GA REAL ESTATE EXAM PREP / HARD

How often *must* you take continuing education?

*Every 4 years*.

In Georgia, which of the following is *NOT* a cost or expense of owning a home?

Taxes on *personal property*.

A *Broker's*, license fee costs how much?

*$170*

All of the following, exist in Georgia *EXCEPT*. Ad valorem Taxation, Special Assessments, Statutory Right of Redemption, Equitable Right of Redemption

*Statutory Right of Redemption*

Which of the following statements about a *Management Agreement* is *FALSE*?

*It is FALSE that*: it requires the Property Manager to work diligently to maximize the Licensee's rate of return.

An item of *Functional Obsolescence* is considered *incurable* if the:

cost to repair is more than the value it ads.

What is *TRUE* about an *Associate Broker* in Georgia?

Both A&B: *A*. An Associate Broker may perform any real estate brokerage act that requires a license. *B*. An Associate Broker acts on behalf of a Broker.

The squared or rectangles used in Georgia legal description are:

*Land Lots* and *Districts*.

Does Georgia allow *Joint Tenancy* or *Tenancy by the Entirety*?

Georgia allows *Joint Tenancy.*

How many hours of continuing education are required to renew a 4 year real estate *Salespersons*, license?

24

What is *Homestead Protection*?

The status provided to a homeowner's principal residence that *protects the home against judgement*, up to a specified amount.

Which of the following is *NOT*, a *Covenant of Warranty* in a *Georgia General Warranty Deed*?

*NOT* a Covenant of, *Further Assurance*.

To keep a Georgia Sales Associate License, an individual must do all of the following *EXCEPT*:

*EXCEPT* Take at least ten quarter hours or six semester hours of college courses in real estate.

Based on the ability to accept assignments, *which appraiser has the most latitude*?

*Certified General*

The real estate records in Georgia are maintained by the:

*Clerk of Superior Court*

To be recorded in Georgia, the deed must be witnessed by:

one official witness and one unofficial witness.

A buyer signs a contract to purchase a commercial building in Savannah. The contract is silent as to who bears the risk of loss proper to closing. *After the contract is signed, but before the closing*, the building burns to the ground.According to Georgia law the.

*BUYER* must bear the risk of loss or damage before the closing.

In Georgia, the Landlord's eviction of a tenant is generally known as:

a *DISPOSSESSION*.

Real property legal descriptions in Georgia can be based on all of the following *EXCEPT*: Land Lots, Township, Georgia Militia Districts, Districts.

*EXCEPT, Township*.

Under Georgia law, to claim adverse possession, the claim *Must* be:

*Must be,* Accompanied by a *Claim of Right* and *Free of Fraud.*

The relationship between *Broker and Seller* is generally what type of agency?

*Special*.

Which *State Agency* is responsible for the implementation of the *Georgia Lead Paint Prevention Act* of 1994?

*Georgia Department of Natural resources*.

In Georgia, the legal document that pledges the property as collateral for repayment of the loan is the:

*Security Deed*.

A community that merges, housing, recreation and commercial units into one self contained development is called a :

*pud*.

The period of time in Georgia in which *Adverse Possession* ripens is:

*Seven (7) years under Color of Title.*

Is Georgia a *Community Property State?*

*No*

Does Georgia have *Dower Laws?*

*No*

In Georgia, *Broker Duties* owed to a client:

Are determined by *BRRETA* or *Brokerage Relationships in Real Estate Transaction's act*

Georgia uses which of the following *theories of mortgage (security deed)*?

*Intermediate Theory.*

An auctioneer who auctions real estate *MUST* have.

*BOTH* a Real Estate Sales Person's or Broker's license and an Auctioneer's license.

A man has been a Georgia licensed Sales Person for four years. When his license is renewed, *he must furnish the commission evidence of completing approved continuing education courses totaling at least how many hours for each year of the renewal period?*

6 hours per year or 24 hours total for four years

Under the Georgia Condominium Act, which of the following must be in the Condominium Declaration?

