Barney Fletcher Final Exam 100 Questions with 100% Correct Answers Verified Latest Update, Exams of Community Corrections

Download Barney Fletcher Final Exam 100 Questions with 100% Correct Answers Verified Latest Update and more Exams Community Corrections in PDF only on Docsity! Barney Fletcher Final Exam 100 Questions with 100% Correct Answers Verified Latest Update 2024 What type of transaction exists when there is a written contract for a broker to receive pay from both or either party and performs only ministerial acts for one or both parties? A. double agency B. transaction brokerage C. sub agency D. single agency - ....ANSWER >>>>B. transaction brokerage When is the correct time for the salesperson to get the proper legal description of the seller's property? A. when filling out the offer B. when filling out the sales contract C. when filling out the listing D. any time before closing - ....ANSWER >>>>C. when filling out the listing Sue acquires an option to buy a tract of land from Pete. which of the following is NOT true? A. Sue is the optionee and Pete is the optionor B. the property may be purchased at the discretion of the optionee C. Pete may not diminish the value of the property (waste) during the period the option is in effect D. Pete may not sell the property to anyone else during the period the option is in effect - ....ANSWER >>>>D. Pete may not sell the carry out through the provisions of the Georgia Real Estate Law? A. fine an individual up to $5,000 operating in the capacity of a broker, without a license B. fine a broker up to $1,000 for multiple violations C. fine a licensee up to $5,000 for one conviction of moral turpitude D. refuse to issue a license to an applicant who falsified an application - ....ANSWER >>>>D. refuse to issue a license to an applicant who falsified an application In dual agency, the consent form must contain all of the following except? A. a lot and block legal description of the property B. a statement that the client does not have to consent to the dual agency C. a statement that the agent will disclose all adverse known material facts D. a statement that the agent will disclose any material relationships - ....ANSWER >>>>A. a lot and block legal description of the property A man had rented a place to live but had stayed beyond his lease without the owner's consent. This would be: A. an estate at sufferance B. an estate at will C. a periodic tenancy D. a tenancy for years - ....ANSWER >>>>A. an estate at sufferance Which would require compensation to be paid? A. police power B. condemnation C. escheat D. encumbrance - ....ANSWER >>>>B. condemnation Which is true about personal property? A. it is attached to the land B. it is considered appurtenant to the land C. it is immovable D. none of the above - ....ANSWER >>>>D. none of the above A method of describing land using points, angles, and distances is which of the following? A. rectangular survey B. measurement by leaps and bounds C. plat of survey or lot and block survey D. measurement by metes and bounds - ....ANSWER >>>>D. measurement by metes and bounds A. the broker only B. any salesperson or broker C. the broker or any salesperson with the broker's written authorization D. the broker or an associate broker only - ....ANSWER >>>>C. the broker or any salesperson with the broker's written authorization A property listed with one broker was bought by a buyer who worked with another broker. The two brokers decided to split the commission. If the federal authorities found out about this they could: A. revoke the broker's licenses B. suspend the broker's licenses C. fine the brokers $1,500 D. do nothing - ....ANSWER >>>>D. do nothing If all the principals live in the same city, in which of the following cases would the broker most likely need a power of attorney? A. the owner of a manufacturing plant lists it with a broker B. a buyer contracted with a broker to purchase all properties put up for sale in that county C. a couple going through a divorce lists their property with the broker D. the XYZ Corporation, through its Board of Directors, authorizes the broker to sell a piece of property owned by the corporation - ....ANSWER >>>>B. a buyer contracted with a broker to purchase all properties put up for sale in that county An owner of a large estate told a broker he did not want an open house held on this property and wanted advertising in a national magazine only. Is this allowable? A. yes, the seller is responsible for planning all marketing of the property B. yes, the broker works for the seller and must follow all legal instructions of the seller C. no, the broker has the right to hold the house open at his own discretion D. no, the owner cannot limit the broker's ability to earn a commission - ....ANSWER >>>>B. yes, the broker works for the seller and must follow all legal instructions of the seller A salesperson listed a property for $68,000. Soon thereafter, another property that had also listed for $68,000 sold for $75,000. The salesperson should: A. tell the owner, as he had obviously made a mistake in the estimate of market price B. tell the owner that another had sold for $75,000 A. no, because if the seller's loan is assumed, the seller will always remain in a vulnerable position B. no, because financing part of the purchase price would place the seller in a vulnerable position C. yes, because every seller's equity in his/her property must be reduced to avoid capital gains taxes D. yes, because the seller's willingness to assist in the financing by allowing the loan to be assumed and possibly taking a second mortgage may make the property much more marketable, which would be to the seller's benefit - ....ANSWER >>>>D. yes, because the seller's willingness to assist in the financing by allowing the