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CE SHOP PRACTICE TEST – GA 150
QUESTIONS WITH DETAILED VERIFIED
ANSWERS ALREADY GRADED A+
BRAND NEW!!
"Which property type is excluded from coverage under the Commercial Real Estate Broker Lien Act? - CORRECT ANSWER=> A poultry farm and processing plant" "All fair housing complaints must be filed with the Fair Housing Division within ______ of the alleged violation. - CORRECT ANSWER=> One year" "Dana found a listing on the MLS that was perfect for her buyer. If blanket sub-agency existed, what would be true? - CORRECT ANSWER=> The buyer would be an unrepresented customer." "Which clause in the deed of trust and Georgia's security deed is the equivalent of the defeasance clause in the mortgage? - CORRECT ANSWER=> Reconveyance" "ccording to the Georgia Brokerage Relationships in Real Estate Transactions Act, if no expiration date is provided in the brokerage engagement, then the engagement will terminate ______. - CORRECT ANSWER=> One year" "You were just given information that the buyer found some issues during the walk-through. You immediately phone your seller client and let her know. This is an example of ______. - CORRECT ANSWER=> Reasonable skill and care" "Who, or which entity, has the authority to bring injunctive action against a real estate licensee on the behalf of the commission? - CORRECT ANSWER=> The Georgia attorney general" "If the buyer is putting earnest money down, which of the following statements is true? - CORRECT ANSWER=> The buyer must specify the exact amount in the contract." "What is the purpose of a listing agreement? - CORRECT ANSWER=> To spell out the agreement between the listing broker and the seller"
"In a neutral market, what pricing strategy may generate interest in the property, possibly prompting multiple offers? - CORRECT ANSWER=> Pricing below market value" "At what point in a real estate transaction will the deposits and the disbursements of the transaction need to reflect a zero balance? - CORRECT ANSWER=> As the closing of the real estate transaction" "If the buyer who's party to an Exclusive Buyer Brokerage agreement has an issue or claim, how should they resolve it? - CORRECT ANSWER=> The parties should mutually select an arbitrator." "The signature lines on the multi-state Fannie Mae promissory note are set up for ______ to sign. - CORRECT ANSWER=> The borrower" "When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage? - CORRECT ANSWER=> The lender executes and records a satisfaction of mortgage and returns the note to the borrower." "In which of these instances would a broker still be owed a commission, even after a listing agreement terminates - CORRECT ANSWER=> The eventual buyer inquired about the property during the agreement period." "Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? - CORRECT ANSWER=> To detail all costs Jennings will owe at closing" "In the real estate business, which professional's primary role is to finance mortgage loans, while also funding development/construction projects if the risk is not too great? - CORRECT ANSWER=> Traditional Lenders" "Albert wants to sell his house to his cousin, who's willing to assume the loan. What clause in Albert's mortgage requires him to obtain the lender's permission to do this? - CORRECT ANSWER=> Alienation clause" "In the real estate business, which professional's primary role is to protect brokerages from litigation and to answer questions for licensees about legal matters regarding real estate transactions? - CORRECT ANSWER=> Real estate attorney" "A licensee must notify GREC of a conviction of a crime ______. - CORRECT ANSWER=> Immediately" "What provisions are standard when any security instrument is used but are included in the promissory note rather than the security instrument? - CORRECT ANSWER=> late charge"
"Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton's Great Aunt Matilda has agreed to pay any portion of Joan's commission the sellers don't cover. Teresa's father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true? - CORRECT ANSWER=> Carlton and the Martins are the agents' principals in this transaction." "Which act was the first to prohibit any exceptions for discrimination based on race or color? - CORRECT ANSWER=> Civil Rights Act of 1866" "Property with ownership by more than one person is known as ______. - CORRECT ANSWER=> Co- ownership" "Joaquin sold his house for $327,600. He bought it several years ago for $139,900 with a $100,000 loan. The loan balance when he sold it was $73,400. What was Joaquin's equity? - CORRECT ANSWER=> A) $254, B) $187, C) $214, D) $114, Subtract the loan balance from the market value of the home to find the equity" "Which of these statements most accurately represents existing federal antitrust legislation? - CORRECT ANSWER=> The Clayton Act supports the Sherman Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly" "Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer. Kendra is now considering the counter. What is Kendra in this scenario? - CORRECT ANSWER=> offeree" "Cambridge Apartments provides an open parking lot for their residents. There is adequate parking and all spaces are available on a "first-come, first-served" basis. Alton has MS and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests? - CORRECT ANSWER=> Cambridge must allow an exception to the first-come, first-served policy for Alton" "All lenders have different underwriting standards, but traditionally, the housing debt-to-income ratio has been ______%, with a total debt-to-income ratio of ______ %. - CORRECT ANSWER=> 25 to 28; 33 to 36" "A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ______. - CORRECT ANSWER=> Transfer ownership before death and avoid probate" "Charlie represents Sue, a buyer. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation? - CORRECT ANSWER=> This doesn't change the agency relationship"
