Georgia State Exam Practice PDF

Georgia - State Exam Practice Your score: 95% You have passed the exam. Passing score: 80.0 SCORING BREAKDOWN Correct: 57/60 Incorre...

Georgia - State Exam Practice Your score: 95% You have passed the exam. Passing score: 80.0 SCORING BREAKDOWN Correct: 57/60 Incorrect: 3/60 Focus Here Needs Work Good Georgia Scores 17 0 Finance and Closing (100.0%) 22 2 Real Estate Practice In Georgia (92.0%) 18 1 State Laws and Rules (95.0%) Review answers below Question 1 Marty receives his Georgia real estate tax bill on May 1. What's the period of time covered by this tax bill? Topic: Finance and Closing Subtopic: Closing Procedures April 30 of the previous year through May 1 of the current year Depends on the county where Marty lives January 1 of the current year through December 31 of the current year  May 1 of the current year through April 30 of the next year In Georgia, no matter when the tax bill is issued, the bill is for January 1 through December 31 of the year in which the bill is sent. Question 2 What makes a binder a valid contract? Topic: Real Estate Practice In Georgia Subtopic: Sales Contracts A binder is not a binding contract. It isn't binding until it's been converted into a letter of intent. It's in writing. It's in writing, signed by all parties, and communicated to the offeror. A binder must be in writing, signed by all parties to be valid, and the acceptance communicated. Question 3 Which clause of the sales contract says that the contract is the one and only contract between the parties? Topic: Real Estate Practice In Georgia Subtopic: Sales Contracts Entire Agreement, Modification and Assignment Notice of Binding Agreement Date Survival of Agreement Time is of the Essence The Entire Agreement, Modification and Assignment section says the contract is the entire and only agreement between the parties. Question 4 Regarding buyer representation agreements, Georgia REALTORS® ______. Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency Offers several forms, but only to association members Offers several sample agreements that a brokerage can use as is or adapt Offers some guidance but no actual forms Provides the the Exclusive Buyer Brokerage Agreement, which brokerages are required to use Georgia REALTORS® provides several sample buyer representation agreements that a brokerage can use as is or adapt. Question 5 In Georgia, which person conducts the closing? Topic: Finance and Closing Subtopic: Closing Procedures A closing attorney A title insurance representative The buyer's lender The seller's broker The closing attorney has this responsibility, as well as collecting and distributing documents and disbursing closing funds. Question 6 In Georgia, what does due diligence mean in a real estate transaction? Topic: Real Estate Practice In Georgia Subtopic: Real Estate Practice Buyers will thoroughly investigate the property while retaining the right to terminate the sales contract if the results are unsatisfactory. Cash buyers will provide proof of liquid funds for the purchase 10 days before closing. Owners will periodically evaluate their property to identify possible future repairs. Real estate licensees will assess the property thoroughly when developing a comparative market analysis. Due diligence is the process of thoroughly investigating the property while retaining the right to terminate a sales contract if the results are unsatisfactory. Question 7 Which option must be included on a deed for it to be valid? Topic: Finance and Closing Subtopic: Closing Procedures A named beneficiary for inheritance purposes County treasurer's approval and signature List of all neighboring property owners Names of grantor/grantee The names of the grantor and grantee are required for a deed to be considered valid. Question 8 Joanne and John, an interracial married couple, are working with Andy, a real estate professional, and are looking for a new home. Joanne and John find a property they like in a neighborhood with a homeowners association and covenants, conditions, and restrictions. The couple decides to make an offer. Which of the following is Andy's responsibility in this situation? Topic: State Laws and Rules Subtopic: Fair Housing Laws Andy must ask the homeowners if they will sell to a married interracial couple. Andy must explain to Joanne and John that the association's rules require the board to meet to decide if it will allow the couple to purchase the property. Andy must follow the same rules, regulations, and ethical behaviors he would with any other clients, and promote the best interest of his clients. Andy must read the association's rules and regulations within the contingency period to ensure the association will allow interracial married couples as residents. Real estate professionals are required to provide professional services at all times and adhere to fair housing laws. Question 9 Which of the following is a true statement about when a promissory note is sold? Topic: Finance and Closing Subtopic: Finance Promissory notes cannot be sold. The note must be notarized. The promissory note is endorsed to the new owner of the loan.  