount is the lender charging for the discount point? - CORRECT ANSWER $900.00" "A home sells for $150,000 and has a mortgage loan balance of $100,000 at closing. If the commission is 5% and other closing costs are $6,000, what is the seller's net? - CORRECT ANSWER $36,500" "Assuming the FHA qualifies borrowers based on a 31% debt ratio, if a borrower's monthly gross income is $4,400, what monthly payment for housing expenses can this person afford based on this ratio? - CORRECT ANSWER $1,364" "An FHA-insured loan in the amount of $57,500 at a 6 ½% interest rate for 30 years was closed on March 17. The first monthly payment is not due until May 1. If the interest is paid monthly in arrears, how much pre-paid interest does the buyer owe at closing? (Use a 360-day year) - CORRECT ANSWER $145.32" "Ralph is buying Terry's house. The buyer's loan amount is $105,580. If the buyer has agreed to pay 3 points at closing, how much will he pay for the points? - CORRECT ANSWER $3,167" "If a house sold for $40,000 and the buyer obtained an FHA-insured mortgage loan for $38,600, how much money would be paid in discount points if the lender charged four points? - CORRECT ANSWER $1,544" "What is the number one rule of adjusting properties when using the sales comparison approach to value - CORRECT ANSWER Never adjust the subject property" "What is the volume of a 90' x 20' x 12' house? - CORRECT ANSWER 21,600 cubic feet" "Two parcels of land priced at $1,200 per acre were purchased. One parcel was 15 acres in size and the other was 1 mile square in size. How much did these two parcels cost together? - CORRECT ANSWER $786,000" "What is 0.0475 converted to a percentage? - CORRECT ANSWER 4.75%" "What is 25% converted to a decimal? - CORRECT ANSWER 0.25" "A strip mall generates $215,000 in effective rental income and $3,000 in other income. The same mall has $102,000 in operating expenses and $15,000 as reserves. What is the net operating income of the strip mall? - CORRECT ANSWER $101,000" "The annual property taxes of $1,700 were paid in arrears by the buyer. If the closing took place on June 4th and the seller paid through the day of closing, how did this appear on the settlement sheet if the 360-day method is used? - CORRECT ANSWER $727 DS, CB" "An apartment building that sold for $780,000 had a monthly gross income of $8,000. What is its monthly gross rent multiplier? - CORRECT ANSWER 97.5" "If a buyer purchases 25% of a lot in the spring and then purchases 50% more later in the fall, what percentage of the lot is still available for purchase? - CORRECT ANSWER 25%" "A borrower obtains a 30-year $210,000 amortized loan at a 6% interest rate. If his monthly payment is $1199.10, how much is applied to the principal balance in the first month? - CORRECT ANSWER $149.10" "A five-sided lot has the following dimensions: side A = 44', side B = 67', side C = 91', side D = 18', and side E = 55'. What is the perimeter of the lot? - CORRECT ANSWER 275 feet" "If one discount point costs the borrower 1% of the loan amount, and increases the lender's yield by 1/8th of one percent, how many discount points must be purchased to lower the interest rate by 1%? - CORRECT ANSWER 8" "Amy agreed to a contract price of $100,000 for a home and secured a mortgage loan for $80,000. If the appraised value is $110,000, what is the loan to value ratio? - CORRECT ANSWER 80%" "A 198-foot x 330-foot lot sold for $30,000. What was the price per acre? - CORRECT ANSWER $20,000" "If a square-shaped lot measures 125' on one side, what is the square footage of the lot? - CORRECT ANSWER 15,625 square feet" "If a lot contains 48,000 square feet and is 240' wide, how deep is the lot? - CORRECT ANSWER 200'" "If the roof a property cost $14,000 and its economic life is 18 years, what would its value be after four years using a straight-line method of depreciation? - CORRECT ANSWER $10,889" "A seller of a property, listed at $200,000, accepted a 90% offer. The home appraised at $185,000 and the buyers obtained a loan for 85% for 30 years at 5% interest. What is the first month's interest? - CORRECT ANSWER $637.50" "A building generates $103,000 in effective rental income and $900 in vending machine income. The same complex has $40,700 in operating expenses and $36,000 in debt service payments. What is the pre-tax cash flow of the complex? - CORRECT ANSWER $27,200" "A rented office space has a monthly income of $3,800. A suitable gross income multiplier derived from market data is 11.1. What would the estimated value be? Round to the nearest $1,000. - CORRECT