"An adjustable rate mortgage has an initial interest rate of 5%. When the first interest rate adjustment date arrives, the rate can be adjusted a maximum of 1%. At all subsequent adjustment dates, the interest rate can be adjusted a maximum of 2%. The highest rate of interest that may be charged at any given time is 9%. What does the 2% rate represent? - CORRECT ANSWER=> Periodic cap" "Which covenant requires the grantee to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing? - CORRECT ANSWER=> The covenant of further assurances" "Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true? - CORRECT ANSWER=> If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed" "Which clause in a contract states that one or more parties won't be held liable if there are losses or expenses related to the contract? - CORRECT ANSWER=> Indemnification clause" "What is a contractual shift of liability and obligations off of a given party? - CORRECT ANSWER=> Indemnification clause" "What's the maximum penalty for each violation of federal do not call rules? - CORRECT ANSWER=> More than $40,000" "An attorney receives a request to have an appraisal performed on a property inheritance that she is transferring from her deceased client's estate to his heir. Which of these statements is tru - CORRECT ANSWER=> This isn't a federally related transaction and under federal law an appraisal isn't required." "Your neighbors build a high-quality addition to their home, increasing its value compared to your own home's value. Because of this, you notice a bump in your property value. Which economic principle is at work here? - CORRECT ANSWER=> Progression" "When the value of a property increases thanks to an adjacent higher-quality property - CORRECT ANSWER=> Progression" "Darren set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust. Darren is the ________. - CORRECT ANSWER=> Trustor, creates trust" "Manuel is selling his home to Selena. He has an existing loan that he'll continue to make payments on, and he's extending credit to Selena for the balance of the purchase price. She will make monthly payments to him. What type of financing are the parties using in this transaction? - CORRECT ANSWER=> Wrap Around Loan"
the property. Which general warranty deed covenant protects Colleen and Judy? - CORRECT ANSWER=> The covenant of warranty" "assures that the grantor will warrant and defend the title against the lawful claims of others. - CORRECT ANSWER=> The covenant of warranty" "Marsha leases a ranch house in a bedroom community. When the owner decided to sell the house, Marsha was given the opportunity to purchase it but declined. What does Marsha have? - CORRECT ANSWER=> Right of first refusal" "Whose role is it to develop the comprehensive master plan? - CORRECT ANSWER=> Planning board members" "The Office of Fair Housing and Equal Opportunity is a part of which federal department? - CORRECT ANSWER=> HUD" "Which of the following types of claims would be covered by a property manager's professional liability insurance policy? - CORRECT ANSWER=> Wrongful eviction" "What's the best definition of land? - CORRECT ANSWER=> The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects" "The Smithwicks, your buyer clients, obtained a 90% loan on their new $400,000 home. At closing, they paid $6,150 for points at closing. How many points did they pay? A) 1. B). C). D) 1.7 - CORRECT ANSWER=> 1. A point is 1% of the loan amount. The Smithwicks' loan is $360,000 ($400,000 x .90), and they paid $6,150 for points at closing. Divide the cost in points by the loan amount to get the number of points they paid: ($6,150 ÷ 360,000 = 0.0170833, or 1.71)." "Taxes, insurance, and maintenance are property expenses that are sometimes covered in a tenant's lease payment. These are collectively referred to as the ________. - CORRECT ANSWER=> nets" "These three items together are known as the _________—or you can use the acronym TIM for taxes, insurance, and maintenance. - CORRECT ANSWER=> nets" "Jacqueline found a ready, willing, and able buyer for her client's condo, with a sales price of $20, more than the asking price. However, the appraisal came in just under the asking price. Which number will the lender use to calculate the loan-to-value ratio? - CORRECT ANSWER=> The smaller number"
"Which one of the following tasks helps Sherrod fulfill his property management duty of tenant marketing and acquisition? - CORRECT ANSWER=> Keeping vacancies to a minimum" "Which type of easement is commonly seen when land is landlocked with no access to roads? - CORRECT ANSWER=> Easement by necessity" "Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his property means that his friends are always asking for permission to hunt on it during various game seasons. If Steven gives a friend permission to hunt on his land, it can be said that he has given his friend a ________. - CORRECT ANSWER=> License" "When prices go down because there are too many homes on the market and too few buyers, this is an example of ______. - CORRECT ANSWER=> Supply and demand" "Specifically, what does the fiduciary duty of disclosure relate to? - CORRECT ANSWER=> Conflicts of interest, material facts, and adverse material facts" "The economic principle known as ______ means that the value of property today is impacted by the current value of the total expected future benefits. - CORRECT ANSWER=> Anticipation" "The economic principle of ______ says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first. - CORRECT ANSWER=> Substitution" "How many post-licensing hours must licensees complete to continue their real estate license? A) 36 hours of post-licensing education B) 25 hours of post-licensing education C) 24 hours of post-licensing education D) 60 hours of post-licensing education - CORRECT ANSWER=> 25 Hours of post- licensing education" "In the complaint investigation process, a "respondent" is ______. A) The person filing the complaint B) The Fair Housing Division employee performing the intake C) The person accused of a violation D) The mediator assigned to the complaint - CORRECT ANSWER=> The person accused of a violation" "Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a security deed. What rights does she have to redeem her property? A) Andrea can negotiate a new loan with the trustee of her current loan and regain title to the property. B) Andrea can purchase the property from the auction winner who is required to transfer title for 102% of the sale price.
