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COLIBRI REAL ESTATE (REAL ESTATE EXPRESS)
FINAL EXAM REVIEW (2023 UPDATED) FULLY SOLVED
"Ben is a broker who is selling his own home. When advertising his home for sale, all of the following is true about the ad EXCEPT that it A) must use the firm's name. B) must be honest. C) must clearly indicate that Ben is a licensed broker.
D) may use Ben's own name. - Correct Answer A) must use the firm's name"
Broker Jane has been accused of a law violation regarding commissions. Which of the following might result in her being found guilty? A) Jane paid a commission to her licensed personal assistant. B) Jane paid a commission to the wife of one of her licensees who was recently killed in an auto accident. The deceased licensee had earned the commission prior to his death. C) Jane paid a commission plus a bonus to one of her licensees. D) Jane paid a commission to a Florida licensee who is not licensed in Georgia for licensing activity in
Georgia. - Correct Answer D) Jane paid a commission to a Florida licensee who is not licensed in
Georgia for licensing activity in Georgia." "Seller Harry signs a contract with broker Barry that Barry will be paid a 6% commission even if Harry sells the house to a co-worker without any help from Barry. What type of listing agreement did Harry sign? A) exclusive agency B) exclusive right to sell C) open listing
D) net listing - Correct Answer B) exclusive right to sell"
"Which of the following is NOT a protected class under Georgia fair housing law? A) Sexual preference B) Familial status C) Religion
D) Race - Correct Answer A) Sexual preference"
"Syed is an inactive licensee. He just moved to a new home across town. What must he do? A) Call the Commission and give it his new address. B) Report the address change when he's ready to reactivate his license.
C) Send a written notice to the Commission within 30 days.
D) Notify the post office to send a change of address notice to the Commission. - Correct Answer C)
Send a written notice to the Commission within 30 days." "How many hours of continuing education must a licensee complete for each year of licensure? A) 8 hours B) 9 hours C) 5 hours
D) 4 hours - Correct Answer B) 9 hours"
"Glenda is the office manager for a local real estate firm. She is responsible for coordinating the paperwork flow through the office, preparing ads and supervising the clerical staff. Glenda is A) required to have a salesperson's license. B) violating license law. C) required to have a broker license.
D) exempt from the license law. - Correct Answer D) exempt from the license law."
"Haru is working with his buyers to draw up a written offer on a property they want to purchase. Which of the following items is not required in the offer? A) The property description B) The mortgage lender C) The method of payment
D) Special stipulations the offer requires - Correct Answer B) The mortgage lender"
"Kezia just bought and closed on a new home that cost $195,000. her mortgage amount is $165,500. how much is the intangible recording tax on Kezia's property? A) $ B) $ C) $165.
D) $496.50 - Correct Answer D) $496.
*An intangible recording tax is due and payable on each instrument securing one or more long-term notes at the rate of $1.50 per each $ $165,500 ÷ $500 = 331 331 x $1.50 = $496.50" "Salesperson Gordon refuse to accept an offer to purchase his home from buyer Juan Valdez of Columbia because Gordon feels the earnest money of $100 is not enough. Which of the following statements about Gordon's refusal is correct?
B) 2 miles C) 5 miles
D) 10 miles - Correct Answer A) 1 mile"
"Jadarius has had his license suspended. By law, Jadarius's name will b e published on the Georgia Real Estate Commission website if the licenses has been suspended for how long? A) 15 days B) 30 days C) 60 days
D) 90 days - Correct Answer C) 60 days"
"Why was the Real Estate Education, Research and Recovery Fund established? A) To educate the public about real estate B) To fund courses for real estate agents C) To compensate consumers damaged by licensees' practices
D) To conduct real estate research projects - Correct Answer C) To compensate consumers damaged
by licensees' practices" "Which of these persons would require a real estate license? A) Suresh is a full-time employee of a utility company. He negotiates and acquires leases for the company. B) Greta is an attorney who conveys real estate under a power of attorney. C) Jack refers clients to his licensed broker brother and receives a fee from the parties he refers.
D) A partnership sells a building owned by the partners. - Correct Answer C) Jack refers clients to his
licensed broker brother and receives a fee from the parties he refers." "Broker Larry received an earnest money check from a buyer for $3,000. He needed the money, so he cashed the check. At closing, he gave the seller a check for $3,180, the amount of the original check plus 6% interest. Which statement is true? A) Larry should have deposited the earnest money in a federally-insured account with other escrow funds. B) It was okay that Larry cashed the check, but he should not have given the interest to the seller. C) Larry should have deposited the check into his personal account and kept the interest. D) Larry should have discussed what to do with the interest with all of the parties involved in the
transaction. - Correct Answer A) Larry should have deposited the earnest money in a federally-insured
account with other escrow funds." "Which of the following is true of Georgia support personnel? A) They must be licensed.
