front 1 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 | back 1 must be deposited in a trust account registered with the Commission. |
front 2 The statute of frauds in Georgia minimizes fraud and abuse in real estate contracts by | back 2 requiring that a purchase and sale agreement for real estate be in writing. |
front 3 A lease/purchase agreement differs from a lease with an option to purchase agreement in what way? | back 3 A lease/purchase agreement creates legally enforceable promises from both parties, while a lease with an option to purchase does not. |
front 4 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 | back 4 for a particular use within a time frame specified in the contract. |
front 5 Under Georgia law, an enforceable real estate contract for purchase and sale must include | back 5 at minimum a method to calculate a definite purchase price. |
front 6 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 | back 6 compensation to the brokers. |
front 7 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? | back 7 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 |
front 8 One type of compensation that can be stipulated in a seller-broker relationship and a buyer-broker relationship is | back 8 a retainer fee. |
front 9 The exclusive right-to-sell brokerage agreement provides that a broker representing a seller who secures a willing and able purchaser for the property | back 9 is entitled to a commission if the broker, the seller, or any other broker produces a buyer for the property. |
front 10 In disputes between landlords and tenants in Georgia, resolutions for the enforcement of either party's rights would MOST likely come | back 10 from judicial interpretations of case law and statutory code. |
front 11 An option to purchase leased property | back 11 establishes the right of the tenant to purchase a property from the landlord. |
front 12 The Georgia Residential Landlord-Tenant Act requires that leases in Georgia | back 12 not limit or weaken landlord responsibility for damages caused by failure to keep the property in good condition. |
front 13 A brokerage engagement with a seller (a listing agreement) | back 13 provides that time is of the essence, requiring punctual performance by the parties. |
front 14 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? | back 14 After an agency agreement expires, a buyer introduced to the property during the listing term purchases the property directly from the seller. |
front 15 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? | back 15 Broker A is entitled to compensation because the 60-day protection clause was in effect. |
front 16 In order for a broker to adequately provide information about the property he is marketing, the seller should prepare a | back 16 property condition disclosure. |
front 17 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 | back 17 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. |
front 18 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? | back 18 Portia is a tenant at will, and her uncle must give her 60 days' notice to move out. |
front 19 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 | back 19 a completely new offer that may be accepted or refused by the purchaser. |
front 20 A contingency that would protect the buyer from purchasing a property if it does not meet the value required by the lender is | back 20 an appraisal contingency. |
front 21 Which of the following statements is TRUE regarding earnest money in a real estate transaction? | back 21 The earnest money may be distributed to the buyer if the contract is not accepted or is not in dispute. |
front 22 A contingency that provides the buyers with a general right to terminate a contract for purchase is BEST illustrated by which of the following? | back 22 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 |