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BARNEY FLETCHER EXAM FINAL EXAM | ALL
QUESTIONS AND CORRECT ANSWERS |
LATEST VERSION 2025 | VERIFIED ANSWERS |
ALREADY GRADED A+
If all the principals live in the same city, in which of the following cases would the broker most likely need a power of attorney? A. the owner of a manufacturing plant lists it with a broker B. a buyer contracted with a broker to purchase all properties put up for sale in that county C. a couple going through a divorce lists their property with the broker D. the XYZ Corporation, through its Board of Directors, authorizes the broker to sell a piece of property owned by the corporation --------- CORRECT ANSWER-----------------B. a buyer contracted with a broker to purchase all properties put up for sale in that county An owner of a large estate told a broker he did not want an open house held on this property and wanted advertising in a national magazine only. Is this allowable? A. yes, the seller is responsible for planning all marketing of the property B. yes, the broker works for the seller and must follow all legal instructions of the seller C. no, the broker has the right to hold the house open at his own discretion D. no, the owner cannot limit the broker's ability to earn a commission ------- --CORRECT ANSWER-----------------B. yes, the broker works for the seller and must follow all legal instructions of the seller A salesperson listed a property for $68,000. Soon thereafter, another property that had also listed for $68,000 sold for $75,000. The salesperson should:
A. tell the owner, as he had obviously made a mistake in the estimate of market price B. tell the owner that another had sold for $75, C. NOT tell the owner because he should not admit that he made an error, as he would get in trouble with his broker D. tell the owner because if it sells for $75,000, the commission would go up ---------CORRECT ANSWER-----------------B. tell the owner that another had sold for $75, Broker Bob listed two properties and arranged for an exchange of the properties. Which is true? A. this could only be done if they are both debt free B. broker Bob would typically be due the full commission on both properties C. the commissions would be added together and broker Bob would get one half D. there is no commission on an exchange ---------CORRECT ANSWER---- -------------B. broker Bob would typically be due the full commission on both properties One of the significant differences between an employee and an independent contractor is that: A. an independent contractor does not need an affiliation agreement with the broker B. an employer must pay an unemployment tax for each employee C. only the independent contractor can have draws against future commissions D. only the independent contractor has social security withheld from his or her commission checks ---------CORRECT ANSWER-----------------B. an employer must pay an unemployment tax for each employee
A. the listing of a house to automatically extend for an additional 30 days if the house is not sold during the agreed term or the listing B. a broker, who had procured a buyer before the expiration of the listing, to receive a commission even though negotiations were completed after the expiration date of the listing C. the listing agent has the first right of refusal in the event the house is not sold during the term of the listing D. none of the above are true ---------CORRECT ANSWER-----------------B. a broker, who had procured a buyer before the expiration of the listing, to receive a commission even though negotiations were completed after the expiration date of the listing Salesperson Dole was licensed under broker Carr but sold a property that was listed by broker Faulk. From whom would salesperson Dole collect a commission? A. broker Carr only B. broker Faulk only C. bother broker Carr and Faulk D. the owner of the property ---------CORRECT ANSWER-----------------A. broker Carr only Buyer Burke has authorized broker Rand to purchase a property on his behalf. What kind of agent is broker Rand? A. general agent B. special agent C. universal agent D. secret agent ---------CORRECT ANSWER-----------------B. special agent Which is the best example of functional obsolescence? A. residential home built next to a meat processing plant
B. a roof that is severely sun damaged C. a three bedroom home with one and a half baths and a single car carport D. residential home with central heating and air conditioning --------- CORRECT ANSWER-----------------C. a three bedroom home with one and a half baths and a single car carport Adjustments for advantageous financing would be made in the: A. market comparison approach to appraisal B. cost approach to appraisal C. income approach to appraisal D. capitalization approach to appraisal ---------CORRECT ANSWER---------- -------A. market comparison approach to appraisal A market where there is an excess of supply over demand is known as a: A. buyer's market B. broad market C. seller's market D. thin market ---------CORRECT ANSWER-----------------A. buyer's market Which of the following is not a principle of value? A. substitution B. assemblage C. conformity D. depreciation ---------CORRECT ANSWER-----------------D. depreciation A loan in which the buyer pays off the total principal at the end of the loan is a:
A homeowner with a mortgage replaced it with a new mortgage 3% lower in interest and obtained extra funds to make investments. This is called: A. subordination B. refinancing C. subrogation D. wraparound ---------CORRECT ANSWER-----------------B. refinancing In a repayment of a mortgage loan, which type of interest is used? A. simple B. discounting C. compound D. floating ---------CORRECT ANSWER-----------------A. simple When obtaining an FHA loan, which generally happens? A. an FHA approved appraiser appraises the property B. FHA makes the loans directly to the borrower C. the borrower makes the down payment directly to the FHA D. none of the above ---------CORRECT ANSWER-----------------A. an FHA approved appraiser appraises the property What does the VA require a veteran do when applying for a loan? A. make the down payment directly to the VA B. make a down payment in cash C. make the veteran assume liability for the loan D. NOT allow the veteran to make prepayments on the principal amount ---- -----CORRECT ANSWER-----------------C. make the veteran assume liability for the loan
