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Colibri Real Estate (Real Estate Express)
Final Exam Review
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. - CORRECT 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. - CORRECT 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. - CORRECT ANSWER-B) They may insert factual information into form contracts under the supervision of the employing broker.
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 - CORRECT 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. - CORRECT 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 - CORRECT 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 - CORRECT 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. Salesperson Gordon refuse to accept an offer to purchase his home from buyer Juan Valdez of Columbia because Gordon feels the earnest money of $100 is not enough. Which of the following statements about Gordon's refusal is correct? A) Gordon is in violation of fair housing law because he discriminated on the basis of national origin.
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. - CORRECT 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 - CORRECT ANSWER-C) The names of the tenants Gary got his license in May of 2021. His birthday is September 28. When will his license expire? A) May 31, 2025 B) September 1, 2025 C) September 30, 2025 D) May 1, 2009 - CORRECT ANSWER-C) September 30, 2025 *Real estate licenses expire on the last day of the licensee's birth month, every 4 years. A seller's agent must disclose any adverse physical conditions in the immediate neighborhood within _______ of a property. A) 1 mile B) 2 miles C) 5 miles D) 10 miles - CORRECT ANSWER-A) 1 mile Jadarius has had his license suspended. By law, Jadarius's name will b e published on the Georgia Real Estate Commission website if the licenses has been suspended for how long? A) 15 days B) 30 days C) 60 days D) 90 days - CORRECT ANSWER-C) 60 days Why was the Real Estate Education, Research and Recovery Fund established? A) To educate the public about real estate
B) To fund courses for real estate agents C) To compensate consumers damaged by licensees' practices D) To conduct real estate research projects - CORRECT ANSWER-C) To compensate consumers damaged by licensees' practices 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. - CORRECT 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. - CORRECT 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. - CORRECT ANSWER-A) must use the firm's name The Department can revoke salesperson Tobias's license if he does which of the following actions? A) Sells his home without using his employing broker. B) Represents a buyer in a real estate transaction. C) Persuades a seller to list with him in an exclusive agency arrangement. D) Deposits an earnest money check in his personal account. - CORRECT ANSWER- D) Deposits an earnest money check in his personal account. Which of the following situations is NOT a proper situation for earnest money disbursal? A) Seller rejects the purchase offer. B) Buyer withdraws a purchase offer two days after acceptance. C) All parties to the transaction sign a written agreement allowing the disbursal.
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. - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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. D) She must have a high school diploma or equivalency certificate. - CORRECT ANSWER-A) She must pass the written real estate exam with a score of 70% or higher. Broker Tara has an offer to purchase a home listed with her firm. After the buyers sign all the paperwork and Tara accepts their earnest money, what must she do?
A) Deposit the earnest money in her personal account for safekeeping. B) Fill out a special earnest money form for the buyers to give to their lender. C) Hold the offer until she receives at least one more before presenting to the seller. D) Give the buyers a copy of the agreement right away. - CORRECT ANSWER-D) Give the buyers a copy of the agreement right away. What is true about brokerage engagements in Georgia? A) A brokerage engagement can only be drawn up by an attorney. B) A promise of compensation automatically creates a brokerage engagement. C) They must be on specially-designed and approved forms. D) They must be in writing to be enforceable. - CORRECT ANSWER-D) They must be in writing to be enforceable. Salesperson Mona is selling her own home. Which of the following is always true? A) Mona must list the property with her employing broker. B) The Commission will require that Mona list the property with a licensed broker. C) The employing broker must grant permission for Mona to sell her property. D) Mona's ownership of the property and licensed status must be disclosed to all parties to the transaction. - CORRECT ANSWER-D) Mona's ownership of the property and licensed status must be disclosed to all parties to the transaction. What happens to the wall license and pocket card when they are issued? 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. - CORRECT 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." - CORRECT 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.
