Estate Licensing Actual Exam 2026/2027
with Detailed Rationales | Complete
Exam-Style Questions | Pass Guaranteed –
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SECTION 1: PROPERTY OWNERSHIP, ESTATES & LAND-USE CONTROLS Q1 –
Q10
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Question 1 of 50
developer in Cobb County purchases a 5-acre parcel with the intent to build a small retail
A
center. After closing, the developer discovers that a neighboring property owner has been using
a 20-foot strip along the eastern boundary as a driveway for the past 22 years without
permission. The neighbor claims the strip belongs to him through adverse possession. Under
Georgia law, which outcome is most likely?
. The neighbor's claim will fail because adverse possession requires payment of property taxes
A
on the disputed strip.
B. The neighbor's claim will succeed because 20 years of continuous, open use satisfies
Georgia's adverse possession requirement. ✓ CORRECT
C. The neighbor's claim will fail because adverse possession cannot be claimed against a
commercial property owner.
D. The neighbor's claim will succeed only if he can produce a written agreement with the prior
owner.
orrect Answer: B
C
Rationale: In Georgia, adverse possession requires 20 years of continuous, open, notorious,
exclusive, and hostile possession without permission, and the neighbor's 22-year use meets this
statutory threshold. Choice A is tempting because some states require tax payments, but
Georgia does not require payment of taxes for standard adverse possession unless the claimant
is relying on color of title, which reduces the period to seven years. Remember that commercial
status does not shield an owner from adverse possession claims in Georgia.
Question 2 of 50
, married couple in Augusta takes title to a lakefront home as joint tenants with right of
A
survivorship. Three years later, the husband conveys his interest to his brother without the wife's
knowledge. Shortly after, the husband passes away. What is the wife's legal position regarding
the property?
. The wife now owns the entire property because the husband's death extinguished his interest
A
before the conveyance was recorded.
B. The wife and the brother own the property as tenants in common in equal undivided shares.
✓ CORRECT
C. The wife owns the entire property because a conveyance without the wife's consent is void
under Georgia law.
D. The brother owns the entire property because he was a bona fide purchaser for value without
notice.
orrect Answer: B
C
Rationale: In Georgia, a joint tenant can sever the joint tenancy by conveying his interest to a
third party without the other joint tenant's consent, which destroys the right of survivorship and
converts the ownership to tenancy in common. Choice A incorrectly assumes the unilateral
conveyance is ineffective, but Georgia courts have long held that a joint tenant's conveyance
during lifetime severs the unity of title. Always verify how title is held when advising clients on
estate planning implications.
Question 3 of 50
homeowner in Savannah installs a new fence that extends two feet onto a neighboring lot.
A
The neighbor notices the encroachment but says nothing for eight years. The homeowner then
sells the property, and the new buyer's survey reveals the fence line. Which statement best
describes the neighbor's rights?
. The neighbor can demand removal of the fence because the statute of limitations for
A
trespass has not expired.
B. The neighbor has lost all rights because Georgia recognizes a 7-year statute of limitations for
boundary encroachments.
C. The neighbor can sue for removal but cannot claim title because adverse possession
requires 20 years of possession. ✓ CORRECT
D. The neighbor is required to negotiate a boundary line agreement before taking any legal
action.
orrect Answer: C
C
Rationale: An encroachment alone does not automatically transfer title; the encroaching party
must satisfy the full 20-year adverse possession period in Georgia to claim legal ownership, and
eight years falls short of that requirement. Choice B confuses the timeframe—Georgia does not
have a special 7-year rule for encroachments without color of title, and the general 20-year rule
, pplies. In practice, buyers should always obtain a survey to catch encroachments before
a
closing.
Question 4 of 50
property in Fulton County is subject to a restrictive covenant that prohibits commercial
A
vehicles from being parked in driveways overnight. A new homeowner, unaware of the
covenant, begins parking his work van in the driveway. The homeowners association sends a
notice of violation. What is the legal basis for enforcing this restriction?
. The covenant is enforceable because it was recorded in the chain of title and runs with the
A
land, binding subsequent owners. ✓ CORRECT
B. The covenant is unenforceable because the homeowner had no actual knowledge of the
restriction at the time of purchase.
C. The covenant is enforceable only if the homeowners association obtains a court injunction
against the homeowner.
D. The covenant is unenforceable because it violates the homeowner's right to use his property
for lawful purposes.
orrect Answer: A
C
Rationale: Restrictive covenants that are properly recorded in the property's chain of title run
with the land and bind all subsequent owners regardless of actual knowledge, as long as the
covenant touches and concerns the land and the successor had constructive notice through the
public records. Choice B reflects a common student error—actual knowledge is not required for
enforcement when constructive notice exists through proper recording. When representing
buyers in covenant-controlled communities, always review the declarations before writing an
offer.
Question 5 of 50
property owner grants a local utility company the right to install transmission lines across her
A
rural Georgia farm. The utility company does not own any adjoining land. What type of interest
has the owner created?
. An easement appurtenant that transfers automatically with the sale of the farm.
A
B. An easement in gross that benefits the utility company personally and is not tied to adjoining
land ownership. ✓ CORRECT
C. A license that is revocable by the owner at any time upon written notice.
D. A prescriptive easement arising from the utility company's long-term use of the property.
orrect Answer: B
C
Rationale: An easement in gross benefits a specific person or entity rather than a parcel of land,
and utility easements are the classic example because the utility company holds the right
without owning adjacent property. Choice A incorrectly identifies this as appurtenant, which