A property is in an area of the city that has become very popular because of its proximity to quality shopping, schools and transportation. This situation is best defined as:

A. homogeneity.

B. conformity.

C. scarcity.

D. situs.

D. situs. 

note: situs=location 

The NE 1/4 of section 10 would contain:

A. 10 acres.

B. 40 acres.

C. 160 acres.

D. 640 acres

C. 160 acres.

note: 640acres/4= 160 acres 

The N ½ of the NE ¼ of the SW ¼ of section 10 would contain:

A. 10 acres.

B. 20 acres.

C. 160 acres.

D. 640 acres. 

B. 20 acres.

note: 640 acres/2/4/4= 20 acres

Baird conveys property to Carr for Carr’s lifetime and designates Leslie to be the remainderman. When Carr dies, what ownership interest would Leslie have in the property? A. Leasehold estate

B. Estate in reversion.

C. Fee simple estate.

D. Life estate.

Trees growing on a property are cut down by the property owner. This process is called:

A. severance and the removed trees are real property.

B. severance and the removed trees are personal property. C. annexation and the removed trees are real property.

D. annexation and the removed trees are personal property.

Which of the following BEST describes a fee simple estate?

A. A leasehold estate (less-than-freehold estate).

B. Ownership of land that is good only for a person’s lifetime.

C. The highest ownership in real estate recognized by law. D. The right a tenant holds in property he or she has leased.

An owner of a life estate with a remainder interest desired to sell their interest. Which of the following statements is CORRECT?

A. A life estate interest cannot be sold.

B. The remainderman would lose their interest if the property is sold.

C. The buyer would receive the same interest the life tenant had.

D. The remainderman would have to sign the listing. 

A married couple wants to acquire ownership of property together without the right of survivorship. Which of the following forms of ownership would accomplish this?

A. Estate in severalty.

B. Joint tenancy.

C. Tenancy by the entirety.

D. Tenancy in common.

Baird and Carr owned real property as joint tenancy. Baird dies and wills his property to his wife. Who would receive Baird’s interest under the joint tenancy?

A. Baird’s wife.

B. Carr.
C. Carr and Baird’s wife.

D. Baird’s estate. 

A corporation purchases a parcel of land. The corporation is owned by five stockholders, each owning an equal interest. Ownership to the land would be held as:

A. an estate in severalty.

B. a partnership.

C. community property.

D. a joint tenancy. 

Several investors purchased property together, each having an equal ownership interest. Each co-owner has the right to sell or leave their interest to his or her heirs. How did the investors take title to the real estate?

A. Tenants in common.

B. Joint tenancy with rights of survivorship.

C. Severalty ownership.

D. Tenancy by the entireties

Baird, Carr and Falk hold title to farm land as joint tenants with rights of survivorship. Falk sells his ownership interest to Hart. Which of the following statements is TRUE?

A. Hart now has severalty ownership.

B. Baird and Carr are still joint tenants and Hart is a tenant in common.

C. Baird, Carr and Hart are tenants in common.

D. Baird, Carr and Hart are joint tenants

Under cooperative ownership, the lease that grants occupancy of a specific unit to the stockholder is called a: A. percentage lease.

B. proprietary lease.

C. sublease.

D. net lease.

An ownership interest in real property consisting of an individual fee simple interest in a commercial office or retail store and an undivided interest in the common areas BEST describes?

A. A cooperative.

B. A planned unit development.

C. A condominium.

D. A real estate investment trust. 

Under cooperative ownership, the corporation is unable to make mortgage and tax payments because a few shareholders default on maintenance payments and the property might be sold by court order in a foreclosure suit. The results of the foreclosure action would:

A. destroy the interests of only defaulting shareholders.

B. make each shareholder responsible for the debt.

C. destroy the interests of all shareholders, including those who have paid their payments.

D. destroy the interest of only the non-defaulting shareholders. 

C. destroy the interests of all shareholders, including those who have paid their payments.

note: In cooperative ownership one tax bill/one mortgage bill it hurts everyone

Which of the following would be a concurrent estate available in Georgia?

