Georgia State Exam Practice

Questions and Answers

What is the period of time covered by Marty's Georgia real estate tax bill?

Depends on the county where Marty lives

May 1 of the current year through April 30 of the next year

April 30 of the previous year through May 1 of the current year

January 1 of the current year through December 31 of the current year (correct)

What makes a binder a valid contract?

A binder is not a binding contract

It must be signed by all parties and communicated to the offeror (correct)

It must be in writing (correct)

It is binding until it's been converted into a letter of intent

Which clause of the sales contract indicates it is the only contract between the parties?

Notice of Binding Agreement Date

Survival of Agreement

Entire Agreement, Modification and Assignment (correct)

Time is of the Essence

Regarding buyer representation agreements, Georgia REALTORS® ______.

Offers several sample agreements that a brokerage can use as is or adapt Signup and view all the answers

In Georgia, who conducts the closing?

A closing attorney Signup and view all the answers

In Georgia, what does due diligence mean in a real estate transaction?

Buyers will thoroughly investigate the property while retaining the right to terminate the sales contract if the results are unsatisfactory Signup and view all the answers

Which option must be included on a deed for it to be valid?

Names of grantor/grantee Signup and view all the answers

What is the required number of continuing education hours to maintain the certified CAM designation in Georgia?

36 hours every four years Signup and view all the answers

Which entity is responsible for administering license law in Georgia?

Georgia Real Estate Commission Signup and view all the answers

When exchanging business interests that do not involve real estate, what may not be required?

A real estate license Signup and view all the answers

After a GREC disciplinary hearing, what does Sheila have 30 days to do?

File an appeal Signup and view all the answers

Before applying for relief from the recovery fund, what must Georgia consumers do after receiving a judgment against a licensee?

Exhaust other legal remedies Signup and view all the answers

If a business exchange does not involve the transfer of ownership, which of the following is typically not necessary?

A real estate license Signup and view all the answers

What is the consequence for Sheila if she fails to file an appeal within 30 days after a GREC disciplinary decision?

Cannot challenge the decision later Signup and view all the answers

What is the correct timeline for completing required education to maintain CAM certification?

Every four years Signup and view all the answers

What must be included in a binder for it to be considered valid?

Written form, signed by all parties, with communication of acceptance Signup and view all the answers

What is the primary purpose of the Entire Agreement clause in a sales contract?

To declare that the contract is the only agreement between the parties Signup and view all the answers

Which of the following best describes the role of Georgia REALTORS® in relation to buyer representation agreements?

They provide sample agreements that can be adapted by brokerages Signup and view all the answers

Who is primarily responsible for conducting the closing in a real estate transaction in Georgia?

A closing attorney Signup and view all the answers

In Georgia real estate, what does the term 'due diligence' imply?

Buyers have the right to explore the property and terminate the contract based on findings Signup and view all the answers

Which responsibility is NOT typically associated with a closing attorney in Georgia?

Conducting property inspections Signup and view all the answers

What type of agreement does Georgia REALTORS® provide related to buyer representation?

Sample agreements that can be used or adjusted by brokerages Signup and view all the answers

Which of the following statements is true regarding the acceptance of a sales contract?

Acceptance must be communicated and all parties need to sign the binder Signup and view all the answers

Which action by Claudia does NOT adhere to Georgia license laws?

Guaranteeing the sale of the condo in two months Signup and view all the answers

Who sets the requirements for security deposit disbursal when a lease terminates in Georgia?

The lease terms Signup and view all the answers

In the event of a sale termination, the earnest money is returned to which party?

Whichever party it belongs to based on the agreement terms Signup and view all the answers

What is a necessary step for a licensee in Georgia who guarantees to sell a property by a set date?

Enter into a purchase agreement with the seller Signup and view all the answers

How long should transactional records be kept by a brokerage in Georgia?

Three-and-a-half years Signup and view all the answers

Which of the following is a common reason contracts may be terminated?

Mutual consent of parties Signup and view all the answers

What type of engagement agreement is prohibited in Georgia?

Net listings Signup and view all the answers

What is the maximum period for disbursing a security deposit after a tenant vacates?

30 days Signup and view all the answers

What can a buyer do during the due diligence period if they are not satisfied with the property's investigation?

Terminate the sales contract Signup and view all the answers

Why are the names of grantor and grantee required on a deed?

To ensure legal identification and transfer of ownership Signup and view all the answers

What must a real estate professional do in relation to fair housing laws?

Provide consistent and professional services to all clients Signup and view all the answers

What responsibility does Andy have regarding the homeowners association's rules?

He must read the rules within the contingency period Signup and view all the answers

What happens to promissory notes when they are sold?

They can be sold as they remain valid financial instruments Signup and view all the answers

How can a real estate licensee ensure a comprehensive property assessment?

By conducting a detailed comparative market analysis Signup and view all the answers

What is the primary purpose of a contingency period in real estate transactions?

To conduct necessary investigations and reviews Signup and view all the answers

Which of the following actions would be considered unethical for a real estate licensee?

