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When should a licensee disclose to the parties whom their firm intends to represent in a transaction? CORRECT ANSWERS✅ Disclosure should be made verbally and in writing to all parties as soon as possible. A selling broker desires to represent a purchaser in a real estate transaction while at the same time act as a subagent of the listing broker and seller. Could the broker perform both of these functions in the same transaction? CORRECT ANSWERS✅ No, when a broker working with a buyer acts as a subagent of the listing broker and seller, that broker working with a buyer must represent the seller and treat the buyer as a customer. Whether or not a real estate sales affiliate in GA may act as a buyer's agent will be determined by: CORRECT ANSWERS✅ the company policy and procedures manual issued to all sales affiliates by the broker. Under what circumstances might a broker who is working with a prospective buyer receive compensation/commission from a listing broker? CORRECT ANSWERS✅ Only if there is a cooperating agreement between the two brokers. You are a salesperson representing the seller. What are your duties when working with a buyer/customer? CORRECT ANSWERS✅ You must deal with them honestly A brokerage engagement in GA creates an employment agreement between: CORRECT ANSWERS✅ Broker and client Regarding the Brokerage Relationship in Real Estate Transaction ACT (BRRETA), how are agency relationships created? CORRECT ANSWERS✅ Agency relationships may be created only through written brokerage engagements
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Under a listing agreement, the primary agency relationship involves: CORRECT ANSWERS✅ the seller as the principal, and the broker as the agent A property is listed for $200,000. The sellers owe $100,000 on their current loan and have agreed to pay $2000 towards closing costs for the sale of the property. The sellers also agree to pay the listing broker a 6% commission should a ready, willing and able buyer be secured to purchase the property. If the property sells for full price, what will be the net proceeds for the sellers? CORRECT ANSWERS✅ $86, According to BRRETA, a listing agent must voluntarily disclose to a buyer customer: CORRECT ANSWERS✅ known latent defects Instructed by a client not to present any offers substantially below the listing price, an agent decides not to inform the seller of a prospective buyer's "low ball" written offer. Would real estate agency law find the licensee's decision acceptable? CORRECT ANSWERS✅ No, the agent must present all offers to the seller client You have agreed with your broker to split commissions 60% to you and 40% to your broker. Your listing was just sold by another company for $139,000. Your broker has agreed to pay the selling broker 50% of any commission. If the commission on this sale was 6% what was your share of the commission? CORRECT ANSWERS✅ $
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A seller enters into an exclusive brokerage engagement with the agreement that if the owner sells the property personally, no commission will be paid to the agent. This engagement is called CORRECT ANSWERS✅ an Exclusive agency agreement Common law principles will typically terminate a contract between the broker and principal/client in which of the following circumstances? CORRECT ANSWERS✅ Either the broker or principal declares bankruptcy A listing broker whose negligence in preparing a sales contract for the seller client allows the buyer to void the agreement, breaches an agent's responsibility of CORRECT ANSWERS✅ due care A listing agent shows a buyer customer a client's home in a residential subdivision. The agent knows that an owner of a parcel of vacant land one half mile from this subdivision recently received zoning permission to operate a waste disposal facility on that property. Under BRRETA, would the agent need to voluntarily disclose this information to the buyer? CORRECT ANSWERS✅ Yes, as the pending waste disposal site is within 1 mile, BRRETA considers it a material fact for the buyer. A broker representing a seller who gives a list of lenders, inspectors, attorneys and schools to prospective purchaser would be performing: CORRECT ANSWERS✅ ministerial acts The brokerage engagement created between a buyer and a broker who is assisting the buyer in finding a suitable property to purchase can best be described as: CORRECT ANSWERS✅ special/limited agency
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When a prospective buyer at an open house held by the listing agent asks for advice on negotiating a good price with the seller, the agent might best respond by treating the buyer as a CORRECT ANSWERS✅ customer Prior to entering into a brokerage engagement, an agent's disclosure of the types of agency relationships offered by the broker as well as how the broker receives and shares compensation with the other brokers is required by: CORRECT ANSWERS✅ BRRETA, Georgia's real estate agency law According to the common laws of real estate agency, a fiduciary relationship exists between the: CORRECT ANSWERS✅ listing broker and seller/client A broker in GA is paid a commission at closing by the principal and refuses to pay the salesperson the portion of the commission as agreed upon in the written affiliation agreement. IF the salesperson does not believe that the broker is meeting the terms of the agreement, the appropriate action would be to: CORRECT ANSWERS✅ file judicial action or refer matter to other arbitrating bodies A property owner tells the listing agent that she would like to net $75,000 from the sale of her home. If the commission negotiated between the agent and seller is 7%, which of the following sales prices for the home would come closest to satisfying the owner's goal? CORRECT ANSWERS✅ $80, The best description of the type of agency that is created by the actions and conduct of the parties involved would be: CORRECT ANSWERS✅ implied agency Which of the following is a requirement of an independent contractor status between a broker and a salesperson? CORRECT ANSWERS✅ The salesperson must