A. Tenants by the entirety.

B. Community property.

C. Joint tenancy.

D. Severalty.

C. Joint Tenancy 

note: concurrent estates are a form of co-ownership. Tenants by the entirety and community property are not recognized in GA. Severalty=sole owner NOT a form of co-ownership. 

 In Georgia, the Georgia Time-Share Act requires developers of timeshare projects make disclosures to prospective buyers of all material facts about the property, including the buyer’s right to rescind the contract within seven days. This information would be contained in the:

A. public offering statement.

B. purchase and sale agreement.

C. seller’s property disclosure statement.

D. warranty deed.

It is good business practice to take the legal description from the seller's warranty deed when you get the listing. If the seller does not have a copy of his or her warranty deed, it may be found at the county courthouse. In locating the seller's deed in the record room of the courthouse, your first point of reference would be the:

A. plat map.

B. deed book.

C. plat book.

D. grantor-grantee index.

In Georgia, which of the following would be considered a sufficient legal description of real property in a sales contract?

A. Street address of the property.

B. Reference to principal meridians and baselines.

C. Reference to townships and sections.

D. Reference to a recorded plat map filed in public records

One acre will be divided into six equal lots. The lots are parallel to each other, rectangular in shape, and 55 feet wide. What is the depth of each lot in feet?

A. 106

B. 132

C. 158

D. 188

B. 132

note: 55*6=330 total width

43,560/330=132 depth

LxW=area

Which of the following is NOT a right of the state in privately held property?

A. Taxation.

B. Eminent domain.

C. Police power.

D. Deed restrictions.

D. Deed restrictions.

note: all other answer choices are state powers 

A bowling alley is located on the outskirts of a city. The area was recently rezoned from commercial to residential use. Will this change affect the present operation of the bowling alley?

A. Yes, they will have to relocate.

B. Yes, to continue operating the bowling alley, a petition for a variance must be filed with the zoning appeal board. C. No, the bowling alley is considered a nonconforming use and can continue to operate.

D. No, the bowling alley benefits the residential area.

An attachment lien would be placed on a property to:

A. enforce a deed restriction.

B. give notice of a possible future lien.

C. prevent the owner from conveying title to the property until a lawsuit is decided.

D. enforce a judgment.

Elmer County is buying property to build a new high school. Kane owns five acres in the area where Elmer County is assembling property for the school. The county has been negotiating with Kane to buy five acres but negotiations have come to a dead lock. Which of the following is TRUE concerning this situation?

A. If Kane continues to refuse to sell the property, Elmer County may take the property by the powers of escheat. B. Elmer County may file for condemnation and obtain the property by paying a fair compensation.

C. Elmer County may not force the sale of the property. This must be done by the state.

D. The property may be taken by the use of police powers

The county condemns an owner’s property to build a public park. The government would most likely pay the owner:

A. the assessed value as determined for taxpayers.

B. just compensation based on appraisals.

C. the appraised value plus compensation for goodwill and loss of profits.

D. his/her asking price. 

B. just compensation based on appraisals.

note: this is done via eminent domain. 

A property tax for sidewalks and streetlights is referred to as:

A. ad valorem taxes.

B. special assessments taxes.

C. capital gain taxes.

D. transfer taxes. 

B. special assessments taxes.

note: ad valorem taxes= general real estate taxes 

A property has a market value of $195,000 and is assessed at 50% of its market value. The tax rate is $52 per $1000 of the assessed value. What is the real estate tax for this property?

A. $975.

B. $1,950.

C. $5,070.

D. $10,140.

C. $5,070

note: 195,000(50%)= $97,500

97,500(52%)= $5070

Which of the following is an example of a voluntary and specific lien on property?