An option was given on a home for consideration of $1,000. When would the broker's fee be earned? A. it was earned when he brought the optionor and the optionee together B. the broker's commission would come out of the $1,000 fee C. half of the commission is earned now and half when the option is exercised D. none of the above ---------CORRECT ANSWER-----------------D. none of the above Which BEST describes the sale price for a property in an option agreement? A. the sale price would be determined when the option is exercised B. the buyer is guaranteed a fixed price when the option is signed C. the buyer can purchase the property by matching any other offer D. the optionor is obligated to pay the sale price when the option is exercised ---------CORRECT ANSWER-----------------B. the buyer is guaranteed a fixed price when the option is signed Where may a salesperson get the legal description of a property for insertion into the sales contract? A. by copying it down from the seller's warranty deed B. by drafting a new description from the survey C. by copying it down from the seller's security deed D. either A or C ---------CORRECT ANSWER-----------------D. either A or C If a seller agrees to take a purchase money mortgage from a buyer as a second mortgage, which of the following statements would be true about the intangibles tax? A. intangibles taxes are not applicable to second mortgages, only to first mortgages
D. the listing company ---------CORRECT ANSWER-----------------D. the listing company If a purchaser tells a salesperson to hold the purchaser's earnest money check for 5 days before depositing it, the salesperson must: A. deposit the check in the broker's trust account as soon as practicable B. hold the check until the 5th day and then deliver it to her broker C. deliver the earnest money check to the broker as soon as practicably possible, with the purchaser's written instructions for the broker to hold the check D. tell the purchaser the check won't clear in less than 5 days --------- CORRECT ANSWER-----------------C. deliver the earnest money check to the broker as soon as practicably possible, with the purchaser's written instructions for the broker to hold the check In doing a market analysis, you find a recently sold property where the owners had just gone through a divorce. It was listed for $60,000 for 3 months but sold for $40,000. Would you use this as a comparable? A. no, because it had only been listed for 3 months B. no, because of the divorce, it was not an arms length agreement C. yes, you would use the actual sales price of $40, D. yes, because it was a comparable type property ---------CORRECT ANSWER-----------------B. no, because of the divorce, it was not an arms length agreement A property was worth $289,000 if capitalized at 4%. What is it worth if it capitalized at 5%? A. $185, B. $231, C. $300,
D. $325,000 ---------CORRECT ANSWER-----------------B. $231,
$289,000 x 4% = $11,560 divided by 5% = $231, An heirloom chandelier in a house would be considered: A. chattel B. personal property C. a fixture D. a trade fixture ---------CORRECT ANSWER-----------------C. a fixture An owner of a life estate died and the land passed to the remainderman. What interest would the remainderman receive? A. estate in reversion B. life estate C. estate at will D. estate in fee simple ---------CORRECT ANSWER-----------------D. estate in fee simple Which of the following BEST describes the extent of an owner's rights in land? A. the surface of the land only B. the land and five miles below certain mineral rights C. the surface of the land up to infinity D. the land from the center of the earth up to infinity ---------CORRECT ANSWER-----------------D. the land from the center of the earth up to infinity Which of the following does NOT make loans? A. the secondary mortgage market
Which non governmental organization has its greatest investment in first mortgages on single family residences? A. insurance companies B. commercial banks C. savings and loans D. federal housing administration ---------CORRECT ANSWER----------------- C. savings and loans Which of the following loans gives a borrower the lowest monthly payment? A. 8% interest, 20 year term B. 8% interest, 25 year term C. 9% interest, 20 year term D. 9% interest, 25 year term ---------CORRECT ANSWER-----------------B. 8% interest, 25 year term Which of the following would be enforced by the Federal Trade Commission (FTC)? A. federal real estate settlement procedures act (RESPA) B. federal fair housing (title VIII) C. federal equal credit opportunity act (FECOA) D. federal truth in lending law (Reg Z) ---------CORRECT ANSWER----------- ------D. federal truth in lending law (Reg Z) Under which of the following circumstances would one MOST likely see an estoppel certificate? A. a lender sells a loan and the new mortgagee wants to know the existing balance