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ANSWERS✅ When the seller has indicated he wants the property shown only to Hispanic buyers The Federal Lead-Based Paint Law requires the owners of property with improvements built prior to 1978 to do all of the following except CORRECT ANSWERS✅ remove all lead-based paint from the property You are a licensed salesperson working with an out of town Arab client who has identified a home he wants to see in a neighborhood that you know is predominately Jewish. You should: CORRECT ANSWERS✅ show the property Which of the following statements is true regarding the CAN-SPAM act? CORRECT ANSWERS✅ Unsolicited commercial emails must include an opt-out clause for the recipient and must be honored by sender within 10 business days A licensee would be in violation of fair housing laws if he refused to show properties to a family because CORRECT ANSWERS✅ There are seven children in the family An exception to the Federal Fair Housing Act of 1968, sometimes known as the Mrs. Murphy Exemption, may be allowed under which of the following circumstances? CORRECT ANSWERS✅ The property owner lives in one unit of a triplex and does not use a broker or any discriminatory ads to find tenants for the other 2 apartments A real estate broker is managing an apartment complex for an investor. The licensed affiliate acting as a rental agent for the broker would be in violation of fair
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housing laws for refusing to rent an apartment if: CORRECT ANSWERS✅ the applicant was a recovering alcoholic Charlie is a Vietnamese immigrant who has subdivided his lot and built a new house next to his existing home. In listing this new house, Charlie asks that his real estate agent look for a Vietnamese purchase. How might the sales agent proceed with regard to his client's request? CORRECT ANSWERS✅ The agent should advise the client that the listing may not be taken under this guideline. Under what circumstance might a real estate agent call an individual to discuss listing that person's home if that person's name appears on the Do-Not-Call- Registry? CORRECT ANSWERS✅ Only if the individual has contacted the brokerage firm for information within the last 3 months Under the ADA, an employer may deny a handicapped person a job if: CORRECT ANSWERS✅ The handicapped person is not qualified to do the specific work required Which of the following statements best explains the Civil Rights Act of 1866 as it affects real estate activity? CORRECT ANSWERS✅ The law prohibits discrimination based on race in all real estate transactions A real estate salesperson's affilitation with a broker as an independent contractor or as an employee would depend on: CORRECT ANSWERS✅ the affiliation agreement between the salesperson and the broker The only party that can release a seller from a listing agreement is the CORRECT ANSWERS✅ listing broker
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A safety or protection clause negotiated between the listing agent and the seller in a brokerage engagement would result in CORRECT ANSWERS✅ extending the broker's right to claim a commission beyond the listing's expiration date A listing agreement may give the agent authority to CORRECT ANSWERS✅ collect earnest money on the seller's behalf and deposit such funds in a trust account A property sells for $85,000. The existing mortgage balance is $17,000 and seller is paying $1600 toward closing costs if the brokerage fee is 6.5%, what would be the seller's net in the transaction? CORRECT ANSWERS✅ $60, What does the phrase "the law of agency is common-law doctrine" mean? CORRECT ANSWERS✅ It is part of a body of laws established by tradition and court decisions Northeast Realty, Inc. lists owner Baird's home and the broker's licensee affiliate Carr tells potential buyer Dole that the property's basement is dry to the best of her knowledge. Carr also communicates to the buyer Dole that should the basement leak, seller baird would pay for the repair. In fact, Carr had never discussed such a situation with the client. Under these circumstances, what is true? CORRECT ANSWERS✅ Salesperson Carr is directly liable to purchaser Dole for her actions. As a listing agent, you negotiate a sales contract on owner Grant's property. On a subsequent visit to the property, prior to the closing, you discover termite infestation in the basement storage room. You should CORRECT ANSWERS✅ inform both the buyer and seller, and allow the two parties to decide an acceptable course of action.