loan to be assumed and possibly taking a second mortgage may make the property much more marketable, which would be to the seller's benefit A real estate salesperson intends to offer for sale a tract of land he inherited without listing it with a real estate brokerage company. Which of the following is NOT true concerning the marketing of this property? A. the salesperson must notify the broker in writing of his intention to sell the property B. in order to advertise the property, the salesperson must have his broker's written consent to do so C. in advertising the property, the advertisement must state, "owner is a licensed real estate agent acting as a principal D. the salesperson must offer the property through his broker's company. He may not advertise the property except as a listing of his company - ....ANSWER >>>>D. the salesperson must offer the property through his broker's company. He may not advertise the property except as a listing of his company Most brokers will insert a protection clause in their listing contracts. This clause will usually allow: A. the listing of a house to automatically extend for an additional 30 days if the house is not sold during the agreed term or the listing B. a broker, who had procured a buyer before the expiration of the listing, to receive a commission even though negotiations were completed after the expiration date of the listing C. the listing agent has the first right of refusal in the event the house is not sold during the term of the listing D. none of the above are true - ....ANSWER >>>>B. a broker, who had procured a buyer before the expiration of the listing, to receive a commission even though negotiations were completed after the expiration date of the listing A market where there is an excess of supply over demand is known as a: A. buyer's market B. broad market C. seller's market D. thin market - ....ANSWER >>>>A. buyer's market Which of the following is not a principle of value? A. substitution B. assemblage C. conformity D. depreciation - ....ANSWER >>>>D. depreciation A loan in which the buyer pays off the total principal at the end of the loan is a: A. partially amortized B. straight term C. principal + interest D. amortized loan - ....ANSWER >>>>B. straight term A lender would require a blanket mortgage in which of the following circumstances? A. if the borrower was going to use several unencumbered properties as security B. if there was a mortgage clause stating that upon default, it would become a general lien C. if the lender made the loan to encompass all of the borrower's debts D. none of the above - ....ANSWER >>>>A. if the borrower was going to use several unencumbered properties as security Which loan will give a borrower the lowest monthly payment? A. 10% interest, 20 year term B. 10% interest, 25 year term C. 11% interest, 20 year term D. 11% interest, 25 year term - ....ANSWER >>>>B. 10% interest, 25 year term Which factor would influence a lender LEAST in making a loan? A. the present value and future value of the property B. the income and income potential of the borrower C. the borrower's need of financial assistance D. the attractiveness of other investments - ....ANSWER >>>>C. the borrower's need of financial assistance A homeowner with a mortgage replaced it with a new mortgage 3% lower in interest and obtained extra funds to make investments. This is called: C. half of the commission is earned now and half when the option is exercised D. none of the above - ....ANSWER >>>>D. none of the above Which BEST describes the sale price for a property in an option agreement? A. the sale price would be determined when the option is exercised B. the buyer is guaranteed a fixed price when the option is signed C. the buyer can purchase the property by matching any other offer D. the optionor is obligated to pay the sale price when the option is exercised - ....ANSWER >>>>B. the buyer is guaranteed a fixed price when the option is signed Where may a salesperson get the legal description of a property for insertion into the sales contract? A. by copying it down from the seller's warranty deed B. by drafting a new description from the survey C. by copying it down from the seller's security deed D. either A or C - ....ANSWER >>>>D. either A or C If a seller agrees to take a purchase money mortgage from a buyer as a second mortgage, which of the following statements would be true about the intangibles tax? A. intangibles taxes are not applicable to second mortgages, only to first mortgages B. any intangibles tax must be paid by the seller because the seller holds the mortgage C. any intangibles tax must be paid by the buyer because it was for the buyer's benefit that the loan was made D. either party can pay the intangibles tax - ....ANSWER >>>>D. either party can pay the intangibles tax When a property is being sold on an assumption of the existing loan, complications with the transfer of some mortgage loans can be: A. the purchaser may have to qualify with the lender as if it were a new loan B. the purchaser may have to pay a higher rate of interest C. the loan may be non assumable and due in full if the seller transfers ownership D. all of the above - ....ANSWER >>>>D. all of the above The purpose of the earnest money is to: A. assure there is some valuable consideration B. help assure the purchaser's performance A. calm the purchaser down and assure him that the broker will return the funds in no more than one week's time B. tell the purchaser to see his own attorney since the salesperson is not allowed to give legal advice C. tell the purchaser that the most he can take without the seller's agreement is half of the deposit D. tell the purchaser that she will forward his request to her broker and that the broker or she will get back to the purchaser