Metro brokers study guide final
Study online at https://quizlet.com/_d5pymc
1. How to prove a broker is not culpable if an agent makes a mistake?: Prove
reasonable supervision, no interaction, no ratification. (P 18-10)
2. Who is the rightful owner if a deed is not recorded?: Buyer with constructive notice, no
subsequent recordations. (P 4-18)
3. How is an appraisal charged?: Fee can't be based on value estimate. (P 12-2)
4. What are trade fixtures and when can they be removed?: Personal property attached
by lessee for business, can be removed before lease end without waste. (P 1-6)
5. What is the definition of a trade fixture?: An item of personal property attached to land or
building for business. (P 1-6)
6. What is the definition of constructive notice?: Notice given by visible possession or use of
property. (P 4-18)
7. What is the definition of waste?: Damage to property by tenant beyond normal wear and tear. (P
1-6)
8. What is the definition of an appraisal?: An estimate of property value by a licensed appraiser. (P
12-2)
9. What is the Replacement cost approach?: Cost of replacing buildings at today's prices
10. What is Insurance proration?: Advance payment credited to seller until next premium
11. What are the Requirements for a salesperson & broker's license?: Age, residency,
education, experience, character, exam
12. What are the Three Types of Agents?: Universal, General, Special/Limited
13. What are the Three types of Agency Relationships?: Actual, Ostensible, Implied
14. What is BRRETA?: Georgia law governing brokerage relationships
15. When should earnest money be turned in?: As soon as practically possible to the broker
16. What is an attachment lien?: Encumbrance against land during a lawsuit
17. What makes a valid deed from the grantee's side?: In writing, competent grantor/grantee,
valid legal description, granting clause, signature, delivered/accepted
18. What is IRV?: Net operating income for Income Approach to value
19. What is the principle of anticipation?: Property value based on future income/benefits
20. What does IRV not include?: Land value
21. What is the purpose of BRRETA?: To prevent detrimental misunderstandings in brokerage relation-
ships
, Metro brokers study guide final
Study online at https://quizlet.com/_d5pymc
22. What does BRRETA govern?: Relationships between licensees and clients/customers outside of
contractual relationships
23. What does BRRETA cover?: Brokerage, brokerage relationships, engagements, material facts, minis-
terial acts
24. What are material facts?: Facts a party does not know, would want to know, and could not reasonably
discover within a one mile radius
25. What are ministerial acts?: Acts that do not require a licensee's professional skill or judgment
26. What is the termination date for an agency contract without a specific date?-
: One year
27. Who should earnest money be made out to?: The broker, not the agent
28. What is required for a valid deed from the grantee's side?: In writing, competent
grantor/grantee, valid legal description, granting clause, signature, delivered/accepted during grantor's lifetime
29. What is the basis of the Income Approach to value?: Principle of anticipation
30. What is included in a valid deed from the grantee's side?: Competent grantor/grantee,
valid legal description, granting clause, signature, delivered/accepted during grantor's lifetime
31. What is the delivery requirement for a valid deed?: Delivered and accepted by grantee or
grantee's agent during grantor's lifetime
32. What is the granting clause in a valid deed?: Expresses the grantor's intent to convey
33. What is the purpose of an attachment lien?: To prevent the owner from conveying title while
a suit is being decided and to ensure property is available to satisfy judgments if needed
34. What is the Capitalization Approach?: Uses net income to estimate present value.
35. What is NOI?: Effective Gross Income MINUS Operating Expenses.
36. What is the formula for calculating V?: V = I / R
37. What is the formula for calculating R?: R = I / V
38. What is the formula for calculating I?: I = R x V
39. What is the relationship between cap rate and value?: Inverse relationship.
40. What does Reg Z NOT cover?: Loans to corporations, farms, commercial/business loans, or purchase
money mortgages.
