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GA REAL ESTATE FINAL EXAM QUESTIONS & ANSWERS
"Which of the following would not be taken into account when estimating sellers' closing costs?
CORRECT ANSWER Prepayment Penalty"
"When serving solely as a buyer's agent, it is unlawful for the real estate licensee to disclose any
confidential information about the _______. - CORRECT ANSWER Buyer"
"A real estate licensee acting solely as a seller's agent, it is unlawful for the real estate licensee to
disclose any information about the _________. - CORRECT ANSWER Seller"
"What conditions must be met to terminate a contract? - CORRECT ANSWER It is impossible
for one of the parties to preform."
"What type of lease agreement features a natural break-even point? - CORRECT ANSWER
Percentage Lease" "Which one of the following is NOT one of the six moral and ethical responsibilities that an agent
owes the principal in fiduciary relationships under common and statutory law stem? - CORRECT
ANSWER Responsibility"
"If a salesperson's sponsoring broker mentioned in the written affiliation agreement that the
salesperson could sign a listing as the agent, can the salesperson legally do so in Georgia? -
CORRECT ANSWER Yes, because the salesperson was authorized to do so in the affiliation
agreement"
"One of the main purposes of the FHA is to: - CORRECT ANSWER Insure Home Loans"
"What type of loan would be the BEST option for senior homeowners, who have paid off their
loan and would like to receive monthly income? - CORRECT ANSWER Reverse Mortgage"
"Land, minerals beneath the earth's surface, water on/below the earth's surface, and the air
above the surface all describe what? - CORRECT ANSWER Physical boundaries of land"
"A consumer can receive a free credit score: - CORRECT ANSWER Every four months from
different credit reporting companies"
"FICO stands for: - CORRECT ANSWER Fair Isaac and Corporation"
"In a relationship between a broker and seller, what type of agency is being utilized? - CORRECT
ANSWER Special"
"Which defines the HUD-1 Settlement Statement? - CORRECT ANSWER That shows the
charges imposed on borrowers and sellers with connection to the settlement." "_______ means that someone died after preparing a proper will that outlines how their personal
and real property is to be taken care of. - CORRECT ANSWER Testate"
"A mortgage lien is an example of a(n): - CORRECT ANSWER Voluntary Specific Lien"
"Real estate is considered illiquid because: - CORRECT ANSWER It is often difficult to convert
to cash"
""Base employment" in real estate demands means: - CORRECT ANSWER The number of
persons employed in base industries in an area"
"Master planning zoning is described as: - CORRECT ANSWER Land use and the master plan
are kept together by use of zoning ordinances"
"Select the option that does not apply to the Duties of a borrower: - CORRECT ANSWER
Payment of all real estate taxes on the property used as security" "Please select one of the following that is NOT an essential difference between property
management and community association management: - CORRECT ANSWER Community
managers complete daily tasks contributing to the maintenance and renting of the owner's property Community association management services: The provision, for a valuable consideration, to others of management or administrative services on, in, or to the operation of the affairs of a community association, including, but not limited to, collecting, controlling, or disbursing the funds; obtaining insurance, arranging for and coordinating maintenance to the association property, and otherwise overseeing the day-to-day operations of the association."
"Select one of the following offers Community Association Manager certificate exam in Georgia?
CORRECT ANSWER Applied Management Professionals"
"A chronological summary of the properties title records and other public records affecting
interests in the property is known as - CORRECT ANSWER Abstract of title"
"Redlining has which of the following negative results? - CORRECT ANSWER It is a major
contributor to the deterioration of older neighborhoods"
"An installment sale is - CORRECT ANSWER refers to a promissory note from the buyer for an
initial payment at the time of the sale and then future payments with interest"
"A lienee is a(n) ___ - CORRECT ANSWER Debtor"
"James wants to know how much a house costs and if he can afford one. He has a gross income of $5,350. If the required down payment can be made, what is James's allowable housing expense?
CORRECT ANSWER 36% x 5350 gross monthly income = $1,926 - Total housing and other debt
expense allowed 28% x 5350 = $1,498 - Total housing expense allowed. If actual monthly non- housing debts exceed 8% of gross income (36%-28%), and the borrower is unable to reduce that amount, the monthly payment must be lowered proportionately because the debts and housing payment combined cannot exceed 36% of gross monthly income."