quickly with a response - ....ANSWER >>>>D. tell the purchaser that she will forward his request to her broker and that the broker or she will get back to the purchaser quickly with a response Examples of activities subject to the Sherman Antitrust Act include all EXCEPT which of the following? A. arranging for a homeowner's insurance policy through a local office of a company whose headquarters are located in Jacksonville, FL B. Advertising a Georgia beach front property in publications distributed throughout the state C. obtaining financing for a property in Georgia through a mortgage broker who represents an out of state savings and loan association D. referring a Georgia resident, who is relocating to Colorado, to a Colorado real estate firm - ....ANSWER >>>>B. Advertising a Georgia beach front property in publications distributed throughout the state Any person violating the anti trust laws is guilty of: A. a misdemeanor B. a violation of the Federal Fair Housing Law C. a felony D. fraud - ....ANSWER >>>>C. a felony May a company enforce a policy of non negotiation of commission rates? A. yes, as long as its competitors agree to do the same B. no, this would be collusion C. yes, as long as rates are set independently based on actual cost in providing a service and as long as the consumer understands that other companies and licensees may have different policies and rates D. yes, as long as it is a part of the company policy manual - ....ANSWER >>>>C. yes, as long as rates are set independently based on actual cost in providing a service and as long as the consumer understands that other companies and licensees may have different policies and rates Which of the following activities is illegal? C. face disciplinary proceedings by the Real Estate Commission D. all of the above - ....ANSWER >>>>D. all of the above Which of the following activities is permissible for a broker? A. recording a listing contract that creates a lien for the purpose of causing a cloud on the title B. accepting an oral listing from an owner and placing a "for sale" sign on the property C. obtaining an exclusive listing from an owner while knowing that another broker has the property exclusively listed D. none of the above - ....ANSWER >>>>D. none of the above As long as a salesperson serves a seller under a listing agreement with the salesperson's broker, that salesperson must always represent which of the following? A. the seller B. the buyer C. that salesperson's broker D. whichever broker delivers an offer - ....ANSWER >>>>C. that salesperson's broker Georgia law requires that licensees disclose who they represent in writing? A. at the first meeting B. at closing C. no later than the time of the written offer D. it is not required, but is suggested - ....ANSWER >>>>C. no later than the time of the written offer Security deposits kept in a designated rental trust account are credited to: A. the broker B. the tenant C. the landlord D. the lessor - ....ANSWER >>>>B. the tenant In order to provide brokerage services for an unlicensed individual such as a developer, builder, or management company, a licensed salesperson or associate broker must: A. work through a listing agreement established by his or her broker with the unlicensed party B. give up his or her license entirely before beginning work C. neither of the above D. either A or B - ....ANSWER >>>>D. either A or B which of the following best describes a blind ad? A. one which is not directed at any consumer segment A. have completed an approved broker's course of study and served at least 3 of the past 5 years as an active licensee B. have completed an approved broker's course of study and served at least 2 of the past 5 years as an active licensee C. have completed at least 50 in class hours of a broker's course of study and served at least 3 of the past 5 years as an active licensee D. be a resident of the state of Georgia and be registered in and attending a broker in class course of study - ....ANSWER >>>>A. have completed an approved broker's course of study and served at least 3 of the past 5 years as an active licensee A salesperson must do which of the following regarding rental property he just bought and plans to manage personally? A. advertise the rental property under the name of his broker's company B. require the first and last month's rent as a security deposit from each tenant C. make certain that all advertisements on the property include price, location, size, and the type of lease to be used D. obtain his broker's approval of the trust account used for any security deposits received - ....ANSWER >>>>D. obtain his broker's approval of the trust account used for any security deposits received Which of the following persons would require a real estate license in Georgia? A. a licensed auctioneer selling real property at a single auction for another party for compensation B. a licensed forester selling a single parcel of timberland for another for compensation C. a licensed attorney acting outside the normal scope of the practice of law by selling for another for compensation D. any of the above - ....ANSWER >>>>D. any of the above An unlicensed assistant cannot: A. assemble contracts and other documents B. place signs on the property C. show property D. check on loan commitments - ....ANSWER >>>>C. show property In order to recover monetary damages from the Real Estate Recovery Fund, the claimant shall be required to show the claimant: A. is not licensed B. is not the spouse of a licensee C. has obtained a judgement D. he or she is a full time employee - ....ANSWER >>>>C. he or she is appointed by the Governor and approved by the Senate Which of the following is NOT true of the Real Estate Commission Members? A. five must hold an active real estate license B. one