ANSWER $506,000" "If a borrower's monthly interest payment on an interest-only loan at an annual interest rate of 7.3% is $877, how much was the loan amount (rounded to the nearest hundred)? - CORRECT ANSWER $144,200" "Six years ago a commercial property owner paid $490,000 for her complex which included 10 acres of land valued at $100,000. Using a 40-year straight-line depreciation method, what would be the current value of the apartment complex? - CORRECT ANSWER $431,500" "How many acres are there in the N ½ of the NE ¼ and the NE ¼ of the SE ¼ of a section? - CORRECT ANSWER 120 acres" "Shelly bought a house five years ago for $150,000 and obtained an 80% loan. Now the home is worth $140,000 and her loan balance has been reduced by $12,000. What is Shelly's current equity? - CORRECT ANSWER $32,000" "A homeowner bought a house one year ago for $250,000. Since then, the homeowner has spent $4,000 to pave the driveway and has added a screen porch at a cost of $3,000. Total depreciation has been $6,000. What is the homeowner's adjusted basis? - CORRECT ANSWER $251,000" "Agent Daisy agrees to a 5% commission to list a home at $330,000. The property is sold through another cooperating brokerage with that firm to receive 50% of the total commission on the $330,000 sale. If Daisy receives 55% of her broker's commission and does not bring the buyer, how much does Daisy's broker receive from the sale? - CORRECT ANSWER $3,712.50" "A lender determines that a homebuyer can afford to borrow $220,000 on a mortgage loan. The lender requires an 85% loan-to-value ratio. How much can the borrower pay for a property and still qualify for this loan amount (to the nearest $1,000)? - CORRECT ANSWER $259,000" "A property currently valued at $450,000 is expected to appreciate 8% each year for the next 3 years. What will be its appreciated value at the end of this period? - CORRECT ANSWER $566,870" "Sean, age 37, sold the home he purchased three years ago and now rents an apartment. He had originally purchased his home for $86,500 and sold it for $115,300. What is Sean's capital gain? - CORRECT ANSWER $28,800" "Salesperson Laura wants to act as principal and handle the sale of her own property herself. Which of the following statements is NOT true? - CORRECT ANSWER Laura must advertise the property under her broker's name." "A designated agent can disclose confidential information about a client to - CORRECT ANSWER The employing broker if the agent needs advice" "An investor paid $43,000 for a lot and $520,000 to have a strip mall constructed on it. He has depreciated the property for the past 15 years on a 39-year straight-line schedule. If he sells the property this year and realizes $710,000 after closing expenses, what is his capital gain? - CORRECT ANSWER $347,000" "Tyler Holdlong owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Tyler takes an annual cost recovery expense of $3,000. The property has a monthly gross income of $3,500 and monthly operating expenses of $1,100. Tyler's taxable income from this property will be taxed at a rate of 25%. What is the tax liability for the year? - CORRECT ANSWER $6,450" "A property is purchased for $480,000. The land is valued at 10% of the initial purchase price of the property. Given a 39-year depreciation term, what is the annual depreciation expense? - CORRECT ANSWER $11,077" "A property is being appraised by the Cost Approach. The appraiser estimates that the land is worth $33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was recently added. Total depreciation from all causes is $7,000. What is the indicated value of the property? - CORRECT ANSWER $156,000" "In which of the following situations would a person need a real estate license? - CORRECT ANSWER Lana is hired to negotiate a lease agreement for an office suite for a friend who is opening a new business." "Which of the following is NOT true about the license exam? - CORRECT ANSWER An applicant who fails to take the exam will have his or her fee refunded within 30 days." "Which of the following is NOT true of the Real Estate Commissioner? - CORRECT ANSWER Holds an active real estate license" "Phillip advised his clients they needed to paint their master bedroom before showing the property. The walls of this room were 11' high. The wall lengths were 13', 19', 13', and 17'. If a gallon of paint covers 180 SF, how many whole gallons would the homesellers have to buy? - CORRECT ANSWER 4 gallons" "Which of the following statements is NOT true about hearings? - CORRECT ANSWER Once a hearing has been held