Rejecting clients based solely on their ethnicity Signup and view all the answers

What is the primary difference between a mortgage and a deed of trust in the foreclosure process?

A deed of trust involves a trustee, whereas a mortgage does not. Signup and view all the answers

What typically serves as the first step in the foreclosure process?

The lender notifies the borrower of the default. Signup and view all the answers

Which type of properties are option contracts on multiple properties most commonly associated with?

Commercial properties Signup and view all the answers

In the event that a broker is transferred, how is an agency agreement typically terminated?

By mutual agreement with no repercussions. Signup and view all the answers

What is the term for the right of the lender to inspect the property during the loan period?

Right of access Signup and view all the answers

Which of the following is NOT a common reason for the termination of a buyer brokerage agreement?

Increased price of the property Signup and view all the answers

How must a lender typically proceed if a borrower defaults on a loan?

Attempt to have the default cured. Signup and view all the answers

What outcome occurs if a buyer brokerage agreement is mutually agreed to be terminated?

It becomes void with no penalties. Signup and view all the answers

Study Notes

Exam Performance Overview

Achieved score: 95% with a passing threshold of 80%
Correct answers: 57 out of 60
Incorrect answers: 3 out of 60

Subject Breakdown

Finance and Closing: 100%
Real Estate Practice in Georgia: 92%
State Laws and Rules: 95%

Key Topics and Concepts

Tax Bill Coverage

Georgia real estate tax bills cover the period from January 1 to December 31 of the year the bill is issued, regardless of the issue date.

Valid Binder

A binder requires written documentation, signatures from all parties, and communication of acceptance to be considered a valid contract.

Entire Agreement Clause

The "Entire Agreement" clause within a sales contract indicates that the contract is the sole agreement between the involved parties.

Buyer Representation Agreements

Georgia REALTORS® offers sample buyer representation agreements for brokerages to use or modify according to their needs.

Closing Responsibilities

Only a closing attorney is responsible for conducting the closing in Georgia, which includes document management and fund distribution.

Due Diligence in Transactions

Due diligence allows buyers to thoroughly investigate a property and retain the right to terminate the contract if findings are unsatisfactory.

Valid Deed Requirements

A valid deed must include the names of the grantor and grantee for legal recognition.

Real Estate Scenario

An example involving an interracial couple working with a real estate professional highlights the ongoing dynamics in property searching and homeowners associations.

Sales Contracts

A valid binder must be in writing, signed by all parties, and acceptance communicated.
The "Entire Agreement, Modification and Assignment" clause asserts the sales contract as the sole agreement between parties.

Buyer Representation Agreements

Georgia REALTORS® provide various sample buyer representation agreements for brokerages to use or modify, not just a single required form.

Closing Procedures

In Georgia, a closing attorney is responsible for conducting the closing, including collecting and distributing documents and managing closing funds.

Due Diligence

Due diligence allows buyers to thoroughly investigate a property and retain the right to terminate the sales contract if investigation results are unsatisfactory.

Validity of Deeds

For a deed to be valid, it must include the names of both the grantor and grantee.

Fair Housing Laws

Real estate professionals must adhere to fair housing laws and treat all clients equitably, providing ethical services regardless of the clients' backgrounds.

Promissory Notes

It is essential to understand that promissory notes can be sold, contrary to the misconception that they cannot.

License Administration

The Georgia Real Estate Commission (GREC) administers real estate license laws within the state.

Business Interest Exchanges

Some exchanges of business interests may not require a real estate license if real estate transfer is not involved.

GREC Disciplinary Hearing

A licensee has 30 days to file an appeal following a GREC disciplinary hearing decision.

Recovery Fund Application

Consumers must exhaust all other legal remedies before applying for relief from the recovery fund following a judgment against a licensee for wrongdoing.

Compliance with License Laws

Real estate licensees must follow regulations strictly; guaranteeing property sales within specific timeframes requires proper agreements.

Security Deposit Disbursal

Security deposit disbursal upon lease termination is typically dictated by the lease terms, to be completed within 30 days of tenant vacating.

Earnest Money Distribution

The purchase agreement terms dictate who receives earnest money if a contract is terminated, based on specified conditions.

Brokerage Engagement Agreements

Certain arrangements in brokerage engagements, particularly those contravening state laws, are not permissible.

Termination of Buyer Brokerage Agreement

Buyer brokerage agreements may be terminated through mutual agreement among parties without penalties.

Option Contracts

Option contracts are most frequently seen in commercial real estate for multiple properties.

Foreclosure Process

The initial step in the foreclosure process involves the lender notifying the borrower of default, attempting to cure it before any formal action.

Authority in Exclusive Right-to-Sell Agreement

An exclusive right-to-sell agreement grants the licensee authority to act on behalf of the seller in property transactions.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Prepare for the Georgia State Exam with this practice quiz that evaluates your knowledge across various topics. Achieve a passing score of 80% and review your performance breakdown to identify areas for improvement.