GA Real Estate License Study Questions and Answers

Fidelity Insurance Under Georgia license law, fidelity insurance is required of any Georgia licensee if managing community associations and if at any time handling more than $60,000. A broker managing community associations who at any time handles more than $60,000 must have a separate fidelity bond or policy for each association managed. errors and omissions insurance is not required in GA certificate of title The written opinion of title identifying the fee owner of a property and naming anyone with a legitimate right or interest in the property held by lender while loan payments are being made Grantee THE LENDER is the grantee, the party receiving the deed and accepting an interest in the property as security for the debt Grantor the party giving the deed, THE BORROWER, who transfers the interest in the property to the lender with the right to non-judicial foreclosure constructive notice Notice given to the world by recorded documents regarding interests and rights in real estate. All people are charged with knowledge of such documents and their contents, whether or not they have actually examined them. adverse possession Requires use of land without the owner's permission for at is 20 years. The claimant must have maintained visible, actual, hostile, continuous, and notorious possession of the property and be publicly claiming ownership to the property license renewal period 4 years for all licensees in GA business license location real estate companies must pay for the business license in jurisdictions where they have offices security deed conveys title to the lender to secure the debt. equitable title Borrower has right to obtain absolute ownership to property when legal title is held in another's name (lender). dower and curtesy rights Georgia does not recognize the rights of dower for a widow or curtesy for a widower. Georgia Education, Research, and Recovery Fund an aggrieved individual must sue the licensee, obtain a judgment, and then attempt to collect on the judgment lien. Dual agency is permitted only if both parties agree to the dual representation redemption period The equity of redemption on a loan foreclosure ends when the property is sold. BRRETA Georgia's Brokerage Relationships in Real Estate Transactions Act (BRRETA) defines the statutory duties of agents to their clients but does not mandate what types of agency companies may practice. mechanic's lien rights The state legislature of Georgia has extended mechanic's lien rights to commercial real estate brokers who sue for unpaid commissions. gross receipts tax The tax is due only on transactions that occur within the jurisdiction. property taxes escrow A lender in Georgia may add two months to the number of months since the tax bill was paid to arrive at a total required for the tax escrow account. impact fees fees charged by local jurisdictions to pay for new schools and utilities expected due to the increase in local populations minors in a contract A minor wishing to disaffirm a contract must do so while still a minor or within a reasonable time after reaching maturity. inactive status An inactive license may remain on inactive status indefinitely, as long as the licensee renews the license and pays renewal fees every four years. Georgia Education, Research, and Recovery Fund If the total amount in the fund falls below $1,000,000, all licensees will contribute to the fund at their next renewal. Discount points discount point affects the lender's yield by 1/8 of 1 percentage point. PMI Calculations For PMI calculations, a lender would classify loans as 90% or 95% of the purchase price. Any loan made between 80.1% and 90% of the purchase price would be classified as a 90% loan; any loan with an LTV between 90% and 95% would be classified as a 95% loan. lis pendens notice to any future prospective buyer when a judgment is filed that involves real property