B) They may insert factual information into form contracts under the supervision of the employing broker. C) They may independently host open houses.
D) They must always be unlicensed. - Correct Answer B) They may insert factual information into form
contracts under the supervision of the employing broker." "Jake and Hal are partners in a real estate firm. Jake, the qualifying broker, dies unexpectedly. Which of the following statements is FALSE? A) Hal may temporarily saves as qualifying broker if the qualifying criteria are met. B) The designated partner can sign all documents that must filed with the Commission. C) Only Hal has the authority to disburse trust funds from the designated accounts.
D) The firm has 60 days to secure a new qualifying broker. - Correct Answer C) Only Hal has the
authority to disburse trust funds from the designated accounts." "Jim is a community association manager and Dick is a property manager. Which of the following statements is NOT true? A) Jim deals with multiple owners. B) Dick has a single client. C) Jim interacts with his owner frequently.
D) Dick must have day-to-day contact with his client. - Correct Answer D) Dick must have day-to-day
contact with his client." "The Department can revoke salesperson Tobias's license if he does which of the following actions? A) Sells his home without using his employing broker. B) Represents a buyer in a real estate transaction. C) Persuades a seller to list with him in an exclusive agency arrangement.
D) Deposits an earnest money check in his personal account. - Correct Answer D) Deposits an earnest
money check in his personal account." "Which of the following situations is NOT a proper situation for earnest money disbursal? A) Seller rejects the purchase offer. B) Buyer withdraws a purchase offer two days after acceptance. C) All parties to the transaction sign a written agreement allowing the disbursal.
D) The transaction closes. - Correct Answer B) Buyer withdraws a purchase offer two days after
acceptance." "Sarah wants to sell her own home. Which statement is true? A) She does not need a license to sell her own home. B) Sarah must have a real estate salesperson's license.
"Broker Philippe has been found guilty of committing ten discriminatory housing practices over the past five years. The court may fine him up to A) $10, B) $25, C) $50,
D) $100,000 - Correct Answer C) $50,000"
"Theresa wants to apply for a CAM license. She must meet all BUT which one of the following requirements? A) She must pass the written real estate exam with a score of 70% or higher. B) She must have completed at least 25 hours of a community association manager course. C) She must be 18 years old.
D) She must have a high school diploma or equivalency certificate. - Correct Answer A) She must pass
the written real estate exam with a score of 70% or higher." "Broker Tara has an offer to purchase a home listed with her firm. After the buyers sign all the paperwork and Tara accepts their earnest money, what must she do? A) Deposit the earnest money in her personal account for safekeeping. B) Fill out a special earnest money form for the buyers to give to their lender. C) Hold the offer until she receives at least one more before presenting to the seller.
D) Give the buyers a copy of the agreement right away. - Correct Answer D) Give the buyers a copy of
the agreement right away." "What is true about brokerage engagements in Georgia? A) A brokerage engagement can only be drawn up by an attorney. B) A promise of compensation automatically creates a brokerage engagement. C) They must be on specially-designed and approved forms.
D) They must be in writing to be enforceable. - Correct Answer D) They must be in writing to be
enforceable." "Salesperson Mona is selling her own home. Which of the following is always true? A) Mona must list the property with her employing broker. B) The Commission will require that Mona list the property with a licensed broker. C) The employing broker must grant permission for Mona to sell her property. D) Mona's ownership of the property and licensed status must be disclosed to all parties to the
transaction. - Correct Answer D) Mona's ownership of the property and licensed status must be
disclosed to all parties to the transaction."
"What happens to the wall license and pocket card when they are issued? A) They are mailed to the licensee's home address B) They are issued to the employing broker's business address. C) The license is mailed to the broker and the pocket card is mailed to the licensee.
D) They are mailed to the employing broker's home address. - Correct Answer B) They are issued to
the employing broker's business address." "According to the Sherman Antitrust Act, which of the following statements is legal? A) "Our company pays 3% of the sales price to subagents." B) "You can't sell properties on this side of town because your office is in another county." C) "We don't cooperate with Branson Realty because they discount their commissions."
