Georgia - Real estate
salesperson/broker exam required
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf.
A buyer signs a contract to purchase a home contingent on obtaining
financing. The buyer is unable to secure a loan. What is the legal effect
of the contingency?
A. The buyer is in breach of contract
B. The seller may keep the earnest money automatically
C. The contract becomes voidable and may be terminated without
penalty
D. The contract is automatically enforced
C. The contract becomes voidable and may be terminated without
penalty
When a financing contingency is included in a real estate contract, it
protects the buyer by allowing them to terminate the agreement if they
cannot obtain a loan despite good faith efforts. In such cases, failure to
secure financing does not constitute breach, and the contract may be
legally voided under its terms.
, 2. Which of the following best describes “value” in real estate?
A. The original purchase price of a property
B. The price a seller hopes to receive
C. The present worth of future benefits derived from ownership
D. The cost of construction minus depreciation
C. The present worth of future benefits derived from ownership
Value in real estate is fundamentally based on the concept of
anticipation—what future income, utility, and benefits a property will
provide, discounted into present terms. It is not necessarily tied to cost
or listing price.
3. A broker who represents both buyer and seller in the same
transaction with informed consent is acting as:
A. A designated agent
B. A dual agent
C. A subagent
D. A universal agent
B. A dual agent
Dual agency occurs when one broker or brokerage represents both
parties in the same transaction. This requires full disclosure and
informed consent because the broker owes fiduciary duties to both
parties, which can create conflicts of interest.
4. Which document officially transfers ownership of real property?
A. Mortgage
, B. Deed
C. Title insurance policy
D. Purchase agreement
B. Deed
A deed is the legal instrument used to transfer ownership rights in real
property from the grantor to the grantee. It must be properly executed
and delivered to be valid.
5. The principle of “highest and best use” refers to:
A. The most expensive use of land
B. The use that generates the highest tax revenue
C. The reasonably probable and legally permissible use that is
most profitable
D. The current use of the property
C. The reasonably probable and legally permissible use that is most
profitable
Highest and best use considers legal permissibility, physical possibility,
financial feasibility, and maximum productivity. It is a foundational
appraisal concept used to determine value.
6. A lease that continues indefinitely until either party terminates is
called:
A. Estate for years
B. Periodic tenancy
, C. Tenancy at will
D. Tenancy at sufferance
C. Tenancy at will
A tenancy at will exists when a tenant occupies property with the
consent of the landlord but without a fixed term. Either party may
terminate it at any time, subject to statutory notice requirements.
7. What is the primary purpose of the Real Estate Settlement
Procedures Act (RESPA)?
A. Regulate property taxes
B. Eliminate kickbacks and ensure disclosure of closing costs
C. Control zoning laws
D. Govern landlord-tenant relationships
B. Eliminate kickbacks and ensure disclosure of closing costs
RESPA is a federal law designed to protect consumers by requiring
transparency in real estate settlement costs and prohibiting referral fees
or kickbacks that could increase costs unfairly.
8. Which lien has the highest priority?
A. Mortgage lien
B. Judgment lien
C. Property tax lien
D. Mechanic’s lien
C. Property tax lien
salesperson/broker exam required
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf.
A buyer signs a contract to purchase a home contingent on obtaining
financing. The buyer is unable to secure a loan. What is the legal effect
of the contingency?
A. The buyer is in breach of contract
B. The seller may keep the earnest money automatically
C. The contract becomes voidable and may be terminated without
penalty
D. The contract is automatically enforced
C. The contract becomes voidable and may be terminated without
penalty
When a financing contingency is included in a real estate contract, it
protects the buyer by allowing them to terminate the agreement if they
cannot obtain a loan despite good faith efforts. In such cases, failure to
secure financing does not constitute breach, and the contract may be
legally voided under its terms.
, 2. Which of the following best describes “value” in real estate?
A. The original purchase price of a property
B. The price a seller hopes to receive
C. The present worth of future benefits derived from ownership
D. The cost of construction minus depreciation
C. The present worth of future benefits derived from ownership
Value in real estate is fundamentally based on the concept of
anticipation—what future income, utility, and benefits a property will
provide, discounted into present terms. It is not necessarily tied to cost
or listing price.
3. A broker who represents both buyer and seller in the same
transaction with informed consent is acting as:
A. A designated agent
B. A dual agent
C. A subagent
D. A universal agent
B. A dual agent
Dual agency occurs when one broker or brokerage represents both
parties in the same transaction. This requires full disclosure and
informed consent because the broker owes fiduciary duties to both
parties, which can create conflicts of interest.
4. Which document officially transfers ownership of real property?
A. Mortgage
, B. Deed
C. Title insurance policy
D. Purchase agreement
B. Deed
A deed is the legal instrument used to transfer ownership rights in real
property from the grantor to the grantee. It must be properly executed
and delivered to be valid.
5. The principle of “highest and best use” refers to:
A. The most expensive use of land
B. The use that generates the highest tax revenue
C. The reasonably probable and legally permissible use that is
most profitable
D. The current use of the property
C. The reasonably probable and legally permissible use that is most
profitable
Highest and best use considers legal permissibility, physical possibility,
financial feasibility, and maximum productivity. It is a foundational
appraisal concept used to determine value.
6. A lease that continues indefinitely until either party terminates is
called:
A. Estate for years
B. Periodic tenancy
, C. Tenancy at will
D. Tenancy at sufferance
C. Tenancy at will
A tenancy at will exists when a tenant occupies property with the
consent of the landlord but without a fixed term. Either party may
terminate it at any time, subject to statutory notice requirements.
7. What is the primary purpose of the Real Estate Settlement
Procedures Act (RESPA)?
A. Regulate property taxes
B. Eliminate kickbacks and ensure disclosure of closing costs
C. Control zoning laws
D. Govern landlord-tenant relationships
B. Eliminate kickbacks and ensure disclosure of closing costs
RESPA is a federal law designed to protect consumers by requiring
transparency in real estate settlement costs and prohibiting referral fees
or kickbacks that could increase costs unfairly.
8. Which lien has the highest priority?
A. Mortgage lien
B. Judgment lien
C. Property tax lien
D. Mechanic’s lien
C. Property tax lien
