GA RE Metro broker exam UPDATED ACTUAL Questions and
CORRECT Answers
How does a broker prove they are not culpable if an 1. Reasonable supervision was available to agent
agent makes a mistake? 2. Broker had nothing to do with the infraction
3. The broker did not ratify the infraction (Did not see it happen without telling
them to stop)
What are Trade fixtures and how can they be removed? Trade fixture - item of personal property attached to land or building leased by a
tenant who uses the item in a trade or business
- Can be removed before lease ends by tenant and damages cause by removal
must be repaired. If not removed by lease date become landlords by accession.
Requirements for salespersons license - 18 years old
- Resident of GA unless qualifying under nonresident status
- HS diploma or equivalent
- 75 hour approved course
- good moral character
- pass state exam
Requirements for Broker license - 21 years old
- Resident of GA or qualifying under nonresident
- HS diploma or equivalent
- Have held active license at least 3 of 5 past years
- 60 hour approved course or equivalent
- good moral character
- pass state exam
Attachment lien Grants court custody of property while a law suit is proceeding.
- stops someone from getting house out of name
If a person buys a house and a deed is not recorded, who The buyer, so long as some form of constructive notice has been given (moving
is the rightful buyer? in, cultivating the land) and no subsequent recordations of title were made prior
to notice
How is an appraisal charged? The fee charged can never be based on the estimate of value
replacement (cost approach) The cost of replacement of buildings, at today's prices and using today's
construction materials, with a SIMILAR or COMPARABLE structure, to serve the
same purpose. (not the same as REPRODUCTION)
Insurance proration - paid in advance
- credited to the seller from day after closing until day Before next premium is due
Formula - Annual premium/365 = Daily rate.
Daily rate x number of days
universal agent Authorized to perform any act the principal could perform, has authority w out
limitations
, General agent Authorized to bind their Principal in the ongoing conduct of a particular business,
Special agent (limited) Appointed for a specific purpose or to act on a particular occasion (listing agent)
Actual agency Parties have entered into an agreement
Ostensible agency third party relies on the principal's expressed or implied representation w/o
agreement
Implied agency when a broker, showing a property to a prospective buyer, causes the buyer to
feel broker is acting on their behalf *RATIFICATION
Ratification Acceptance of an agents unauthorized acts by direct confirmation or implication
material facts facts a party, would want to know, and could not reasonably discover, up to a
ONE MILE RADIUS
ministerial acts acts that do not require a licensee's professional skill or judgment
BRETA Brokerage relationship in real estate transaction act
What is BRETA Governs the relationships between licensees and their clients or customers
-to prevent "detrimental misunderstandings" that common law might cause in
brokerage relationships
When will an agency contract terminate without a date? ONE YEAR
When to turn in earnest money? As soon as practically possible, to the broker. The check must be made out to the
broker, not the agent.
- normally within a business day
What makes a valid deed from the grantors side? -Must be in writing,
-name a competent grantor, -name a grantee,
-contain a description of consideration
-contain a valid legal description,
-include a granting clause expressing grantors intent to convey
- signature of grantro\\or
-and have been delivered and accepted by the grantee or the grantee's agent
DURING the grantor's lifetime. putting it in the mail is considered delivery
Secondary market The market where loans are bought from local lenders in order to provide them
with a constant supply of cash to originate more loans to homebuyers
Who Is included in secondary mortgage market? FNMA, GNMA, FHLMC, MGIC + other private buyers (Fannie Mae, Ginnie Mae,
Federal Home Loan Mortgage Corp, Mortgage Guaranty Insurance Company)
Capitalization Approach uses net income to project and estimate of present value
CORRECT Answers
How does a broker prove they are not culpable if an 1. Reasonable supervision was available to agent
agent makes a mistake? 2. Broker had nothing to do with the infraction
3. The broker did not ratify the infraction (Did not see it happen without telling
them to stop)
What are Trade fixtures and how can they be removed? Trade fixture - item of personal property attached to land or building leased by a
tenant who uses the item in a trade or business
- Can be removed before lease ends by tenant and damages cause by removal
must be repaired. If not removed by lease date become landlords by accession.
Requirements for salespersons license - 18 years old
- Resident of GA unless qualifying under nonresident status
- HS diploma or equivalent
- 75 hour approved course
- good moral character
- pass state exam
Requirements for Broker license - 21 years old
- Resident of GA or qualifying under nonresident
- HS diploma or equivalent
- Have held active license at least 3 of 5 past years
- 60 hour approved course or equivalent
- good moral character
- pass state exam
Attachment lien Grants court custody of property while a law suit is proceeding.
- stops someone from getting house out of name
If a person buys a house and a deed is not recorded, who The buyer, so long as some form of constructive notice has been given (moving
is the rightful buyer? in, cultivating the land) and no subsequent recordations of title were made prior
to notice
How is an appraisal charged? The fee charged can never be based on the estimate of value
replacement (cost approach) The cost of replacement of buildings, at today's prices and using today's
construction materials, with a SIMILAR or COMPARABLE structure, to serve the
same purpose. (not the same as REPRODUCTION)
Insurance proration - paid in advance
- credited to the seller from day after closing until day Before next premium is due
Formula - Annual premium/365 = Daily rate.
Daily rate x number of days
universal agent Authorized to perform any act the principal could perform, has authority w out
limitations
, General agent Authorized to bind their Principal in the ongoing conduct of a particular business,
Special agent (limited) Appointed for a specific purpose or to act on a particular occasion (listing agent)
Actual agency Parties have entered into an agreement
Ostensible agency third party relies on the principal's expressed or implied representation w/o
agreement
Implied agency when a broker, showing a property to a prospective buyer, causes the buyer to
feel broker is acting on their behalf *RATIFICATION
Ratification Acceptance of an agents unauthorized acts by direct confirmation or implication
material facts facts a party, would want to know, and could not reasonably discover, up to a
ONE MILE RADIUS
ministerial acts acts that do not require a licensee's professional skill or judgment
BRETA Brokerage relationship in real estate transaction act
What is BRETA Governs the relationships between licensees and their clients or customers
-to prevent "detrimental misunderstandings" that common law might cause in
brokerage relationships
When will an agency contract terminate without a date? ONE YEAR
When to turn in earnest money? As soon as practically possible, to the broker. The check must be made out to the
broker, not the agent.
- normally within a business day
What makes a valid deed from the grantors side? -Must be in writing,
-name a competent grantor, -name a grantee,
-contain a description of consideration
-contain a valid legal description,
-include a granting clause expressing grantors intent to convey
- signature of grantro\\or
-and have been delivered and accepted by the grantee or the grantee's agent
DURING the grantor's lifetime. putting it in the mail is considered delivery
Secondary market The market where loans are bought from local lenders in order to provide them
with a constant supply of cash to originate more loans to homebuyers
Who Is included in secondary mortgage market? FNMA, GNMA, FHLMC, MGIC + other private buyers (Fannie Mae, Ginnie Mae,
Federal Home Loan Mortgage Corp, Mortgage Guaranty Insurance Company)
Capitalization Approach uses net income to project and estimate of present value
