COLIBRI REAL ESTATE FINAL EXAM ACTUAL QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔Taking measures to reduce adverse impacts on the environment is known as -
✔✔mitigation
Minimization is a comprehensive program to minimize or eliminate wastes. Mitigation is
the measures taken to reduce adverse impacts on the environment. Microbial growth is
the amplification or multiplication of micro-organisms. A mobile incinerator system is the
hazardous waste incinerator that can be transported from one site to another.
✔✔After a mortgage foreclosure sale in Georgia, how long does the defaulted borrower
have to redeem the property? - ✔✔There is no redemption period in Georgia after the
foreclosure sale
In Georgia, the period for redeeming a property in default, called equity of redemption,
does not extend beyond the foreclosure sale, which, if allowed, is called statutory equity
of redemption.
✔✔Bob and Janice want to obtain a loan to buy a new home. Their combined monthly
income is $7,500. What amount of monthly payment can they qualify for if the lender
uses 28/36 ratios and they have no other debt? - ✔✔$2100
To calculate the maximum monthly payment they can qualify for, use the qualifying
formula: Part (Allowable payment amount) = Percent (Ratio) x Whole (Income). Insert
the known variables, Part = 0.28 x $7,500 and calculate. The maximum monthly
payment Bob and Janice can qualify for is $2,100.
✔✔A real estate agent forms an LLC. While previewing the new listings on the market
the agent sees a bank-owned listing priced to sell quickly. The agent writes an offer on
the property in the name of the LLC. The bank addendum prohibits agents from
purchasing bank-owned assets. The agent's LLC buys the property. The agent - ✔✔is
acting as an undisclosed principle
If the purchaser (the LLC) is owned by the agent, the agent must disclose themselves
as the principle. The agent would have been prohibited under the bank addendum from
buying the property.
✔✔When does BRRETA require that agency disclosure be made? - ✔✔When entering
into a brokerage engagement
Georgia agency law requires that agency disclosure be made when first entering into a
brokerage engagement.
,✔✔Georgia lender may consider all of the following factors in qualifying an applicant for
a home loan EXCEPT: - ✔✔If the applicant had a source from which the down payment
might be borrowed
Typically, the amount of down payment will have to be verified from the applicant's own
financial resources. Credit history and income to debt ratio would all factor into the
lender's decision to approve a loan.
✔✔What document is evidence of the relationship between property owner and property
manager? - ✔✔Property management agreement
A listing agreement is between seller and broker. A buyer broker contract is between
buyer and broker. A lease is between landlord and tenant.
✔✔For a purchaser who is buying a home in Georgia with an LTV of 90%, escrow
establishment charges for prepaid property taxes might be estimated by a lender as an
amount equal to: - ✔✔The number of months reflected in the tax escrow chart
determined by the estimated date of the first monthly payment for the loan
The tax escrow chart in Georgia for determining how many months of property taxes a
lender can require a borrower to prepay at closing is based on when the borrower's first
monthly payment will be due.
✔✔A mechanics lien is of: - ✔✔of indeterminable duration
Mechanics liens are specific liens with an indeterminable duration.
✔✔An assessor's parcel number is - ✔✔reference number for county tax records.
Tax Assessor Parcel Number refers to the county appraisal.
✔✔Interest rate usury laws in Georgia offer what guidelines regarding 1st mortgage
home loans for real estate? - ✔✔There are no usury laws regarding 1st mortgage home
loan interest rates in Georgia
Exp:1st Mortgage loans in Georgia no longer have a usury ceiling for interest rates.
✔✔A community association manager in Georgia might be involved with all of the
following communities EXCEPT: - ✔✔200 apartment/home community
A community association manager in Georgia could work for various types of
homeowners associations, including town homes, cluster homes, and cooperatives.
Managing apartments, though, would be the job of a property manager who works for
the property owner; a community association manager, in effect, works for all of the
homeowners in the community.
,✔✔Building codes can be enforced by - ✔✔the issuance of permits
Building codes set construction standards; building plans must comply with the code for
a permit to be issued. Failure to comply with the permit may result in a stop order, fines,
and/or injunctions. Zoning laws set forth permitted uses. Licenses allow certain
activities. Letters of approval are not a method of enforcement.
✔✔An unlicensed property manager can do all of the following except: - ✔✔Negotiating
lease terms
Most states require anyone who lists, sells, leases, exchanges or otherwise negotiates
in the real estate of others must be licensed.
✔✔What is the body of law that governs negotiable instruments? - ✔✔Uniform
Commercial Code
The Uniform Commercial Code sets out certain requirements for negotiable instruments
in order to be transferrable to the secondary market, for example.
✔✔If the sales price of a home in Georgia is $185,000 and the buyer is getting a new
loan to finance the home purchase, what amount would show as the transfer tax on the
settlement statement at closing? - ✔✔$185
$185,000 divided by 100 = $1,850 x 0.10 = $185; new loan is irrelevant as transfer tax
is based on sales price.