D) enact the laws that govern real estate licenses. - CORRECT ANSWER-A) make and enforce the rules for real estate licensees. Broker Hammond has developed a web site to advertise his services. What does he need to include on his site? A) Brokerage name and office telephone number B) Name and address of his office and the firm license number C) names and addresses of all the firm's active licensees D) Whatever he wants, as there are no specific requirements for web advertising. - CORRECT ANSWER-A) Brokerage name and office telephone number When Janel, a new licensee, finishes her 25-hour post-license course, which of the following actions is NOT required? A) Submitting evidence of having completed the course. B) Taking 9 hours of continuing education during her first year of licensure. C) Passing an exam covering the material presented in the course. D) Providing the required proof to the Commission within one year of her original licensure. - CORRECT ANSWER-B) Taking 9 hours of continuing education during her first year of licensure. Under what conditions could Bill be affiliated with more than one broker? A) If the broker is in another country B) If the broker is in another Georgia county C) If the broker is in another state that allows affiliation in both states and Bill has his Georgia broker's written permission D) Under no circumstances, since affiliation with multiple brokers is prohibited by Georgia license law - CORRECT ANSWER-C) If the broker is in another state that allows affiliation in both states and Bill has his Georgia broker's written permission 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. - CORRECT 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 - CORRECT ANSWER-D) $ $175,000 - $60,000 = $115, $1 for the first $1, $114,000 ÷ $100 = $1, $1,140 x 0.10 = $ $114 + $1 = $ 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 - CORRECT 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. - CORRECT 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. - CORRECT 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?
The Smiths and the Johnsons share part of a driveway. To ensure that each family can enjoy use of the driveway and share the maintenance costs, they most likely have what type of easement? A) Easement by necessity B) Easement by agreement C) Easement by implication D) Easement by condemnation - CORRECT ANSWER-B) Easement by agreement What should Hannah be aware of regarding the asbestos coating on her water pipes? A) Removal is required if asbestos is found in a residential property. B) Asbestos can contaminate the house further if removal is done improperly since airborne particles are the issue. C) Asbestos is dangerous only when wet and therefore should be encapsulated in waterproof material. D) Asbestos is inexpensive to remove. - CORRECT ANSWER-B) Asbestos can contaminate the house further if removal is done improperly since airborne particles are the issue. Cathy bought a house for $285,000. She made a $60,000 down payment. After 5 years the balance of the loan was $150,000. Assuming no depreciation in the property, how much equity does Cathy have? A) $225, B) $135, C) $160, D) $182,000 - CORRECT ANSWER-B) $135, Carla wants to buy Ben's house for $221,000. Carla included a contingency clause in the offer stating that she must sell her current house first. Ben agrees as long as Carla's house sells within 45 days. They sign the purchase agreement. During that 45 day period, the contract is A) voidable B) executory C) unenforceable D) executed - CORRECT ANSWER-B) executory Bert is showing his buyer a home in a historic district. She mentions in passing that she would like to place solar panels on the roof. Bert knows that the homeowner's association bylaws would prohibit this in order to protect the historic character of the neighborhood but doesn't tell the buyer for fear she'll lose interest in the house. Bert has committed A) actual fraud
B) bait and switch C) negligence D) no error - CORRECT ANSWER-C) negligence On a settlement statement, a new mortgage loan generally appears as a A) credit to the buyer B) credit to the seller C) debit to the buyer D) debit to the seller - CORRECT ANSWER-A) credit to the buyer Alice conveys a life estate to youngest daughter Bonnie for as long as her husband Chris shall live and then to niece Darlene. Whose life is the measuring life? A) Alice B) Bonnie C) Chris D) Darlene - CORRECT ANSWER-C) Chris What is the purpose of requiring mortgagors to make payments into an escrow account? A) allow the borrower to obtain actual cash from the equity built up in the property. B) ensure that hazard insurance and property taxes on the property are paid. C) ensure the lender collects the additional interest on an adjustable rate loan. D) provide a cushion for the borrower in the event of a job loss. - CORRECT ANSWER- B) ensure that hazard insurance and property taxes on the property are paid. Which of the fiduciary duties owed by a real estate licensee to his or her client survives the termination of the agency relationship? A) confidentiality B) disclosure C) loyalty D) obedience - CORRECT ANSWER-A) confidentiality Agent Leo and his client Hannah have just signed an open listing agreement that will pay Leo a 6.5% commission if he finds a willing and able buyer for her house. Which option best describes this agreement at this time? A) express, bilateral, executed B) express, bilateral, executory C) express, unilateral, executory D) implied, bilateral, executed - CORRECT ANSWER-C) express, unilateral, executory
