Unit 24 real estate Flashcards

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A Georgia real estate broker engages in a property management agreement with a landlord to manage the landlord's rental properties. The broker collects rent and security deposits. The security deposits

must be deposited in a trust account registered with the Commission.


The statute of frauds in Georgia minimizes fraud and abuse in real estate contracts by

requiring that a purchase and sale agreement for real estate be in writing.


A lease/purchase agreement differs from a lease with an option to purchase agreement in what way?

A lease/purchase agreement creates legally enforceable promises from both parties, while a lease with an option to purchase does not.


Under the Georgia Residential Landlord-Tenant Act, a typical residential lease does not establish an estate for years. It establishes a periodic estate. A periodic estate conveys only rights of possession from the landlord to the tenant

for a particular use within a time frame specified in the contract.


Under Georgia law, an enforceable real estate contract for purchase and sale must include

at minimum a method to calculate a definite purchase price.


A buyer and a seller are negotiating a contract. The house is vacant. The buyer needs to vacate his home before the closing date established in the contract with the seller. If the seller allows the buyer to occupy the house before the closing date, the presettlement occupancy agreement should contain all of the following elements EXCEPT

compensation to the brokers.


The forfeiture of earnest money to a seller from a buyer who is in default of a contract may occur in which of the following circumstances?

If actual damages by the default are difficult to estimate and the contract considers earnest money an appropriate sum to serve as full liquidated damages for the seller


One type of compensation that can be stipulated in a seller-broker relationship and a buyer-broker relationship is

a retainer fee.


The exclusive right-to-sell brokerage agreement provides that a broker representing a seller who secures a willing and able purchaser for the property

is entitled to a commission if the broker, the seller, or any other broker produces a buyer for the property.


In disputes between landlords and tenants in Georgia, resolutions for the enforcement of either party's rights would MOST likely come

from judicial interpretations of case law and statutory code.


An option to purchase leased property

establishes the right of the tenant to purchase a property from the landlord.


The Georgia Residential Landlord-Tenant Act requires that leases in Georgia

not limit or weaken landlord responsibility for damages caused by failure to keep the property in good condition.


A brokerage engagement with a seller (a listing agreement)

provides that time is of the essence, requiring punctual performance by the parties.


The brokerage engagement allows for an agent to negotiate a "safety clause" with a client that serves to protect the broker's commission. Which of the following circumstances might activate such a clause in the contract?

After an agency agreement expires, a buyer introduced to the property during the listing term purchases the property directly from the seller.


A buyer enters into a buyer brokerage agreement with broker A. The agreement has a protection clause for 60 days from the date the agreement expires. The agreement with A expires without the buyer having purchased a property, and 10 days later the buyer signs a new buyer brokerage agreement with broker B. Twenty-one days after the agreement with broker A expired, but during the agreement period with broker B, the buyer purchases a property she had been shown by broker A. Which of the following is TRUE?

Broker A is entitled to compensation because the 60-day protection clause was in effect.


In order for a broker to adequately provide information about the property he is marketing, the seller should prepare a

property condition disclosure.


Broker Ted is meeting with prospective buyer Janice to establish a working relationship. After discussing all the required disclosures, Janice decides to be Ted's customer rather than a client. Ted should require Janice to sign

a statement acknowledging that she has been informed of the firm's permitted brokerage relationships and that she wants to be treated as a customer.


Portia occupies a property owned by her uncle, who has recently listed the home for sale. Portia pays her uncle a monthly sum of $350 to cover all utility expenses for the property. When a buyer is found for the property, what is TRUE of Portia's occupancy rights under Georgia law?

Portia is a tenant at will, and her uncle must give her 60 days' notice to move out.


An offer is made by buyers for $500,000 with the following provisions: a 90% loan, a 7- day inspection contingency, a 14- day appraisal contingency, and a closing date of June 30. The seller accepts all the items except the closing date. The seller agrees to all the loan provisions and the contingencies but asks her listing broker to change the closing date to July 31 to give her more time to pack her belongings and secure a contract on another home. The seller's counteroffer is considered

a completely new offer that may be accepted or refused by the purchaser.


A contingency that would protect the buyer from purchasing a property if it does not meet the value required by the lender is

an appraisal contingency.


Which of the following statements is TRUE regarding earnest money in a real estate transaction?

The earnest money may be distributed to the buyer if the contract is not accepted or is not in dispute.


A contingency that provides the buyers with a general right to terminate a contract for purchase is BEST illustrated by which of the following?

A condition in the agreement that the buyers may, for any reason, change their mind about purchasing the property within a period defined in the contract