GEORGIA MLS PRACTICE EXAM (QUESTIONS
& ANSWERS) 100% CORRECT ANSWERS (A+ RATED VERIFIED
BY
EXPERTS)
When should a licensee disclose to the parties whom their firm intends to represent in a
transaction? - CORRECT ANSWER>>Disclosure should be made verbally and in writing to all
parties as soon as possible.
A selling broker desires to represent a purchaser in a real estate transaction while at the same
time act as a subagent of the listing broker and seller. Could the broker perform both of these
functions in the same transaction? - CORRECT ANSWER>>No, when a broker working with a
buyer acts as a subagent of the listing broker and seller, that broker working with a buyer must
represent the seller and treat the buyer as a customer
Whether or not a real estate sales affiliate in GA may act as a buyer's agent will be determined
by: - CORRECT ANSWER>>the company policy and procedures manual issued to all sales
affiliates by the broker
Under what circumstances might a broker who is working with a prospective buyer receive
compensation/commission from a listing broker? - CORRECT ANSWER>>Only if there is a
cooperating agreement between the two brokers.
You are a salesperson representing the seller. What are your duties when working with a
buyer/customer? - CORRECT ANSWER>>You must deal with them honestly
A brokerage engagement in GA creates an employment agreement between: - CORRECT
ANSWER>>Broker and client
Regarding the Brokerage Relationship in Real Estate Transaction ACT (BRRETA), how are agency
relationships created? - CORRECT ANSWER>>Agency relationships may be created only through
written brokerage engagements
Under a listing agreement, the primary agency relationship involves: - CORRECT ANSWER>>the
seller as the principal, and the broker as the agent
A property is listed for $200,000. The sellers owe $100,000 on their current loan and have
agreed to pay $2000 towards closing costs for the sale of the property. The sellers also agree to
pay the listing broker a 6% commission should a ready, willing and able buyer be secured to
purchase the property. If the property sells for full price, what will be the net proceeds for the
sellers? - CORRECT ANSWER>>$86,000
According to BRRETA, a listing agent must voluntarily disclose to a buyer customer: - CORRECT
ANSWER>>known latent defects
Instructed by a client not to present any offers substantially below the listing price, an agent
decides not to inform the seller of a prospective buyer's "low ball" written offer. Would real
estate agency law find the licensee's decision acceptable? - CORRECT ANSWER>>No, the agent
must present all offers to the seller client
You have agreed with your broker to split commissions 60% to you and 40% to your broker. Your
listing was just sold by another company for $139,000. Your broker has agreed to pay the selling
broker 50% of any commission. If the commission on this sale was 6% what was your share of
the commission? - CORRECT ANSWER>>$2502
A broker who has a brokerage relationship with both seller and buyer or both landlord and
tenant in the same transaction is considered a - CORRECT ANSWER>>dual agent
As a representative of an employing broker, a real estate salesperson in GA must act in the best
interest of a client as well as in accordance with all applicable laws. With regard to these duties
and responsibilities, the obligations of a real estate salesperson might best be stated as follows:
- CORRECT ANSWER>>A salesperson's highest obligation is to any applicable laws, next to the
broker, and then to the client
You are working as an agent for the broker. In this relationship the broker dictates office hours,
work schedules, withholds federal and state taxes, and pays FICA contributions. This
relationship would be considered: - CORRECT ANSWER>>employer/employee
, As an independent contractor for a brokerage firm, a licensee - CORRECT ANSWER>>must have
a written employment agreement/contract with the broker
In a real estate transaction involving a broker and a broker's salesperson, there are 2 agency
relationships established. These agency relationships are between the - CORRECT
ANSWER>>broker and principal, and broker and salesperson
If the salesperson is an agent for the broker, can the salesperson sign brokerage engagements? -
CORRECT ANSWER>>Yes, the authority to sign brokerage engagements is typically provided to
the salesperson in the broker affiliation agreement
A seller enters into an exclusive brokerage engagement with the agreement that if the owner
sells the property personally, no commission will be paid to the agent. This engagement is called
- CORRECT ANSWER>>an Exclusive agency agreement
Common law principles will typically terminate a contract between the broker and
principal/client in which of the following circumstances? - CORRECT ANSWER>>Either the
broker or principal declares bankruptcy
A listing broker whose negligence in preparing a sales contract for the seller client allows the
buyer to void the agreement, breaches an agent's responsibility of - CORRECT ANSWER>>due
care
A listing agent shows a buyer customer a client's home in a residential subdivision. The agent
knows that an owner of a parcel of vacant land one half mile from this subdivision recently
received zoning permission to operate a waste disposal facility on that property. Under BRRETA,
would the agent need to voluntarily disclose this information to the buyer? - CORRECT
ANSWER>>Yes, as the pending waste disposal site is within 1 mile, BRRETA considers it a
material fact for the buyer.