A. A mortgage lien.

B. A property tax lien.

C. A judgment lien.

D. A mechanics lien.

A property owner has defaulted on his mortgage and the lender has filed a foreclosure action to have the property sold to satisfy the lien. If the property has several liens, which of the following would have first priority?

A. A recorded three-year-old mortgage lien for $96,000.

B. A recorded one-year-old federal income tax (IRS) lien for $8,000.

C. A recorded mechanic's lien of $1,200 for work started six months ago.

D. An unrecorded real estate special assessment tax lien for $500 filed one year ago

On January 10, a contractor started work on a new house. The work was completed on October 10. The general contractor was paid but a subcontractor for the general contractor was not paid. On December 1, the subcontractor filed a mechanics lien. What is the effective date of the mechanics lien?

A. January 10.

B. October 10.

C. December 1.

D. A subcontractor cannot file a mechanics lien.

A homeowner’s unpaid hospital bills could result in which of the following liens against their property?

A. Mechanics lien.

B. Judgment lien.

C. Special assessment lien

D. Mortgage lien

B. Judgment lien.

A person owns a car, boat, and farmland. If a judgment was issued against the person, which of the properties could the lien be placed on?

A. Only the farmland.

B. Only the car.

C. Only the boat.

D. The car, boat and farmland

There is an eighty-acre parcel of land that was recently zoned single family residential with a minimum lot size of two acres. There is a deed restriction on the property restricting the use of the land to agricultural only. Can the developer use the property for residential use?

A. Yes, provided the lots are at least two acres in size.

B. Yes, provided the developer gets a variance.

C. No, because the deed restriction is still valid.

D. No, because once a restriction is placed on the land it cannot be removed

Which of the following private deed restrictions in a new subdivision could directly affect the cost of building a new house in that subdivision?

A. Restrictions on the conveyance or use.

B. Restrictions concerning the minimum square footage.

C. Prohibiting parking on the street.

D. Requiring owners to belong to the homeowner’s association.

B. Restrictions concerning the minimum square footage.

note: houses are built at price per sq/ft

Which statement about an encroachment is NOT true?

A. An encroachment is usually revealed in the chain of title. B. Tree branches overhanging the property line would be considered an encroachment.

C. A land survey will usually disclose an encroachment.

D. A property owner could sue the encroaching party for damages. 

Rules established by the local government to regulate building and construction standards are called:

A. building permits.

B. building codes.

C. certificates of occupancy.

D. building restrictions.

Which of the following statements best describes a lien on real property?

A. An encumbrance that affects the use of the property.

B. A monetary claim unsecured by real property.

C. An easement to use an adjoining property.

D. A monetary encumbrance affecting title to the property. 

An easement created by a court of law establishing an owner’s right to ingress and egress their property would most likely be an easement:

A. in gross created by prescription.

B. in gross created by necessity.

C. appurtenant created by necessity.

D. appurtenant created by prescription

An investor buys three adjoining parcels of land. Each parcel is 140’ deep and the square footage of each parcel is 15,400 sq. ft., 4,200 sq. ft., and 4,200 sq. ft. respectively. What is the total frontage of the properties?

A. 30 feet.

B. 60 feet.

C. 110 feet.

D. 170 feet

D. 170 feet

note: 15,400+4200+4200=23,800

23,800/140= 170ft

All of the following are characteristics of an agency relationship EXCEPT:

A. it is initiated by the principal.

B. common and statutory laws control the relationship.

C. the agency generally creates a fiduciary relationship.

D. the agency is between a client and customer

An apartment owner signs a management contract with a real estate broker. Has an agency been established?

A. Yes, the owner has created a general agency with the broker to act on their behalf in managing the apartment.

B. Yes, the agreement creates a universal agency between the apartment owner and the broker.

C. No, an agency can only be formed between a seller and real estate broker.

D. No, an agency with a broker can only be formed in transactions of buying and selling real estate.

Broker Reed obtains an exclusive right to sell listing on a property owned by Mr. Lane. Which of the following would be TRUE concerning this agreement?