When the note is sold, the attached security instrument is assigned to the lender. When a note is sold, the promissory note is endorsed to the new owner of the loan. Question 10 Which of the following may represent an exemption from Georgia fair housing laws? Topic: State Laws and Rules Subtopic: Fair Housing Laws Angie owns a four-plex. She lives in one unit and rents out the others. Darren owns five rental properties and leases them out himself. Elias is a real estate licensee who's selling his own home. Wildwood Creek Resort Living, a 55+ community, stipulates that 50% of its homes must be sold to buyers in which at least one person is aged 55 or older. Landlords who own a four-unit or fewer building, rent the other units, and live in one unit are exempt from fair housing law as long as they don't use a licensee's services or use discriminatory ads. Question 11 Which of the following individuals must have a real estate license to perform real estate activities? Topic: State Laws and Rules Subtopic: Required Licensure Blake, an attorney, who's selling his cousin's home for a fee Carmen, an interior designer, who helps her client sell her home at no charge Daniel, a CPA, who provides advice to his client who's purchasing a development, and charges $600 per hour Edwina, a carpenter, who is selling her own home Although Blake is an attorney, the real estate services he's providing for his cousin aren't incidental, and he's charging a fee. He must have a license. Question 12 A holographic will is a will that is ___________. Topic: Finance and Closing Subtopic: Closing Procedures Captured on videotape Handwritten Verbally communicated Written in invisible ink A holographic will is a handwritten will. This type of will is valid in 19 states, but Georgia isn't one of them. Question 13 What entity is allowed to charge a gross receipts tax to licensees on their earnings? Topic: State Laws and Rules Subtopic: Substantive Regulations GREC The county or municipality The mayor's office The tax assessor's office The county or municipality is allowed to charge a gross receipts tax on the licensee's earnings within that county or municipality. Question 14 Regina has defaulted on the terms of her mortgage, and now her lender has foreclosed. The property was sold at a sheriff's sale three months ago. Regina suddenly learns that she has inherited a great deal of money. She wants her property back. Under a judicial foreclosure, what right might allow her to buy her property from the winner of the foreclosure auction? Topic: Finance and Closing Subtopic: Finance Equitable right of redemption Mortgagor right of redemption Power of sale Statutory right of redemption The statutory right of redemption may be available for Regina, depending on the laws of the state where the property is located. It's a right that's only available with judicial foreclosure, which is standard when a mortgage instrument is used. Question 15 In Georgia, a person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______. Topic: State Laws and Rules Subtopic: Required Licensure An exception to the real estate licensing requirement Required to have a broker license Required to have at least an associate broker license  Required to have at least a salesperson license Trustees and those acting under a court order aren't required to have a real estate license when performing real estate-related activities. Question 16 Why is a fiduciary relationship between Georgia brokers and their clients not required? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency Brokers don't have the skill or judgment to provide expert services. Fiduciary duties aren't important to the practice of real estate. Most clients don't want or need a fiduciary relationship. The state attempts to protect brokers from an unreasonable legal standard. Georgia defines a fiduciary relationship as one requiring extraordinary care, and brokers are protected from this almost impossible standard. Question 17 How many years must a Georgia broker retain sales contracts? Topic: State Laws and Rules Subtopic: Unfair Practices 10 years Five years Four years Three years Sales contracts must be maintained for at least three years. Question 18 Business brokers in Georgia can seek credentials such as all of the following EXCEPT ______. Topic: State Laws and Rules Subtopic: Substantive Regulations Accredited Business Intermediary (ABI) Business Intermediary Endorsement (BIE) Certified Business Intermediary (CBI) State association credentials The Business Intermediary Endorsement (BIE) is not a recognized credential for business brokers. Question 19 In Georgia, how many years do we have to go back to trace the chain perfectly, with no gaps in ownership? Topic: Finance and Closing Subtopic: Closing Procedures 10 years 20 years 40 years 50 years In Georgia, a chain dating back 50 years is considered sufficient to show marketable title. Question 20 What's the continuing education requirement for