D) "Everyone charges the same, so you might as well list your property with me." - Correct Answer A)
"Our company pays 3% of the sales price to subagents."" "Broker Jackson has given salesperson Anantha permission to hold trust funds in a designated trust account that she owns. Jackson is obligated to give all of the following information the Commission EXCEPT A) Anantha's name. B) The account number of Anantha's trust account. C) A quarterly reconciliation statement on the account.
D) The name of the bank where Anantha maintains the account. - Correct Answer C) A quarterly
reconciliation statement on the account." "Broker Chelsea falsified proof of completion of continuing education to renew her license. The Commission can do any of the following EXCEPT A) refuse to renew her license. B) convict her of a crime. C) suspend her license.
D) revoke her license. - Correct Answer B) convict her of a crime."
"Commission members must be Georgia residents for at least how long before they are eligible for appointment? A) 2 years B) 5 years C) 8 years
D) 10 years - Correct Answer B) 5 years"
"Money deposited in the Recovery Fund can come from all but which of the following sources?
"A tenant's broker knows that his client (the tenant) has recently lost his job and that his financial situation is less than perfect. The tenant is interested in a landlord's property but the rent is so high the broker does not think the tenant would be able to afford it for very long. Can the broker tell the landlord about the tenant's financial situation? A) Yes, the broker must tell the landlord. B) No, the broker must not tell the landlord. C) The broker may tell the landlord only if the landlord asks about the tenant's finances.
D) The broker may tell the landlord only if the tenant permits the broker to do so. - Correct Answer A)
Yes, the broker must tell the landlord. *Under BRRETA, a tenant's broker must disclose to a prospective landlord all material facts actually known by the broker regarding the tenant's financial ability to perform the terms of the lease or letter of intent to lease." "A home sold for $175,000. The buyers assumed a $60,000 mortgage. What will the transfer tax be on this sale? A) $ B) $ C) $
D) $115 - Correct Answer D) $
$1 for the first $1, $114,000 ÷ $100 = $1, $1,140 x 0.10 = $ $114 + $1 = $115" "Generally speaking a listing broker has earned his or her commission A) at the closing table. B) when the listing agreement is signed. C) when a ready, willing and able buyer is found on terms acceptable to the seller.
D) when a sales contract is signed. - Correct Answer C) when a ready, willing and able buyer is found
on terms acceptable to the seller." "Which of the following statements is NOT true?
A) A transaction broker has an obligation to all parties in a transaction. B) A transaction broker does not represent either party in a transaction. C) Transaction brokers charge a flat fee instead of a commission.
D) A transaction broker is not a dual agent. - Correct Answer A) A transaction broker has an obligation
to all parties in a transaction." "Which situation is NOT EXEMPT from the provisions of federal fair housing laws, assuming no discriminatory advertising is used and a licensee is not involved? A) A developer of a condominium community who will sell only to persons age 62 or older. B) An owner-occupant of a duplex who will lease the other unit only to a white woman. C) A private club rents apartments in a building it owns only to members in good standing.
D) a property owner rents his single-family home but refuses to allow children because there's a pool -
Correct Answer B) An owner-occupant of a duplex who will lease the other unit only to a white
woman." "Who would be obligated to complete a property disclosure report or notice? A) a builder B) a listing agent C) a seller
D) a selling agent - Correct Answer C) a seller"
"An investor takes out a mortgage to buy a rental property he's able to repay the loan with the rent he collects while also earning income from the investment, this is an example of A) liquidity. B) leverage. C) depreciation.
D) marketability. - Correct Answer B) leverage."
"Seller Vaughn is very pleased with the way his home sale was handled by salesperson Brad. Vaughn decides to give Brad a bonus. On what condition can Brad accept this bonus? A) Brad can receive this bonus if he is an independent contractor. B) Vaughn may pay the bonus directly to Brad. C) Vaughn may pay the bonus to Brad's broker, who may then pay Brad.
D) Brad may not accept the bonus under any circumstance. - Correct Answer C) Vaughn may pay the
bonus to Brad's broker, who may then pay Brad." "The Smiths and the Johnsons share part of a driveway. To ensure that each family can enjoy use of the driveway and share the maintenance costs, they most likely have what type of easement?
B) credit to the seller C) debit to the buyer
D) debit to the seller - Correct Answer A) credit to the buyer"
"Alice conveys a life estate to youngest daughter Bonnie for as long as her husband Chris shall live and then to niece Darlene. Whose life is the measuring life? A) Alice B) Bonnie C) Chris
D) Darlene - Correct Answer C) Chris"
"What is the purpose of requiring mortgagors to make payments into an escrow account? A) allow the borrower to obtain actual cash from the equity built up in the property. B) ensure that hazard insurance and property taxes on the property are paid. C) ensure the lender collects the additional interest on an adjustable rate loan.