A. Seller Lane is allowed to list the property with other licensed brokers.

B. If Lane sells the property himself, broker Reed is not due a commission.

C. Broker Reed is due a commission regardless of procuring cause.

D. Exclusive agency and exclusive right to sell listings are the same

C. Broker Reed is due a commission regardless of procuring cause.

In an exclusive right-to-sell listing, one broker is employed as the seller’s sole representative. The listing broker is given the exclusive right, or authorization, to market the seller’s property. If the property is sold while the listing agreement is in effect, the seller must pay the broker a commission, regardless of who sells the property.

Under a listing agreement, which of the following is a fiduciary responsibility of the listing broker?

A. Determining if the seller has marketable title.

B. Advertising the property at a price less than the listed price.

C. Advising the seller the buyer is willing to pay more than they are offering.

D. Disclosing the buyer’s race and national origin.

An owner listed their property for $200,000 and instructed the agent not to present offers below $200,000. The agent receives a signed offer for $195,000. The agent should:

A. reject the offer because of the low price.

B. refuse to present the offer.

C. promptly present the offer to the seller.

D. hold the offer until the purchaser increases the price to $200,000.

C. promptly present the offer to the seller.

note: all offers must be presented. 

Under a listing agreement, the broker was instructed to show the property by appointment only, advertise the property in the multiple listing service, use a “FOR SALE” sign, and determine the validity of the title. Which of the following is NOT a duty of the listing broker?

A. To determine the validity of the title.

B. To advertise in the multiple listing service.

C. To show the property by appointment only.

D. To use a "FOR SALE" sign.

Salesperson Smith receives an offer on a property he has listed on Main Street at 10:00 AM. Smith immediately calls the seller and makes an appointment to present the offer at 7:00 PM. At 2:00 PM and at 4:30 PM, Smith receives subsequent offers from agents with other companies. What is Smith’s BEST course of action regarding these three offers?

A. Smith should present all offers without making any comments as he is not representing the interests of the seller and has no duty to advise.

B. Smith should present all offers and do so in the manner which Smith deems will be best to help the seller client understand the options.

C. Smith is required to present the offers in the order in which they were received.

D. Smith is required to present the offers of the cooperating brokers first so as not to gain an unfair advantage

B. Smith should present all offers and do so in the manner which Smith deems will be best to help the seller client understand the options.

note: when you get multiple offers they all have to be shown

A broker presents an offer to a seller for the full listed price of $215,000. The offer is accepted and communicated to the buyer. Later another offer on the same property comes in at $210,000. What should the broker do with the second offer?

A. Reject the second offer because the property is already under contract.

B. Present the second offer to the seller immediately and suggest it be treated as a backup offer.

C. Hold the second offer until after the sale of the property closes.

D. Not present the second offer because the offer is for less than the listed price

A group of brokers attempts to set the commission rates for all real estate transactions within their market area. Such action could subject the brokers to prosecution under the:

A. antitrust laws.

B. Real Estate Settlement Procedures Act (RESPA).

C. Truth in Lending Law (Regulation (Z).

D. Federal Fair Housing Acts.

 A listing brokerage firm agrees to pay 50% of a 6% commission to a cooperating brokerage firm. The cooperating firm agrees to pay 60% of their commission to the salesperson that finds a buyer. If the property was listed for $250,000 and sold for $240,000, how much would the salesperson receive?

A. $3,000.00

B. $4,320.00

C. $4,500.00

D. $2,880.00

B. $4,320.00

240,000*(3%)=$7200

7200*(60%)= $4,320

A broker wants to charge her clients a flat fee for her commission, so that no matter what price a home sells for, the broker will receive the same amount of compensation. Which of the following must occur before the broker can make such arrangements?

