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GEORGIA PROPERTY LICENSE EXAM 2025
QUESTIONS AND ANSWERS
S 1: A farmer temporarily installs produce coolers in a leased farm stand in order to prevent spoilage. What would the coolers be considered?
Trade fixtures that are personal property.
S 2: Property can be converted from real to personal property and from personal property to real property by means of what process?
Severance and affixing
S 3: The highest form of ownership interest one can acquire in real estate is——
Absolute fee simple estate
S 4: The distinguishing feature of a defeasible fee simple estate is that——-
The estate may revert to a grantor or heirs if the prescribed use changes.
S 5: Maria acquires a property from her uncle Al. When Maria dies, the estate will pass to Al's other niece, Serena. The type of estate that Maria has in the property is a———
Conventional life estate.
S 6: One difference between a cooperative estate and a condominium estate is that——
A condominium owner owns a unit of air space whereas the co-op owner owns a proprietary lease.
S 7: Who are the essential parties involved in the estate in trust?
Trustor, trustee, and beneficiary
S 8: A condominium owner enjoys a
Fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas.
S 9: With various types of junior liens, the order of payment priority is generally established according to—-
The date of recordation.
S 15: A store owner enters into a lease that charges rent per square foot, a common area fee, and a portion of the store owner's gross income from the property. This kind of lease is a———-
Percentage lease.
S 16: An owner leases a property to a business in exchange for rent. The tenant is required to pay all operating expenses as well. This is an example of a——-
Net lease.
S 17: A lease automatically terminates under what circumstance?
The leased property is foreclosed.
S 18: A county or municipal authority usually grants a certificate of occupancy for new construction only after—-
The construction conforms to building codes.
S 19: A property owner is precluded by deed restriction from developing a thirty foot boat dock. The limitation prompts the owner to sell to another party. The new owner——
Takes title subject to the same restriction.
S 20: Susie sells Rin a property containing a deed restriction. The condition stipulates that the forested portion of the property must never be raised for development. Three months later, Rin proceeds to harvest the trees and turn the area into an executive golf course. What recourse, if any, does Susie have under the deed condition?
She has the right to re-possess the property because the grantee has violated the condition.
S. 21: What is the essential purpose of legal descriptions of real property?
To create a consistent, unchanging standard for uniquely locating a property.
S 22: What characterizes metes and bounds descriptions?
They identify an enclosed area, beginning and ending at the same point.
S. 23: A buyer agrees to all terms of a seller's offer except the length of time for a contingency to procure financing. The buyer extends the financing period in the offer by one week, signs the form, and mails it back to the seller. At this point, the seller's offer—-
Is void.
S 29: A principal instructs an agent to inform minority buyers that the property for lease was just leased an hour ago and is no longer available. The agent refuses to comply. In this case—-
The principal has proposed an illegal act, which should not be obeyed.
S 30: The amount of a real estate broker's commission is established by—-
Negotiation with clients.
S 31: A client revokes an exclusive right-to-sell listing two months prior to expiration. The reason stated the client is too busy to meet with the agent. In this case——-
The client may be liable for a commission and marketing expenses.
S 32: A protection period clause in an exclusive listing provides that——
The agent has a claim to the commission if the owner sells or leases to a party within a certain time following the listing's expiration.
S 33: Real estate advertising must conform to regulatory standards and requirements. One requirement is——
The advertising must not be deceptive.
S 34: The three principal brokerage firms in a market agree to pay sales agents 15% more than any other competitor currently in practice. This is an example of— —-
Collusion.
S 35: Two leading agencies jointly agree to raise commissions charged to residential sellers to 7.5% of the sales price. What is true about this?
The brokers have illegally fixed prices.
S 36: A sale contract contains an open-ended financing contingency: if the buyer cannot obtain financing within a reasonable time, the deal is off. Six months later, the buyer still cannot secure financing. What is true about this?
The seller may cancel the contract, since it can be ruled invalid.
S 37: In the event of a buyer's default, a provision for liquidated damages in a sale contract enables a seller to——
Claim the deposit as compensated damages for the buyer's failure to perform.
S 38: What is true of an option-to-buy agreement?
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S 43: The income capitalization approach to appraising value is most applicable for which property type?
Apartment buildings.
S 44: In the income capitalization approach, an appraiser ———
Estimates net income and applies a capitalization rate to it.
S 45: Net operating income is equal to——
Potential gross income minus vacancy and credit loss minus expenses.
S 46: If net income on a property is $40,000 and the cap rate is 10%, the value of the property using the income capitalization method is——
$400,000.
S 47: The key feature of an adjustable mortgage loan is that——-
The interest rate may vary.
S 48: Why is a wraparound mortgage loan potentially interesting to a home seller as an investment?
A wraparound lender can profit when the interest rate of the wraparound exceeds that of the underlying mortgage.
S 49: A builder is required to secure a loan with mortgages on three properties. This is an example of——
A blanket mortgage loan.
