When used in a deed or other real estate document, a legal description describes only the land because:

Buildings &other improvements are considered to be part of the real estate

Smith wants to sell a property to Jones for $50,000.Jones pays$500 for a 30-day option.Under circumstances which is true

Jones does raise the money he needs,Smith must sell &price isn't negotiable

Which of the following best describes a parcel of land?

The surface of the earth extending down to the center upward to infinity.

A general agency empowers the agent to:

Transact the principal's affairs in a certain business

In a contract providing for a conventional loan, the loan discount fee will be:

Paid according to the provisions in the contract

An assignment of a lease is

A transfer of the entire remaining leasehold

Which is considered to be an "unfair practice" of the License Law?

Payment of a fee to a friend for referring a cousin who will be moving

Regarding the impounds a borrower might be required to pay the lender, which of the following is true?

RESPA regulates the amount lenders can collect for impounds

Upon notice of revocation of his/her license, the broker shall: (select all that apply )

Immediately forward to the commission the license and pocket card., Immediately give the commission all license &pocket cards in possession

Is it a good idea for a buyers agent to prepare a cost to buyer estimate before buyer begin to look at property?

Yes, knowing how much cash they should have for closing will help them

A broker & seller signed a standard listing agreement.Which would NOT be an act that the broker is appointed to perform?

Sell, trade, or convey title to the real property

A broker may disperse the earnest money to the buyer:

Upon a signed written agreement by all parties

If the closing is scheduled to take place on October 1, the seller will owe:

31 days of interest to the lender

A salesperson may advertise personal real estate for sale or lease, without using the broker's name, provided:

The Ad states that the "owner is a licensed real estate agent "

General Warranty deed would most likely include all the following covenants EXCEPT:

Covenant of Restricted ownership

Listing agreement doesn't say if a broker is to accept & hold a earnest money deposit on behalf of the seller then the:

Broker has implied authority to accept such deposits

A salesperson advertising a seller's property should NOT:

Run advertising in the salesperson's name

All of the following are true of an FHA Loan EXCEPT:

Loan is freely assumable by an investor if he has been qualified by lender

Tom leased property to Bob for 3 years. With consent,Bob subsequently leased the property to Sam. Bob died,which is true

Sam leasehold is still valid and enforceable

If the seller renewed the hazard insurance for 1 year starting May 15th, and the closing is to be on November 5th:

Seller will be credited 190 days

Tom sells his home to Sue subject to an existing loan he got 5 years ago. 9 mon.later sue can no longer make payments

The purchaser has no liability to the lender

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Real Estate Final Exam Study Guide

