Barney Fletcher Final Exam 2025/2026 Academic Year All
Questions with 100% Correct Verified Answers | Latest
Updated Version | Graded A+ Georgia Real Estate Licensing
Examination
SECTION 1: REAL ESTATE PRINCIPLES AND PRACTICE
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
Correct Answer: B
Rationale: GREC oversees licensing, enforces laws, and ensures ethical practices
in Georgia real estate. Its primary mission is consumer protection through
regulation of licensees.
Distractor analysis:
• A — GREC is a regulatory agency, not a construction entity.
• C — GREC does not provide financing; that is the role of lenders.
• D — Appraisals are performed by licensed appraisers, not GREC.
Clinical pearl: GREC operates under the Georgia Secretary of State's office and
enforces the Georgia Real Estate License Law (O.C.G.A. § 43-40).
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
,Correct Answer: B
Rationale: Joint tenancy includes the right of survivorship, where the deceased
owner's share passes automatically to the surviving joint tenants.
Distractor analysis:
• A — Tenancy in common does not have survivorship; shares pass to heirs.
• C — Tenancy by the entirety has survivorship but is only for married
couples and is not recognized in all states.
• D — Community property does not have automatic survivorship.
Clinical pearl: The four unities of joint tenancy are time, title, interest, and
possession.
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
Correct Answer: B
Rationale: The Georgia Statute of Frauds (O.C.G.A. § 13-5-30) requires that real
estate contracts be in writing, signed by the party to be charged, and contain the
essential elements of offer, acceptance, and consideration.
Distractor analysis:
• A — Verbal agreements are not enforceable for real estate.
• C — Electronic signatures are acceptable but are not the only requirement.
• D — Cash payment is not a contract requirement.
Clinical pearl: Real estate contracts must also include a legal description of the
property.
,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
Correct Answer: C
Rationale: APR includes interest and fees, reflecting the true cost of the loan. It is
a more comprehensive measure than the interest rate alone.
Distractor analysis:
• A — Principal is the amount borrowed.
• B — Interest rate is the base rate but does not include all fees.
• D — Down payment is the initial payment made by the buyer.
Clinical pearl: APR is required to be disclosed under the Truth in Lending Act
(TILA).
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%
Correct Answer: B
Rationale: Commissions are negotiable between the broker and the client. GREC
does not set commission rates (Rule 520-1-.08).
Distractor analysis:
• A — 6% is a common rate but not a legal maximum.
• C — 3% is not a legal maximum.
• D — 10% is not a legal maximum.
, Clinical pearl: All commission agreements must be in writing and signed by the
parties.
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
Correct Answer: B
Rationale: Appraisals provide an unbiased estimate of fair market value for
lending, sales, and tax purposes.
Distractor analysis:
• A — The listing price is set by the seller/broker based on market conditions.
• C — Negotiation is not the primary purpose of an appraisal.
• D — Roof inspection is performed by a home inspector.
Clinical pearl: Appraisals are required by most lenders to ensure the property
value supports the loan amount.
Question 7.
Which document transfers ownership of real property?
A. Purchase agreement
B. Deed
C. Mortgage
D. Lease
Correct Answer: B
Rationale: A deed is the legal document that conveys title from the grantor (seller)
to the grantee (buyer) (O.C.G.A. § 44-2-1).
Distractor analysis:
Questions with 100% Correct Verified Answers | Latest
Updated Version | Graded A+ Georgia Real Estate Licensing
Examination
SECTION 1: REAL ESTATE PRINCIPLES AND PRACTICE
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
Correct Answer: B
Rationale: GREC oversees licensing, enforces laws, and ensures ethical practices
in Georgia real estate. Its primary mission is consumer protection through
regulation of licensees.
Distractor analysis:
• A — GREC is a regulatory agency, not a construction entity.
• C — GREC does not provide financing; that is the role of lenders.
• D — Appraisals are performed by licensed appraisers, not GREC.
Clinical pearl: GREC operates under the Georgia Secretary of State's office and
enforces the Georgia Real Estate License Law (O.C.G.A. § 43-40).
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
,Correct Answer: B
Rationale: Joint tenancy includes the right of survivorship, where the deceased
owner's share passes automatically to the surviving joint tenants.
Distractor analysis:
• A — Tenancy in common does not have survivorship; shares pass to heirs.
• C — Tenancy by the entirety has survivorship but is only for married
couples and is not recognized in all states.
• D — Community property does not have automatic survivorship.
Clinical pearl: The four unities of joint tenancy are time, title, interest, and
possession.
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
Correct Answer: B
Rationale: The Georgia Statute of Frauds (O.C.G.A. § 13-5-30) requires that real
estate contracts be in writing, signed by the party to be charged, and contain the
essential elements of offer, acceptance, and consideration.
Distractor analysis:
• A — Verbal agreements are not enforceable for real estate.
• C — Electronic signatures are acceptable but are not the only requirement.
• D — Cash payment is not a contract requirement.
Clinical pearl: Real estate contracts must also include a legal description of the
property.
,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
Correct Answer: C
Rationale: APR includes interest and fees, reflecting the true cost of the loan. It is
a more comprehensive measure than the interest rate alone.
Distractor analysis:
• A — Principal is the amount borrowed.
• B — Interest rate is the base rate but does not include all fees.
• D — Down payment is the initial payment made by the buyer.
Clinical pearl: APR is required to be disclosed under the Truth in Lending Act
(TILA).
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%
Correct Answer: B
Rationale: Commissions are negotiable between the broker and the client. GREC
does not set commission rates (Rule 520-1-.08).
Distractor analysis:
• A — 6% is a common rate but not a legal maximum.
• C — 3% is not a legal maximum.
• D — 10% is not a legal maximum.
, Clinical pearl: All commission agreements must be in writing and signed by the
parties.
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
Correct Answer: B
Rationale: Appraisals provide an unbiased estimate of fair market value for
lending, sales, and tax purposes.
Distractor analysis:
• A — The listing price is set by the seller/broker based on market conditions.
• C — Negotiation is not the primary purpose of an appraisal.
• D — Roof inspection is performed by a home inspector.
Clinical pearl: Appraisals are required by most lenders to ensure the property
value supports the loan amount.
Question 7.
Which document transfers ownership of real property?
A. Purchase agreement
B. Deed
C. Mortgage
D. Lease
Correct Answer: B
Rationale: A deed is the legal document that conveys title from the grantor (seller)
to the grantee (buyer) (O.C.G.A. § 44-2-1).
Distractor analysis:
