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Colibri Real Estate (Real Estate Express) Final Exam
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Which of these is NOT considered when determining whether an item is a fixture or personal property? A) intention of the annexer B) manner of annexation C) value of the annexed item D) relationship of the parties - ANSWER - C) value of the annexed item RESPA applies to financed by a federally regulated loan. A) any commercial or residential property B) any residential property C) one- to four-family residences D) only single-family dwellings - ANSWER - C) one- to four-family residences
Of these, which is LEAST LIKELY to be considered an example of puffing? A) "like being on vacation every day" B) "loveliest street in the whole town" C) "magnificent chef-inspired kitchen" D) "three-car garage with room for a workshop" - ANSWER - D) "three-car garage with room for a workshop" Friable particles from asbestos are most likely to be a danger to one's health when they are A) encapsulated B) inhaled C) touched D) wet - ANSWER - B) inhaled Kim is the title officer handling the transfer of Greg and Ashley's house to buyers Alex and Amanda. As they gather at the settlement table, Kim has stacks of documents that need to be signed in order to complete the transaction. Who signs the deed? A) Alex and Amanda B) Greg and Ashley C) Greg, Ashley, Alex and Amanda D) Greg, Ashley and Kim - ANSWER - B) Greg and Ashley Which is an example of steering? A) a licensee tells homeowner that their property values will drop when a foreign family moves in. B) a mortgage banker refuses to make loans for a particular inner-city neighborhood. C) a property manager suggests a prospective tenant would be happier in a more diverse building.
A) Jane paid a commission to her licensed personal assistant. B) Jane paid a commission to the wife of one of her licensees who was recently killed in an auto accident. The deceased licensee had earned the commission prior to his death. C) Jane paid a commission plus a bonus to one of her licensees. D) Jane paid a commission to a Florida licensee who is not licensed in Georgia for licensing activity in Georgia. - ANSWER - D) Jane paid a commission to a Florida licensee who is not licensed in Georgia for licensing activity in Georgia. Which of the following is NOT a protected class under Georgia fair housing law? A) Sexual preference B) Familial status C) Religion D) Race - ANSWER - A) Sexual preference Syed is an inactive licensee. He just moved to a new home across town. What must he do? A) Call the Commission and give it his new address. B) Report the address change when he's ready to reactivate his license. C) Send a written notice to the Commission within 30 days. D) Notify the post office to send a change of address notice to the Commission. - ANSWER - C) Send a written notice to the Commission within 30 days. How many hours of continuing education must a licensee complete for each year of licensure? A) 8 hours B) 9 hours C) 5 hours D) 4 hours - ANSWER - B) 9 hours
Glenda is the office manager for a local real estate firm. She is responsible for coordinating the paperwork flow through the office, preparing ads and supervising the clerical staff. Glenda is A) required to have a salesperson's license. B) violating license law. C) required to have a broker license. D) exempt from the license law. - ANSWER - D) exempt from the license law. Haru is working with his buyers to draw up a written offer on a property they want to purchase. Which of the following items is not required in the offer? A) The property description B) The mortgage lender C) The method of payment D) Special stipulations the offer requires - ANSWER - B) The mortgage lender Kezia just bought and closed on a new home that cost $195,000. her mortgage amount is $165,500. how much is the intangible recording tax on Kezia's property? A) $ B) $ C) $165. D) $496.50 - ANSWER - D) $496. *An intangible recording tax is due and payable on each instrument securing one or more long-term notes at the rate of $1.50 per each $ $165,500 ÷ $500 = 331 331 x $1.50 = $496.
C) littoral / does not own D) riparian / does not own - ANSWER - D) riparian / does not own Licensee Hal is launching a new brokerage. He purchases a list of prospective clients and prepares to do his first mass email in an attempt to get some business in the door. To comply with the law, what must Hal include in his email solicitations? A) information about filing a complaint with the Federal Trade Commission B) a link to a scanned image of his real estate license C) an option to opt-out of receiving future email D) a price list of the services offered by his brokerage - ANSWER - C) an option to opt-out of receiving future email Which form of real property ownership is the MOST comprehensive? A) defeasible fee estate B) fee simple estate C) leasehold estate D) life estate - ANSWER - B) fee simple estate Licensee Patti is having lunch with an old school friend, Janet. Janet tells Patti, "It's time to downsize, I sure wish I could sell my house." Patti responds, "Well I have just the person for you. Make sure you're home at 7:00 this evening." Identify the statement that best describes the situation. A) Janet cannot assume any relationship B) Janet could be Patti's client through express agency C) Janet could be Patti's client through implied agency D) Janet has just made Patti her universal agent - ANSWER - C) Janet could be Patti's client through implied agency Which is NOT a necessary element for a valid and enforceable purchase contract?
