- Study guides, Class notes & Summaries

1. Which of the following is a true statement about Georgia's Real Estate Education, Research, and Recovery Fund? A. GREC isn't allowed to raise licensee renewal fees B. Licensees aren’t required to repay disbursements with interest C. The fund pays for licensees’ legal costs D. Fund money may be invested and interest is deposited back into the fund Correct Answer: D Rationale: Georgia law allows the fund to be invested in the state treasury or other legally permissible pl...

1. The seller countered buyer Addie’s initial offer. Which of these statements is true? A. The counter-offer automatically finalizes the deal B. The buyer must accept the counter-offer as is C. A buyer may opt to "counter the counter" with another offer D. Once a seller counters, the buyer cannot respond again ️ Correct Answer: C Rationale: A counter-offer terminates the original offer and allows the other party to counter again. 2. On a security deed in Georgia, wh...

1. Agent Norris is working with a buyer prospect who chooses to be a customer. The prospect wants to see a listing on Pine Street, but the listing company has indicated it will not offer subagency. What is the correct approach? A. Norris can show the house as a "transaction broker." B. The house can be shown only by buyer brokers. C. The listing company had no right to refuse subagency. D. A dual agency will result if Norris' buyer decides to offer on the Pine Street house. C...

1. What agency is charged with insuring the balance of the Real Estate Education, Research, and Recovery Fund remains at $1 million or higher? A. HUD B. Georgia Department of Revenue C. GREC D. Georgia Housing Authority Correct Answer: C. GREC Rationale: The Georgia Real Estate Commission (GREC) is responsible for ensuring the Recovery Fund maintains a minimum balance of $1 million. 2. GREC will investigate a complaint if the event occurred within how many years? A. 1 B. 2 ...

1. Real estate licensees are classified as independent contractors under which IRS code? A. 1031 B. 121 C. 3508 (a)(b) D. 453 Correct Answer: C Rationale: IRS Code Section 3508(a)(b) classifies qualified real estate agents as statutory non-employees, allowing them to be treated as independent contractors for tax purposes. 2. The Fair Housing Act of 1968 was amended in 1988 to include which protected classes? A. Sexual orientation and gender identity B. Familial status and men...

1. Which of the following is considered a general lien? A. Property tax lien B. Mechanic’s lien C. Mortgage lien D. Judgment lien Rationale: A judgment lien is a general lien that applies to all of a debtor's property, not just a specific asset. 2. What is the most common type of tax sale? A. Judicial tax sale B. Non-judicial tax sale C. Redemption tax sale D. Foreclosure auction Rationale: Most tax sales occur without court involvement, making non-judicial tax sal...

1. Which principle of value holds that the value of any component of a property is what it gives to the value of the whole or what its absence detracts from the whole? A. Substitution B. Conformity C. Contribution D. Anticipation Rationale: The principle of contribution determines a component’s worth by the value it adds (or detracts) from the total property. 2. How is Net Operating Income (NOI) calculated? A. Gross Income minus depreciation B. Net Income plus taxes C. Ann...

1. What is the difference between a specific lien and a general lien? A. A specific lien is secured by a specific piece of property, and a general lien is secured by the collective assets of a person against whom the lien is held B. A general lien is secured by a specific piece of property, and a specific lien is secured by the collective assets of a person against whom the lien is held C. Specific liens require collateral, and general liens do not D. General liens require collateral, and ...

1. A seller wants to allow a buyer to assume the existing mortgage and avoid future liability. What would best meet the seller’s needs? A. Assignment B. Subordination C. Novation D. Escrow agreement ️ Correct Answer: C. Novation Rationale: Novation is a legal substitution of a new party in a contract, relieving the original party of liability. 2. To qualify as a tax-deferred exchange, a property must be: A. Used as a primary residence B. Held for less than one year C....

Pass the Georgia Real Estate Licensing Exam with Confidence! This fully updated 2025 test bank includes 997 verified practice questions and answers, carefully aligned with the Georgia Real Estate Commission (GREC) exam content outline. Covers all key topics: Licensing and Law in Georgia Real Estate Contracts Property Ownership and Land Use Controls Finance and Valuation Agency Relationships Fair Housing Laws Property Management Real Estate Math & Calculations ...