"Which of the following situations is the contract enforceable? - CORRECT ANSWER A written
contract that conveys interest in real estate with a legal description of property and signed by one or more parties"
"Which statement defines a deceptive ad? - CORRECT ANSWER an ad that contains or omits
statements that will likely mislead reasonable consumers.Correct" "Which type of property manager is most likely to work for real estate developers and investors?
CORRECT ANSWER Real estate development"
"How many discount points make up 1% of the term balance? - CORRECT ANSWER 8 points"
""Regardless of any man-made or natural changes, the land remains basically the same." This best
describes which physical characteristic? - CORRECT ANSWER Indestrucibility"
"The location of land cannot be changed" best describes which physical characteristic? -
CORRECT ANSWER Immobility"
"The following examples are defined as what kind of property: canals, ponds, machinery, and
buildings. - CORRECT ANSWER Real Property"
"VA loans in Georgia may be made by: - CORRECT ANSWER A local mortgage banker or lending
institution." "If a licensee decides to take a listing from a friend who lives 3 hours away and does not market
the property, then they are violating the ______. - CORRECT ANSWER Fidicuary Relationship"
"What is the process known as "due diligence" used for? - CORRECT ANSWER It makes all
parties (buying and selling) responsible for their own mistakes" "If an associate broker is offered a position for the qualifying broker of another firm then what
must they do? - CORRECT ANSWER must give the broker holding their license notice"
"What determines the max commission rate that a broker may charge on the sale of a property he
or she has listed is: - CORRECT ANSWER whatever amount the seller and broker agree on"
"How should a realtor respond when questioned about the commission rate they are quoting
seeming somewhat high in listing presentation? - CORRECT ANSWER It is the going rate in our
market"
"Why does the FTC pay close attention to ads that involve health/safety and evaluation issues? -
CORRECT ANSWER These ads for reasonable consumers would likely have trouble evaluating
them for themselves." "Which type of Estates Associated with Real Properties best describes the current owner(s) have
a deed or irrevocable trust that allows future interest owners to inherit the property? -
CORRECT ANSWER Future interest ownership"
"Once a property is sold, the past owner has another opportunity to get the property back
through? - CORRECT ANSWER Redemption"
"When a _____ occurs in Georgia, a tax sale is held and a one-year redemption period follows the
sale. - CORRECT ANSWER Tax delinquency"
"A contract is unenforceable when: - CORRECT ANSWER Neither party can sue the other to
force performance"
"What is a new offer substituted for the original offer? - CORRECT ANSWER Counteroffer"
"The buyer can rescind a contract or ____ if detects are not disclosed about the property and the
property is misrepresented. - CORRECT ANSWER money to repair the defect"
"Which of the following describes how unilateral and bilateral contracts are different? -
CORRECT ANSWER Only one party is required to perform in a unilateral contract, while both
parties are required to perform in a bilateral contract"
"What category do nonresidential properties fall into? - CORRECT ANSWER Agricultural,
Industrial, Special Use buildings with no use for single-family units or mix-use buildings."
"What is real property? - CORRECT ANSWER means one or more defined interests, benefits,
and rights inherent in the ownership of real estate."
"The four characteristics of Value in the Real Estate Market are: - CORRECT ANSWER Demand,
Utility, Scarcity, and Transferability"
"In which system is a recorded subdivision plat used? - CORRECT ANSWER The Lot and Block
System"
"What is an appurtenance in real property? - CORRECT ANSWER Trees, buildings, or
ownership rights"
""The location of land cannot be changed" best describes which physical characteristic? -
CORRECT ANSWER Immobility"
"Which is a property improvement? - CORRECT ANSWER Artificial Attachments"
"Which term matches the definition: ________ is the period of time that the ROI (Return on
Investment) will be realized over. - CORRECT ANSWER Economic life"
"A fixture becomes real estate by: - CORRECT ANSWER Method
Adaptability Agreement"
"What is not covered by Hazard Insurance? - CORRECT ANSWER Damage from wild life"
"Express Agency - CORRECT ANSWER established by either oral or written agreement, is a
contract between the principal and the agent. The written agreement is the most appropriate way to create an agency relationship to ensure the agent receives a fee for services performed."
"listing agreement (or seller representation agreement) - CORRECT ANSWER An expressed
agency relationship between a seller and an agent"
"What are the 6 duties of fidicurary relationship? - CORRECT ANSWER 1. Care 2. Obidence 3.
