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REAL ESTATE FINAL EXAM
QUESTIONS WITH 100% CORRECT ANSWERS
"In Georgia, most community associations are required to have what? a) A licensed CAM agent b) General insurance c) Fidelity insurance d) Hazard insurance
e) An active real estate broker license - CORRECT ANSWER c) Fidelity insurance"
"If the lender requires 12 months of taxes and 5 months of hazardous insurance to establish the escrow account, how much would the buyer have to pay if the annual tax bill was $1900 and the annual hazardous insurance is $850? a) $2354. b) $2254. c) $1273.
d) $2750.00 - CORRECT ANSWER b) $2254.16"
"If an affiliate licensee violates rules and regulations or license law, is the broker required to notify the commission? a) Yes, only if money was involved b) No, the broker can provide training c) No, only consumers can file complaints
d) Yes, always - CORRECT ANSWER d) Yes, always"
"What is the broker responsible for over a licensed real estate agent? a) Controlling the amount of work the sales person does b) Ensuring affiliates are properly licensed c) Nothing, each person is responsible for themselves.
d) Provide no instructions to licensees - CORRECT ANSWER b) Ensuring affiliates are
properly licensed" "Regulation Z covers all the following except... a) Real estate loan for single family home b) Real estate loan for a new business c) Mortgage loan advertising
d) A $24,000 car loan. - CORRECT ANSWER b) Real estate loan for a new business"
"General agency refers to which of the following? a) When a seller hires an agent b) When a broker hires a sales person c) When a buyer hires an agent
d) When a broker assigns an agent to help another agent with two clients - CORRECT
ANSWER b) When a broker hires a sales person"
"When there is no ending date on a contract, besides facing fines, what law determines the contract ends in one year? a) License Law b) Agency law c) BRRETA
d) Rules and Regulations - CORRECT ANSWER c) BRRETA"
"What lien prevents an owner from selling during a suit? a) CC&R b) Specially attachment c) Special Lien
d) Attachment lien - CORRECT ANSWER d) Attachment lien"
"What determines which lien has priority? a) Date on contract b) Lis pendens c) Date of recording with county
d) By court order - CORRECT ANSWER c) Date of recording with county"
"Sale prices of $210,000, 95% loan, annual PMI of 0.65%. What is the monthly PMI payment? a) $1296. b) $1300. c) $108.
d) $108.33 - CORRECT ANSWER c) $108.06"
d) Yes, with the seller agreement - CORRECT ANSWER c) Yes, but only before the offer is
accepted" "Is earnest money an essential element of a real estate contract? a) Yes
b) No - CORRECT ANSWER b) No"
"Degrees and minutes are used in which form of legal description? a) Metes and bounds b) Plat map c) Rectangular survey
d) Google maps - CORRECT ANSWER a) Metes and bounds"
"What is Fructus industrials? a) Personal property b) Real property c) A fixture
d) Natural growing flowers - CORRECT ANSWER a) Personal property"
"In replacement cost approach, you must first determine what? a) Depreciation b) Sales price c) Land value
d) Market value - CORRECT ANSWER a) Depreciation"
"An office building has a gross quarterly income of $270,000, with an annual expense of 52% of gross income. What is the estimated net profit? a) $518, b) $518, c) $129,
d) $130,000 - CORRECT ANSWER b) $518,500"
"When does a tenant not have to pay rent? a) Always, rent is always due b) Upon death of landlord c) When notice to move out has been properly given
d) When the tenant moves out/abandoned the property - CORRECT ANSWER c) When
notice to move out has been properly given" "What does the covenant of quiet enjoyment mean for a renter? a) Landlord promises to do repairs b) Landlord promises neighbors will be quiet after 10pm c) Landlord promises tenant will not have to worry about any title claim against the property
d) Protects the property from damages cause by tenants and pets - CORRECT ANSWER c)
Landlord promises tenant will not have to worry about any title claim against the property" "To be enforceable, when must a lease be in writing? a) For more than one year b) For less than one year c) Always d) More than 6 months
e) All leases are enforceable - CORRECT ANSWER a) For more than one year"
"A sales person must meet all the requirements except... a) Be 18 years of age b) Take a 75-hour real estate course c) Have a high school diploma
d) Pass class and state exam - CORRECT ANSWER c) Have a high school diploma"
"When must earnest money be turned over to the broker? a) Immediately b) Immediately, unless agent has written permission to hold it c) When offer is accepted
d) Within 72 hours - CORRECT ANSWER a) Immediately"
"What does a meeting of the mind mean? a) The offer is signed. b) The terms of the offer have been satisfied. c) The offer has been delivered and accepted.