D) Greg, Ashley and Kim - CORRECT 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. D) a seller tells his listing agent to find buyer prospects only of a specific ethnicity. - CORRECT ANSWER-C) a property manager suggests a prospective tenant would be happier in a more diverse building. Lester leases a storefront for his candy business. The rent the first six months was $ and is set to increase 10% every month for the next 18 months as business takes off. Lester has what kind of lease? A) graduated lease B) ground lease C) index lease D) percentage lease - CORRECT ANSWER-A) graduated lease Baxter lists his property through Murray, a licensee at ABC Realty. Murray's broker charges 6.5% commission, offering a 40% split to a cooperating broker. Murray gets 45% of what ABC earns. The house sells for $462,000. how much does Murray make (round to the nearest dollar)? A) $8, B) $8, C) $9, D) $12,012 - CORRECT ANSWER-A) $8, $462,000 x 0.65 = $30,030 total commission $30,030 x .60 = $18, $18,018 x .45 = $8, Matthew lives in a house on the shores of Lake Erie. He has ________ rights, which means that he ________ the land under the water. A) littoral / does own B) riparian / does own C) littoral / does not own D) riparian / does not own - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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. - CORRECT ANSWER-C) A CMA may be used to determine property value for a federally regulated loan. When Dave and Lucy get married, they decide to sell each of their homes and buy one house together. Lucy's house sells for $700,000; Dave's house sells for $300,000, and
A) bill of sale B) deed C) purchase agreement D) sales contract - CORRECT ANSWER-A) bill of sale F signs an exclusive right to sell listing agreement with broker R. Before the listing expires, F terminates the agreement for no reason. The following day, F sells the property to a co-worker. Which statement is TRUE? A) R can sue F to recover only the marketing expenses. B) R can sue F for the full commission based on the list price. C) R can sue F for the full commission based on the sales price. D) R has no right to sue F, since a seller can terminate a listing at any time without cause. - CORRECT ANSWER-C) R can sue F for the full commission based on the sales price. Which statement about lead paint is FALSE? A) Issues arise when lead-based paint begins to chip or flake. B) Lead paint disclosure must be made when selling a house built prior to 1982. C) Lead poisoning occurs via the nose and mouth; it must be breathed in or ingested. D) Lead present in water is colorless, odorless, and tasteless. - CORRECT ANSWER- B) Lead paint disclosure must be made when selling a house built prior to 1982. A developer purchases a foreclosed property for $96,000, intending to rehab it. Instead, he lets it deteriorate and finally sells it a few years later for $84,000. Calculate his loss. A) 8.75% B) 11.4% C) 12.5% D) 14.2% - CORRECT ANSWER-C) 12.5% $96,000 - $84,000 = $12,000 loss $12,000 ÷ $96,000 = 0.125 or 12.5% loss A homeowner lists her property at $155,000. Her broker receives an offer from A for $135,000 cashand a closing in 30 days; another offer from Bfor $145,000, subject to the owner taking back a purchase money mortgage; and an offer from C at $150,000, subject to the buyer obtaining a mortgage. What should the listing broker do? A) Present all of the offers to the seller, even if the seller accepts the first offer. B) Present none of the offers, as they are all below the seller's asking price. C) Present only the first offer until the seller makes a decision; then present the next offer.
D) Present whichever offer is the highest and has the most favorable terms for the seller. - CORRECT ANSWER-A) Present all of the offers to the seller, even if the seller accepts the first offer. K is a transfer student from Korea looking for a one- bedroom apartment. She asks for something near the university. Her rental agent L shows her apartments only in an area known as Chinatown, telling her she'd feel more at home there. L could be guilty of A) blockbusting. B) panic peddling. C) redlining. D) steering. - CORRECT ANSWER-D) steering. A lender must provide the Closing Disclosure to a borrower at least ___________ prior to settlement. A) 1 business day B) 3 business days C) 3 calendar days D) 5 business days - CORRECT ANSWER-B) 3 business days An investor is evaluating the performance of his duplex. If he subtracts debt service from the net operating income, what does he find? A) cash flow before taxes B) cash-on-cash return C) effective gross income D) reserves for replacement - CORRECT ANSWER-A) cash flow before taxes Market value can be defined as the A) amount a buyer paid to purchase a property. B) cost in materials and labor necessary to construct property. C) most probable selling price in a typical transaction. D) what a property actually sold for. - CORRECT ANSWER-C) most probable selling price in a typical transaction. A real estate licensee has actual knowledge of structural damage to the floor boards of a home he has listed due to termite infestation. He informs the buyer's agent that there are no termites or termite damage in the home. The buyer signs a contract to purchase the property. Is the listing agent susceptible to claims of fraud? A) No, because the buyer should have discovered the termite damage. B) No, because the buyer's agent should have been looking out for the buyer. C) Not as long as there is an as-is clause in the purchase agreement.
