Barney Fletcher - GA RE School Exam Questions With Complete Solutions, Exams of School management&administration

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Barney Fletcher - GA RE School Exam Questions With Complete Solutions What is the tax assessment rate for all real property in Georgia? - CORRECT ANSWER40% What could happen if a property is sold at foreclosure and does not bring enough money to satisfy all of the debts secured by the property? - CORRECT ANSWEROutstanding debts could be pursued as a result of a deficiency judgement When foreclosure occurs, the payment priority of most of the outstanding debts is established by: - CORRECT ANSWERDate of recordation With a traditional, fully amortized loan, the interest portion of a payment due and made on the first day of a month covers the interest for: - CORRECT ANSWERthe month prior to the month the payment is made What type of loan has payments of interest only with the principal paid in full at the end of the loan period? - CORRECT ANSWERStraight loan If a loan balance is $125,000 and the interest rate is 8%, how much of the next payment is paid in interest? - CORRECT ANSWER$833.33 In a graduated payment mortgage, the ________ changes in an adjustable rate mortgage the _______ is subject to change. - CORRECT ANSWERPayment, interest rate What clause allows the lender to call the loan balance due and payable because of non- payment? - CORRECT ANSWERAcceleration clause The amendment that allows a lender to waive his lien priority in favor of another's is known as the: - CORRECT ANSWERSubordination amendment A purchase money mortgage is a loan made by: - CORRECT ANSWERThe seller in a transaction A mortgage secured by both real and personal property is a(n): - CORRECT ANSWERPackage Mortgage What type of mortgage exists when the lender pays the borrower a fixed amount of money every money? - CORRECT ANSWERReverse Annuity (mortgage) The primary purpose of FHA is to _____ and the primary purpose of VA is to ________. - CORRECT ANSWERInsure loans; guarantee loans In a Land Sales Contract, who retains legal title to the property? - CORRECT ANSWERSeller Barney Fletcher - GA RE School Exam Questions With Complete Solutions What Act has as its primary purpose to educate borrowers regarding the costs involved in a closing so that the borrowers can shop for the best situation for them? - CORRECT ANSWERReal Estate Settlement Procedures Act (RESPA) Which of the following is true regarding a borrower's mortgage payment assuming the payment is made on time? - CORRECT ANSWERThe payment includes payment of interest for the previous 30 days Professional appraisals for lenders are usually made in order to: - CORRECT ANSWERhelp the lender decided whether to make a loan If you have several comparable properties as a part of your market analysis, how do you combine the values reached on each in order to estimate the value of the subject property? - CORRECT ANSWERBy weighing the adjusted sales prices of the comparables and adding the weighted dollar amount of the group Real estate agents look to many different sources when working on a market analysis. Which of the following sources would have the greatest effect on establishing the property's value estimate? - CORRECT ANSWERRecently sold comparable properties The four economic characteristics of value are: - CORRECT ANSWERDemand, Utility, Scarcity, Transferability When buyer and seller operate with knowledge and no undue pressure in consummating a transaction, it is known as a(n): - CORRECT ANSWERArms-length transaction The type of deprecation used by appraisers in which the amount of depreciated value is equal each year is known as the: - CORRECT ANSWERStraight line method The value principle which indicates that a buyer will not pay more for a property than a price for which he can obtain a property of equal utility is the principle of: - CORRECT ANSWERSubstitution When the total value of combine properties exceeds the total value of the individual properties, the result is know as: - CORRECT ANSWERPlottage increment Which of the following best describes Transfer Tax? - CORRECT ANSWERA state tax which is based on the sales price of the property less any assumed loans at the rate of $.10/$100 of the taxable amount. Which of the following does NOT have to be in writing to be enforceable? - CORRECT ANSWERLease for one