b) Solo owner c) Tenants in common
d) A condominium - CORRECT ANSWER d) A condominium"
"What does a buyer use to determine their property line and check for encroachments? a) Appraisal b) Survey c) Insurance Policy
d) Title searches - CORRECT ANSWER b) Survey"
"A friend tells you another agent isn't doing a good job with their listing. What should you do? a) Tell them to cancel and list with you b) Tell them to contact the commission c) Tell them to contact your broker
d) Tell them to contact the listing broker - CORRECT ANSWER d) Tell them to contact the
listing broker" "Can an agent write a complex real estate contract? a) No, they are not lawyers. b) No, only brokers can write contracts. c) Yes, with the brokers permission.
d) Yes, if they went to law school and know how to write contracts. - CORRECT ANSWER a)
No, they are not lawyers." "The real estate settlement procedures act requires all the following except... a) Use of HUD-1 form b) Deliver or settlement cost to buyer c) Immediate delivery of the good faith estimate
d) Reasonable impoundment - CORRECT ANSWER c) Immediate delivery of the good faith
estimate" "If one party of a Joint tenant sells, what happens? a) The original owners will be tenants in common with the new owner. b) Nothing, selling doesn't affect ownership. c) The new owner will be a joint tenant with the original owners.
d) All owners now own the property as tenants in common. - CORRECT ANSWER a) The
original owners will be tenants in common with the new owner." "Who is responsible for damages from an encroachment? a) The owner of the property being encroached on. b) Both parties split fee, if damages was done unintentionally. c) No one, if damages were unintentional.
d) The owner of the property that is causing the encroachment. - CORRECT ANSWER d) The
owner of the property that is causing the encroachment." "If an owner is violating CC&R, what can neighbors do? a) Nothing, it's their property. b) Start a petition. c) Get a court injunction against the action.
d) Call 911, fire/ police/ and Emergency. - CORRECT ANSWER c) Get a court injunction
against the action." "Does the sale of the property terminate a verbal license? a) No, a license runs with the land. b) Yes, a license ends with the sale of the land. c) No, because a license is an easement and runs with the land.
d) Yes, but must give a 30-day written notice. - CORRECT ANSWER b) Yes, a license ends with
the sale of the land." "A property deeded to be used "so long as", describes what ownership? a) A fee simple condition subsequent b) A fee reversionary estate c) A fee simple determinable
d) A lease with kick-out clause. - CORRECT ANSWER c) A fee simple determinable"
"A land owner who has use a path on his neighbor's land to move his crops, may claim__________ to keep such use when the property is sold. a) An encroachment b) Easement in gross c) Easement by necessity
d) Easement by prescription - CORRECT ANSWER d) Easement by prescription"
d) CAM license
e) No license needed - CORRECT ANSWER e) No license needed"
"The real estate commission_____. a) Has six licensed members. b) Is run by the commissioner. c) Has to authority to pass rules and regulation.
d) Serve 4 years terms. - CORRECT ANSWER c) Has to authority to pass rules and regulation."
"According to license law, offer must be____. a) Presented immediately or as soon as possible b) All offers must be presented in the order received c) Offers below sells price should be countered first
d) Offers must be presented the next business day - CORRECT ANSWER a) Presented
immediately or as soon as possible" "The real estate commission can set fee and commission licensed agents charge. a) Yes
b) No - CORRECT ANSWER b) No"
"Two people open a new real estate company, which of the following is true? a) If they both have a Broker's license no other license is needed. b) They can both be the qualifying broker. c) If neither has a broker license, they must hire a qualifying broker.