A. Special permission must be granted by the state legislature.

B. There must be a history of such a compensation plan in the area.

C. The clients must be given a choice between a percentage commission plan and the broker's proposed plan.

D. The clients must agree to the arrangement prior to listing the property. 

If a listed property is taken under condemnation (eminent domain) or sold at a foreclosure sale, is the broker paid a commission?

A. No, the broker did not negotiate the sale.

B. No, the fee is paid to the county.

C. Yes, the property was sold.

D. Yes, commissions are paid based on compensation paid to the owner

A broker sold a property that was listed with another broker. When would the commission be due and payable? A. When the contract is signed by all parties.

B. Upon closing.

C. Upon producing a ready, willing and able buyer.

D. Upon the recording of the deed and title transfer

A seller listed their house for sale on an “as is” basis. The seller disclosed to the listing agent that the plumbing was outdated and needed replacement. Later, the seller discovered termite damage and notified the agent. If neither the seller nor the agent told the buyer about the damage, would the buyer be able to sue at a later date when the termite damage is found?

A. No, because the property was sold on an “as is” basis. B. No, because the buyer had the right to get the property inspected prior to closing.

C. Yes, because the agent did not disclose the damage to the buyer when it was discovered.

D. Yes, because the seller is responsible to repair all defects on property sold on an “as is” basis.

While a licensee is showing a property to a prospective buyer, the licensee exaggerates somewhat when he tells the prospective buyer the property has a “fantastic view.” Would the prospect be likely to successfully use that statement as a basis for a legal complaint?

A. Yes, because it would be considered a misrepresentation. B. Yes, because it is illegal for a licensee to use nonfactual extravagant statements.

C. No, because this statement would be considered puffing and not grounds for a misrepresentation.

D. No, harmless “sales talk” can never be used against a licensee

 An agent has an exclusive right to sell listing with an expiration date of September 20. The owner of the property died before the listing expired. What happens to the listing?

A. Death of the owner will terminate the listing.

B. Death of the owner will not affect the listing.

C. The expiration date would need to be extended.

D. The heir would be responsible for the listing.

A. Death of the owner will terminate the listing.

note: death terminates the listing agreement

An agent has a listing on a residential property with an expiration date of June 16th. On May 2nd, the seller accepts an offer from a buyer. On June 4th the title is conveyed at closing with a stipulation that the buyer will not take possession of the property until June 11th. When is the listing terminated?

A. May 2nd.

B. June 4th.

C. June 11th.

D. June 16th

B. June 4th.

note: June 4th is the date the stipulation was made. 

Can a seller terminate their agency agreement with the listing broker before the stated expiration date?

A. No, only the listing broker can terminate the agreement. B. No, agency agreements cannot be terminated by either party prior to the expiration date.

C. Yes, only with prior approval of the listing broker.

D. Yes, but the seller could be liable to the broker for damages.

A broker pays a salesperson on a commission plan and withholds federal income taxes, pays social security taxes, and has a comprehensive medical plan available. Which of the following would BEST describe the relationship the salesperson has with the broker?

A. Independent contractor and the broker would issue a W-2 form.

B. Independent contractor and the broker would issue a 1099 form.

C. Employee and the broker would issue a W-2 form.

D. Employee and the broker would issue a 1099 form. 

The Federal Fair Housing Law prohibits discrimination based on:

A. marital status.

B. occupation.

C. religion.

D. age. 

C. religion

note: Fair Housing Act The federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.

A real estate agent is encouraging owners to sell their homes by claiming that the entry of a religious group into the neighborhood would have a negative impact on their property values. This would be an example of:

A. steering.

B. blockbusting.

C. redlining.

D. blind advertising

B. blockbusting.

Note: Blockbusting= The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood

A developer lists 20 properties with four different licensees. Each licensee has a display model at the development site. Which of the following is required at each of the display models?