Both the name of the condominium, which must contain the word "condominium".

In Georgia, when a lender wants to *prevent a future purchaser of the property from being able to assume the loan*, what clause does the lender place into the Security Deed?

*Alienation*.

A *Salesperson* license fee costs how much?

*$170*

The states in which the *owner gives up legal title* of mortgaged real estate are known as:

*Title Theory States*

Which is not necessary for a valid contract?

*due Date*

Georgia law, *ALLOWS* which of the following form(s) of Co-ownership?

*Community Property*

If a landlord has a tenant who has not paid rent and is removing personal belongings from the property, the landlord can file an Affidavit for:

*Distraint*

Who is responsible for maintaining a habitable property, and for complying with local housing and building codes?

*Lessor*

The *Georgia Real Estate Commission* may initiate an investigation of an applicant for *Licenseure or a License*

*By either its own motion or upon written request*.

In Georgia, the statute of limitations to bring legal action based on a real estate sales contract is:

*6 years*

Which of the following *BEST EXPRESSES* the concept of equity?

*Current market value minus property debt*

In Georgia, which legal document *pledges* the property as collateral for the lender to receive a return of funds at a foreclosure sale?

*Security Deed*

A broker is responsible if an *affiliated licensee violates any provisions* of the Georgia Real Estate License Law unless the Broker is able to demonstrate:

That the Broker *did not participate or ratify* the violation.

For a Salesperson, each of the following is considered an unfair practice under The Georgia License Law, *EXCEPT*

*EXCEPT* Indicating a fixed date of expiration in a listing agreement.

A man buys a house in Macon for $264,550. What is the amount of Georgia Real Estate Transfer Tax that must be paid upon filing the deed?

*Transfer Tax Formula is $264,550 x .001 = $264.55*

The principal method of *delineating property boundaries or legal descriptions* in Georgia is known as the:

system of *Metes and Bounds.*

Which type of *agency* is recognized in Georgia?

*Designated Agency*

All of the following agreements must be in writing *EXCEPT*

an *OPEN LISTING*

Two agents who work for the Realty Company find themselves working on the same transaction, one with the seller as a client, and one with the buyer as the client. In this situation under Georgia's *Brokerage Relationships in Real Estate Transactions Act* (*BRRETA*):

*BRRETA* defines this as *Designated Agency* NOT, Dual Agency.

Under Georgia Law, *WRITTEN* disclosure of an *Agency Relationship* must be made:

*WRITTEN* disclosure happens, *at the time the offer is made*

In the *Purchase and Sales Agreement,* the responsibility for a satisfactory inspection for termites and other wood-destroying insects rests with:

the *Buyer*

In Georgia, a Broker is representing a couple who has purchased a lot, and is contemplating the construction of a new home. The Broker should advise them of all of the following *EXCEPT*

how the couple should take title.

The types of *Agency Relationships* that a company offers are stated in:

*The Company's Policy Manual*

The type of *tenancy* that has a beginning and ending date is the:

*Estate For Years*

If the tenant were to die during the lease period, which type of *leasehold* would pass to the tenant's estate?

*BOTH* *Estate for Years, and Tenancy from Year to Year*

If the *landlord and the tenant* do not specify the rental period, the manner of which the rent is paid creates *this type of occupancy*.

*Estate from Year to Year*

When the rent payment is a *fixed amount for the term of the lease*, it is called:

A *Gross Lease.*

A *Percentage Lease* is most often used in:

*Shopping Centers*

Which form of *ownership* involves a *Proprietary Lease?*

*Co-operative*

How many acres are in a lot described as E 1/2 of NW 1/4 of SE 1/4?

*20 Acres, .......but I don't know how to get that answer*

The *Parole evidence Rule*

Will allow oral evidence to explain, but not contradict a written contract *AND* Does *not* relate to matters involving *fraud, Mistake and Ambiguities*

Which is the *least curable* form of Obsolescence?