must not hold an active license but can hold an inactive license C. five must have been residents of Georgia for at least 5 years D. the Commissioner is not the sixth member of the commission - ....ANSWER >>>>B. one must not hold an active license but can hold an inactive license Which of the following statements may a licensee properly make? A. "I think a Cuban just moved into the neighborhood" B. "when the zoning changes to commercial, it will double in value" C. "according to the developer, the property will double in value within the next 10 years" D. "all indications are that the property will double within the next ten years" - ....ANSWER >>>>C. "according to the developer, the property will double in value within the next 10 years" A broker advertises that if you will list with him and he cannot sell the property, he will buy it from you. Is this legal? A. never, this is an inducement and is illegal B. never, this is an unfair practice and a misdemeanor C. ok, if the two parties agree to a sales price and terms when the property sells D. ok, if the two parties agree to a sales price and terms prior to the listing being signed - ....ANSWER >>>>D. ok, if the two parties agree to a sales price and terms prior to the listing being signed A tenant had a one year lease which expired. The tenant stayed in the home past the expiration and continued to pay the rent in which the landlord accepted. This type of lease would be called: A. an estate for years B. a periodic tenancy C. a tenancy at sufferance D. an easement by prescription - ....ANSWER >>>>B. a periodic tenancy A lien was placed on a property for electrical equipment for $4,500. There already existed a special assessment lien for $1,000, a mortgage lien for $40,000, and an IRS lien for $20,000. The home was foreclosed on and sold. Which lien would take priority? Judy and Emma would have what type of relationship? A. tenancy in common B. joint tenancy C. severalty D. inheritable estate - ....ANSWER >>>>B. joint tenancy John, Judy, Emma, and Sam owned a property as joint tenants. Sam sold his interest to Sandy. Sandy and John would have what type of relationship? A. tenancy in common B. right of survival C. severalty D. joint tenancy - ....ANSWER >>>>A. tenancy in common An appurtenant easement can be terminated by all of the following EXCEPT: A. the servient tenement could release their rights through a quit claim deed B. the dominant estate abandoned their property C. the dominant estate purchased an adjacent property and now has access to public roads D. the servient estate bought out the dominant estate - ....ANSWER >>>>A. the servient tenement could release their rights through a quit claim deed A contractor had a lien on a property for the non payment of services that he provided to build a deck. He started the job on December 15th, 2001, recorded the lien on January 1st of the next year and sued the owner on February 2nd, 2003. What best describes the situation? A. as long as he recorded the lien within 90 days of the completion of the job, he should prevail in the law suit B. he loses due to law of laches C. he loses because he did not bring the suit before December 15th of 2002 D. if foreclosure takes place, the lien is prioritized on January 1st, 2003 - ....ANSWER >>>>B. he loses due to law of laches An out of state tenant was able to negotiate a three month lease to perform a job function in Georgia. When must the tenant serve notice? A. 30 days prior to the termination of the lease B. 60 days prior to the termination of the lease C. no notice is required D. before the death of the landlord - ....ANSWER >>>>C. no notice is required Emma purchased a home from Sam and they agreed to a 15% purchase money mortgage at 8.5% interest. The price was $155,500 and Emma agreed to pay the difference in cash. A seller wants to list the property with a broker, but wants to avoid paying any commission should the seller be fortunate enough to sell the property. himself. Which of the following should the seller avoid signing? A. an exclusive agency listing B. an exclusive right to sell listing C. an open listing D. all listings - ....ANSWER >>>>B. an exclusive right to sell listing Mr. Smith listed his farm with broker Bob. Although Smith did not tell him, Bob knew he had to sell due to poor health. What should Bob tell potential buyers? A. tell them of the illness only if they ask, but not the need to sell B. tell them of the need to sell to insure a quick sale C. do not tell them even though it appears that Smith's death is imminent D. in order to sell quickly, tell them that the seller is ill because death would cancel the listing - ....ANSWER >>>>C. do not tell them even though it appears that Smith's death is imminent In a cooperative sale, where the listing broker and the selling broker represent the seller, the selling broker has which of the following relationships? A. agent of the listing broker B. sub agent of the listing broker C. agent of the seller D. sub agent of the buyer - ....ANSWER >>>>A. agent of the listing broker A broker had an exclusive right to sell agency listing. In order to collect the commission, he must: A. prove he was the procuring agent B. prove he was licensed at the time of the sale C. prove he had a ready, willing, and able buyer that met the seller's terms D. all of the above - ....ANSWER >>>>B. prove he was licensed at the time of the sale A broker estimated the property lines by stating it ran between two trees in the back yard. After closing, the buyer found it was over six feet off. Is the broker liable? A. no, he gave an estimate B. no, the buyer should have gotten a survey C. yes, he made a statement which he realized could be false D. yes, the broker should have surveyed the property himself - ....ANSWER >>>>C. yes, he