150 Questions Final Exam – Real Estate – Georgia License Prep with Answers, Exams of Real Estate Management

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150 Questions Final Exam.REAL

ESTATE.

"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... a) List with more that one broker b) Sell the property themselves c) Advertise the property on Craigslist d) Sell the property themselves after it has been listed, and no pay commission e) List with a broker for $200,000 net, and let the broker keep anything above that as commission. - CORRECT ANSWER e) List with a broker for $200,000 net, and let the broker keep anything above that as commission." "Sara is working with Aaron a buyer customer who wants to purchase a property listed with Sara co-agent. If Sara puts in the offer and represents the buyer, she would be what kind of agent? a) Special agent

"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 a) Broken door b) Split floor plan c) Outdated appliances d) Leaking basement - CORRECT ANSWER c) Outdated appliances" "The term "unit in place" refers to which appraisal method?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 ) The seller d) The brokers e) The insurance companies f) The lenders g) The state - CORRECT ANSWER f) The lenders" "Which of the following is an expressed bilateral contract? a) Agents finds a buyer for a FSBO b) A written agreement between a buyer and seller c) A buyer verbally states his/her intent to make an offer and deposit earnest money with you d) Your clients offer to purchase a home - CORRECT ANSWER b) A written agreement between a buyer and seller" "An agent received a personal note for earnest money. Is this legal? a) No, must be cash or certified funds b) No, the agent should ask the client for certified funds

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" "What is the 6% commission of a $225,750.00 sale? a) $6772. b) $12545. c) $13545. d) $8000.00 - CORRECT ANSWER c) $13545.00" "According to the Georgia real estate commission, are net listing permitted? a) No b) Yes c) Yes, but only with commission permission - CORRECT ANSWER a) No" "What information must be displayed for broker advertising? a) The name, street address, and telephone number of the broker b) The name of the real estate agent listing the property c) The price of the property being sold d) The name of the broker as registered with the Georgia real estate commission e) The name of the real estate agent as registered with the Georgia real estate commission

f) The name of the broker as registered with the Secretary of State - CORRECT ANSWER d) The name of the broker as registered with the Georgia real estate commission" "Can Mr. Mark agree to buy your house if he cannot sell it? a) No b) Yes, if stated in the listing agreement c) Yes, but must be stated in the purchase and sale agreement first d) No, that's a net listing e) This is illegal in Georgia - CORRECT ANSWER c) Yes, but must be stated in the purchase and sale agreement first" "How is commission paid when leaving a broker? a) Based on the brokers opinion b) Based on the value of the house c) Based on the sales price of the house d) Based on your listing contract e) Based on the contract you sign when you join the broker - CORRECT ANSWER e) Based on the contract you sign when you join the broker" What is your take home from a if the total commission for the sale was 6%, which equaled $13545.00, if you have a 70/30 split with your broker? a) $6772. b) $4740. c) $3254. d) $6000.00 - CORRECT ANSWER b) $4740.75" "What is a CAM license for? a) Listing property b) Managing apartment building c) Managing building projects

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" "Who can give an FHA loan? a) Any lender b) Only approved FHA mortgagors c) Only approved FHA mortgagee d) The federal government lends the money - CORRECT ANSWER c) Only approved FHA mortgagee" "As a property manager, you're responsible for... a) Marketing and evicting undesirable tenants b) Maintaining insurance coverage c) Maximizing value d) Collecting rent and coordinating any needed repairs - CORRECT ANSWER d) Collecting rent and coordinating any needed repairs" "What water rights control streams? a) Littoral right b) Riparian rights c) Fixtures rights d) Percolating rights - CORRECT ANSWER b) Riparian rights" "Which of the following is true about the secondary mortgage market? a) It lowers rates for borrowers

b) It is controlled by federal banking act c) It provides a market for lenders to sell their loans to acquire more funds for new loans. d) It's another source for consumers to borrow money - CORRECT ANSWER c) It provides a market for lenders to sell their loans to acquire more funds for new loans." "When can a lender foreclose without having to go to court? a) With a redemption clause b) A subordinate clause c) Power to sell clause d) A sell clause - CORRECT ANSWER c) Power to sell clause" "A VA loan has... a) Low closing cost b) Lower monthly payment c) Reduces interest rate guarantees d) Lower down payment - CORRECT ANSWER d) Lower down payment" "When can the seller request earnest money for a property under contract, but that has a financing contingency? a) When the loan changes from FHA to Conventional b) When the house appraised for less than seller price c) When the buyer's military station transfer/move was canceled d) When the buyers loan falls through due to poor credit - CORRECT ANSWER c) When the buyer's military station transfer/move was canceled" "A buyer puts in an offer and deposits earnest money, but decides she likes a better house. Can she cancel her offer and get her money back? a) No, the seller can keep the money b) No, they are under contract c) Yes, but only before the offer is accepted 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) 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. d) There has been an offer - CORRECT ANSWER b) The terms of the offer have been satisfied." "Sales contracts should be_________. a) Clear and detailed as possible. b) Focused on major terms. c) Not legally binding. d) Does not need the method of conveyance. - CORRECT ANSWER a) Clear and detailed as possible." "Brown sells to Mark who does not occupy the property or record the deed. Brown, being a jerk, then sells the property to David. Who owns the property? a) Mark b) David c) Brown - CORRECT ANSWER b) David" "What makes a valid deed? a) Buyer of sound mind b) Grantee of legal age c) Grantee's signature d) Be a real person e) A and D f) A and B g) B and C h) All the above - CORRECT ANSWER e) A and D"