*Economic Obsolescence*, out of owners control.

What two methods of appraising property are most similar?

*Gross Rent Multiplier and Income Approach to Value Method*

Which term or terms is/are used with *section 1031 of the Internal Revenue Code?*

*All of the above.*

Peter wants to buy his first house and has a gross monthly income of $3,000. How much payment can he afford?

$3,000 x 28% = $840,

The best appraisal methods to be used to establish the *Current Market Value of a Shopping Center* would be?

*Cost Income* method.

An *Appraiser* is:

Someone who engages in the procedure of estimating the real value of *Real Property or Personal property*

A contract for a lump sum or scheduled premiums that are paid out.

*Annuity*

*Amortization Rate* is defined as:

The percentage of periodic payment that is applied to the reduction of the principal.

The *appraisal principal* that states that the highest property values are realized when *improvements are proportional to one another* and the land in size and shape.

*Balance*

To use the *Capitalization Approach* to appraising, you need the.

*Net Income*

An amount *Owed or Due*

*Debit*

*Property* may be technically defined as:

*Rights or Interest* which a person has in the thing owned.

Who is the individual who obtains a real estate loan by signing a note and a mortgage?

*Mortgagor*

Which of the following describes a mortgage that uses both real and personal property as security?

*Package Mortgage*

A mortgage must include a *power of sale clause* to be foreclosed by:

*Advertisement*.

In many states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is that right called?

*Statutory right of redemption.*

*In a title theory state, the

*Mortgagee takes title to the mortgaged property, during the TERM of the mortgage.*

A woman qualified to obtain an FHA loan for the purchase of a new home. From *which* of the following may she obtain this loan?

*A qualified* Federal Housing Administration *mortgagee.*

The *Defeasance Clause* in a mortgage requires that the mortgagee execute:

a *satisfaction* of mortgage.

A mortgage loan that requires monthly payments of $1,175.75 of 20 years and a final payment of $25,095 is

a *Variable Mortgage.*

The difference between the *market value* and any *liens* on the property is the owner's

*Return*

Fannie Mae and Ginnie Mac

are both involved in the *Secondary Market.*

A *Deficiency Judgement* can be filed when

a foreclosure does not produce sufficient funds to pay a mortgage debt in full.

When a buyer assumes the mortgage, which of the following is *TRUE*

The *Buyer* who assumes a mortgage becomes liable for the debt.

The loan which is *Most Likely* to create *negative amortization* is the

*Graduated Payment Mortgage*

Which of the following is *True* regarding a *Purchase Money Mortgage*?

The seller finances a portion of the purchase price and places a *junior lien* on the property.

Who is the *Beneficiary* in the *Deed of Trust Security Instrument* used in a *title theory state (Georgia).*

*Lender*

On *Adjustable Rate Mortgages* the, *margin* will

remain constant over the life of the loan.

A defaulted borrower's *right to redeem property before a foreclosure* is called the

*Equitable Right of Redemption*

Laws that determine the *maximum interest rate* a lender can charge are called

*usury laws*

Which of the following requires that *finance charges* be stated as an *annual percentage rate?*

*Truth in Lending Act*

An owner negotiated a home equity loan on his property. the owners *right to rescind this agreement within 3 days* is provided by.

*Regulation Z*

Which of the following parties must sign the note and the mortgage?

*Mortgagor and Promissor*

A construction loan is an example of

a *Nonamortized Loan*

The federal act that prohibits a *lender* from discriminating based on race, color, religion, national origin, sex, marital status, age, or source of income is the

*Equal Credit Opportunity Act*

A veteran is negotiating a GI Loan. *The appraiser* will use a

*Certificate of Reasonable Value*

The act of *Pledging Property* to the lender without giving up possession rights is called:

*Hypothecation*

Which federal law requires a loan originator to *provide a potential borrower with a loan estimate within three days of application?*

*TILA-RESPA INTEGRATED DISCLOSURE RULE*