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1
A key lot is:
Essential for plottage
The most desirable one in a residential subdivision
The one in the center of a subdivision
One located at the end of a cul-de-sac
2
A base point from which height or depth can be measured to describe air rights or subsurface rights is a:
Topographic
Point of beginning
Benchmark
Datum
3
A promissory note is:
Automatically secured by a mortgage when signed by the property owner
One guaranteed or insured by a government agency
The lender's security for a loan made to finance the purchase of property
The lender's evidence of loan
4
A leasing arrangement used by a business property owner to generate capital is called ?
Ground Lease
An occupancy agreement
Sandwich Lease
A sale-leaseback
5
Provisions of the CAN-SPAM Act require all of the following to be included in commercial e-mail EXCEPT?
An Opt-Out provision
Valid phone number
Relevant subject line
Valid postal address
6
Riparian owner's land is destroyed by sudden action of nature.They don't lose title to lost land, this is an example of?
Attachment
Eorsion
Avulsion
Encroachment
7
When used in a deed or other real estate document, a legal description describes only the land because:
bill of sale is used to convey title to the buildings & other improvements
Artificial attachments, such as buildings, can't be adequately surveyed.
Buildings &other improvements are considered to be part of the real estate
A street address is used to identify the buildings and improvements
8
In the absence of an agreement to the contrary, a tenant may:
Lease the property to a third party
mortgage the leasehold estate
change the use of the property
all of the above
9
To become a licensed broker in the state of Georgia, an applicant must have been actively licensed:
For the last 5 years
Any 5 of the last 10 years
Any 3 of the last 5 years
For the last 3 years
10
Smith wants to sell a property to Jones for $50,000.Jones pays$500 for a 30-day option.Under circumstances which is true
If Smith receives another offer for $60,000, he can revoke the option
If Jones can't raise the money in 30 days, his $500 will be refunded
Smith buys the property,the $500 will be applied to the purchase price
Jones does raise the money he needs,Smith must sell &price isn't negotiable
11
A landowners right to use water from bordering stream or river is called :
Right of prior appropriation
Correlative Right
Riparian Right
Littoral Right
12
The creation of an easement by prescription is similar to"
Police power
Accretion
Unlawful detainer action
Adverse possession
13
The obligations an agent owes to a customer include all of the following besides:
Accountability
Reasonable skill and care
Honesty
Confidentiality
14
Which of the following best describes a parcel of land?
The surface of the earth extending down a reasonable distance
The surface of the earth includes all things permanently attached
The surface of the earth extending down to the center upward to infinity.
The earth's surface clearly marked by certain boundaries
15
A general agency empowers the agent to:
Transact the principal's affairs in a certain business
Perform only specific acts for the principal
Perform any legal act for the principal
Transact matters of all types for the principal
16
Which is NOT considered to be an economic characteristic of Land?
Modification
Immobility
Location
Scarcity
17
Which one provides, most desirable buffer zone between single-family residential community & industrial land use zone
A government jurisdiction boundary line
A rapid transit rail
A well-landscaped public park
A six-lane thoroughfare
18
Which of the following are NOT necessarily appurtenances that will convey with the sell of real property?
Easements in gross
Net Listing
Fixtures
Property improvements
19
In a contract providing for a conventional loan, the loan discount fee will be:
Paid according to the provisions in the contract
Charged to the seller
Divided between purchaser and seller
Charged to the purchaser
20
An assignment of a lease is
A transfer of the entire remaining leasehold
A transfer of less than the entire remaining leasehold
sandwhich lease
The same as subletting the leasehold
21
Which is considered to be an "unfair practice" of the License Law?
Payment of a fee to a friend for referring a cousin who will be moving
Maintaining more than one trust account
Offering free gifts to influence
Acting as a real estate broker or salesperson without a license
22
Insurance designed to cover loss resulting from construction defects is called?
Casualty Insurance
Extended Coverage
Home Owners Warranty
Homeowner's Insurance
23
Regarding the impounds a borrower might be required to pay the lender, which of the following is true?
RESPA regulates the amount lenders can collect for impounds
Impounds cover the cost of property taxes & hazard insurance
Lenders cannot charge impound fees for FHA and VA loans
A loan that requires impounds is called a package mortgage
24
A map of a subdivision indicating the location and boundaries of individual properties is called?
Contour Map
Road Map
Survey Map
Plat Map
25
Upon notice of revocation of his/her license, the broker shall: (select all that apply )
None of the above
Immediately forward to the commission the license and pocket card.
Immediately give the commission all license &pocket cards in possession
Return all wall licenses &pocket cards in his/her possession within 30 days