A) consideration B) contractual capacity C) earnest money deposit D) mutual agreement - ANSWER - C) earnest money deposit Which statement about a comparative market analysis is FALSE? A) A CMA can assist a buyer in determining a fair price to offer for a home. B) A CMA can assist a seller in determining an appropriate listing price. C) A CMA may be used to determine property value for a federally regulated loan. D) A CMA should evaluate properties currently listed, recently sold or with expired listings. - ANSWER - C) A CMA may be used to determine property value for a federally regulated loan. Jada is a community association manager. Which of the following would be one of her duties? A) Advising an owner about his legal liability for a visitor's injury on his property. B) Following the instructions of all the owners in the community association. C) Lending $1,000 to the community association. D) Sending a monthly newsletter to the owners. - ANSWER - D) Sending a monthly newsletter to the owners. Which of the following does NOT need to be included in a property management agreement? A) A specific description of the property B) The names of the owners C) The names of the tenants D) The terms of the management fee - ANSWER - C) The names of the tenants
B) To fund courses for real estate agents C) To compensate consumers damaged by licensees' practices D) To conduct real estate research projects - ANSWER - C) To compensate consumers damaged by licensees' practices Which of these persons would require a real estate license? A) Suresh is a full-time employee of a utility company. He negotiates and acquires leases for the company. B) Greta is an attorney who conveys real estate under a power of attorney. C) Jack refers clients to his licensed broker brother and receives a fee from the parties he refers. D) A partnership sells a building owned by the partners. - ANSWER - C) Jack refers clients to his licensed broker brother and receives a fee from the parties he refers. Broker Larry received an earnest money check from a buyer for $3,000. He needed the money, so he cashed the check. At closing, he gave the seller a check for $3,180, the amount of the original check plus 6% interest. Which statement is true? A) Larry should have deposited the earnest money in a federally-insured account with other escrow funds. B) It was okay that Larry cashed the check, but he should not have given the interest to the seller. C) Larry should have deposited the check into his personal account and kept the interest. D) Larry should have discussed what to do with the interest with all of the parties involved in the transaction. - ANSWER - A) Larry should have deposited the earnest money in a federally-insured account with other escrow funds. Which of the following is true of Georgia support personnel? A) They must be licensed. B) They may insert factual information into form contracts under the supervision of the employing broker. C) They may independently host open houses.
D) They must always be unlicensed. - ANSWER - B) They may insert factual information into form contracts under the supervision of the employing broker. Jake and Hal are partners in a real estate firm. Jake, the qualifying broker, dies unexpectedly. Which of the following statements is FALSE? A) Hal may temporarily saves as qualifying broker if the qualifying criteria are met. B) The designated partner can sign all documents that must filed with the Commission. C) Only Hal has the authority to disburse trust funds from the designated accounts. D) The firm has 60 days to secure a new qualifying broker. - ANSWER - C) Only Hal has the authority to disburse trust funds from the designated accounts. Jim is a community association manager and Dick is a property manager. Which of the following statements is NOT true? A) Jim deals with multiple owners. B) Dick has a single client. C) Jim interacts with his owner frequently. D) Dick must have day-to-day contact with his client. - ANSWER - D) Dick must have day-to-day contact with his client. Ben is a broker who is selling his own home. When advertising his home for sale, all of the following is true about the ad EXCEPT that it A) must use the firm's name. B) must be honest. C) must clearly indicate that Ben is a licensed broker. D) may use Ben's own name. - ANSWER - A) must use the firm's name The Department can revoke salesperson Tobias's license if he does which of the following actions?
Melinda lives in South Carolina. She wants to get a Georgia real estate salesperson's license. Which of the following is NOT a requirement for Melinda? A) She must be at least 18 years old. B) Melinda must furnish proof of completion of 75 hours of approved real estate courses. C) She must establish residency in Georgia. D) Melinda must take and pass the Georgia real estate exam. - ANSWER - C) She must establish residency in Georgia. Mike, a partner in a partnership, has a widely known reputation of being a liar and untrustworthy. Which of the following is true? A) Mike cannot apply for a license. B) The Commission can deny the partnership a license based on his bad reputation. C) The Commission cannot deny him a license based on reputation alone. D) Mike can apply for a salesperson license but not a broker license. - ANSWER - B) The Commission can deny the partnership a license based on his bad reputation. *The Commission may deny a license to a partnership if a partner who owns more Thant 20% interest in the firm does not have a good reputation for honesty, trustworthiness and integrity. The term imputed knowledge could mean what an agent A) knows and must disclose about a property. B) should have known about a property because her broker knew it. C) knows but is not obligated to disclose. D) discovers by performing her own inspection. - ANSWER - B) should have known about a property because her broker knew it.