41. What is a CAM?: Community Association Manager, manages homeowner's associations.
42. What is acceptance in a lease agreement?: Agreement to terms by tenant and landlord
43. What is a merger in a lease agreement?: Combining of landlord and tenant interests
44. What is condemnation in a lease agreement?: Government seizure of property
Study online at https://quizlet.com/_d5pymc
1. How to prove a broker is not culpable if an agent makes a mistake?: Prove
reasonable supervision, no interaction, no ratification. (P 18-10)
2. Who is the rightful owner if a deed is not recorded?: Buyer with constructive notice, no
subsequent recordations. (P 4-18)
3. How is an appraisal charged?: Fee can't be based on value estimate. (P 12-2)
4. What are trade fixtures and when can they be removed?: Personal property attached
by lessee for business, can be removed before lease end without waste. (P 1-6)
5. What is the definition of a trade fixture?: An item of personal property attached to land or
building for business. (P 1-6)
6. What is the definition of constructive notice?: Notice given by visible possession or use of
property. (P 4-18)
7. What is the definition of waste?: Damage to property by tenant beyond normal wear and tear. (P
1-6)
8. What is the definition of an appraisal?: An estimate of property value by a licensed appraiser. (P
12-2)
9. What is the Replacement cost approach?: Cost of replacing buildings at today's prices
10. What is Insurance proration?: Advance payment credited to seller until next premium
11. What are the Requirements for a salesperson & broker's license?: Age, residency,
education, experience, character, exam
12. What are the Three Types of Agents?: Universal, General, Special/Limited
13. What are the Three types of Agency Relationships?: Actual, Ostensible, Implied
14. What is BRRETA?: Georgia law governing brokerage relationships
15. When should earnest money be turned in?: As soon as practically possible to the broker
16. What is an attachment lien?: Encumbrance against land during a lawsuit
17. What makes a valid deed from the grantee's side?: In writing, competent grantor/grantee,
valid legal description, granting clause, signature, delivered/accepted
18. What is IRV?: Net operating income for Income Approach to value
19. What is the principle of anticipation?: Property value based on future income/benefits
20. What does IRV not include?: Land value
21. What is the purpose of BRRETA?: To prevent detrimental misunderstandings in brokerage relation-
ships
, Metro brokers study guide final
Study online at https://quizlet.com/_d5pymc
22. What does BRRETA govern?: Relationships between licensees and clients/customers outside of
contractual relationships
23. What does BRRETA cover?: Brokerage, brokerage relationships, engagements, material facts, minis-
terial acts
24. What are material facts?: Facts a party does not know, would want to know, and could not reasonably
discover within a one mile radius
25. What are ministerial acts?: Acts that do not require a licensee's professional skill or judgment
26. What is the termination date for an agency contract without a specific date?-
: One year
27. Who should earnest money be made out to?: The broker, not the agent
28. What is required for a valid deed from the grantee's side?: In writing, competent
grantor/grantee, valid legal description, granting clause, signature, delivered/accepted during grantor's lifetime
29. What is the basis of the Income Approach to value?: Principle of anticipation
30. What is included in a valid deed from the grantee's side?: Competent grantor/grantee,
valid legal description, granting clause, signature, delivered/accepted during grantor's lifetime
31. What is the delivery requirement for a valid deed?: Delivered and accepted by grantee or
grantee's agent during grantor's lifetime
32. What is the granting clause in a valid deed?: Expresses the grantor's intent to convey
33. What is the purpose of an attachment lien?: To prevent the owner from conveying title while
a suit is being decided and to ensure property is available to satisfy judgments if needed
34. What is the Capitalization Approach?: Uses net income to estimate present value.
35. What is NOI?: Effective Gross Income MINUS Operating Expenses.
36. What is the formula for calculating V?: V = I / R
37. What is the formula for calculating R?: R = I / V
38. What is the formula for calculating I?: I = R x V
39. What is the relationship between cap rate and value?: Inverse relationship.
40. What does Reg Z NOT cover?: Loans to corporations, farms, commercial/business loans, or purchase
money mortgages.
41. What is a CAM?: Community Association Manager, manages homeowner's associations.
42. What is acceptance in a lease agreement?: Agreement to terms by tenant and landlord
43. What is a merger in a lease agreement?: Combining of landlord and tenant interests
44. What is condemnation in a lease agreement?: Government seizure of property