A. Each visitor to the model must be provided with a condominium Buyer’s Handbook.

B. Each display model must have the license of each licensee displayed.

C. Each licensee must inform the buyers of the other units available by the other licensees.

D. Each licensee must have a HUD FAIR HOUSING poster displayed with each display model.

An interested buyer questions a licensee about whether a property was the site of a homicide or suicide, and if the dwelling was ever inhabited by a person infected with AIDS or the HIV virus. The licensee should:

A. answer both questions to the best of his/her knowledge.

B. respond by stating he/she is unable to answer either inquiry.

C. answer the question about the homicide or suicide to the best of his/her knowledge and state that he/she is unable to answer the inquiry on AIDS.

D. answer the question about AIDS to the best of the his/her knowledge and state he/she is unable to answer the inquiry on a homicide or suicide.

C. answer the question about the homicide or suicide to the best of his/her knowledge and state that he/she is unable to answer the inquiry on AIDS.

note: Questions regarding stigmatized properties (homicide or suicide) can be answered. Questions regarding AIDs violates the Fair Housing Act and cannot be answered. 

All of the following would be legitimate reasons for refusing a residential listing EXCEPT that:

A. the seller wants an unreasonable price for the property. B. the property is not in the firm’s geographical service area.

C. the firm deals only in commercial properties.

D. the property is located in a minority area and would be difficult to market.

D. the property is located in a minority area and would be difficult to market.

note: this is violation of the federal fair housing ACT

A licensee should search the National Do Not Call Registry on a regular basis and drop registered consumer phone numbers from their call lists. This should be done at least once every:

A. 31 days.

B. 60 days.

C. 90 days.

D. 180 days

A seller received a closing check for $210,150. The broker’s commission was 5% and the closing costs paid by the seller amounted to $3,600. What was the selling price?

A. $213,750.

B. $221,200.

C. $225,000.

D. $250,000. 

C. $225,000.

$210,150+3,600= $213,750

100%-5%= 95%

=$225,000

An adult buyer who is illiterate signs a contract to purchase property from a seller. The buyer understands the nature of the contract because the terms were explained orally. Is the contract binding?

A. No, because a conservator must sign for the buyer.

B. Yes, because the buyer understands the terms of the contract.

C. Yes, because all adults are considered legally competent. D. No, because the buyer is illiterate and, therefore, legally incompetent

B. Yes, because the buyer understands the terms of the contract.

Which of the following contracts would be considered a unilateral agreement?

A. A lease for over six months.

B. An exclusive listing for six months.

C. A sales contract closing in six weeks.

D. An option agreement which expires in six months

D. An option agreement which expires in six months

Note: An option is a contract by which an optionor (generally an owner) gives an optionee (a prospective purchaser or tenant) the right to buy or lease the owner’s property at a fixed price within a certain period of time. The optionee pays a fee as consideration for the option right. The optionee must then decide whether to exercise the option right or allow the option to expire. An option is enforceable by the optionee only (a unilateral contract). Options must contain all the elements of a valid contract.

A fifteen-year-old minor signs a sales contract to purchase real property. Can the minor rescind the contract?

A. Yes, up to the age of majority and a reasonable time after attaining majority.

B. Yes, only with the consent of the seller.

C. No, only the seller may void the contract.

D. No, the contract is valid and enforceable. 

A buyer makes an offer to a seller agreeing to all the terms in the listing agreement. Would this result in a valid contract between the buyer and seller?

A. No, because there was no acceptance by the broker.

B. No, because there was no acceptance by the seller. 

C. Yes, all the terms of the listing were met by the buyer.

D. Yes, because the broker would be entitled to a full commission.

A buyer makes an offer on the seller's property. The seller changes the price and signs the counteroffer. Which of the following statements regarding this situation is INCORRECT?

A. The original offer has been rejected.

B. The original offeree is now the offeror.

C. The agreement is binding on both parties.

D. The counteroffer is a new offer

 A buyer makes an offer to purchase the seller's property for $125,000. The seller makes a counteroffer of $126,000. In the counteroffer, the seller is the:

A. optionee.

B. assignor.

C. offeror.

D. offeree.

When does an offer become a valid sales contract?