S 50: What is true of a loan with negative amortization?
Payments are not sufficient to retire the loan.
S 51: The loan-to-value ratio is used as an underwriting mechanism because——
The loan amount needs to be less than the property's value.
S 52: In the past, borrowers were often surprised by unexpected or undisclosed borrowing fees and expenses at closing. This phenomenon has been largely corrected through disclosure requirements mandated by which law?
Truth-in-Lending Laws
S 58: Ad valorem taxes are based on——
The assessed value of property.
S 59: A retirement facility prohibits ownership of any unit by persons under 55 years of age. The association claims it has made the prohibition properly. What is true about this?
The prohibition may be legal if performed correctly.
S 60: An agent receives a full-price offer from a minority party. The agent presents the offer to the seller and discloses the buyer's minority status. The seller at that point instructs the agent to inform the buyer that the property has been gone under contract. The agent duly complies, telling the offeror that the home has just been temporarily removed from the market and is unavailable— but may be available soon if the contract falls through. Which party or parties, if any, have violated fair housing laws?
The agent and the owner.
S 61: What is an example of closing items not prorated between buyer and seller?
Inspection fees
S 62: What activity is not allowed under the Real Estate Settlements and Procedures Act?
A lender paying a fee to a broker for referring a borrower to the lender.
S 63: Which communication record must (as opposed to should) be kept?
Copies of required communications to principals.
S 64: To minimize the risk of violating fair housing laws, a licensee should——
Refuse to use terms that refer to or describe any of the classes of persons protected by the laws.
S 65: What are "tenant improvements"?
Modifications to a rental suite to conform to a tenant's usage specifications.
S 66: For the proper handling of client and owner monies, a property manager is generally required to—-
Maintain a special trust account in a qualified financial depository.
S 71: A house is being appraised using the sales comparison approach. The house has three bedrooms, two bathrooms, and a patio. The appraiser selects a comparable house that has three bedrooms, 2.5 bathrooms, and no patio. The comparable house just sold for $100,000. A half-bath is valued at $5,000 and a patio at $1,000. Assuming all else is equal, what is the adjusted value of the comparable?
$96,
S 72: A family purchased a $90,000 lot to build a custom home. At the date of the closing, the lot was assessed at $84,550 and the tax rate was $1.91/$100 assessed valuation. When they completed the home, the assessment increased by $235, to include the new construction. If the monthly tax escrow is based on the assessed value, what will the monthly tax escrow be?
$
S 73: The James family purchased a home for $180,000 five years ago and obtained an 80% LTV loan. Now the property has appreciated 25%. In addition, the loan has been paid down $11,000. What is the James' current equity in the home?
$92,
S 74: Jimmy and Mary have owned a rental house for 10 years. They bought it for $240,000 and estimated the land value at 25%. If the property is depreciated on a 39-year schedule, and appreciation totals 50% over the period, what is their gain if they sell the property today?
S 75: Addie's home is valued at $250,000. She has insurance coverage of $160, with an 80% co-insurance clause. If Addie has a damage claim amounting to $100,000, how much will she receive from her policy?
$80,
S 76: The Georgia Fair Housing Code prohibits what act?
Indicating that a property is not available for sale or rent when it is available.
S 77: What statement is true regarding advertising?
A licensee discovering a client has used misleading advertising must immediately take steps to stop the advertising until in compliance.
S 78: Licensees are required to remove "for sale" signs from expired listings within _________ of expiration.
10 days.
S 79: What is true regarding taxes?
S 84: What is true regarding ministerial acts?
A broker engaged by a client does not violate the brokerage engagement by providing assistance to the other party in the transaction by performing ministerial acts
S 85: While on vacation in Hawaii, Broker Jane met Donna who is wanting to buy her first home. If Jane provides Donna's contact information to a Hawaii broker for a referral fee, what, if anything, is Jane required to disclose to Donna?
Jane must obtain Donna's written permission for the referral and disclose the fact that Jane will receive a referral fee.
S 86: Which individual must have a real estate license when representing an owner in a real estate transaction?
An auctioneer selling real estate.
S 87: A broker may be held responsible for license law violations of affiliated licensees unless the broker——-
had reasonable procedures in place for supervising affiliates' actions and did not participate in or ratify the violation.
S 88: Licensees are required to disclose what?
A homicide or suicide on the property, if asked by a potential buyer.
S 89: What would be an unfair trade practice?
Representing or attempting to represent a broker, other than broker holding license, without knowledge and consent of broker holding license.
S 90: If a licensee has been found guilty of a violation as a result of a hearing and and has exhausted all administrative remedies, he has the option of——-
Requesting judicial review in the county of the Commission's domicile.
S 91: An associate broker—-
Acts on behalf of and performs brokerage activity on behalf of the broker.
S 92: The Commission will resolve compensation disputes——
Under no circumstances.
S 93: Commission citations may result in all of the following except——