d) They must both own equally interest. - CORRECT ANSWER c) If neither has a broker
license, they must hire a qualifying broker." "Can the commissioner be a licensed agent? a) Yes
b) No - CORRECT ANSWER b) No"
"What do you use to compare gross rent for a subject property, using a comparable? a) Rental rate b) Fair market rent c) The gross rent multiplier
d) Net income - CORRECT ANSWER c) The gross rent multiplier"
"Which of the following is a type of depreciation? a) Regression b) Economic obsolescence c) Decrease return
d) Zoning - CORRECT ANSWER b) Economic obsolescence"
"Which of the following terminates a lease on a farm? a) When crops are damaged by fire b) When landlord sells home to 3rd part c) When landlord sells home to tenant
d) When landlord Mortgage the farm - CORRECT ANSWER c) When landlord sells home to
tenant" "A renter who stays past lease is what? a) A trespasser b) A criminal c) An estate at will
e) A remainder estate - CORRECT ANSWER d) Estate at sufferance"
"How much notice must be given for rentals in Georgia? a) 30 days from either party b) 60 days from either party c) 30 days landlord / 60 days tenant
d) 60 days landlord/ 30 days tenant - CORRECT ANSWER d) 60 days landlord/ 30 days
tenant" "Georgia Property Owners Association does what? a) Covenants expire after 20 years b) Covenants are perpetual c) Covenants need not be recorded
d) A buyer will pay any past association dues - CORRECT ANSWER b) Covenants are
perpetual" "All rights and interests are transferred to new renter. This is an example of what?
b) The Mortgagee c) A holder in due course
d) Neither - CORRECT ANSWER a) The mortgagor"
"Does regulation Z require simple interest rate be disclosed? a) Yes
b) No - CORRECT ANSWER b) No"
"Which of the following is a trigger term? a) Easy qualifying b) Nothing down c) VA loan
d) FHA loan - CORRECT ANSWER b) Nothing down"
"Mark has a loan with a monthly payment of $1300, and his annual income is $65,000. Mark also has a car payment of $325, student loan of $150, and $200 credit cards. What is his front and back end ratio? a) F=23% b) F=24% c) F=25% d) B= 37% e) B=38% f) B=39% g) B and D h) A and E i) C and D j) A And F
k) C and F - CORRECT ANSWER g) B and D (F=24%; B= 37% )"
"What do loan discount points do for the buyer? a) It reduces lender profit b) Reduces the cost of the loan to the borrower c) Reduces closing cost
d) 4-point decrease interest by one percent - CORRECT ANSWER b) Reduces the cost of the
loan to the borrower" "The process when the lender verified a completed application and credit report is called... a) Pre-qualified b) Pre-approval
c) Underwriting
d) Alienating - CORRECT ANSWER b) Pre-approval"
"Functional obsolescence is a type of what? a) Zoning Law b) Depreciation c) Appraisal
d) Eminent domain - CORRECT ANSWER b) Depreciation"
"The process of assemblage of tracts of land and increasing value is called... a) Smart thinking b) Plottage c) Increase in return d) Progression e) Regression
f) Added values - CORRECT ANSWER b) Plottage"
"When can the seller sue for damages? a) When the earnest money is not enough b) When the buyer is in breach c) Never, seller beware
d) Purchase money Mortgage, since no broker was involved. - CORRECT ANSWER b) When
the buyer is in breach" "What happens to earnest money? a) Contract without earnest money are not enforceable. b) The buyer receives their check back at closing. c) The money is deposit in an insured savings account.
d) The check will be deposited and deducted from the buyers account. - CORRECT ANSWER
d) The check will be deposited and deducted from the buyers account." "If a comparable property that was charging $1350 a month for rent and sold for $198,450. What is the value of the subject property that rents for $1475 a month? a) $200,000 b) $215,
"Actions of anti-trust include? a) Conspiring to fix commissions/prices b) Mishandling funds c) Discriminating d) Mixing personal and business funds
e) All the above - CORRECT ANSWER a) Conspiring to fix commissions/prices"
"According to Fair Housing laws a private home owner may discriminate against all the following except? a) Handicap b) Race c) Family status d) Sex or sexual identity
e) Marital status - CORRECT ANSWER b) Race"
"A homeowner listing their house can ask their agent all the following except? a) To shows the house between certain hours b) To only show to pre-approved buyers c) Discount for all military members
d) No sign in the yard - CORRECT ANSWER c) Discount for all military members"
"What will not terminate a listing contract? a) Bankruptcy of either broker or seller b) Property destroyed c) Death of Sole Owner Real Estate Broker
d) Major existing damages - CORRECT ANSWER d) Major existing damages"
"When showing a property an agent may not... a) State hidden defects to buyer b) Gives facts not in the listing c) Answer questions from the buyer
d) Give opinion on condition on the house - CORRECT ANSWER d) Give opinion on condition
on the house" "You bring a ready and willing buyer to your seller, but the property doesn't close due to title issues. Are you due a commission?