D) provide a cushion for the borrower in the event of a job loss. - Correct Answer B) ensure that
hazard insurance and property taxes on the property are paid." "Which of the fiduciary duties owed by a real estate licensee to his or her client survives the termination of the agency relationship? A) confidentiality B) disclosure C) loyalty
D) obedience - Correct Answer A) confidentiality"
"Agent Leo and his client Hannah have just signed an open listing agreement that will pay Leo a 6.5% commission if he finds a willing and able buyer for her house. Which option best describes this agreement at this time? A) express, bilateral, executed B) express, bilateral, executory C) express, unilateral, executory
D) implied, bilateral, executed - Correct Answer C) express, unilateral, executory"
"You are driving through a suburb of a city and notice that all of the fast food signs are close to the ground. This is a result of A) building codes B) CC&RS C) variances
D) zoning ordinances - Correct Answer D) zoning ordinances"
"Which of these is NOT considered when determining whether an item is a fixture or personal property? A) intention of the annexer B) manner of annexation C) value of the annexed item
D) relationship of the parties - Correct Answer C) value of the annexed item"
"RESPA applies to ___________ financed by a federally regulated loan. A) any commercial or residential property B) any residential property C) one- to four-family residences
D) only single-family dwellings - Correct Answer C) one- to four-family residences"
"Of these, which is LEAST LIKELY to be considered an example of puffing? A) "like being on vacation every day" B) "loveliest street in the whole town" C) "magnificent chef-inspired kitchen"
D) "three-car garage with room for a workshop" - Correct Answer D) "three-car garage with room for a
workshop"" "Friable particles from asbestos are most likely to be a danger to one's health when they are A) encapsulated B) inhaled C) touched
D) wet - Correct Answer B) inhaled"
"Kim is the title officer handling the transfer of Greg and Ashley's house to buyers Alex and Amanda. As they gather at the settlement table, Kim has stacks of documents that need to be signed in order to complete the transaction. Who signs the deed? A) Alex and Amanda B) Greg and Ashley C) Greg, Ashley, Alex and Amanda
D) Greg, Ashley and Kim - Correct Answer B) Greg and Ashley"
"Which is an example of steering? A) a licensee tells homeowner that their property values will drop when a foreign family moves in. B) a mortgage banker refuses to make loans for a particular inner-city neighborhood. C) a property manager suggests a prospective tenant would be happier in a more diverse building.
"Which form of real property ownership is the MOST comprehensive? A) defeasible fee estate B) fee simple estate C) leasehold estate
D) life estate - Correct Answer B) fee simple estate"
"Licensee Patti is having lunch with an old school friend, Janet. Janet tells Patti, "It's time to downsize, I sure wish I could sell my house." Patti responds, "Well I have just the person for you. Make sure you're home at 7:00 this evening." Identify the statement that best describes the situation. A) Janet cannot assume any relationship B) Janet could be Patti's client through express agency C) Janet could be Patti's client through implied agency
D) Janet has just made Patti her universal agent - Correct Answer C) Janet could be Patti's client
through implied agency" "Which is NOT a necessary element for a valid and enforceable purchase contract? A) consideration B) contractual capacity C) earnest money deposit
D) mutual agreement - Correct Answer C) earnest money deposit"
"Which statement about a comparative market analysis is FALSE? A) A CMA can assist a buyer in determining a fair price to offer for a home. B) A CMA can assist a seller in determining an appropriate listing price. C) A CMA may be used to determine property value for a federally regulated loan.
D) A CMA should evaluate properties currently listed, recently sold or with expired listings. - Correct
Answer C) A CMA may be used to determine property value for a federally regulated loan."
"When Dave and Lucy get married, they decide to sell each of their homes and buy one house together. Lucy's house sells for $700,000; Dave's house sells for $300,000, and they're going to buy a $1 million house. If Lucy wants a 70% interest in the new house, what form of ownership must they take? A) joint tenancy B) tenancy in common C) tenancy by the entirety
D) tenancy in severalty - Correct Answer B) tenancy in common"
"A property is listed for $200,000. The broker gets an offer from Gina for $150,000 cash with a closing in 90 days, one from Tim at $155,000, subject to the buyer getting a first mortgage for $130,000, an offer
from Shari at $190,000 subject to the owner taking back a purchase money mortgage with closing in 30 days. The broker should disclose which offer(s)? A) all of the offers B) none of the offers, as they are all below the asking price C) only the first offer until the seller makes a decision to accept or reject, then present the next offer
D) whichever offer is the highest and has the most favorable terms to the seller - Correct Answer A) all
of the offers" "An acceleration clause in a mortgage allows the lender to A) charge a penalty if the borrower misses a payment. B) charge a penalty if the borrower pays off the loan early. C) declare the loan due if the borrower defaults.
D) declare the loan due if the borrower sells the property. - Correct Answer C) declare the loan due if
the borrower defaults." "Ad valorem taxes are assessed A) based on a person's income. B) based on the property's value. C) on a decedent's estate.
D) to covert costs of specific improvements to a neighborhood. - Correct Answer B) based on the
property's value" "The lead paint disclosure deals with homes built prior to A) 1978 B) 1982 C) 1992
D) 2001 - Correct Answer A) 1978"
"A woman purchased a home on a lake. A boat was included in the sale. What is most likely required at settlement to transfer ownership of that boat to her? A) bill of sale B) deed C) purchase agreement
D) sales contract - Correct Answer A) bill of sale"
"F signs an exclusive right to sell listing agreement with broker R. Before the listing expires, F terminates the agreement for no reason. The following day, F sells the property to a co-worker. Which statement is TRUE?
D) steering. - Correct Answer D) steering."
"A lender must provide the Closing Disclosure to a borrower at least ___________ prior to settlement. A) 1 business day B) 3 business days C) 3 calendar days
D) 5 business days - Correct Answer B) 3 business days"
"An investor is evaluating the performance of his duplex. If he subtracts debt service from the net operating income, what does he find? A) cash flow before taxes B) cash-on-cash return C) effective gross income
D) reserves for replacement - Correct Answer A) cash flow before taxes"
"Market value can be defined as the A) amount a buyer paid to purchase a property. B) cost in materials and labor necessary to construct property. C) most probable selling price in a typical transaction.
D) what a property actually sold for. - Correct Answer C) most probable selling price in a typical
transaction." "A real estate licensee has actual knowledge of structural damage to the floor boards of a home he has listed due to termite infestation. He informs the buyer's agent that there are no termites or termite damage in the home. The buyer signs a contract to purchase the property. Is the listing agent susceptible to claims of fraud? A) No, because the buyer should have discovered the termite damage. B) No, because the buyer's agent should have been looking out for the buyer. C) Not as long as there is an as-is clause in the purchase agreement.
D) Yes, because he intentionally withheld a material defect. - Correct Answer D) Yes, because he
intentionally withheld a material defect." "A buyer offers a seller $189,500 for his house. The seller accepts. The appraisal comes in at $188,000. If the buyer's lender requires a loan-to-value ratio of 80%, how much of a down payment must she make? A) $37, B) $37, C) $39,
D) $39,500 - Correct Answer C) $39,
The lender will use the lesser of the sales price or the appraisal to consider how much it is willing to lend. In this case, the appraisal is lower. With a loan-to-value of 80%, the lender will loan $150, ($188,000 x 0.80). That means she must make a down payment of $39,100 to purchase this house: $189,500 (sales price) - $150,400 (loan amount) = $39,100 (down payment)." "Legally, the presence of a sexual offender in the neighborhood is considered A) confidential information that a licensee cannot disclose. B) an immaterial fact that a licensee is not required to disclose. C) a material fact that a licensee must disclose.
D) a material fact that the seller must disclose. - Correct Answer B) an immaterial fact that a licensee is
not required to disclose." "An investor paid $330,000 for a small strip mall, plus $20,000 in closing costs. The land on which it sits is valued at 45%. What is the total amount that he will be able to deduct next year as depreciation (rounded)? A) $3, B) $4, C) $4,
D) $4,936 - Correct Answer C) $4,
Depreciation does not count the land value, but is based on 55% of value of the improvements, or $181,500 ($330,000 x 0.55). Divide that by the recovery period of 39 years for nonresidential rental property to find $4,653.8461, rounded to $4,654." "Which obligation has first priority in the event of a foreclosure sale? A) ad valorem taxes B) first mortgage C) IRS tax lien
D) mechanic's lien - Correct Answer A) ad valorem taxes"
"Abandoned private property redeemed by the local government is an example of A) eminent domain. B) escheat. C) police power.
D) taxation. - Correct Answer B) escheat."
"Which situation represents a blind ad? A) A broker includes the NAR logo on his business card, but he is not a REALTOR®. B) A broker includes a national franchise logo in an ad, but she has no affiliation with it.