B. a lender attempts to prevent a loan assumption to an unqualified party C. a developer attempts to have a parcel released from under a blanket mortgage D. a lender calls for full payment of a note ---------CORRECT ANSWER------ -----------A. a lender sells a loan and the new mortgagee wants to know the existing balance A single parent who receives child support payments is applying for a loan to purchase a house. The parent MUST disclose the child support to the lender if: A. applying for an FHA or VA loan B. gross income is less than $25,000 per year C. the child support exceeds 50% of income D. the child support will be considered as a basis for the payments --------- CORRECT ANSWER-----------------D. the child support will be considered as a basis for the payments A ready, willing, and able buyer is one: A. who can meet the seller's terms and conditions B. with whom the seller is personally satisfied C. produces an offer with earnest money D. produces an offer with earnest money that is also signed and dated ------ ---CORRECT ANSWER-----------------A. who can meet the seller's terms and conditions A broker listed a $75,000 property and the agreement read that the owner would NOT take more than a 25% cash offer. The broker produced a buyer who offered a full price 100% cash offer. Would the broker be due a commission? A. yes, because the broker produced a ready, willing, and able buyer B. yes, because the offer was reasonable
C. $
D. $600 ---------CORRECT ANSWER-----------------A. $
$600 divided by 360 days x 165 days = $ If a property sold for $3,000 per acre and the buyer bought 5 acres and one square mile, what was the total purchase price? A. $15, B. $1,920, C. $1,935, D. $2,500,000 ---------CORRECT ANSWER-----------------C. $1,935, one square mile is a section of ground which contains 640 acres. 640 + 5 = 645 total acres x $3,000 = $1,935, Lots were being sold in a subdivision that required all building lots contain a minimum of .5 acres. This would be an example of: A. down zoning B. deed restrictions C. directive zoning D. discriminatory pricing ---------CORRECT ANSWER-----------------B. deed restrictions A property had an area of 920 square yards with a 40 foot frontage. What was the depth of the lot? A. 23 feet B. 69 feet C. 207 feet D. 408 feet ---------CORRECT ANSWER-----------------C. 207 feet
920 square yards x 9 = 8,280 divided by 40 feet equals a depth of 207 feet Which of the following statements BEST distinguishes general from limited partnership? A. limited partners are involved in the day to day running of the business B. general partnerships also must have limited partners C. limited partners are totally liable for all debts of a partnership D. limited partnerships also must have general partners ---------CORRECT ANSWER-----------------D. limited partnerships also must have general partners The area of a property that was 1/8 mile x 1/8 mile is: A. 5 acres B. 10 acres C. 12.5 acres D. 660 acres ---------CORRECT ANSWER-----------------B. 10 acres 1/8 x 1/8 = 1/64 of a section of ground (640 acres). 640 divided by 64 equals 10 acres A broker listed a property for $87,500. While showing the property, a buyer remarked that $84,500 is what the buyer would like to offer for the property. The broker told the buyer that the seller will not accept anything less than $86,500. Did the broker do anything illegal under the Georgia License Law? A. no, because the broker tried to persuade the buyer to increase their offer by $2, B. no, as the seller can always reject the offer or make a counter offer to the buyer C. yes, as the broker must present the offer without any regards for the list price
A. appointed by the Commissioner and approved by the Governor B. appointed by the Governor and voted in by the active commissioners C. appointed by the Senate and confirmed by the House D. appointed by the Governor and confirmed by the Senate --------- CORRECT ANSWER-----------------D. appointed by the Governor and confirmed by the Senate A citizen phoned the GREC with a complaint on a licensee. The GREC sent him a form to fill out. However, he never followed up the complaint in writing. What would the GREC do? A. the GREC must follow up an oral complaint B. the GREC can NOT act on an oral complaint C. the GREC must ignore the complaint D. even though he did not put it in writing, the GREC may investigate anyway at their own discretion ---------CORRECT ANSWER-----------------D. even though he did not put it in writing, the GREC may investigate anyway at their own discretion An attorney who is not a real estate licensee gives referrals to a real estate company. Can the attorney receive a referral fee from the licensee? A. yes, if it is the standard fee paid to the lawyer's firm B. yes, because the attorney does not actually sell the real estate C. no, as the attorney does not have a real estate license D. no, as an attorney cannot receive referrals by law ---------CORRECT ANSWER-----------------C. no, as the attorney does not have a real estate license In order to sit for the Community Association Management (CAM) state licensing exam, an applicant must: A. complete a 75 hour approved course of study B. complete a 60 hour approved course of study
C. complete a 25 hour approved course of study D. none of the above ---------CORRECT ANSWER-----------------C. complete a 25 hour approved course of study A broker had several branch offices. Which is true regarding the management? A. he would have to have direct supervision over the main office and branch offices B. an associate broker can have direct supervision over the branch office C. a salesperson must have direct supervision over the branch offices D. each branch office must have a full time broker who does not sell or list - --------CORRECT ANSWER-----------------B. an associate broker can have direct supervision over the branch office A person has passed their state exam but has not yet received a license. Which of the following could that person NOT do? A. place "for sale" signs on a newly listed property B. type advertising copy C. give the address of a listed property to a buyer D. deposit money into a broker's escrow account ---------CORRECT ANSWER-----------------C. give the address of a listed property to a buyer In dual agency, the consent form must contain all of the following except? A. a lot and block legal description of the property B. a statement that the client does not have to consent to the dual agency C. a statement that the agent will disclose all adverse known material facts D. a statement that the agent will disclose any material relationships --------- CORRECT ANSWER-----------------A. a lot and block legal description of the property