A broker representing a seller who gives a list of lenders, inspectors, attorneys and schools to
prospective purchaser would be performing: - CORRECT ANSWER>>ministerial acts
The brokerage engagement created between a buyer and a broker who is assisting the buyer in
finding a suitable property to purchase can best be described as: - CORRECT
ANSWER>>special/limited agency
When a prospective buyer at an open house held by the listing agent asks for advice on
negotiating a good price with the seller, the agent might best respond by treating the buyer as a
- CORRECT ANSWER>>customer
Prior to entering into a brokerage engagement, an agent's disclosure of the types of agency
relationships offered by the broker as well as how the broker receives and shares compensation
with the other brokers is required by: - CORRECT ANSWER>>BRRETA, Georgia's real estate
agency law
According to the common laws of real estate agency, a fiduciary relationship exists between the:
- CORRECT ANSWER>>listing broker and seller/client
A broker in GA is paid a commission at closing by the principal and refuses to pay the
salesperson the portion of the commission as agreed upon in the written affiliation agreement.
IF the salesperson does not believe that the broker is meeting the terms of the agreement, the
appropriate action would be to: - CORRECT ANSWER>>file judicial action or refer matter to
other arbitrating bodies
A property owner tells the listing agent that she would like to net $75,000 from the sale of her
home. If the commission negotiated between the agent and seller is 7%, which of the following
sales prices for the home would come closest to satisfying the owner's goal? - CORRECT
ANSWER>>$80,650
The best description of the type of agency that is created by the actions and conduct of the
parties involved would be: - CORRECT ANSWER>>implied agency
Which of the following is a requirement of an independent contractor status between a broker
and a salesperson? - CORRECT ANSWER>>The salesperson must enter into a written agreement
with the broker stating the individual will not be treated as an employee for federal tax
purposes.
Is it possible in a single agency for the agent to represent both a buyer and seller in the same
transaction? - CORRECT ANSWER>>No, single agents cannot practice dual agency
The law that requires business locations to reserve a certain number of convenient parking
spaces for the handicapped is: - CORRECT ANSWER>>The Americans with Disabilities Act
A prospective purchaser is Caucasian, asks a salesperson what percentage of the families in a
& ANSWERS) 100% CORRECT ANSWERS (A+ RATED VERIFIED
BY
EXPERTS)
When should a licensee disclose to the parties whom their firm intends to represent in a
transaction? - CORRECT ANSWER>>Disclosure should be made verbally and in writing to all
parties as soon as possible.
A selling broker desires to represent a purchaser in a real estate transaction while at the same
time act as a subagent of the listing broker and seller. Could the broker perform both of these
functions in the same transaction? - CORRECT ANSWER>>No, when a broker working with a
buyer acts as a subagent of the listing broker and seller, that broker working with a buyer must
represent the seller and treat the buyer as a customer
Whether or not a real estate sales affiliate in GA may act as a buyer's agent will be determined
by: - CORRECT ANSWER>>the company policy and procedures manual issued to all sales
affiliates by the broker
Under what circumstances might a broker who is working with a prospective buyer receive
compensation/commission from a listing broker? - CORRECT ANSWER>>Only if there is a
cooperating agreement between the two brokers.