a) No, the sell didn't close b) Yes, because you had a listing agreement c) No, because you should have checked the title.
d) Yes, because you brought a ready, willing, and able buyer - CORRECT ANSWER d) Yes,
because you brought a ready, willing, and able buyer" "What is puffing? a) A statement of exaggeration, which a reasonable person can recognize as untrue. b) A statement of exaggeration that an educated person could recognize untrue. c) A statement that any license agent can recognize as untrue d) Going to the salon and having
your hair done. - CORRECT ANSWER a) A statement of exaggeration, which a reasonable
person can recognize as untrue." "In order to avoid a dual agency, a listing agent should treat buyers as? a) Clients b) Customers c) Principals
d) Guests - CORRECT ANSWER b) Customers"
"What can a broker recover from an expired listing? a) Commission b) Advertising fees c) Termination fees d) Nothing
e) Nothing, unless stated in the listing contract. - CORRECT ANSWER e) Nothing, unless
stated in the listing contract." "What gives the agent the right to sign on behalf of the broker? a) BRRETA b) Agency law c) Affiliation agreement d) License Law
e) Verbal permission from the broker - CORRECT ANSWER c) Affiliation agreement"
"Someone wanting to sell their house can do all the following, except...
"An offer to purchase your listing becomes a counter offer when your client does what? a) Changes his/her mind b) Accepts the offer
c) Changes anything is the offer d) When the buyer makes an offer to purchase - CORRECT
ANSWER c) Changes anything is the offer"
"When can an offer be withdrawn? a) When a counter offer is made b) Anytime c) If the right to withdraw is in the offer
d) Anytime, prior to acceptance - CORRECT ANSWER d) Anytime, prior to acceptance"
"A church having an appraisal done for insurance policy. The insurance company would want what approach used to determine the value. a) Comparable market approach b) Gross rent multiplier c) The reproduction or replacement approach
d) Cost approach - CORRECT ANSWER c) The reproduction or replacement approach"
"Which of the following is a curable Functional obsolescence? a) Broken door b) Split floor plan c) Outdated appliances
d) Leaking basement - CORRECT ANSWER c) Outdated appliances"
"The term "unit in place" refers to which appraisal method? a) Comparable market approach b) Replacement cost approach c) Gross income multiplier
d) The capitalization approach - CORRECT ANSWER b) Replacement cost approach"
"In the comparable market approach, which property received adjustments? a) Subject property b) Comparable property c) Neither
d) Both, depends what has what - CORRECT ANSWER b) Comparable property"
"1st and 2nd floor measure 35' by 43', the basement is half the size. What is the value with the 1st =$65 sqft, 2nd= $50 sqft, and basement is $25 a sqft? a) $192,000 b) $193, c) $191,888 d) $193,
e) $187,890 f) $188,500 - CORRECT ANSWER c) $191,888"
"Your clients want to know how to break their contract after due diligence, what should you advise? a) They must buy the house. b) Tell them to ask their lender to disqualify them.
c) Have them contact a lawyer. d) Have them call your broker. - CORRECT ANSWER c) Have
them contact a lawyer." "You received a nice offer way over asking price, after your client is already under contract. What should you advise? a) Seek legal advice to break their first contract b) Tell them to break the first offer c) Tell them to accept it as a backup offer
d) If under due diligence, back out of the first contract and accept the second. - CORRECT
ANSWER c) Tell them to accept it as a backup offer"
"What can a seller do in a land contract? a) The seller gives the buyer title at closing. b) The seller cannot take back the property for any reason. c) In the event the buyer stops paying, the seller can reclaim the property with a foreclosure suit. d) In the event the buyer stops paying, the seller can reclaim the property without a foreclosure
suit. - CORRECT ANSWER d) In the event the buyer stops paying, the seller can reclaim the
property without a foreclosure suit." "Who does the closing attorney represent in Georgia? a) You b) The buyer
