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GEORGIA REAL ESTATE EXAM 2025 ACTUAL
DETAILED QUESTIONS AND ANSWERS
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The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June 15. The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank?
Loan balance $170,000; interest due $
Are recording fees and title insurance premiums part of the Truth in Lending statement?
No, These are considered legal, not financing fees and therefore are not part of the Truth in Lending statement.
The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a
part purchase mortgage
The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement?
$ 248,400. Credit the buyer only.
A home improvement company was negotiating with a homeowner to add on two rooms to a home. The company agreed to take a second mortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan?
Friday, midnight (Three business day period)
A mortgage broker
arranges loans between borrowers and investors
The seller under a land contract is called
The vendor
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan?
42 months
In an installment land contract, what type of title did the seller retain?
Legal
Which of the following is true of a second mortgage?
It is usually issued at a higher rate of interest.
Usury MOST nearly means
illegal interest.
A borrower bought a $174,000 house with no down payment. The loan was probably
a VA loan.
A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan?
Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied?
Amortized loan
Which is the most common form of mortgage?
Amortized loan
A real estate licensee has a buyer agency agreement. What is the seller in this situation?
A customer.
An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?
He must exercise his option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises?
If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants
A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June
- Assuming the closing took place on June 15, when did the listing expire?
6/
The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?
$36,225. Debit the seller.
Under RESPA, a copy of Real Estate Settlement Costs And You must be given
at the time of loan application, or within 3 days of application.
Which of the following is a closing expense paid by the seller?
The broker's commission
An impound or reserve account MOST benefits whom?
The lender
What are impound or reserve accounts also known as?
Escrow accounts
The HUD-1 form is
a statement of actual charges and adjustments.
A VA loan may be granted for the purchase of a one-family to four-family property if
the veteran agrees to live there.
Which of the following would usually occur in a sale-and-leaseback transaction?
The property is sold on the condition that the new owner lease it back to the seller at the time title passes.
In which of the following markets may a lender sell a loan that a mortgage banker has previously originated?
Secondary market
Though 30 year loans are more common, 15 year loans are considered standard, conventional loans.
Yes.
Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan?
Monthly payments
Who are graduated payment mortgages aimed to>
Particularly at young families who expect to see their earnings rise over the next five to ten years.
The maximum permissible "loan to value ratios" are
based on sale price or appraised value, whichever is lower.
Are there any state-mandated qualifying requirements for conventional loans?
No, Not only are guidelines not uniform, qualification standards can vary enormously from lender to lender.
A buyer wants to take out an FHA loan. The broker should refer the buyer directly to
any approved lending institution such as a bank or savings and loan association.
An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act?
No. Owners are not covered by Regulation Z.
What is Regulation Z?
is the part of the Truth in Lending Act of 1968 that promulgates rules that protect consumers against misleading practices by the lending industry.
A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called
warehousing.
The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee?
$14,
Discrimination is prohibited in lending practices under
ECOA
A buyer assumes the mortgage. How is the owner relieved of the liability?
Novation
Which type of loan will result in the largest reduction of the principal balance most quickly?
6% over 15 years
Who is the largest purchaser in the secondary market?
Fannie Mae
What does Fannie Mae stand for?
Federal National Mortgage Association
Which transaction requires a securities license?
Selling shares in Fannie Mae
Who is NOT an originator of primary loans?
FHA
A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this?
Yes. This is acceptable as long as the seller agrees.
If advertised alone, which would be in violation of Truth in Lending?
"No down payment required."
Buyers buy after they compare the house with others.
How many feet in one yard?
3 feet in one yard
A scale drawing shows a room to be 3 inches by 4-1/2 inches. Carpet, which is $ per square yard, is to be installed in the room. If the scale is 1 inch to 4 feet, how much would it cost to install the carpet?
$
A tenant leased 3,000 square feet at $10 per square foot and 8% of gross income. The total annual rent she paid was $60,000. What was the gross income on which she paid percentage rent?
$375,
The Rose family owns a home in a semi-rural area, which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway ending 1 mile before their home. If the airport is constructed, will this diminish the value of the Rose Home?
Yes, because of economic obsolescence.
Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $1,500 per month. It is a custom-built home, approximately three years old. Mrs. Jones would probably give the most weight in her final estimate of value to which of the following appraisal methods?
Market data approach
Which is the best example of functional obsolescence?
A house with no electricity or running water
A real estate agent should tell the buyer, his customer, which of the following?
A pending or recent zoning change
A square is 1/8 of a mile by 1/8 of a mile. How many acres is this?
10 acres
One-eighth of a mile square is the same as 10 acres. Multiply 1/8 X 1/8 = 1/ divided into 640 acres = 10 acres
The first step in an appraisal is
Physical deterioration is considered curable whenever
it costs less to correct than the resulting value increase.
The economic life of an investment can be described as
the time over which value generated exceeds cost of operation.
When an appraiser correlates the three approaches into a final estimate, he
reconciles the differences according to the type of property being appraised and the quantity and quality of data available.
Apartment houses in an area were selling for $100,000 and a buyer offered $100,000 for an apartment building. The buyer is operating on the principle of
substitution.
A feature found in a comparable property that is not present in the subject property will result in
a reduction adjustment to the comparable's selling price.
Can brokers provide Legal Advice?
No, Brokers should not provide legal advice unless they are also a lawyer.
When an appraiser uses the phrase "effective age," he is referring to
the age of the property based upon its condition.
The Adams family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of
regression.
In valuing a single family residence by the comparison approach, an appraiser would make adjustments to
the comparable properties.
Some expenses paid at closing must be __________ between the buyer and the seller. The most common items that fall into this category include taxes, insurance, and utilities.
prorated