year or less Barney Fletcher - GA RE School Exam Questions With Complete Solutions Under what circumstances may a broker refuse to sign a release/transfer form for a licensee to transfer to another firm? - CORRECT ANSWERUnder no circumstances How may a license be reinstated after a licensee has voluntarily surrendered it? - CORRECT ANSWERBy qualifying as an original applicant What is the proper procedure if the "form" contract does not suit needs of the parties to the transaction? - CORRECT ANSWERThe agent should consult with his/her broker before proceeding. If a property is being sold "As is" what is the effect on the agent's responsibilities? - CORRECT ANSWERAn "As Is" contract has no effect on agent's responsibility to disclose all known defects to all parties in the transaction If the contract calls for the earnest money to be held until the contract has been accepted, who is authorized to hold the earnest money? - CORRECT ANSWERAnyone, other than a salesperson or associate broker, designated in the contract to hold the earnest money. Which of the following is NOT a reason for a sales contract to be in writing? - CORRECT ANSWERTo make it valid If a written offer is made after the property is under contract, but before closing, what is the proper action? - CORRECT ANSWERIt must be presented to the seller. What is the term used to describe those acts which a broker or affiliated licensee performs for a non-client which do not require discretion and do not create a brokerage relationship? - CORRECT ANSWERMinisterial Acts Under BRRETA, what is the term used to identify the agreement in which a buyer and a broker establish an agency affiliation? - CORRECT ANSWERBuyer Brokerage Engagement Which of the following is true regarding a licensee selling his/her own property which is listed with his/her firm? - CORRECT ANSWERThere must be a clause in the contract disclosing the agent's license status. Who is responsible, under the license law (salesperson), for seeing that both the purchaser and seller obtain a copy of that closing statement? - CORRECT ANSWERThe Broker Intangible Tax Formula - CORRECT ANSWERSP x LTV = LA (LA / 500 (rounded up)) x 1.50 = Accrued Interest Formula - CORRECT ANSWER(LB x IF)/360 x (#days owe) = Barney Fletcher - GA RE School Exam Questions With Complete Solutions Pre-Paid Interest: Interest Adjustment Proration (new loans only) - CORRECT ANSWER(LA x %(IR)) / 360 x (#days owe) = Interest adjusted Days of interest owed - CORRECT ANSWERDays in month - closing date + 1 = days of interest owed Tax Proration - CORRECT ANSWER(tax bill / 365) x # days owed Before July 1 - not paid After July 1 - paid Transfer Tax (as new loan) - CORRECT ANSWERSP/1,000 Down Payment - CORRECT ANSWERSP - Loan Amount Measuring Acreage and Sqft calculations - CORRECT ANSWER43,560 (4 old ladys, going 35 in 60) L x W = sqft Sqft/43560 = acres GRM (Gross Rent Multiplier) - CORRECT ANSWERSP / Rent = GRM GRM x rent = value PGI (potential gross income) and NOI (Net listing income) formula - CORRECT ANSWERPGI - Vac - Oper = NOI NOI (always dividen) / Value = Rate NOI / Rate = Value Value x Rate = NOI Annual Interest - CORRECT ANSWERLA x IR(%) = Annual Interest Alice purchased a home and financed it using a mortgage which included the term "amortized over 30 years, due and payable after 10 years." Which of the following Barney Fletcher - GA RE School Exam Questions With Complete Solutions statements is correct? - CORRECT ANSWERThe loan is partially amortized loan AND The loan will have a balloon payment Sara is a new licensee who paid for and enrolled in an approved post-license course 10 months after her license was issued, but has failed to compete the court within the allowed 1 year. Sara has one client who is looking at several properties, and one client who has signed a contract on a house. Which scenario best describes Sara's situation? - CORRECT ANSWERSara cannot present the contract, and cannot show houses, and must complete her course within 18 months of her license date In order to qualify for a broker's license an applicant must: - CORRECT ANSWERComplete an approved course and have at least 3 years as an active licensee When an out of state person who is not licensed in another state wants to apply for a Georgia Real Estate License he must: - CORRECT ANSWERMeet the same requirements as a Georgia original applicant