26
Original amount for 2nd mortgage was $20,000 &first monthly interest payment was $141.66,what's the annual interest rate
8.5%
.7%
8.3%
4%
27
An agency may be terminated by all but which of the following?
Seller believes the broker has not marketed property as promised & revokes
The broker files for bankruptcy
The listing salesperson dies
Property is condemned by the county for the purpose of building a new road
28
Is it a good idea for a buyers agent to prepare a cost to buyer estimate before buyer begin to look at property?
No, because it's mostly a guess work and could give a wrong impression
Yes, but not until they have established their price level
Yes, knowing how much cash they should have for closing will help them
No, because they will probably find the numbers confusing
29
A broker & seller signed a standard listing agreement.Which would NOT be an act that the broker is appointed to perform?
Sell, trade, or convey title to the real property
Attempt to find a ready, willing, and able buyer for the real property.
Preparing information about the property to give to prospective buyers
Place a "For Sale" sign on the property and market the property
30
A broker may disperse the earnest money to the buyer:
Buyer finds major structural damage in property& within the due diligence
If the seller gets better offer &refuses to sell the property to the buyer
Upon a signed written agreement by all parties
Only upon a court order
31
If the closing is scheduled to take place on October 1, the seller will owe:
1 day of interest to the buyer
1 day of interest to the lender
31 days of interest to the lender
30 days of interest to the buyer
32
Sellers 1st mortgage loan balance is $175,000 at 7.25%.2nd mortgage of $53,400 at 9%. Closing April 16,accrued interest?
$680.30
$766.49
$728.99
$777.49
33
Ad Valorem taxes are:
Determined by the benefit of services received
Levied equally against all property owners
Paid only upon property transfer
Based on the value of property
34
In a Deed which is TRUE
The grantee can be a minor
Grantee is seller
Grantor is the one who records the deed
Grantor is the buyer
35
A salesperson may advertise personal real estate for sale or lease, without using the broker's name, provided:
The broker is told
The Ad states that the "owner is a licensed real estate agent "
The broker verbally approves of both the procedure and the advertisement
A minimum brokerage fee is to be paid
36
Licensee denying equal service b/c of race,age,religion,sex,national origin,familial status,or handicap violated?
License Law
Georgia Fair Housing Law
All of the above
Federal Fair Housing Law
37
A deed is presumed to have been delivered if the deed is:
Recorded by grantor
Signed by grantee
Signed by grantor
Recorded by the grantee
38
General Warranty deed would most likely include all the following covenants EXCEPT:
Covenant of Seizin
Covenant of Restricted ownership
Covenant of Quiet Enjoyment
Covenant of Further Assurance
39
A seller has recently divorced,received ownership of property but ex-husband name is on original deed.BEST move would be
File a quiet title action
File a Satisfaction
Seek a court action to partition the property
Sell the property as a joint tenant
40
A person homesteading in the Indian territories received ownership of the land by means of what document?
Patent
Treaty
Quitclaim Deed
Sheriff's Deed
41
Loan amount $87,000 & interest rate is 9.5%,using 360 day financial calendar year,daily rate for computing interest is?
$34.50
$22.64
$22.96
$21.75
42
For the purposes of estimating seller's costs, you can assume the day of closing:
Belongs to the seller
Is split between buyer & seller
Does not count for either buyer or seller
Belongs to buyer
43
Listing agreement doesn't say if a broker is to accept & hold a earnest money deposit on behalf of the seller then the:
Broker has implied authority to accept such deposits
Broker must obtain power of attorney from a prospective purchaser
Purchaser can't be required to pay a deposit
Deposit must be turned over to the seller immediately
44
A salesperson advertising a seller's property should NOT:
Advertise on company stationary
Put up pictures of the property in the broker's office
Run advertising in the salesperson's name
Run advertisements in the broker's name
45
In developing a master plan for a community, all of the following might be "land use districts" EXCEPT:
Multi-Family
Educational
Industrial
Conservation
46
City government wants to encourage growth in a particular area & rezones the area. Gov. would MOST LIKELY be exercising:
Right of Police Power
Right of Eminent domain
Right of Codemnation
Right of Escheat
47
All of the following are true of an FHA Loan EXCEPT:
A prepayment penalty is not permitted
Loan is freely assumable by an investor if he has been qualified by lender
Both upfront and annual MIP will be required
The buyer may rescind without penalty at any time
48
The assessed valuation of all real property within a taxing jurisdiction is the?
Budget
Tax Rate
Tax appropriation
Tax Base
49
Tom leased property to Bob for 3 years. With consent,Bob subsequently leased the property to Sam. Bob died,which is true
Sam must renegotiate the lease with Tom
Sam lease is terminated
Sam leasehold is still valid and enforceable
Bob's lease is terminated
50
If the seller renewed the hazard insurance for 1 year starting May 15th, and the closing is to be on November 5th:
Seller will be credited 174 days
Seller will be debited 174 days
Seller will be debited 190 days
Seller will be credited 190 days
51
Tom sells his home to Sue subject to an existing loan he got 5 years ago. 9 mon.later sue can no longer make payments
The purchaser has no liability to the lender
purchaser is primarily liable to lender & the seller is secondarily liable
The purchaser is solely liable to the lender
seller is primarily liable to lender & the purchaser is secondarily liable
52
All are true under BRRETA except?
The broker owes fiduciary duty to any client or customer
Material facts must be disclosed to seller clients
Non-exclusive agency, without an agreement , will expire in a year
Dual Agency requires informed written consent
53
All of the following can be characteristics of an easement EXCEPT:
An easement can be created by conveyance
Easement creates an interest that may be protected from 3rd party interfera
An easement may be revoked at will by the servient landowner
An easement is an incorporeal right in the land of another
54
If it costs $9.52 per $1,000 to borrow for 30 years at an amortized rate of 11%, loan $96,000. Monthly payment ?
$924.37
$923.45
$913.92
$879.78
55
The characteristic that distinguishes personal property from real property is:
Scarcity
Flexibility
Mobility
Durability
56
A broker holding an earnest money deposit:
Must refund it to the purchaser on demand
Holds the money to guarantee commission
Is a trustee for the principal
May keep the money in a personal checking account
57
Sales price $198,200 w/ 96.5% FHA Loan. UFMIP 1% w/ a MIP rate of 1%.How much will be added on loan, and monthly mip?
$1.913 upfront and $160.98 monthly
$1,982 upfront and $166.82 monthly
$1,982 upfront and $165.17 monthly
$1,912 upfront and $159.33 monthly
58
Can an inactive real estate licensee perform real estate services when employed by an unlicensed owner?
No, not unless given special permission by the Real Estate Commission
No, only active agents can perform real estate services
Yes, But only because the employer/employee relationship
Yes, but only if the license is surrendered
59
Developer needs information to determine the soil's absorption and drainage capacity. This can be obtained from?
Appraisal
Landlord
A survey
Percolation test
60
Property sales price of $199,900 with a 90% conventional loan at a PMI rate of 2%. Cost of PMI per month?
$3,598.20
$500
$287.90
$299.85
61
All of the following are less than freehold estates EXCEPT:
Conditional fee estate
Estate at sufferance
Periodic estate
Estate at will
62
The ownership unities of time, title, interest, and possession are required in order to create:
Concurrent ownership
Separate ownership
The right of survivorship
An undivided interest in the property as a whole
63
In reference to tax liens on real estate, which is true?
Unpaid ad valorem taxes constitute involuntary, specific liens
Unpaid special assessments constitute involuntary, general liens
None of the above
Unpaid taxes creates an lien against only personal property
64
What do dower an curtesy rights have in common?
Possessory estate
Legal life estate
Remainder Estate
Leasehold estate
65
PMI is most likely to be charged when the buyer is getting:
A 90% loan-to-value conventional loan
FHA graduated payment plan loan
A 80% loan-to-value conventional loan
A VA loan
66
One discount point is what percentage of the loan amount?
\frac{1}{8}\%
1%
\frac{1}{2}\%
\frac{1}{4}\%
67
Bill could employ a broker to rent his house and not be guilty of violating fair housing laws for?
Discriminating against people over 65
Discriminating against Democrats
Discriminating against Married students
Discriminating against French Canadians
68
The listing broker can direct a cooperating broker acting as a subagent to do all of the following except?
Act as a fiduciary to the buyer
Obtain earnest deposits only in the form of cashier's or certified checks
Register buyers to lessen procuring cause problems for the listing broker
Show the property only in the evening
69
Which of the following relationships BEST describes a general agency?
A broker working for a buyer
A broker working for buyer and a seller in the same real estate transaction
A broker working for an owner as a property manager
A broker working for a seller
70
Acceptance of an offer will not create a binding contract if the acceptance is:
Absolute
Unconditional
Qualified
Complete
71
An apartment complex sold for $480,000 and was producing $4,800 gross per month. What is the gross rent multiplier?
10.0
9.7
8.3
7
72
Which would NOT be a violation of antitrust laws?
2 Brokers agree not to do business with another brokerage company
Brokers independent contractor, within company gets flat rate of commission
Brokers coming together in establishing a standard rate of commission
Salesperson refuses to work with a client because of their national origin
73
Which is required before a husband can sign a listing for his wife?
A properly executed attorney in fact
A legal interest in the property
Proof of Marriage
A properly executed power of attorney
74
A fixture may be legally removed from a property if:
There is an expressed agreement allowing the removal
It doesn't substantially affect the value of the property
Its removal doesn't damage the property
The seller's intent was not to make it part of the real property
75
A property executed and delivered quitclaim deed will always convey:
Any after acquired interest in the property
Any warranty that has already been transferred
Title to the property
All the grantor's rights and title to the property
76
The owner of cooperative apartment unit:
Owns the unit in fee simple with undivided interest in the common elements
Holds fee simple title that may ne sold mortgaged, or leased
Holds title in partnership with the other unit owners
Owns stock in nonprofit corporation
77
Telephones lines are examples of:
An easement in gross
Legally valid encroachment
Non-revocable license
An easement appurtenant
78
A family looking at homes happens to see black kids playing in a park.They ask you what's the % of black people,you say?
There are not enough to matter
That is something we never discuss
The local public school system could probably give you that information.
I think it is around 10%
79
Owner has been leasing a small commercial building for seven years and still has three years to go . Which is true
If the tenant sells the business, the buyer must get a new lease with owner
Building is sold,new owner isn't free to up rent or give notice to vacate
If business falls he can cancel balance of lease
When the building is condemned for a expressway, no one gets compensation
80
Listing that allows owner to sell the property w/out being liable for commission &appoints only 1 broker to be a agent
Sole Listing
Open Listing
Exclusive agency listing
Exclusive right to sell listing
81
Which tenancies refers to ownership?
For years
At will
In common
At sufferance
82
The interstate Land Sales Full Disclosure Act Applies to
Cemetery Lots
Subdivisions
All subdivisions of 50 or more lots offered for sale, interstate commerce
Residential areas
83
Which of the following actions would NOT LIKELY create an agency relationship?
A broker and seller sign a listing agreement
Broker agrees to find a buyer for a friend's home for no commission
A broker manages a client's rental property
A broker shows several properties to a customer
84
A Property Manager is:
Manager serves as a buffer between directors & various people
An association of homeowners in a subdivision
Board of directors who have the decision making in a community association.
Bound by written management contract stating the property to be managed
85
Which of the following statements regarding building permits is true?
The demolition of a building doesn't require a permit
Building permit must be acquired before new construction is completed
Before a new building can be occupied,must have a certificate of completion
If a lot owner is building his own house, he doesn't need a building permit
86
A community association may include homeowners in all the following EXCEPT a:
Townhouse
An investor-owned apartment house
Condominium
Subdivision
87
All of the following are typical provisions in a listing agreement EXCEPT:
Commission rate to be paid to the broker
Legal description of property
Names of the seller and broker
Closing date of the sale
88
You sell a vacant lot for $37,500 at a profit of 20%. What did it cost?
$55,000
$30,000
$31,250
$31,175
89
A form of condominium ownership desirable for properties in resort areas where each unit is sold to multiple buyers is?
Proprietary leasing
Time-Sharing
Condominium cooperatives
Condominium syndicates
90
Crops planted and harvested each year are:
Fructus Industriales
Personal Property
All of the above
Emblements
91
After the signing of a valid sales contract,purchaser Bob reveals the land has no oil underneath it,as he thought, he
May Have to complete the transaction
May Rescind because of his mistake
May Sue for damages
May Make a counter-offer to the seller
92
Which property would MOST LIKELY involve riparian rights?
Ocean front property
A cabin next to a stream
A desert home
Apartment complex in the central city
93
The liability of the Real Estate Education, Research &Recovery Fund for the act of 1 licensee is terminated upon payment
of $25,000
of $75,000
of $50,000
of $20,000
94
rent is due on the 1st of the month,closing day is May 11 and the rent amount is $1150, how much is the rent proration?
$370.97 to the buyer
$408.06 to the seller
$731.94 to the seller
$741.94 to the buyer
95
Which of the following is INCORRECT concerning a conventional life estate?
Life estate always pass to the remainderman
The owner is called the life tenant
The owner does not have to die for the estate to end
Life estate may be sold, leased, or mortgaged
96
The cost approach would be the least reliable method to use in estimating the value of a 70 year old building because
The problem associated with estimating depreciation
Changes in the cost of labor and materials
Changes in building codes
The impact of new safety standards
97
If a offer didn't specify a way to communicate acceptance, contract is created when? Written offer was mailed to buyer
Offeror signs the offer
The offeree places the acceptance in the mail
When the acceptance is received by offeror
Offeree signs the offer
98
Jones borrows $5,000 for one year with 6% prepaid interest. Jones received
$5,300
$5,000
$4,650
$4,700
99
Under gross lease, the lessee is required to pay
Fixed amounts at specified intervals
All of the above
Utilities
Taxes
100
A lease where the tenant pays rent at a fixed rate during lease term & landlord pays expenses complying w/ ownership is?
Straight Lease
Ground Lease
Step-up Lease
Set Lease

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