✔✔For the income approach to appraisal, value is a reference to the - ✔✔worth of the
investment
The income approach involves one of two possible methods of calculation: 1. the
capitalization using income divided by rate equals value, or 2. value divided by income
equals gross rent multiplier.
✔✔The listing agent discriminates against a minority buyer. If the seller were to be held
responsible for the actions of the agent, it would be an example of - ✔✔vicarious liability
Vicarious liability occurs when a client is held liable for the actions of their agent. Dual
liability would be when more than one party is liable. Misrepresentation is a false or
misleading statement. Fraud is an intentional or negligent misrepresentation or
concealment of a material fact.
✔✔A real estate agent tells a buyer that they will make a profit of 5% on their
investment in as little as three months. Has the agent done anything wrong? - ✔✔Yes,
promising future value is a violation
, Real estate agents cannot promise future values, the agent can recite history only.
✔✔A disabled tenant was denied permission to install a handlebar in the shower. What
law has the landlord violated? - ✔✔ADA
Under the Americans with Disabilities Act (ADA), an owner or property manager must
make reasonable accommodation for the tenant.
✔✔"The subject property" best describes the property - ✔✔for which the value is sought
The appraiser does not consider properties on the market. The subject is the property
for which an opinion of value is sought.
✔✔A contingency is something that must be done or must occur in order to complete
the terms of a contract. In the purchase and sale of a home, what is a contingency? -
✔✔all of the answers listed
Contracts often contain one or more events, conditions, or contingencies. If the event
does not occur, the condition is not fulfilled, or the contingency is not satisfied, and if a
good faith effort has been made to satisfy the contingency, the promisor can withdraw
without liability for breach of contract.
✔✔If a closing in Georgia involving rental property takes place on October 17 and the
tenant pays rent on the first day of each month, at the closing: - ✔✔The seller will owe
the buyer 14 days' rent
The seller may keep the prorated rent from the 1st through and including closing day;
the buyer is entitled to a prorated portion of the rent, beginning the day after closing to
and including the last day of the monthly rental period. In this example, from the 18th of
October until October 31, for a total of 14 days.
✔✔What would cause termination of a real estate contract? - ✔✔completion
The termination of a contract occurs if it is completed (i.e., closed). Fraud makes a
contract voidable by the lied to party, but it does not necessarily terminate the contract.
Acceptance of an offer would commence the contract, not terminate it. Applying for
financing is typically not a cause for termination of a real estate contract.
✔✔A closing conducted by a disinterested third party best describes a(n) _______
closing. - ✔✔escrow
A closing conducted by a disinterested third party is an escrow closing. The roundtable
closing involves all parties to the transaction signing documents at the same place at
AND ANSWERS GUARANTEE A+
✔✔Taking measures to reduce adverse impacts on the environment is known as -
✔✔mitigation
Minimization is a comprehensive program to minimize or eliminate wastes. Mitigation is
the measures taken to reduce adverse impacts on the environment. Microbial growth is
the amplification or multiplication of micro-organisms. A mobile incinerator system is the
hazardous waste incinerator that can be transported from one site to another.
✔✔After a mortgage foreclosure sale in Georgia, how long does the defaulted borrower
have to redeem the property? - ✔✔There is no redemption period in Georgia after the
foreclosure sale
In Georgia, the period for redeeming a property in default, called equity of redemption,
does not extend beyond the foreclosure sale, which, if allowed, is called statutory equity
of redemption.
✔✔Bob and Janice want to obtain a loan to buy a new home. Their combined monthly
income is $7,500. What amount of monthly payment can they qualify for if the lender
uses 28/36 ratios and they have no other debt? - ✔✔$2100
To calculate the maximum monthly payment they can qualify for, use the qualifying
formula: Part (Allowable payment amount) = Percent (Ratio) x Whole (Income). Insert
the known variables, Part = 0.28 x $7,500 and calculate. The maximum monthly
payment Bob and Janice can qualify for is $2,100.
✔✔A real estate agent forms an LLC. While previewing the new listings on the market
the agent sees a bank-owned listing priced to sell quickly. The agent writes an offer on
the property in the name of the LLC. The bank addendum prohibits agents from
purchasing bank-owned assets. The agent's LLC buys the property. The agent - ✔✔is
acting as an undisclosed principle
If the purchaser (the LLC) is owned by the agent, the agent must disclose themselves
as the principle. The agent would have been prohibited under the bank addendum from
buying the property.
✔✔When does BRRETA require that agency disclosure be made? - ✔✔When entering
into a brokerage engagement
Georgia agency law requires that agency disclosure be made when first entering into a
brokerage engagement.
,✔✔Georgia lender may consider all of the following factors in qualifying an applicant for
a home loan EXCEPT: - ✔✔If the applicant had a source from which the down payment
might be borrowed
Typically, the amount of down payment will have to be verified from the applicant's own
financial resources. Credit history and income to debt ratio would all factor into the
lender's decision to approve a loan.
✔✔What document is evidence of the relationship between property owner and property
manager? - ✔✔Property management agreement
A listing agreement is between seller and broker. A buyer broker contract is between
buyer and broker. A lease is between landlord and tenant.