D) A list of property defects the licensee is aware of - CORRECT ANSWER=> Any conflict of interest a licensee has with the clients or property" "Which of the following is true about net listings? A) They often involve a conflict of interest. B) They don't include compensation for the buyer's agent. C) They're legal in all 50 states. D) The listing agent is guaranteed at least some commission. - CORRECT ANSWER=> They often involve a conflict of interest." "As a ______, it's the licensee's responsibility to advocate for the client's interests and seek the best price available, or a price that's acceptable to the buyer. Buyer's agent Seller's agent Non-agent Special agent - CORRECT ANSWER=> Buyer's agent" "What is the trustee's role when a deed of trust is used to secure property for a loan? A) To hold legal title to the property on behalf of the beneficiary until the loan is repaid B) To hold the note to the property on behalf of the trustor until the loan is repaid C) To collect payments and service the loan D) To hold funds in escrow - CORRECT ANSWER=> To hold legal title to the property on behalf of the beneficiary until the loan is repaid" "How does Georgia license law define a real estate salesperson? One who sells real estate One who works at a brokerage One who holds a salesperson's license One who is an applicant for a salesperson's license - CORRECT ANSWER=> One who holds a salesperson's license" "What organization offers the Community Association Manager certification exam in Georgia? Association Management Professionals Applied Measurement Professionals Applied Management Professionals Association Management Program - CORRECT ANSWER=> Applied Measurement Professionals"
"Which of the following is an example of conversion?
- A broker mixes trust funds with his own money.
- A broker uses client trust funds without the client's permission.
- A broker accepts an earnest money check from a buyer.
- A broker deposits an earnest money check from a buyer into a trust account. - CORRECT ANSWER=> A broker uses client trust funds without the client's permission." "In what type of market is pricing a home below market value an especially good strategy? Warm market Hot market Cold market Neutral market - CORRECT ANSWER=> Cold market" "Which clause is standard in a deed of trust or security deed and affects the foreclosure process that can be used if the borrower defaults? Power of sale Alienation Reconveyance Acceleration - CORRECT ANSWER=> Power of sale" "Denise signed a buyer agency agreement with her buyer, Eunice. Since they didn't know how long it would take to find a property, Denise included an automatic renewal clause. This is ______. A) Illegal B) Legal, as long as Eunice agrees to it in writing C) Illegal because buyer agency agreements are illegal D) Legal, provided Denise has her broker's permission and Eunice's signature - CORRECT ANSWER=> Illegal" "A property manager who is an asset manager has responsibility for what area of property management?
- Finding and negotiating financing
- Checking with a current tenant before leasing to a direct competitor
- Negotiating residential leases
- Spending time on the management of the space - CORRECT ANSWER=> Finding and negotiating financing"
"Which of the following expenses might the buyer pay outside of closing? A) Appraisal B) Loan origination fees C) GRMA mortgage fee D) Recording fees - CORRECT ANSWER=> appraisal" "Robert, the qualifying broker of a firm, was convicted of fraud and embezzlement. What will happen to the brokerage as a result? A) The commission will revoke the firm's license. B) The firm will be fined $5,000. C) The firm won't be sanctioned, but it must find a new qualifying broker. D) The firm must demonstrate that no other broker or salesperson was associated with Robert's crime, and the commission will appoint a new broker. - CORRECT ANSWER=> The commission will revoke the firm's license" "Because of updated RESPA requirements, buyers receive a disclosure form that estimates the final closing costs for their mortgage transaction. What form do they receive? HUD-1 form Consumer protection booklet Closing Disclosure form Loan Estimate form - CORRECT ANSWER=> Loan Estimate Form" "Using the capitalization formula, what is the value if the net operating income is $20,000 and the rate of capitalization is 10%? $20, $200, $2, $2 million - CORRECT ANSWER=> $200,000" "Select the statement that correctly exemplifies the covenant term. A) The covenant of warranty promises that the grantor has the capacity to convey title. B) The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.
