GA MLS REAL ESTATE
PRACTICAL FINAL EXAM / 60 +
QUESTIONS AND VERIFIED
SOLUTIONS 2025 LATEST UPDATE
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, 1. Safety Clause ANSWER A negotiated period after the termination of the listing during which the listing broker
may still be entitled to a commission if the property is sold to a buyer who was shown the property during the listing
period
2. Survival Clause ANSWER A clause in the contract for purchase and sale that , unless otherwise expressly
agreed to in writing by the buyer and seller, allows certain contractual obligations to be performed after closing
3. Ratification ANSWER Method of creating an agency relationship in which the principal accepts the conduct of
someone who acted without prior authorization as the principal's agent
4. Net Operating Income (NOI) ANSWER The income projected for an income-producing property after deducting
losses for vacancy and collection and operating expenses.
5. Straight Term Loan ANSWER A loan in which only interest is paid during the term of the loan, with the entire
principal amount due with the final interest payment.
6. Loan Origination Fee ANSWER A fee charged to the borrower by the lender for making a mortgage loan. The fee is
usually computed as a percentage of the loan amount.
7. Adjustable Rate Mortgage ANSWER A loan characterized by a fluctuating interest rate, usually one tied to a
bank or savings and loan association cost-of-funds index.
8. Fully Amortized Loan ANSWER A loan consisting of equal, regular payments satisfying the total payment of
principal and interest by the due date.
9. Purchase Money Mortgage ANSWER A note secured by a mortgage or deed of trust given by a buyer, as borrower, to
a seller, as lender, as part of the purchase price of the real estate.
10. Debit ANSWER On a closing statement, an amount charged; an amount the party must pay at settlement.
11. Credit ANSWER On closing statement, an amount entered in a person's favor, a party that must be reimbursed.
12. Acceleration Clause ANSWER The clause un a mortgage or deed of trust that can be enforced to make the
entire debt due immediately if the borrower defaults on an installment payment or other obligation
13. Addendum ANSWER Any provision added to an existing contract without altering the content of the original
14. Amendment ANSWER A change to the existing content of the contract, and must be initialed by all parties.
15. Prepayment Penalty ANSWER A charge imposed on a borrower who pays off the loan principal early. This
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PRACTICAL FINAL EXAM / 60 +
QUESTIONS AND VERIFIED
SOLUTIONS 2025 LATEST UPDATE
.
1/8
, 1. Safety Clause ANSWER A negotiated period after the termination of the listing during which the listing broker
may still be entitled to a commission if the property is sold to a buyer who was shown the property during the listing
period
2. Survival Clause ANSWER A clause in the contract for purchase and sale that , unless otherwise expressly
agreed to in writing by the buyer and seller, allows certain contractual obligations to be performed after closing
3. Ratification ANSWER Method of creating an agency relationship in which the principal accepts the conduct of
someone who acted without prior authorization as the principal's agent
4. Net Operating Income (NOI) ANSWER The income projected for an income-producing property after deducting
losses for vacancy and collection and operating expenses.
5. Straight Term Loan ANSWER A loan in which only interest is paid during the term of the loan, with the entire
principal amount due with the final interest payment.
6. Loan Origination Fee ANSWER A fee charged to the borrower by the lender for making a mortgage loan. The fee is
usually computed as a percentage of the loan amount.
7. Adjustable Rate Mortgage ANSWER A loan characterized by a fluctuating interest rate, usually one tied to a
bank or savings and loan association cost-of-funds index.
8. Fully Amortized Loan ANSWER A loan consisting of equal, regular payments satisfying the total payment of
principal and interest by the due date.
9. Purchase Money Mortgage ANSWER A note secured by a mortgage or deed of trust given by a buyer, as borrower, to
a seller, as lender, as part of the purchase price of the real estate.
10. Debit ANSWER On a closing statement, an amount charged; an amount the party must pay at settlement.
11. Credit ANSWER On closing statement, an amount entered in a person's favor, a party that must be reimbursed.
12. Acceleration Clause ANSWER The clause un a mortgage or deed of trust that can be enforced to make the
entire debt due immediately if the borrower defaults on an installment payment or other obligation
13. Addendum ANSWER Any provision added to an existing contract without altering the content of the original
14. Amendment ANSWER A change to the existing content of the contract, and must be initialed by all parties.
15. Prepayment Penalty ANSWER A charge imposed on a borrower who pays off the loan principal early. This
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