a community association manager? Topic: Real Estate Practice In Georgia Subtopic: Community Association Management 15 hours every four years 15 hours every six years 36 hours every four years 36 hours every six years In order to maintain your designation as a certified CAM you'd need to complete 36 hours of continuing education every four years. Question 21 Which entity administers license law in Georgia? Topic: State Laws and Rules Subtopic: Commission Organization and Procedures Attorney general's office Georgia Real Estate Commission Revenue office Secretary of state GREC is responsible for administering license law in Georgia. Question 22 Some exchanges of business interests may not require ______. Topic: State Laws and Rules Subtopic: Substantive Regulations Accreditation A real estate license Certification Documentation If the interest of the business being exchanged doesn't involve the transfer of real estate, licensure may not be required. Question 23 Sheila was subject to a GREC disciplinary hearing and a final decision was made. She has 30 days to ______. Topic: State Laws and Rules Subtopic: Investigation and Hearing Process File an appeal Pay her fine Relinquish her license Request a new hearing A licensee has 30 days to file an appeal once the decision has been made. Question 24 Before Georgia consumers may apply for relief from the recovery fund, what must they do when they receive a judgment against a licensee for wrongdoing?  Topic: State Laws and Rules Subtopic: Real Estate Education, Research and Recovery Fund Exhaust other legal remedies. Have the judgment notarized. Publish the notice in the local newspaper. Wait two years. The recovery fund is to be used only after other legal remedies have been tried and have failed. Question 25 All of these EXCEPT one depict licensee Claudia's adherence to Georgia license laws. Which one does NOT? Topic: State Laws and Rules Subtopic: Substantive Regulations Claudia identified herself as a licensee in the ad she created to market her own home. Even though Claudia's seller client had accepted an offer already, she continued presenting him with offers that came in. In an addendum to a listing agreement, Claudia guaranteed her seller client that she'd sell his condo in two months or buy it herself. To be on the safe side at her brokerage firm, Claudia kept all transactional records for three-and-a-half-years. Licensees who guarantee they'll sell a property by a certain date and then buy it themselves if it fails to sell must first enter into a purchase agreement with the seller as a safeguard to the seller if the property doesn't sell. Question 26 In Georgia, who or what sets the requirements for security deposit disbursal when a lease terminates? Topic: Real Estate Practice In Georgia Subtopic: Property Management GREC State license law The landlord The lease terms The lease terms will typically lay out how the security deposit is to be disbursed upon lease termination, but it should be within 30 days of the tenant vacating. Question 27 After a fierce bidding war with three other potential buyers, the Carsons enter into an agreement that includes $2,000 earnest money. When the sale is later terminated, the earnest money goes to ______. Topic: Real Estate Practice In Georgia Subtopic: Sales Contracts The buyer The lender The seller Whichever party it belongs to based on the agreement terms The purchase agreement terms determine which party gets the earnest money if the contract falls through, generally based on why or how the contract terminated. Question 28 What type of brokerage engagement agreement is against the law in Georgia? Topic: State Laws and Rules Subtopic: Substantive Regulations A brokerage engagement agreement that terminates within 45 days of signing A gross brokerage engagement A net brokerage engagement An exclusive brokerage engagement Net brokerage agreements in which the broker will receive as a fee any amount above a specified sales price are illegal in Georgia. Question 29 GREC may deny a license application for several reasons. Which of the following would likely NOT be a reason for an application denial? Topic: State Laws and Rules Subtopic: Qualifications and Fees An associate broker applicant was convicted of theft in high school 15 years ago. A non-resident applicant is nine months behind on child support payments in Tennessee. A salesperson applicant failed to disclose a criminal conviction on the application. A salesperson applicant's cosmetology license was suspended in North Carolina. GREC will deny broker or associate broker application when applicants were found guilty of moral turpitude crimes unless 10 years have passed since the conviction or the release, whichever is more recent. Question 30 Georgia licensee Greg and buyer Sandra's exclusive buyer agency agreement was set to expire on March 1. On Feb 10, Sandra signed a contract with a seller, but it fell through 10 days later due to a home inspection issue. What's the termination date of Greg and Sandra's buyer agency agreement? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency Feb 10 Feb 20 March 1 March 11 Greg and Sandra's buyer agency agreement is extended to accommodate the 10 days they were under contract, so the new expiration date is March 11. Question 31 Who's entitled to reimbursement from the Real Estate Education, Research, and Recovery Fund? Topic: State Laws and Rules Subtopic: Real Estate Education, Research and Recovery Fund A broker affected by a sales agent's wrongdoing A commission member affected by a member of the public's wrongdoing Aggrieved members of the public affected by a license or certificate holder's wrongdoing A sales agent affected by a broker's wrongdoing The commission maintains the Real Estate Education, Research, and Recovery Fund for the purpose of reimbursing a member of the public who has been wronged by the certain actions of a licensee. Question 32 GAFLA prohibits which of the following? Topic: Finance and Closing Subtopic: Finance Discount points Financing of credit insurance Financing of PMI Origination fees GAFLA doesn't prohibit typical financing charges, such as origination fees and discount points, nor does it prohibit the financing private mortgage insurance, but it does prohibit the financing of credit insurance. Question 33 When considering the sanctions to hand down to a licensee for an unfair trade practices law violation, what does GREC consider? Topic: State Laws and Rules Subtopic: Unfair Practices The length of time that the licensee has maintained a license The licensee's history in matters of deception, fraud, or unethical behavior The licensee's personal reputation among family and friends The relationship the licensee maintains with her affiliated broker GREC looks into a licensee's history on matters of deception, fraud, or unethical behavior. Question 34 In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______. Topic: Finance and Closing Subtopic: Finance Contract for deed Finance deed Promissory note Security deed The security deed is the primary security instrument used in Georgia. Question 35 Which of the following statements about continuing education requirements is true for real estate licensees in Georgia? Topic: State Laws and Rules Subtopic: Qualifications and Fees For each renewal cycle, 25 hours of post-licensing education and 36 hours of continuing education are required. For the first four-year renewal, only the 25 hours of post-licensing are required. For subsequent renewals, 36 hours of continuing education are required. For the first license renewal, licensees may opt to complete the 25 post-licensing hours and the 36 hours of continuing education at any time during the four-year renewal period. For the first renewal cycle, 25 hours of continuing education must be completed within one year of license issuance, and another 27 hours of continuing education are required. The requirement for the first year is 25 hours of post-licensing education, and nine of those hours count toward the 36-hour CE requirement for the first four-year renewal cycle, leaving 27 hours of CE to be completed. Question 36 GREC has many rights and authorities when it comes to regulating Georgia license law. Which of the following falls within its scope of authority? Topic: State Laws and Rules Subtopic: Commission Organization and Procedures Deny a loan on behalf of a lender. Impose fees on the public. Issue, deny, suspend, or revoke a real estate license. Prohibit a license holder from performing real estate duties for a client when no compensation is involved. GREC regulates real estate license law in Georgia, but may not impose fees on the public, deny loans, or prohibit licensees from performing real estate duties for no charge if they opt to do so. Question 37 What's true about the extension clause in Georgia's brokerage agreements? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency It extends the agreement term if a binding contract that falls through for any reason. It's only valid if the parties agree to the extension. It's the same thing as the protected period. The parties decide on the extension period when signing the agreement. The extension clause adds time to the buyer brokerage agreement if the buyer is under contract and that falls through. The extension period equals the number of days the buyer was under contract. Question 38 Who holds the promissory note while it's being repaid? Topic: Finance and Closing Subtopic: Finance The mortgagor The obligee The obligor The trustee The lender is the obligee who holds the note while it's being repaid. If the note is transferred, the new owner becomes the obligee and note holder. Question 39 The seller countered buyer Addie's initial offer. Which of these statements is true about the situation? Topic: Real Estate Practice In Georgia Subtopic: Sales Contracts A buyer may opt to "counter the counter" by submitting a counter-offer to the seller's counter-offer. A buyer must accept a seller's counter-offer to the buyer's initial offer. A seller can counter a buyer's initial offer, but a buyer can't counter the seller's counter-offer. Each counter-offer is considered an addendum to the original offer. Georgia law doesn't limit the number of counter-offers that may go back and forth between the buyer and seller during negotiations. Question 40 What can be said about a designated agent's duties? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency They must be negotiated ahead of time. They're the same as a dual agent's duties. They're the same as a single agent's duties. They're the same as the duties to a customer. A designated agent and a traditional single agent both owe the same duties to their clients. Question 41 Which of the following describes the GAR F913, Lease for Residential Property, use restrictions provision as shown in Section A? Topic: Real Estate Practice In Georgia Subtopic: Property Management How the tenant will pay the rent The term of the lease Those who are permitted to occupy the premises Whether the lease is automatically renewable The use restriction provision describes who's permitted to occupy the property and how the tenant will use the property, including allowable activities. Question 42 Alicia is about to sign an exclusive buyer agency agreement with her new client, Eric. Which form will she use? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency GAR Exclusive Buyer Brokerage Agreement form GREC's mandated buyer agency agreement form NAR Exclusive Buyer Brokerage Agreement form The form approved in the brokerage policy and procedure manual There isn't a standard buyer representation agreement form used in Georgia. Licensees will use the form their broker prefers. Question 43 Some brokers may opt to attach other documents to an independent contractor agreement. Which of the following is NOT one of these such attachments? Topic: Real Estate Practice In Georgia Subtopic: Real Estate Practice Confidentiality agreement Employee agreement Licensee information sheet Termination agreement Brokers use employee agreements with their actual employees, not independent contractors. Question 44 Of the following, what is the main distinguishing feature between a mortgage, a deed of trust, and Georgia's security deed? Topic: Finance and Closing Subtopic: Finance Foreclosure process Institutional lenders use a mortgage; sellers use a deed of trust Recordation taxes Right of lender to inspect property The mortgage and the deed of trust serve the same purpose, but states may establish one or another as the preferred instrument due to the foreclosure process associated with each. Question 45 Corinne signs a buyer brokerage agreement with Juan, but he's transferred to Chicago. How will their agreement terminate? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency Completion Expiration Mutual agreement Operation of law Brokers and clients may mutually agree to terminate the agency agreement with no repercussions for either party. Question 46 Where are option contracts on multiple properties commonly seen? Topic: Real Estate Practice In Georgia Subtopic: Sales Contracts Commercial properties Rental properties Residential properties Rural properties Option contracts on multiple properties are most commonly seen in commercial real estate. Question 47 In Georgia, what's the first step in the foreclosure process (sometimes called pre-foreclosure)? Topic: Finance and Closing Subtopic: Finance The lender advertises the property for sale. The lender files formal notice of default with the county recorder. The lender notifies the borrower and attempts to have the default cured. The lender offers to modify the borrower's loan. Most lenders won't voluntarily offer a loan modification, though they will notify the borrower of the default and attempt to work with the borrower to cure the default. Question 48 Darcy signed an exclusive right-to-sell agreement with licensee Shane, which gives Shane authority to ______. Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency  Authority to negotiate the contract Determine the list price Make counter-offers on Darcy's behalf Refer all sales-related inquiries to the broker An exclusive right-to-sell agreement gives the agent the authority to market, negotiate, and sell the property. Question 49 Which lenders are covered by GAFLA? Topic: Finance and Closing Subtopic: Finance Loan brokers, servicers, and purchasers or assignees Only non-traditional mortgage providers Only those lenders that originate or service loans Private mortgage insurance providers GAFLA impacts any entity that originates, brokers, services, or purchases residential loans secured by a borrower's primary residence. Question 50 With a security deed in Georgia, how may a lender release the deed when the loan is paid off? Topic: Finance and Closing Subtopic: Finance Contact the county land office to execute a reconveyance.  