A. When the offer is signed by the offeror.

B. When the offer is communicated to the offeree.

C. When the acceptance of the offer is communicated to the offeror.

D. When the earnest money is deposited. 

A purchaser in a real estate sales contract transfers her right to buy the property to another person. This would be considered:

A. a breach of contract.

B. an assumption.

C. a novation.

D. an assignment. 

D. an assignment

Note: assignment The transfer in writing of interest in a bond, mortgage, lease, or other instrument. 

An owner wants to hire an agent to sell his 20-unit apartment building. Which of the following agreements would accomplish this purpose?

A. Lease contract.

B. Listing contract.

C. Property management contract.

D. Sales contract.

If the purchaser is transferred to another city before closing, can he or she assign the contract and let the new purchaser close?

A. Yes, unless there is a statement in the contract to the contrary.

B. No, only the seller can transfer his or her interest to another party.

C. No, contracts cannot be assigned.

D. Yes, all contracts can be assigned.

If a seller refuses to sell to a buyer under an enforceable contract of sale, the buyer can request a court to enforce the contract and make the seller deed the property. This action would be a:

A. suit to partition.

B. suit for damages.

C. suit for specific performance.

D. recession. 

The interest a buyer has in real estate once a purchase agreement has been accepted and signed, but not closed, is called:

A. simple interest.

B. equitable title.

C. legal title.

D. adjustable interest.

A property was listed for $220,000. The seller accepts an offer for $215,000 which included a $2,500 earnest money check. The sales price in the contract would be:

A. $220,000.

B. $215,000.

C. $212,500.

D. $217,500.

B. $215,000.

note: the sales price is the offer price 

A buyer orders a termite inspection and termite damage to the structure is found. Who is responsible to correct the existing damage?

A. The buyer ordered the report and would pay for inspection and any damage found.

B. The buyer would pay for the damages and the seller would pay for the inspection.

C. The seller would pay for the damages and the buyer would pay for the inspection.

D. The party specified in the sales contract.

An agreement between parties to keep open, for a certain period of time, the right to buy or lease real property at a specific price is called:

A. a listing.

B. an option.

C. a lease.

D. a contingency. 

Under an option agreement, the optionee:

A. is obligated to purchase the property at the fixed price. B. must pay the optionor actual consideration.

C. will take possession of the property.

D. must include a down payment.

Under a land contract (contract for deed), the seller is called the:

A. mortgagor.

B. mortgagee.

C. vendor.

D. vendee

A land contract would be useful in which of the following situations?

A. When money is available and the buyer has good credit. B. When the buyer can qualify for conventional financing.

C. In a tight money market where it is difficult to qualify the buyer for conventional financing.

D. The seller needs all cash at closing.

C. In a tight money market where it is difficult to qualify the buyer for conventional financing.

The interest held by a vendee under a contract for deed (land contract) is:

A. legal title.

B. equitable title.

C. recorded title.

D. leasehold interest. 

In Georgia, under certain circumstances a buyer of a condominium or timeshare may rescind the contract to purchase within how many days after entering into the contract?

A. 7 days.

B. 10 days.

C. 30 days.

D. 90 days

In Georgia, which of the following could be a violation of license law when listing a property?

A. Including a fixed expiration date.

B. Placing a “For Sale” sign on the property with written consent of the owner.

C. Indicating the price opinion in a listing is an appraisal.

D. Including a broker’s protection period

If there is no expiration date in a brokerage engagement and no authorized termination has occurred, how long will the engagement continue after the initiation of the engagement?

A. Three months.

B. Six months.

C. One year.

D. Two years

Which of the following must a licensee ALWAYS do when advertising their own property for sale?

