BARNEY FLETCHER FINAL EXAM: (LATEST 2026/2027 UPDATE), | QUESTIONS & ANSWERS | 100% CORRECT | GRADE A

BARNEY FLETCHER FINAL EXAM: (LATEST
2026/2027 UPDATE), | QUESTIONS &
ANSWERS | 100% CORRECT | GRADE A
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BARNEY FLETCHER

Barney Fletcher Real Estate Final Exam 2026/2027


Question 1: What is the primary purpose of the Georgia Real Estate Commission
(GREC)?
A) To build residential properties
B) To regulate real estate licensees and protect the public
C) To provide mortgage financing
D) To appraise property values
B) To regulate real estate licensees and protect the public
Rationale: GREC ensures that real estate licensees in Georgia adhere to state laws
and ethical standards. It oversees licensing, renewals, education, and disciplinary
actions. The commission’s role is primarily consumer protection, making sure that the
public is not defrauded or misled by unqualified or unethical agents. GREC also
establishes rules that govern broker conduct, advertising, and trust account
management.


Question 2: Which type of property ownership allows for the right of survivorship?
A) Tenancy in common
B) Joint tenancy
C) Tenancy by the entirety
D) Community property
B) Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning that when one
owner dies, their interest automatically passes to the surviving co-owners. This differs
from tenancy in common, where each owner’s share can be inherited by heirs. Joint
tenancy requires four unities: time, title, interest, and possession. It is often used by
couples or business partners to ensure smooth transfer of ownership without probate.


Question 3: What is required for a real estate contract to be enforceable in Georgia?
A) Verbal agreement
B) Written document with offer, acceptance, and consideration

,C) Electronic signature only
D) Payment in cash
B) Written document with offer, acceptance, and consideration
Rationale: Under Georgia’s Statute of Frauds (O.C.G.A. § 13-5-30), contracts for the
sale of real property must be in writing to be enforceable. The document must include
a valid offer, acceptance by all parties, and consideration (something of value
exchanged). Oral agreements for real estate transactions are generally not
enforceable. Written contracts provide legal clarity, protect both buyer and seller, and
prevent fraud.


Question 4: Which financing term refers to the cost of borrowing as a percentage of
the loan?
A) Principal
B) Interest rate
C) Annual percentage rate (APR)
D) Down payment
C) Annual percentage rate (APR)
Rationale: The APR represents the total cost of borrowing, including interest and any
additional fees, expressed as a yearly percentage. It allows borrowers to compare
loans more accurately than interest rate alone. APR includes points, mortgage
insurance, and loan origination fees. This disclosure is required under federal law
(Truth in Lending Act). Understanding APR helps consumers make informed financial
decisions.


Question 5: Under Georgia law, what is the maximum commission a broker can
charge?
A) 6%
B) No legal maximum, set by agreement
C) 3%
D) 10%
B) No legal maximum, set by agreement
Rationale: Georgia law does not impose a maximum real estate commission. Brokers
and clients are free to negotiate rates based on services, market conditions, and
property type. GREC only regulates the ethical collection and disclosure of
commissions, not the amount. Commissions are typically expressed as a percentage of
the sale price but must be clearly disclosed in the listing agreement.


Question 6: What is the primary purpose of a property appraisal?
A) To set the listing price
B) To estimate fair market value
C) To negotiate the sale
D) To inspect the roof
B) To estimate fair market value
Rationale: Appraisals provide an unbiased opinion of a property’s fair market value.

, Lenders rely on appraisals to ensure that the loan amount does not exceed the
property’s value. Appraisers analyze comparable sales, market trends, and property
condition. This process protects both lenders and buyers from overpaying or over-
lending. Appraisals are also critical for estate planning, taxation, and insurance
purposes.


Question 7: Which document transfers ownership of real property?
A) Purchase agreement
B) Deed
C) Mortgage
D) Lease
B) Deed
Rationale: A deed is a legal instrument that conveys ownership of real property from
seller to buyer. It includes a description of the property, the names of the grantor and
grantee, and any conditions or restrictions. The deed must be delivered and accepted
to be effective. Recording the deed in the county public records provides public notice
and protects ownership rights.


Question 8: What is a broker’s fiduciary duty to a client?
A) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable care
B) To guarantee a sale
C) To provide tax advice
D) To handle repairs
A) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable
care
Rationale: Fiduciary duties require a broker to act in the best interest of the client.
These six duties are legally recognized in Georgia (Rule 520-1-.65). Obedience means
following lawful instructions, loyalty ensures the client’s interests come first,
disclosure requires sharing material facts, confidentiality protects private information,
accounting involves proper handling of funds, and reasonable care requires competent
professional conduct. Breach of fiduciary duty can result in legal and disciplinary
action.


Question 9: Which Georgia law requires disclosure of material defects?
A) Georgia Residential Property Condition Disclosure Act
B) Georgia Fair Housing Act
C) Georgia Building Code
D) Georgia Condominium Act
A) Georgia Residential Property Condition Disclosure Act
Rationale: Sellers in Georgia must disclose known material defects under O.C.G.A. §
44-1-16. This disclosure protects buyers from unforeseen issues with the property.
Failure to disclose can result in civil liability for damages. The act covers structural,
environmental, and mechanical defects that could influence a buyer’s decision. Full
disclosure ensures transparency and ethical transactions.