CE SHOP GEORGIA STATE EXAM
PRACTICE QUESTIONS AND ANSWERS
How long does a broker have before notifying the commission that a trust fund account
has been established? - Answer-30 days
What is a statutory right of redemption? - Answer-The right of a borrower to redeem the
property by paying amount owed plus costs, even after the foreclosure sale.
What does GAFLA require regarding late fees? - Answer-The MUST be clearly
specified in loan documents
Buyer duties outlined in BRRETA include: - Answer-Responding to broker
communications in a timely fashion
Georgia licensee Estella is the qualifying broker for a firm that's incorporated. Which of
the following must be true about her?
-She was a MBA in addition to her broker license
-She has at least 10 years of real estate experience
-She's an officer of the corporation
-She's the CEO of the corporation - Answer-*She's an officer of the corporation*
In a GA firm that's structured as a corporation, the qualifying broker must be an officer
of the corporation
IN GA, upon what amount is the transfer tax calculated? - Answer-Sales price
Alicia is about to sign an exclusive buyer agency agreement with her new client, Eric.
Which form will she use?
-GAR Exclusive Buyer Brokerage Agreement form
-GREC's mandated buyer agency agreement form
-NAR Exclusive Buyer Brokerage Agreement form
-the form approved in the brokerage policy and procedure manual - Answer--*The form
approved in the brokerage policy and procedure manual*
There is not a standard buyer representation form used in GA.
,Which clause in the deed of trust and Georgia's security deed is the equivalent of the
defeasance clause in the mortgage?
-Acceleration
-Alienation
-Power-of-sale
-Reconveyance - Answer-*Reconveyance*
The reconveyance clause and the defeasance clause stipulate that the borrower
receives full title to the property when the debt has been repaid
The Real Estate Education, Research, and Recovery Fund Exists for the Benefit of
whom?
-Agents with low sales volume
-Brokers who pay out commissions
-GREC members
-The public - Answer-*The public*
Who, or which entity, appoints the members of the Georgia Real Estate Commission?
-Georgia real estate association members
-The Georgia governor
-The mayors of every city in Georgia, through a vote
-The public, by election - Answer-*The Georgia Governor*
*How's the Georgia intangible tax computed? *
-it's a flat $10 fee for any mortgage subject to the Georgia Residential Mortgage Act
-It's based on .1% of the sales price
-It's based on the amount borrowed, and is $1.50 per each $500 or fractional part
thereof, with a maximum of $25,000
, -It's based on the sales price, and is $1.50 per each $500 or a fractional part thereof
with a maximum of $25,000 - Answer-*It's based on the amount borrowed, and is $1.50
per each $500 or fractional part thereof, with a maximum of $25,000*
The intangible tax is based on the loan amount and is $1.50 per each $500 or fractional
part thereof with a maximum of $25,000
In Georgia, upon what amount is the transfer tax calculated?
-Appraisal Amount
-Down Payment Amount
-Loan Amount
-Sales Price - Answer-*Sales Price*
Krista is obtaining a loan to buy a home. Her loan agreement consists of one document
called a note and one called a deed of trust. What's the role of the note?
-Conveys legal title to the property to the lender
-Describes the home requiring the loan
-Lists the names of the mortgagor and mortgagee
-States who owes money to whom, how much, and how it will be repaid - Answer-
*States who owes money, to whom, how much, and how it will be repaid
*Which of the following is NOT a legal activity for a business broker?*
-Assisting the buyer with due diligence
-Concealing the business's identity to protect the owner's privacy
-Conducting an appraisal of the business
-Requiring the prospective buyer to sign a confidentiality agreement - Answer-
*Conducting an appraisal of the business*
Only licensed appraisers may conduct appraisals
Joe Bob is the grantor of a deed and is in the final stages of transferring a deed to the
new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of
the deed to Frank?
PRACTICE QUESTIONS AND ANSWERS
How long does a broker have before notifying the commission that a trust fund account
has been established? - Answer-30 days
What is a statutory right of redemption? - Answer-The right of a borrower to redeem the
property by paying amount owed plus costs, even after the foreclosure sale.
What does GAFLA require regarding late fees? - Answer-The MUST be clearly
specified in loan documents
Buyer duties outlined in BRRETA include: - Answer-Responding to broker
communications in a timely fashion
Georgia licensee Estella is the qualifying broker for a firm that's incorporated. Which of
the following must be true about her?
-She was a MBA in addition to her broker license
-She has at least 10 years of real estate experience
-She's an officer of the corporation
-She's the CEO of the corporation - Answer-*She's an officer of the corporation*
In a GA firm that's structured as a corporation, the qualifying broker must be an officer
of the corporation
IN GA, upon what amount is the transfer tax calculated? - Answer-Sales price
Alicia is about to sign an exclusive buyer agency agreement with her new client, Eric.
Which form will she use?
-GAR Exclusive Buyer Brokerage Agreement form
-GREC's mandated buyer agency agreement form
-NAR Exclusive Buyer Brokerage Agreement form
-the form approved in the brokerage policy and procedure manual - Answer--*The form
approved in the brokerage policy and procedure manual*
There is not a standard buyer representation form used in GA.
,Which clause in the deed of trust and Georgia's security deed is the equivalent of the
defeasance clause in the mortgage?
-Acceleration
-Alienation
-Power-of-sale
-Reconveyance - Answer-*Reconveyance*
The reconveyance clause and the defeasance clause stipulate that the borrower
receives full title to the property when the debt has been repaid
The Real Estate Education, Research, and Recovery Fund Exists for the Benefit of
whom?
-Agents with low sales volume
-Brokers who pay out commissions
-GREC members
-The public - Answer-*The public*
Who, or which entity, appoints the members of the Georgia Real Estate Commission?
-Georgia real estate association members
-The Georgia governor
-The mayors of every city in Georgia, through a vote
-The public, by election - Answer-*The Georgia Governor*
*How's the Georgia intangible tax computed? *
-it's a flat $10 fee for any mortgage subject to the Georgia Residential Mortgage Act
-It's based on .1% of the sales price
-It's based on the amount borrowed, and is $1.50 per each $500 or fractional part
thereof, with a maximum of $25,000
, -It's based on the sales price, and is $1.50 per each $500 or a fractional part thereof
with a maximum of $25,000 - Answer-*It's based on the amount borrowed, and is $1.50
per each $500 or fractional part thereof, with a maximum of $25,000*
The intangible tax is based on the loan amount and is $1.50 per each $500 or fractional
part thereof with a maximum of $25,000
In Georgia, upon what amount is the transfer tax calculated?
-Appraisal Amount
-Down Payment Amount
-Loan Amount
-Sales Price - Answer-*Sales Price*
Krista is obtaining a loan to buy a home. Her loan agreement consists of one document
called a note and one called a deed of trust. What's the role of the note?
-Conveys legal title to the property to the lender
-Describes the home requiring the loan
-Lists the names of the mortgagor and mortgagee
-States who owes money to whom, how much, and how it will be repaid - Answer-
*States who owes money, to whom, how much, and how it will be repaid
*Which of the following is NOT a legal activity for a business broker?*
-Assisting the buyer with due diligence
-Concealing the business's identity to protect the owner's privacy
-Conducting an appraisal of the business
-Requiring the prospective buyer to sign a confidentiality agreement - Answer-
*Conducting an appraisal of the business*
Only licensed appraisers may conduct appraisals
Joe Bob is the grantor of a deed and is in the final stages of transferring a deed to the
new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of
the deed to Frank?
