GA Real estate practice EXAM TEST BANK WITH ALL VERSIONS OF THE EXAM WITH ALLMODULES COVERED | ACCURATE AND VERIFIED QUESTIONS AND ANSWERS FOR GUARANTEED PASS| LATEST UPDATE

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. Correct Answer: A. Norris can show the house as a "transaction broker." Rationale: Transaction brokers facilitate the transaction without representing either party in a fiduciary capacity, making it a legal and neutral option. 2. A broker engaged by a seller who locates lenders, inspectors, and other professionals for the buyer is performing: A. Buyer agent duties B. Transactional broker responsibilities C. Ministerial acts D. Contractual obligations on behalf of the seller Correct Answer: C. Ministerial acts Rationale: Ministerial acts are routine services performed that do not require professional judgment or discretion. 3. Prior to entering a brokerage relationship, a broker must: A. Disclose types of brokerage relationships available B. Disclose known conflicts of interest C. Explain compensation and sharing with other brokers D. All of the above Correct Answer: D. All of the above Rationale: Full disclosure of representation options, conflicts, and compensation is required before entering into an agreement. 4. What is the relationship in a typical listing contract between the owner and broker? A. Principal and agent B. Agent and subagent C. Broker and customer D. All of the above Correct Answer: A. Principal and agent Rationale: The listing creates an agency relationship where the broker acts on behalf of the seller (principal). 5. The listing contract is an agreement between: A. Seller and multiple listing system B. Seller and listing salesperson C. Seller and broker D. Broker and listing salesperson Correct Answer: C. Seller and broker Rationale: The broker holds the contract; salespeople act under the broker’s authority. 6. A salesperson can sign a listing contract on behalf of the broker if: A. The broker has verbally approved B. The seller agrees C. No one else is available D. The salesperson has written authorization from the broker Correct Answer: D. The salesperson has written authorization from the broker Rationale: Legal authority must be in writing for the salesperson to bind the broker. 7. How should a prospect be treated when attending an open house? A. A client B. A customer C. An agent D. A subagent Correct Answer: B. A customer Rationale: Until an agency agreement is signed, the person is considered a customer. 8. Why might a broker choose an employer/employee relationship with salespeople? A. Less bookkeeping B. Greater control over agents’ activities C. Lower FICA contribution D. Lower insurance costs Correct Answer: B. Greater control over agents’ activities Rationale: Employer/employee status gives the broker more authority to direct how work is done. 9. Which is FALSE about independent contractor status? A. Most salespeople are independent contractors B. Brokers can control results but not the methods C. Independent contractors are self-employed D. Income tax is withheld from commission checks Correct Answer: D. Income tax is withheld from commission checks Rationale: Independent contractors are responsible for their own tax withholdings. 10. If your broker splits commission 60/40 with you and a $139,000 property sells at 6%, shared 50/50 with another company, what is your share? A. $8,340.00 B. $2,502.00 C. $1,668.00 D. $4,170.00 Correct Answer: B. $2,502.00 Rationale: Total commission = $8,340 → Broker gets $4,170 → You receive 60% of $4,170 = $2,502. 11. If a buyer breaches a valid sales contract, the seller may: A. Retain earnest money as liquidated damages B. Rescind the contract C. Sue for specific performance D. Any of the above Correct Answer: D. Any of the above Rationale: The seller has multiple legal remedies upon buyer breach. 12. A contract may be discharged in all of the following ways EXCEPT: A. Revocation by the purchaser B. Unilateral rescission by a defrauded buyer C. Novation D. Expiration of statute of limitations Correct Answer: A. Revocation by the purchaser Rationale: Revocation is not a legal method for discharging a contract once it's binding. 13. If Frances was manipulated by her nephew into selling her home, she: A. Must sell if the buyer is innocent B. May rescind the contract C. Cannot sell due to fraud D. Must sell but can sue her nephew Correct Answer: B. May rescind the contract Rationale: Undue influence allows the affected party to rescind the contract. 14. A novation can be any of the following EXCEPT: A. Substituting one party B. Replacing an existing contract C. New obligation discharging old one D. One-sided agreement without consent Correct Answer: D. One-sided agreement without consent Rationale: Novation requires agreement from all parties involved. 15. An executory contract is one in which: A. A party has died B. Time limit has expired C. The contract is signed D. Something remains to be done Correct Answer: D. Something remains to be done Rationale: An executory contract is still in progress, with obligations unfulfilled. 16. An implied contract arises when: A. Intent is expressed orally B. Intent is expressed in writing C. Agreement is shown by acts/conduct D. A party makes a promise to induce action Correct Answer: C. Agreement is shown by acts/conduct Rationale: Implied contracts are formed through behavior rather than explicit statements. 17. What usually governs the contents of a deed? A. Listing agreement B. Verbal statements C. Purchaser’s attorney’s request D. Contract for sale Correct Answer: D. Contract for sale Rationale: The deed follows the terms outlined in the purchase contract. 18. What does the Statute of Limitations deal with? A. Rights B. Terminology C. Time D. Legal descriptions Correct Answer: C. Time Rationale: The statute defines time limits for legal actions. 19. When does a faxed contract acceptance become binding? A. When seller signs B. When listing agent receives it C. When buyer’s agent receives it D. Faxed signatures aren’t legal Correct Answer: C. When buyer’s agent receives it Rationale: A contract becomes binding when acceptance is communicated to the offeror (buyer). 20. If a broker gives incorrect zoning info, and the buyer signs a contract based on it, the buyer: A. Must complete the sale B. Has no case due to honest mistake C. Can rescind the contract D. Contract is void due to fraud Correct Answer: C. Can rescind the contract Rationale: Misrepresentation, even unintentional, may justify rescission. 21. Which language in a sales contract takes precedence? A. Standard B. Printed C. Typewritten D. Handwritten Correct Answer: D. Handwritten Rationale: Handwritten terms override preprinted or typed clauses if a conflict arises.