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You go to the home of Bob and Barbara Baird for a listing appointment. Barbara Baird informs you that Bob is out of town on business but he has given her authority to sign his name on the listing contract. Barbara can sign the listing for herself and Bob: CORRECT ANSWERS✅ only if she is acting as Bob's attorney-in- fact under a duly executed power of attorney As you are leaving your office to present an offer to purchase for your seller client's home, you receive another offer on this listing for a lower purchase price. What should be your course of action? CORRECT ANSWERS✅ Present both offers to your client, and assist the seller in deciding which one might be best. In some circumstances, a firm may represent both a seller and a buyer in the same transaction and receive a fee from both. This relationship, which must be disclosed and agreed to by both parties, is known as: CORRECT ANSWERS✅ dual agency At the closing, a seller pays the broker $21,000 in commission which represents 7% of the property's sales price. What was the selling price of the property? CORRECT ANSWERS✅ $300, A broker owes which of the following duties to a customer? CORRECT ANSWERS✅ Honesty A licensee whose affiliation agreement with a broker indicates the agent's employment as an independent contractor would: CORRECT ANSWERS✅ be responsible to the broker for the results of the work performed in acquiring clients and closing transactions
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Under the Can-Spam Act, federal guidelines are established for a real estate company that sends out to the public: CORRECT ANSWERS✅ any solicited e-mail messages that advertise the brokerage firm's benefits Broker Baxter is asked by a purchaser to explain a budget mortgage. Baxter's best answer would be CORRECT ANSWERS✅ a mortgage with payments including taxes and insurance John wants to secure financing to build a home on a parcel of land that he owns. A lender approves John for a construction loan. This type of financing might best be described as: CORRECT ANSWERS✅ an interim loan to build a home that includes a take-out commitment from the borrower to secure a permanent loan after construction In qualifying a purchaser for a home loan, the lender determines that the borrower's total housing expense may not exceed 31% of the borrowers gross monthly income (front-end ratio). Additionally, the borrower's total reoccurring monthly debt may not exceed a 43% of the borrower's gross monthly income (back-end ratio). How are these two loan qualifying ratios calculated? CORRECT ANSWERS✅ Front-end ratios are calculated by dividing the borrower's total monthly house payment by their gross monthly income; back-end ratios are calculated by dividing the reoccurring monthly debt, including the total house payment, by the gross monthly income In comparing FHA and VA loans, it would be accurate to say that CORRECT ANSWERS✅ FHA loans are insured by HUD while VA loans are guaranteed by the VA
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Negative amortization will most always be a part of which of the following loan repayment methods? CORRECT ANSWERS✅ Graduated payment mortgage Which of the following statements regarding FHA loans for residential property is true? CORRECT ANSWERS✅ The maximum FHA loan amount for a borrower is determined by the geographical area where the property is located A straight term mortgage is characterized by CORRECT ANSWERS✅ interest only payments until the end of the loan term when the principle becomes due in full A prospective homebuyer receives a Certificate of Entitlement for $100,000 from the VA. Based on this amount, a private lender may approve the veteran for a loan with no down payment up to CORRECT ANSWERS✅ $400, A property was purchased for $175,000. If the loan to buy this property was $131,250, was the loan-to-value ratio (LTV)? CORRECT ANSWERS✅ 75% PMI for conventional loans or MIP for FHA loans would be calculated on CORRECT ANSWERS✅ the loan amount used to finance the property sale Lenders may assess prepayment penalties on FHA and VA loans under what circumstances? CORRECT ANSWERS✅ Under no circumstance, as the VA and HUD do not allows this penalty A buyer purchases a home in which the seller provides owner financing with a 15 yr amortized loan. At the closing, the seller transfers title to the buyer making the buyer the property's legal owner of record while giving the seller a lien against the