The phrase "engaging in the real estate business" means acting for another in exchange for a fee in all but which of the following situations? A) Building a home for another B) Reselling a mobile home C) Auctioning real estate D) Performing property management services - ANSWER - A) Building a home for another Which type of agency is NOT recognized in Georgia? A) Single agency B) Undisclosed dual agency C) Designated agency D) Buyer's agency - ANSWER - B) Undisclosed dual agency Broker Philippe has been found guilty of committing ten discriminatory housing practices over the past five years. The court may fine him up to A) $10, B) $25, C) $50, D) $100,000 - ANSWER - C) $50, Theresa wants to apply for a CAM license. She must meet all BUT which one of the following requirements? A) She must pass the written real estate exam with a score of 70% or higher. B) She must have completed at least 25 hours of a community association manager course. C) She must be 18 years old.
A) They are mailed to the licensee's home address B) They are issued to the employing broker's business address. C) The license is mailed to the broker and the pocket card is mailed to the licensee. D) They are mailed to the employing broker's home address. - ANSWER - B) They are issued to the employing broker's business address. According to the Sherman Antitrust Act, which of the following statements is legal? A) "Our company pays 3% of the sales price to subagents." B) "You can't sell properties on this side of town because your office is in another county." C) "We don't cooperate with Branson Realty because they discount their commissions." D) "Everyone charges the same, so you might as well list your property with me." - ANSWER - A) "Our company pays 3% of the sales price to subagents." Broker Jackson has given salesperson Anantha permission to hold trust funds in a designated trust account that she owns. Jackson is obligated to give all of the following information the Commission EXCEPT A) Anantha's name. B) The account number of Anantha's trust account. C) A quarterly reconciliation statement on the account. D) The name of the bank where Anantha maintains the account. - ANSWER - C) A quarterly reconciliation statement on the account. Broker Chelsea falsified proof of completion of continuing education to renew her license. The Commission can do any of the following EXCEPT A) refuse to renew her license. B) convict her of a crime. C) suspend her license. D) revoke her license. - ANSWER - B) convict her of a crime.
Commission members must be Georgia residents for at least how long before they are eligible for appointment? A) 2 years B) 5 years C) 8 years D) 10 years - ANSWER - B) 5 years Money deposited in the Recovery Fund can come from all but which of the following sources? A) Excess funds transferred from the state treasury at the end of each year B) A yearly fee assessed to all licensees C) Funds received from redeeming security investments D) Fees for new licenses - ANSWER - A) Excess funds transferred from the state treasury at the end of each year Which of the following situations would NOT result in the initiation of a licensing action against a licensee? A) A salesperson does not present an offer to a seller after the seller has accepted a previous offer. B) A broker waits for a higher offer before presenting an existing offer. C) A salesperson fails to present an offer to a seller. D) A broker holds all the offers to purchase so he can approach the seller with a single presentation. - ANSWER - A) A salesperson does not present an offer to a seller after the seller has accepted a previous offer. The Georgia Real Estate Commission has the authority to A) make and enforce the rules for real estate licensees.
A tenant's broker knows that his client (the tenant) has recently lost his job and that his financial situation is less than perfect. The tenant is interested in a landlord's property but the rent is so high the broker does not think the tenant would be able to afford it for very long. Can the broker tell the landlord about the tenant's financial situation? A) Yes, the broker must tell the landlord. B) No, the broker must not tell the landlord. C) The broker may tell the landlord only if the landlord asks about the tenant's finances. D) The broker may tell the landlord only if the tenant permits the broker to do so. - ANSWER - A) Yes, the broker must tell the landlord. *Under BRRETA, a tenant's broker must disclose to a prospective landlord all material facts actually known by the broker regarding the tenant's financial ability to perform the terms of the lease or letter of intent to lease. A home sold for $175,000. The buyers assumed a $60,000 mortgage. What will the transfer tax be on this sale? A) $ B) $ C) $ D) $115 - ANSWER - D) $ $175,000 - $60,000 = $115, $1 for the first $1, $114,000 ÷ $100 = $1, $1,140 x 0.10 = $
Broker James has a listing based on net price. Which statement is true? A) This will be a more profitable listing for James. B) This listing is illegal in Georgia C) This listing is legal if the seller agreed to do it. D) James must get permission from the Commission to have this listing - ANSWER - B) This listing is illegal in Georgia Generally speaking a listing broker has earned his or her commission A) at the closing table. B) when the listing agreement is signed. C) when a ready, willing and able buyer is found on terms acceptable to the seller. D) when a sales contract is signed. - ANSWER - C) when a ready, willing and able buyer is found on terms acceptable to the seller. Which of the following statements is NOT true? A) A transaction broker has an obligation to all parties in a transaction. B) A transaction broker does not represent either party in a transaction. C) Transaction brokers charge a flat fee instead of a commission. D) A transaction broker is not a dual agent. - ANSWER - A) A transaction broker has an obligation to all parties in a transaction. Which situation is NOT EXEMPT from the provisions of federal fair housing laws, assuming no discriminatory advertising is used and a licensee is not involved?