and a decision rendered, there is no further recourse for a licensee." "Broker Peter puts an ad in the newspaper with just a street address. Which statement is true? - CORRECT ANSWER The ad is illegal if it does not include the business name of the brokerage." "A property's taxes are $9,540 and are paid for in arrears. The property was sold, and closing took place on March 7. The seller was responsible for the day of closing. Using the 360 day method, how will taxes be prorated? - CORRECT ANSWER Credit the buyer $1775.50 and Debit the Seller $1775.50" "Anne obtains a new loan @ 80% of her home's price of $740,000. The loan constant is 5.645. What is Anne's monthly payment? - CORRECT ANSWER $3,342" "Harold wants to apply for a salesperson license. Which of the following is NOT a requirement he must meet? - CORRECT ANSWER Harold must be at least 21 years old." "A lender offers an investor a maximum 85% LTV loan on the appraised value of a property. If the investor pays $160,000 for the property how much will the investor have to pay as a down payment? - CORRECT ANSWER $24,000" "John is a licensed salesperson. He can hold a concurrent license with more than one Georgia broker under which circumstance? - CORRECT ANSWER Under no circumstances" "Sarah Hill is applying for her broker's license. Which of the following is true? - CORRECT ANSWER $20 of her license fee will go to the Real Estate Education, Research and Recovery Fund." "Which of the following statements is NOT true about transaction brokerage? - CORRECT ANSWER In order to receive compensation, the transaction brokerage agreement must be in writing." "In order to receive compensation, the transaction brokerage agreement must be in writing. - CORRECT ANSWER $70,080" "How many Commission members' terms can expire in one year? - CORRECT ANSWER 1" "All of the following statements are true regarding a licensee changing status EXCEPT which one? - CORRECT ANSWER A licensed broker changing status to salesperson must take the salesperson exam." "The lender quotes closing costs of $800 plus 2 points on a $610,000 loan. How much will the borrower have to pay? - CORRECT ANSWER $13,000" "Under what circumstances might a licensee disburse abandoned funds from a trust account? - CORRECT ANSWER The licensee has complied with the requirements of the Disposition of Unclaimed Property Act." "Paul is a non-resident licensee applying for a Georgia license. He must do ALL but which one of the following? - CORRECT ANSWER File a copy of an affidavit from the County Commissioner stating that he will be operating only from his county of residence." "Broker Keller has a listing on Franklin Avenue. A buyer comes in to get information about the listing. Keller can discuss all of the following items EXCEPT which? - CORRECT ANSWER The seller's divorce" "Which of the following is a true statement? - CORRECT ANSWER All agency agreements must have definite expiration dates." "Which of the following would be exempt from the licensing requirement if engaged in real estate activities? - CORRECT ANSWER Attorneys" "Georgia law requires a broker to deposit all money from third parties into his trust account - CORRECT ANSWER As soon as possible after receipt" "All Georgia real estate licenses - CORRECT ANSWER Are renewed every four years" "A developer wants to develop a 18-acre subdivision. He figures that the streets and common area will take up about 20% of this overall area. If the minimum lot size is to be 10,000 SF, how many lots can the developer have on this property? - CORRECT ANSWER 62 lots" "A property sells for $140,000 two years after it was purchased. If the annual appreciation rate is 6%, how much did the original buyer pay for it? - CORRECT ANSWER $124,600" "The Commission will charge a fee of $25 for all EXCEPT which one of the following? - CORRECT ANSWER Submitting a check that is returned unpaid" "An apartment complex generates $905,000 in Effective Gross Income and $14,000 in other income. The same complex has $415,000 in operating expenses and $39,000 as reserves. What is the Net Operating Income of the complex? - CORRECT ANSWER $465,000" "Which of the following statements is NOT true about earnest money? - CORRECT ANSWER The listing broker is always responsible for depositing earnest money." "A property has sold for $185,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 65% share from his broker? - CORRECT ANSWER $3,908" "If a rectangular office space is 72 feet wide and has a 410-foot perimeter, what is its area? - CORRECT ANSWER 9,576 square feet" "A t