ACEABLE FINAL EXAM STUDY TERMS (GA) Questions with correct Answers, Exams of Nursing

Download ACEABLE FINAL EXAM STUDY TERMS (GA) Questions with correct Answers and more Exams Nursing in PDF only on Docsity! ACEABLE FINAL EXAM STUDY TERMS (GA) Questions with correct Answers 1. what is one way a co-op sales contract differs from the sales contract for a single-family home? --*correct answer*--the co-op sales contract includes a section detailing what the buyer must do it they hope to gains the corporations board approval (One of the most important differences is that purchasing cooperative shares requires the approval of the corporation. So the co-op sales contract includes a section detailing what the buyer must do if they hope to gain the corporation's approval (usually called "board approval"). 2. which of the following BEST defines a circumstance requiring a real estate license? --*correct answer*--performing a real estate act for another party with the intent to receive compensation (Performing a real estate act for another party with the intent to receive compensation best defines the real estate license requirement.) 3. What is the MOST COMMON clause in listing agreements? --*correct answer*--sign posting clause 4. which document provides a detailed list of each partys expenses at closing? --*correct answer*--the closing disclosure 5. how is debt service ratio calculated? --*correct answer*--by dividing net operating income by total debt service 6. What is NOT NEEDED when prorating an expense? --*correct answer*- -real estate transfer amount (usually paid by seller) 7. what mortgage is short-term and paid out in draws? --*correct answer*--construction mortgage (lender pays funds to borrower in installments, called draws, as the construction progress) 8. Molly wants to buy a property downtown so she will be closer to the local nightlife and have a shorter work commute. Her interest in a property is greatly influenced by the economic significance of the property's location. What is Molly influenced by? --*correct answer*-- Situs (economic significance of a propertys location) 9. Seller Jordan chooses to not disclose an easement on his property and the buyer never asks about it. What is this an example of? --*correct answer*--Silent fraud 10. Agent Laura completed a CMA on a property her client was interested in making an offer on. What kind of value was Laura attempting to determine? --*correct answer*--Market Value (CMA = comparative market analysis) 11. what does "vicarious liability" mean? --*correct answer*--broker is responsible for their licensees actions or omissions 12. what is easement by condemnation? --*correct answer*--easement in which property is taken via eminent domain and serves as a declaration that a structure must be closed because it's unfit for occupants (An easement by condemnation is an easement in which private property is taken for public use via eminent domain. It serves as a declaration that a structure must be closed or demolished because it is unfit for occupants.) 13. How would an appraiser be able to adjust for the size of the property using the sales comparison approach? --*correct answer*--they would need to find the price per square foot of the comparable property 14. Laureen is a license holder in Georgia. Her clients, a married couple, are asking her how they should take title on the home they're purchasing. She urges them to speak to their attorney about their options. Did Laureen handle the situation correctly? Why or why not? --*correct answer*--yes, because even though couples decide how to would come with a lower interest rate offer. (Even without knowing many of the details, it's very likely that the secured loan would feature the better interest rate. Having property serve as collateral on the loan lowers the risk for the lender, and the interest rate offered will reflect that lower risk.) 26. In order to protect the public interest, Georgia requires real estate professionals to get licenses. What kinds of licenses are offered? --*correct answer*--broker, associate broker, salesperson, community association manager 27. Chuck signs Linda to a salary-based employment contract to sell used cars on his lot. He also points out to her that he has a contest for all his salespeople that she can win if she meets the sales goal. What can be said of the contracts that Chuck has entered into with Linda? -- *correct answer*--employment contract is bilateral, contest is unilateral (Linda's employment contract with Chuck is a bilateral contract wherein both parties are making promises. The contest is a unilateral contract between Chuck and Linda wherein he makes a promise, but she doesn't. If she chooses to perform and meets the sales goal, Chuck is bound to the contract.) 28. Kelsey and Elliot have a contract that literally spells out all the terms and conditions of their lease agreement while Mike and Carl have an unspoken understanding regarding what Carl needs to do in exchange for living in Mike's basement. How would you describe these two contracts? --*correct answer*--kelset and eliot have an express contract. Mike and carl have an implied contract. Both may be legally binding 29. The government seizes Farsch's property to expand a highway. What is this an example of? --*correct answer*--eminent domain and involuntary alienation 30. what refers to the permanence of land? --*correct answer*-- fixity 31. what is an example of police power? --*correct answer*--zoning (police powers are zoning laws, building codes, private land use controls, and the application of rules) 32. The interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original owner (grantor) is known as: --*correct answer*--revisionary interest (The reversionary interest is the interest in an estate wherein, upon the death of the life estate owner, full ownership reverts back to the original owner (grantor). 33. what is the relationship between an escalator and a multiple offer situation? --*correct answer*--buyer should only include an escalator if they are pretty sure seller will recieve multiple offers (Don't use an escalator unless you're pretty certain that there will be multiple offers. If the property is not as hot as your buyer thought, you've exposed their upper limit (and therefore weakened their bargaining power) for no reason.) 34. Title X requires that: --*correct answer*--sellers of properties built prior to 1978 must make a disclosure of hazards related to lead- based paint 35. A certificate of occupancy is issued by a governmental authority to indicate that: --*correct answer*--a building is ready and fit for inhabitants 36. What is a land survey process in which a licensed land surveyor starts at a readily identifiable point of beginning and defines the boundaries of a property in terms of distances and compass directions, finally returning to the point of beginning? --*correct answer*--metes and bounds (Metes and bounds is a land survey process in which a licensed land surveyor starts at a readily identifiable point of beginning and defines the boundaries of a property in terms of distances and compass directions, finally returning to the point of beginning.) 