C) The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property. D) The covenant against encumbrances is the grantor's guarantee that he or she owns the property being conveyed. - CORRECT ANSWER=> The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on" "Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy? A) Abstract of title B) Preliminary report C) Title insurance D) Guarantee of title - CORRECT ANSWER=> Preliminary Report" "Which of the following describes a right-of-way easement? A) Land that a railroad company runs its track through B) A fence that divides two neighbors' properties C) A recreation area of a condo that anyone can rent out for parties D) A dock that a neighbor shares with another for launching his boat - CORRECT ANSWER=> Land that a railroad company runs its track through" "Sander and Ginny bought an old industrial site with plans to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they've made a great investment because the land is in great shape. This reflects which physical characteristic of real property? A) Uniqueness B) Indestructibility C) Improvements D) Immobility - CORRECT ANSWER=> Indestructibility" "Darren wants to set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust, and Tom agreed. How is the trust created? A) When Tom distributes income from the real estate investments. B) When Darren conveys the real estate to Tom. C) When Darren dies.
CORRECT ANSWER=> No, government employees are an exception to the real estate license requirement." "Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission? - CORRECT ANSWER=> The listing agent stops working on the listing." "What information would the Loan Estimate NOT provide to buyers under the TRID-required disclosures law? - CORRECT ANSWER=> Final closing costs" "Randa is trying to lower the vacancy rates for the commercial property she manages because her revenue targets have increased by 8% over the next year. What type of budget contains this revenue detail? - CORRECT ANSWER=> Operating budget" "When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? - CORRECT ANSWER=> The licensee is permitted to list other properties for sale, even if they're competing properties." "Fallon is a broker who wants to ensure she is paid, regardless of whether a property sells. She asks for 4% of the listing price up front, which is lower than her colleague's 6% contingency fee. What type of fee is this? - CORRECT ANSWER=> Advance Fee" "Which of the following actions occurs prior to closing? - CORRECT ANSWER=> The buyer obtains a binder for insurance coverage on the new home." "Which source of law is created through legislation? - CORRECT ANSWER=> Statutory Law" "The two primary purposes of which kind of budget are to help property managers maximize profitability and to avoid unforeseen major expenses. - CORRECT ANSWER=> Operating" "In which of these situations has the licensee compromised the duties of loyalty and disclosure? - CORRECT ANSWER=> Nate didn't tell his client about a conflict of interest related to the sale of the client's property." "Dean is an experienced licensee whose career has focused on mineral, oil, and water rights, and the science behind soil cultivation. Based on this, what's Dean's likely real estate niche? - CORRECT ANSWER=> Farm Brokerage" "Which source of law establishes legal precedent? - CORRECT ANSWER=> Case law"
"Because these types of properties have both specific physical and complex operational requirements, they are usually handled by more experienced real estate professionals. - CORRECT ANSWER=> Industrial" "What is imputed notice? - CORRECT ANSWER=> When actual knowledge received by an agent is deemed to have been given to the principal" "Who is ultimately responsible for ensuring that any hazardous waste produced at an apartment complex is properly disposed of? - CORRECT ANSWER=> The property owner or manager" "A person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______. - CORRECT ANSWER=> An exception to the real estate licensing requirement" "Bernie is representing Oscar in the sale of Oscar's home. They have signed an exclusive right to sell listing agreement. If Oscar finds his own buyer, does he owe Bernie a commission? - CORRECT ANSWER=> Yes, because exclusive right to sell means Bernie gets paid no matter who finds the buyer" "When discussing brokerage compensation policies, brokers must disclose ______. - CORRECT ANSWER=> How brokers representing other parties will be paid" "What option does a licensee have when a notice for a hearing has been received? - CORRECT ANSWER=> Reach a settlement with the commission, halting the hearing process." "Which of the following duties is owed to both clients and customers? - CORRECT ANSWER=> Prompt presentation of all written offers and counter-offers" "Genevieve, an unlicensed pre-licensing student, works for Peachtree Real Estate as an office assistant. She's very good at networking and bringing in new clientele. She receives a salary as a full-time employee of the firm. The qualifying broker wanted to reward Genevieve for her commitment to the firm and for drumming up great business. What do we know about this situation? - CORRECT ANSWER=> If the broker compensated Genevieve for her referrals to the firm, he would be in violation of the unfair trade practices law because he would be paying an unlicensed individual for referrals, which is prohibited in statute 43-40-25 of Georgia license law" "Before applying for relief from the recovery fund, what must a member of the public do, after receiving a judgment against a licensee for wrongdoing? - CORRECT ANSWER=> Exhaust other legal remedies" "A licensee must notify GREC of a conviction of a crime ______. - CORRECT ANSWER=> Immeadiately"