"Mark deeds his property to Brian and puts the deed in his safe. When Mark dies, the deed is found, who owns the property? a) Mark b) Brian c) The state d) Mark's estate e) No one - goes up for auction - CORRECT ANSWER d) Mark's estate" "What protects an owner from title defects? a) Home owner's insurance b) Lender title insurance c) A certified title d) The closing attorney e) Owners title insurance - CORRECT ANSWER e) Owners title insurance" "A Broker lowers the price of a listing, is this legal? a) Yes, the listing gives the broker the right to lower the price. b) Yes, because it can generate activity. c) Yes, but only with the owner's permission. d) No, the broker can't lower the prices until the property has been listed for 30 days and has the owner's permission. - CORRECT ANSWER c) Yes, but only with the owner's permission." "What should a buyer's agent do for their client? a) Have an attorney state all the seller's claims in writing. b) Accept information as accurate from the listing c) Tell client to beware - some information may not be accurate d) Verify all information from the listing, through public records and inspections. - CORRECT ANSWER d) Verify all information from the listing, through public records and inspections." "What can terminate a license? a) Sale of land b) Death of either party c) Withdrawal of consent d) Terms of license agreement e) All the above f) Nothing ends a license - CORRECT ANSWER e) All the above" "What best describes ownership for a parking garage and office buildings?

"When can a broker not deposit earnest money, pending offer acceptance? a) Never b) Always c) Depends of what was used for earnest money d) Only with permission of buyer e) Only with permission of seller f) Only with permission from both buyer and seller - CORRECT ANSWER f) Only with permission from both buyer and seller" "What fees can be charged before the delivery of a good faith estimate? a) Credit report and appraisal fee b) Loan fees c) A lock in fee d) A credit report fee - CORRECT ANSWER d) A credit report fee" "The federal truth in lending act... a) Set maximum interest rates b) Applies to purchase money mortgage c) Requires disclosure of the annual percentage rate expressed as a dollar amount d) Applies to USDA loans - CORRECT ANSWER c) Requires disclosure of the annual percentage rate expressed as a dollar amount" "Georgia is a... a) Title Theory State b) Lien Theory State - CORRECT ANSWER a) Title Theory State" "In a title theory state, is judicial foreclosure required? a) Yes b) No - CORRECT ANSWER b) No" "In title theory states, before the lender can foreclose and sell, what must they do? a) Advertise the property for four consecutive weeks b) Make all necessary repairs c) Have an appraisal and inspection done d) Evict the occupants e) File a court action to foreclose - CORRECT ANSWER a) Advertise the property for four consecutive weeks" "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" "Which best describes a trade fixture? a) Trade fixtures always becomes the landlords at the end of the lease. b) Trade fixtures can be removed prior to the end of the lease. c) Trade fixtures always belong to the landlord.

"The owner of land being taken by eminent domain, has the right to what? a) Sale their property on the market for a higher price b) Take the case to a jury/judge to appeal the taking. c) Ensure the property is being taken for public interest d) Request what public building is built on the land - CORRECT ANSWER c) Ensure the property is being taken for public interest" "The seller wants no public advertising of their property, should the agent advertise the property? a) No, the agents owe the client obedience. b) No, the agent owes the client confidentiality. c) Yes, the agent needs to sell the property. d) Yes, the agent has a duty to his broker to sell the property. - CORRECT ANSWER a) No, the agents owe the client obedience." "Agent Brown has a property listed for David. Alex a customer buyer wants to look at the property. When agent Brown shows Alex the property, who does he owe loyalty to? a) Alex b) David c) Both Alex and David d) Neither Alex or David e) Whoever pays Agent Brown - CORRECT ANSWER b) David" "When taking a listing, an agent must disclose... a) How much will be spent in advertising. b) What advertising will be used. c) Any conflict of interest. d) How long the property might be on the market for. e) All the above - CORRECT ANSWER c) Any conflict of interest." "Michael was employed to run the management of his condominium that's he's lived in for 10 years. What license does he need? a) Real estate license b) Property management license c) Broker license

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?