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When making a loan, the lender would normally base the loan to value ratio on: CORRECT ANSWERS✅ the appraised value or sales price, whichever is lower A violation of Georgia state law concerning mortgage fraud can result in CORRECT ANSWERS✅ fines up to $100,000 and up to 20 years in prison Mortgage insurance would most likely be charged on CORRECT ANSWERS✅ any loan with an ATV more than 80% Which of the following loans would require mortgage insurance: loan assumption, purchase money mortgage, FHA loan, VA loan CORRECT ANSWERS✅ FHA loan A fully amortized loan is characterized by CORRECT ANSWERS✅ level payments which cover all interest charged and reduce the principal to zero by maturity A buyer puts a down payment of $20,000 on an $80,000. The VA appraises the home at $76,000. Which of the following statements about what the veteran may do is TRUE? CORRECT ANSWERS✅ He may use the VA loan to buy the home if he makes a cash downpayment of $ A business owner has title to the real estate where his business operates. The owner would like to free up the equity in the property to provide working funds to expand the business to a second location. Moreover, he wants to retain possession of the current location while continuing to operate the existing business. Which of the following might be used to help the business owner achieve this goal? CORRECT ANSWERS✅ A sale and leaseback
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The closing date is May 12 and the property taxes have not been paid for the calendar year. If the annual tax bill is $1850, using a 365-day calendar year, what is the tax proration between the seller and buyer? CORRECT ANSWERS✅ $669. debit to seller, credit to buyer The closing date is October 3 and the property taxes have been paid for the calendar year. If the tax bill is $2725, using a 365 day calendar year, what is the tax proration between the seller and buyer? CORRECT ANSWERS✅ $664.45 credit seller, debit buyer The seller's annual hazard insurance policy is paid every year on August 19. If the closing date for the sale of the property is June 8, and the annual premium for the policy is $800, using a 365 day calendar year, what is the insurance proration for the seller? CORRECT ANSWERS✅ $155.62 credit to the seller The coverage for the seller's hazard insurance policy has an anniversary date of October 4, and the closing date for the sale of the property is March 23. If the annual premium for the policy is $1050, using a 365 day calendar year, what is the insurance proration for the seller? CORRECT ANSWERS✅ 558.08 credit to seller The sale of a rental property is due to close on June 22. If the owner of the property collects $500 in rent on the first day of each month, using the exact number of days in the month, what is the rent proration between the seller and buyer of this property? CORRECT ANSWERS✅ $133.33 debit to seller; credit to buyer A tenant pays monthly rent of $625, and the rental period starts on the tenth day of each month. If the sale of the property has a closing date of October 31, what is
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As part of $400,000 land contract with a property owner, a buyer agrees to give the seller an $80,000 down payment and receive a loan from the seller for the balance. At the closing of this contract for deed, what legal interests in the property will each party receive? CORRECT ANSWERS✅ The purchaser will have possession and equitable title to the property and the seller will retain legal title until the loan is paid in full Which of the following loans would most likely require private mortgage insurance? CORRECT ANSWERS✅ A 90% LTV conventional loan A lender requires that a borrower's monthly payment for a home loan include principle and interest, one month of the annual property taxes, one month of the annual hazard insurance policy, a one month PMI. This "PITI" payment is typically referred to as a CORRECT ANSWERS✅ budget mortgage The interest or value remaining in property after payment of all terms or other charges on the property is called CORRECT ANSWERS✅ equity A contract sales price for a property is $275,000 and the home appraises for $280,000. In this circumstance, what would be true regarding the LTV for the purchaser's loan? CORRECT ANSWERS✅ The LTV would be calculated on $275, Financing that includes a balloon payment for a mortgage would most commonly be found in what type of loan CORRECT ANSWERS✅ Straight term loan
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A government backed loan that guarantees the lender substantial protection if the borrower defaults is a CORRECT ANSWERS✅ VA loan Faye has worked at her company for five years and makes $60,000 a year. She is applying for a loan to purchase a home and the lender has calculated her total monthly payment will be $1500. Faye's reoccurring monthly debt obligations include a car payment for $350.00 and credit card minimums totaling $250.00. For loan approval, her lender only uses a back-end ratio and requires her total monthly debt not exceed 43%. Assuming Faye's credit profile is satisfactory, would she qualify for the loan? CORRECT ANSWERS✅ Yes, her back-end ratio falls within the lender's guidelines The maximum term of a residential VA or FHA loan is CORRECT ANSWERS✅ 30 years Which of the following properties would meet the requirements to obtain a VA guaranteed loan? CORRECT ANSWERS✅ Owner occupied, single family dwelling To be eligible under the VA loan program, the minimum active service time during "wartime" is: CORRECT ANSWERS✅ 90 days A purchase money mortgage would most likely be offered to a purchaser by which of the following? CORRECT ANSWERS✅ Seller Which of the following is a characteristic of a graduated payment loan and generally not found in a traditional level payment loan? CORRECT ANSWERS✅ Negative amortization