✔✔For a purchaser who is buying a home in Georgia with an LTV of 90%, escrow
establishment charges for prepaid property taxes might be estimated by a lender as an
amount equal to: - ✔✔The number of months reflected in the tax escrow chart
determined by the estimated date of the first monthly payment for the loan
The tax escrow chart in Georgia for determining how many months of property taxes a
lender can require a borrower to prepay at closing is based on when the borrower's first
monthly payment will be due.
✔✔A mechanics lien is of: - ✔✔of indeterminable duration
Mechanics liens are specific liens with an indeterminable duration.
✔✔An assessor's parcel number is - ✔✔reference number for county tax records.
Tax Assessor Parcel Number refers to the county appraisal.
✔✔Interest rate usury laws in Georgia offer what guidelines regarding 1st mortgage
home loans for real estate? - ✔✔There are no usury laws regarding 1st mortgage home
loan interest rates in Georgia
Exp:1st Mortgage loans in Georgia no longer have a usury ceiling for interest rates.
✔✔A community association manager in Georgia might be involved with all of the
following communities EXCEPT: - ✔✔200 apartment/home community
A community association manager in Georgia could work for various types of
homeowners associations, including town homes, cluster homes, and cooperatives.
Managing apartments, though, would be the job of a property manager who works for
the property owner; a community association manager, in effect, works for all of the
homeowners in the community.
,✔✔Building codes can be enforced by - ✔✔the issuance of permits
Building codes set construction standards; building plans must comply with the code for
a permit to be issued. Failure to comply with the permit may result in a stop order, fines,
and/or injunctions. Zoning laws set forth permitted uses. Licenses allow certain
activities. Letters of approval are not a method of enforcement.
✔✔An unlicensed property manager can do all of the following except: - ✔✔Negotiating
lease terms
Most states require anyone who lists, sells, leases, exchanges or otherwise negotiates
in the real estate of others must be licensed.
✔✔What is the body of law that governs negotiable instruments? - ✔✔Uniform
Commercial Code
The Uniform Commercial Code sets out certain requirements for negotiable instruments
in order to be transferrable to the secondary market, for example.
✔✔If the sales price of a home in Georgia is $185,000 and the buyer is getting a new
loan to finance the home purchase, what amount would show as the transfer tax on the
settlement statement at closing? - ✔✔$185
$185,000 divided by 100 = $1,850 x 0.10 = $185; new loan is irrelevant as transfer tax
is based on sales price.
✔✔For the income approach to appraisal, value is a reference to the - ✔✔worth of the
investment
The income approach involves one of two possible methods of calculation: 1. the
capitalization using income divided by rate equals value, or 2. value divided by income
equals gross rent multiplier.
✔✔The listing agent discriminates against a minority buyer. If the seller were to be held
responsible for the actions of the agent, it would be an example of - ✔✔vicarious liability
Vicarious liability occurs when a client is held liable for the actions of their agent. Dual
liability would be when more than one party is liable. Misrepresentation is a false or
misleading statement. Fraud is an intentional or negligent misrepresentation or
concealment of a material fact.
✔✔A real estate agent tells a buyer that they will make a profit of 5% on their
investment in as little as three months. Has the agent done anything wrong? - ✔✔Yes,
promising future value is a violation
, Real estate agents cannot promise future values, the agent can recite history only.
✔✔A disabled tenant was denied permission to install a handlebar in the shower. What
law has the landlord violated? - ✔✔ADA
Under the Americans with Disabilities Act (ADA), an owner or property manager must
make reasonable accommodation for the tenant.
✔✔"The subject property" best describes the property - ✔✔for which the value is sought
The appraiser does not consider properties on the market. The subject is the property
for which an opinion of value is sought.
✔✔A contingency is something that must be done or must occur in order to complete
the terms of a contract. In the purchase and sale of a home, what is a contingency? -
✔✔all of the answers listed
Contracts often contain one or more events, conditions, or contingencies. If the event
does not occur, the condition is not fulfilled, or the contingency is not satisfied, and if a
good faith effort has been made to satisfy the contingency, the promisor can withdraw
without liability for breach of contract.
✔✔If a closing in Georgia involving rental property takes place on October 17 and the
tenant pays rent on the first day of each month, at the closing: - ✔✔The seller will owe
the buyer 14 days' rent
The seller may keep the prorated rent from the 1st through and including closing day;
the buyer is entitled to a prorated portion of the rent, beginning the day after closing to
and including the last day of the monthly rental period. In this example, from the 18th of
October until October 31, for a total of 14 days.
✔✔What would cause termination of a real estate contract? - ✔✔completion
The termination of a contract occurs if it is completed (i.e., closed). Fraud makes a
contract voidable by the lied to party, but it does not necessarily terminate the contract.
Acceptance of an offer would commence the contract, not terminate it. Applying for
financing is typically not a cause for termination of a real estate contract.
✔✔A closing conducted by a disinterested third party best describes a(n) _______
closing. - ✔✔escrow
A closing conducted by a disinterested third party is an escrow closing. The roundtable
closing involves all parties to the transaction signing documents at the same place at