Execute and record a document called a Satisfaction of Deed to Secure Debt. Have an attorney prepare a reconveyance document and then sign it. Sign the security deed verifying release of the collateral and re-recording the security deed. When the debt is fully repaid, the lender is required to sign the document verifying release of the collateral and re-recording the security deed. Or the lender may instead execute and record a document called a Cancellation of Deed to Secure Debt. Question 51 In Georgia, what must be filed for the eviction process to begin? Topic: Real Estate Practice In Georgia Subtopic: Property Management An affidavit A writ of possession Evidence of missed rental payments The lease The eviction process is handled by the court, and it begins when a landlord files an affidavit. Question 52 GAFLA targets predatory lending by prohibiting which of the following? Topic: Finance and Closing Subtopic: Finance Discrimination against protected classes  Excessive late fees and financing of credit insurance Excessive origination fees and discount points Redlining and blockbusting GAFLA provisions prohibit excessive late fees and financing of credit insurance or debt cancellation charges. The act does not address origination fees, discount points, or fair housing issues. Question 53 Licensee Doris is moving to Savannah and wants to transfer her license to a firm there. Her broker in Atlanta may/must do any of the following EXCEPT ______. Topic: Real Estate Practice In Georgia Subtopic: Real Estate Practice Hold her license until she repays all the money she owes Notify GREC if Doris is in violation of license law Notify GREC of the transfer Sue Doris to collect any money she owes the Atlanta broker Brokers must transfer the affiliated licensee's license upon request, even when the licensee is in violation of the law or owes the broker money. Brokers have the right to sue the licensee for money owed and file a complaint with GREC. Question 54 How's the Georgia intangible tax computed? Topic: Finance and Closing Subtopic: Closing Procedures It's a flat $10 fee for any mortgage subject to the Georgia Residential Mortgage Act.  It's based on.1% of the sales price. It's based on the amount borrowed, and is $1.50 per each $500 or fractional part thereof, with a maximum of $25,000. It's based on the sales price, and is $1.50 per each $500 or fractional part thereof with a maximum of $25,000. The intangible tax is based on the loan amount and is $1.50 per each $500 or fractional part thereof with a maximum of $25,000. Question 55 Which parties must be identified on the promissory note? Topic: Finance and Closing Subtopic: Finance The beneficiary, the trustor, and the trustee The borrower and the lender The borrower, the lender, and the seller The buyer and the seller The parties involved in the loan must be identified, but the seller and the third-party trustee are not identified on the note. Question 56 In order to better supervise their independent contractors, many brokers may ask them for additional information. Which of these would brokers NOT typically ask for? Topic: Real Estate Practice In Georgia Subtopic: Real Estate Practice Confirmation of continuing education training  Family status Marketing plans, tools and approaches the licensee is using URLs the licensee is using or owns that are associated with real estate Brokers want additional information so that they know how their contractors are approaching their work. Family status does not apply. Question 57 Which of the following written statements is required in a dual agency disclosure in Georgia? Topic: Real Estate Practice In Georgia Subtopic: Listings and Agency Confidential information won't be provided to the opposite party. Dual agency is the default relationship unless otherwise stated. Dual agency represents no conflicts of interest. The broker will not disclose relationships that might be impacted. Information of a confidential nature won't be provided to other parties. Dual agency is optional, and both parties must consent in writing for legal dual agency to exist. Question 58 Who's responsible for the proper management and recordkeeping of trust accounts? Topic: Real Estate Practice In Georgia Subtopic: Real Estate Practice A brokerage firm's certified public accountant A broker or qualifying broker of a brokerage firm  All licensees who accept trust funds such as earnest money The person for whom the trust funds are deposited A broker is responsible for the proper handling, management, and recordkeeping of all trust accounts associated with the brokerage. Question 59 Which of the following tasks can an unlicensed assistant perform for a broker? Topic: Real Estate Practice In Georgia Subtopic: Real Estate Practice Assemble closing documents. Call prospective clients to solicit business. Host an open house. Interpret contract information for a client. Unlicensed assistants may perform administrative tasks only. Solicitation of business is an activity that requires a license. Question 60 GREC won't investigate a complaint unless the incident prompting the complaint occurred within the past ______. Topic: State Laws and Rules Subtopic: Investigation and Hearing Process Six months Three years Two years  Year Complaints must be made within three years of the alleged incident.