Loyalty 4. Disclosure 5. Accounting 6. Confidientiality ACRONYM: COLD-AC"
"General agents - CORRECT ANSWER Authorized to act on behalf of the principal for a broad
range of business matters. Property managers are..."
"Dual Agents - CORRECT ANSWER simultaneously have a client relationship with both the
seller, buyer or both tenant and landlord, in the same transaction."
"Transaction coordinator - CORRECT ANSWER non agent who acts merely as a facilitator to a
party. Often this entails assisting the parties with paperwork, but not acting as a fiduciary to either one"
"Single Agency - CORRECT ANSWER In a single agency, only one party is represented by the
agent in a transaction. The real estate professional owes the principal fiduciary responsibility under the umbrella of the Common Law."
The superior/senior lien has priority over the inferior/junior lien which puts the superior lien is first in line to receive proceeds of a foreclosure. In this kind of situation, the inferior lien would be considered subordinate to a superior lien regardless of the recording date."
"What sets liens apart from other types of encumbrance? - CORRECT ANSWER It involves a
monetary claim against the value of a property. A lien is a creditor's claim against personal or real property as security for a debt of the property owner. If the owner defaults, the lien gives the creditor the right to force the sale of the property to satisfy the debt. Liens do not necessarily alter the property value. Liens can be involuntary as well as voluntary. Finally, liens attach to the property, but so do other encumbrances."
"The statute of fraud, a written agreement must include which of the following. - CORRECT
ANSWER To fight against fraud and abuse in making binding agreements, involving selling of
real estate GA law requires any contract or interest be in writing and signed by the person against whom the contract is enforced. This agreement must include, identification of the buyer and seller, legal description of the property, the price to be paid for the property, and how the price will be paid." "A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were for members only. Is
the club in violation of the Federal Fair Housing Act, and if so, how? - CORRECT ANSWER No. A
private club may restrict the rental of its own lodgings to its members as long as the lodgings are not operated commercially."
"To be legitimate, a claim to any real property must be accompanied by a blank. - CORRECT
ANSWER Legal Description"
"Which person in the following scenarios holds a real estate license? - CORRECT ANSWER
Linda works for more than one owner for a fee." "Select one of the following for the required continuing educational amount for a community
association manager? - CORRECT ANSWER 36 hours every four yearsCorrect"
"_______ it required a 90% reduction in pollution emission and expected manufactures to
comply within 5 years. - CORRECT ANSWER The Clean Air Amendment was passed
in 1970 which allowed the EPA to create air quality standards and rules. Under this amendment, it required a 90% reduction in pollution emission and expected manufactures to comply within 5 years."
"Define a ministerial act, within the state of Georgia. - CORRECT ANSWER Responding to
general questions about the price and location of a specific property Ministerial Acts: Those acts related to real estate brokerage activities, which a licensee or a licensee's employee perform and which do not require discretion or the exercise of the licensee's own judgment. This includes responding to general questions about the price and location of a specific property."
"Which would be regarded as a true statement? - CORRECT ANSWER Brokers are obligated to
be loyal to a seller"
"The listing agreement does what? - CORRECT ANSWER It authorizes the agent to perform
designated duties to find a buyer or tenant for the seller's property."
"What is the CAN-SPAM Act of 2003? - CORRECT ANSWER An act that protects consumers
from being bombarded with unwanted email solicitations"
"Rent control can be defined as: - CORRECT ANSWER restriction of the rent that can be
charged by the state"
"What is a specific lien? - CORRECT ANSWER A general lien affects all of a debtor's property,
while a specific lien affects only a certain piece of property A general lien affects all of a debtor's property, while a specific lien affects only a certain piece of property. A general lien affects all of a debtor's property, both real and personal. A specific lien affects only a particular piece of real or personal property. Both general and specific liens may be enforced in court."
"Which are examples of the types of trusts (and business organizations)? - CORRECT ANSWER
Real Estate Investment A trust is a device by which one person transfers ownership of the property to someone else to hold or manage for the benefit of a third party: LAND TRUSTS; TESTAMENTARY TRUSTS; LIVING TRUSTS; REAL ESTATE INVESTMENT TRUSTS."
"A legal description in Georgia would MOST commonly be found in a? - CORRECT ANSWER
Seller's warranty deed"
"Which of the following is FALSE about an expressed contract? - CORRECT ANSWER -Is created
by the acts of the parties*** -Maybe a contract for forbearance -Can be written or oral