A. Notify the Georgia Real Estate Commission of the specific property to be advertised.

B. Advertise in the name of a broker.

C. Include the legend "Seller holds a real estate license."

D. Have a broker's written consent to advertise the property.

. When a licensed salesperson goes to work for a broker, Georgia real estate license law requires them to enter into a written:

A. listing agreement.

B. sales agreement.

C. dual agency agreement.

D. affiliation agreement

When an offer to purchase has been accepted and signed by all parties, the licensee is obligated to deliver a signed copy of the purchase agreement to:

A. purchaser, seller and lender.

B. purchaser, seller and broker(s).

C. purchaser, lender and broker(s).

D. seller, lender and broker(s). 

A licensee is asked by a buyer to prepare a sales contract that will have no earnest money. According to the law and the rules of the Commission, can a licensee help negotiate a contract without earnest money?

A. Yes, because neither the law nor the Real Estate Commission require the purchaser to pay earnest money. B. Yes, because the seller cannot reject an offer solely based on the amount of the earnest money.

C. No, because it is illegal for a licensee to present an offer for which there is no earnest money.

D. No, because Georgia law establishes earnest money as one of the essential elements of an enforceable real estate sales contract. 

The Georgia Real Estate Commission prohibits a broker from accepting which of the following types of listings?

A. Open.

B. Net.

C. Exclusive agency.

D. Exclusive right to sell.

In Georgia, to be legally competent to enter into a valid contract, the parties must be:

A. at least 18 years old.

B. at least 18 years old and mentally competent.

C. at least 21 years old.

D. at least 21 years old and mentally competent.

“For Sale” signs must be moved from the property no later than:

A. the day of the expiration of the listing.

B. ten days after the expiration of the listing.

C. thirty days after the expiration of the listing.

D. a reasonable time after the expiration of the listing.

A broker learns that a neighbor might be selling their house and proceeds to secure potential buyers for the neighbor’s property without the knowledge and consent of the neighbor. Would the broker's action be in violation of license law?

A. No, this would be considered an open brokerage agreement.

B. No, but he could not advertise the property.

C. Yes, the broker is acting in dual capacity.

D. Yes, the broker is offering the property for sale without the owner’s consent. 

A licensee shall make a written disclosure to both the buyer and seller revealing the party or parties for whom that licensee's firm is acting as an agent and from whom that licensee's firm will receive any valuable consideration for its effort in the transaction. This disclosure must be made no later than:

A. 10 days after acceptance of an offer.

B. the agreed upon closing date in the transaction.

C. the time that any party first makes an offer.

D. the time that any party is shown the property. 

Licensees must keep true and correct copies of all sales contracts, closing statements, and other documents related to real estate closings for a period of:

A. three years.

B. three years and up to five years at the request of the Commission.

C. five years.

D. five years and up to 10 years at the request of the Commission. 

A. three years.

 On Monday evening, after the brokerage office has closed, a salesperson receives an offer to purchase and an earnest money deposit in the form of a personal check. On Wednesday, she obtains the final acceptance on the offer. The earnest money check should be turned over to her broker:

A. Monday.

B. Tuesday.

C. Wednesday.

D. Thursday.

B. Tuesday.

The earnest money check was received after the office closed so the sales associate needs to make the deposit the next day.

A licensee has been given verbal permission to place a “For Sale” sign on a property by the seller. Could the licensee legally place a “For Sale” sign on the property with this permission?

A. Yes, as long as the seller has given permission.

B. No, permission must be in writing.

C. Yes, permission is not required for “For Sale” signs.

D. No, permission to place “For Sale” signs on any property must be obtained from the county.

In the marketing of a condominium unit, the real estate licensee tells the prospective buyer “that because of the demand for these units the price will double in five years.” This statement by the licensee is:

A. an acceptable practice in the marketing of residential condominium units.

B. an example of a dual agency and need not be disclosed. C. a violation of the license law.

D. required to be in writing and made part of the real estate sales contract.