You are a salesperson representing the seller. What are your duties when working with a
buyer/customer? - CORRECT ANSWER>>You must deal with them honestly
A brokerage engagement in GA creates an employment agreement between: - CORRECT
ANSWER>>Broker and client
Regarding the Brokerage Relationship in Real Estate Transaction ACT (BRRETA), how are agency
relationships created? - CORRECT ANSWER>>Agency relationships may be created only through
written brokerage engagements
Under a listing agreement, the primary agency relationship involves: - CORRECT ANSWER>>the
seller as the principal, and the broker as the agent
A property is listed for $200,000. The sellers owe $100,000 on their current loan and have
agreed to pay $2000 towards closing costs for the sale of the property. The sellers also agree to
pay the listing broker a 6% commission should a ready, willing and able buyer be secured to
purchase the property. If the property sells for full price, what will be the net proceeds for the
sellers? - CORRECT ANSWER>>$86,000
According to BRRETA, a listing agent must voluntarily disclose to a buyer customer: - CORRECT
ANSWER>>known latent defects
Instructed by a client not to present any offers substantially below the listing price, an agent
decides not to inform the seller of a prospective buyer's "low ball" written offer. Would real
estate agency law find the licensee's decision acceptable? - CORRECT ANSWER>>No, the agent
must present all offers to the seller client
You have agreed with your broker to split commissions 60% to you and 40% to your broker. Your
listing was just sold by another company for $139,000. Your broker has agreed to pay the selling
broker 50% of any commission. If the commission on this sale was 6% what was your share of
the commission? - CORRECT ANSWER>>$2502
A broker who has a brokerage relationship with both seller and buyer or both landlord and
tenant in the same transaction is considered a - CORRECT ANSWER>>dual agent
As a representative of an employing broker, a real estate salesperson in GA must act in the best
interest of a client as well as in accordance with all applicable laws. With regard to these duties
and responsibilities, the obligations of a real estate salesperson might best be stated as follows:
- CORRECT ANSWER>>A salesperson's highest obligation is to any applicable laws, next to the
broker, and then to the client
You are working as an agent for the broker. In this relationship the broker dictates office hours,
work schedules, withholds federal and state taxes, and pays FICA contributions. This
relationship would be considered: - CORRECT ANSWER>>employer/employee
, As an independent contractor for a brokerage firm, a licensee - CORRECT ANSWER>>must have
a written employment agreement/contract with the broker
In a real estate transaction involving a broker and a broker's salesperson, there are 2 agency
relationships established. These agency relationships are between the - CORRECT
ANSWER>>broker and principal, and broker and salesperson
If the salesperson is an agent for the broker, can the salesperson sign brokerage engagements? -
CORRECT ANSWER>>Yes, the authority to sign brokerage engagements is typically provided to
the salesperson in the broker affiliation agreement
A seller enters into an exclusive brokerage engagement with the agreement that if the owner
sells the property personally, no commission will be paid to the agent. This engagement is called
- CORRECT ANSWER>>an Exclusive agency agreement
Common law principles will typically terminate a contract between the broker and
principal/client in which of the following circumstances? - CORRECT ANSWER>>Either the
broker or principal declares bankruptcy
A listing broker whose negligence in preparing a sales contract for the seller client allows the
buyer to void the agreement, breaches an agent's responsibility of - CORRECT ANSWER>>due
care
A listing agent shows a buyer customer a client's home in a residential subdivision. The agent
knows that an owner of a parcel of vacant land one half mile from this subdivision recently
received zoning permission to operate a waste disposal facility on that property. Under BRRETA,
would the agent need to voluntarily disclose this information to the buyer? - CORRECT
ANSWER>>Yes, as the pending waste disposal site is within 1 mile, BRRETA considers it a
material fact for the buyer.
A broker representing a seller who gives a list of lenders, inspectors, attorneys and schools to
prospective purchaser would be performing: - CORRECT ANSWER>>ministerial acts
The brokerage engagement created between a buyer and a broker who is assisting the buyer in
finding a suitable property to purchase can best be described as: - CORRECT
ANSWER>>special/limited agency
When a prospective buyer at an open house held by the listing agent asks for advice on
negotiating a good price with the seller, the agent might best respond by treating the buyer as a
- CORRECT ANSWER>>customer
Prior to entering into a brokerage engagement, an agent's disclosure of the types of agency
relationships offered by the broker as well as how the broker receives and shares compensation
with the other brokers is required by: - CORRECT ANSWER>>BRRETA, Georgia's real estate
agency law
According to the common laws of real estate agency, a fiduciary relationship exists between the:
- CORRECT ANSWER>>listing broker and seller/client
A broker in GA is paid a commission at closing by the principal and refuses to pay the
salesperson the portion of the commission as agreed upon in the written affiliation agreement.
IF the salesperson does not believe that the broker is meeting the terms of the agreement, the
appropriate action would be to: - CORRECT ANSWER>>file judicial action or refer matter to
other arbitrating bodies
A property owner tells the listing agent that she would like to net $75,000 from the sale of her
home. If the commission negotiated between the agent and seller is 7%, which of the following
sales prices for the home would come closest to satisfying the owner's goal? - CORRECT
ANSWER>>$80,650
The best description of the type of agency that is created by the actions and conduct of the
parties involved would be: - CORRECT ANSWER>>implied agency
Which of the following is a requirement of an independent contractor status between a broker
and a salesperson? - CORRECT ANSWER>>The salesperson must enter into a written agreement
with the broker stating the individual will not be treated as an employee for federal tax
purposes.
Is it possible in a single agency for the agent to represent both a buyer and seller in the same
transaction? - CORRECT ANSWER>>No, single agents cannot practice dual agency
The law that requires business locations to reserve a certain number of convenient parking
spaces for the handicapped is: - CORRECT ANSWER>>The Americans with Disabilities Act
A prospective purchaser is Caucasian, asks a salesperson what percentage of the families in a