37. Ophelia put a client's down payment into a trust account that also held her personal finances. The next day, she used money from the trust account for a car payment. This is an example of: --*correct answer*--conversion (Conversion occurs when funds (which have likely been commingled) are actually spent on something. Ophelia has converted funds.) 38. If a lender wishes to understand the gap between the value of a property and the cost of the loan being used to purchase that property, what risk assessment tool would they use? --*correct answer*--loan to value ratio 39. A non-amortizing loan of $95,000 has an interest rate of 4.5%. How much will be paid in interest over the year? --*correct answer*-- $4,275 (0.045 x $95,000 = $4,275) 40. What is the name for the element of a valid deed this is something of value exchanged by the parties as evidence of agreement to the terms of a contract? --*correct answer*--consideration (Consideration is something of value exchanged by the parties as evidence of agreement to the terms of a contract.) 41. What purpose does BRRETA, the Brokerage Relationships in Real Estate Transactions Act, serve? --*correct answer*--protects both licensees and customers by putting protective measures around agency. (Georgia passed BRRETA in 1994 to put extra protective measures around the practice of agency and protect both licensees and customers.) 53. what does a lifetime cap do? --*correct answer*--limits increase of interest for the life of the loan (A lifetime cap limits the increase of interest for the life of the loan.) 54. which of the following is NOT a form of evidence title? -- *correct answer*--equitable title (Evidence of title could be an opinion of title, certificate of title, Torrens certificate, or title insurance.) 55. All of the following are exempt from the Fair Housing Act EXCEPT: --*correct answer*--bill, a real estate agent who is renting 2 units in a fourplex that he also lives in 56. With amortized loans, the borrower is: --*correct answer*-- paying in arrears (With amortized loans, the borrower is paying for what they already owe instead of paying for what they will owe.) 57. Michelle is interested in purchasing a home where the listing agreement does not allocate compensation for cooperating brokers. She has a signed agreement with her buyer's agent for a 2% commission rate. What does this most likely mean for Michelle? -- *correct answer*--she will need to pay the commission rate of her buyers agent on top of the final sales price (If the listing agreement does not allocate compensation for cooperating brokers, the responsibility for the compensation of the buyer's agent is the responsibility of the buyer.) 58. What is FALSE about counteroffers? --*correct answer*--during the countering process, the seller is not free to sell to someone else (License holders need to make buyers aware that while they are countering, the property IS still available and the seller is free to sell it to someone else. The other answer choices are true about counteroffers.) 59. Corbin took out a non-amortized loan of $550,000. He ended up paying $42,250 in interest over the year. What was Corbin's interest rate? --*correct answer*--7.6 % (To find the interest rate, you just need to divide the part (42,250) by the whole (550,000). 42,250 ÷ 550,000 = 7.6%) 60. What is the connection between the theory of a state and its predominant foreclosure process? --*correct answer*--title theory states tend to use a nonjudicial foreclosure process whereas lien theory states typically employ judicial foreclosure (Lien theory states typically employ a judicial foreclosure process while title theory states tend to favor the use of a nonjudicial process. Because the title in a title theory state is already in the hands of the lender or a third- party trustee, it does not require nearly the effort to foreclose on the property as it does in a lien theory state where the title is held by the borrower.) 61. Which of these best describes a condo development, according to the Georgia Condominium Act? --*correct answer*--a mall, where store units are owned individually and common elements like plazas and bathrooms are co-owned by all owners (A mall where store units are owned individually and common elements like plazas and bathrooms are co-owned by all owners is a condo development in Georgia.) 62. Which of the following is an example of a latent defect? -- *correct answer*--asbestos that is completely hidden behind drywall (non visible) 63. What is a fidelity bond? --*correct answer*--form of insurance that protects policyholder by covering any losses they might incur as a result of theft or fraud by. specific individuals (A form of insurance that protects the policyholder by covering any losses they might incur as a result of theft or fraud by specified individuals is a fidelity bond.) 64. What is the perimeter of a rectangular lot whose sides measure 58 feet long and 34 feet wide? --*correct answer*--184 ft (add all sides) 65. What is the second phase of an environmental assessment? -- *correct answer*--testing 66. What is the revenue a property could generate if 100% of the units in the building were leased at market rate? --*correct answer*-- potential gross income (Potential gross income is the revenue a property could generate if 100% of the units in the building were leased at market rate.) 67. Which of the below would the ADA NOT cover? --*correct answer*--a free-standing brokerage with 10 employees (Many brokerages fall within the scope of the ADA because of their location (perhaps in a mall or other retail facility, which is bound to follow the requirements of the ADA), or because the brokerage has 15 or more employees.) 68. If a loan is partially amortized, then: --*correct answer*--the monthly payments will not be enough to pay off the principal within the loans terms (If a loan is partially amortized, then its monthly payments will not be enough to pay off the principal within the loan's terms.) 69. Who determines the compensation for the transaction coordinator? --*correct answer*--the buyer and the seller and the coordinator 70. Perry signed a graduated lease with her landlord. Which of the following is TRUE? --*correct answer*--perrys rental payments will increase over time on specific increments (A graduated lease is a lease in which the rental rate increases over time in specific increments.)