GA REAL ESTATE LICENSE COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Another important fact to remember is that the broker ____ be held liable by any
parties to the transaction for revealing information in compliance with this subsection of
the law. - ✔✔cannot
✔✔a broker ___ ___ ___ liable for failure to disclose any matters not mentioned in this
section of the law. - ✔✔May not be
✔✔A broker will ___ ___ held liable for a failure to reveal information not listed in these
laws, unless it is proven that the broker's intention was to commit fraud. - ✔✔Not be
✔✔A broker may act as a dual agent - ✔✔only with the written consent of all clients,
containing these details:
A description of the transactions or types of transactions in which the broker will serve
as a dual agent.
A statement that the broker represents two clients whose interests are/could be different
or even adverse.
A statement that a dual agent will disclose to all parties in the transaction all adverse
material facts relevant to the transaction that the dual agent knows.
A statement that the broker (or the broker's affiliated licensees) will disclose, in a timely
manner to each client, the nature of any material relationship the broker and the
broker's affiliated licensees have with the other clients in the transaction.
A statement that the client is not required to consent to the dual agency.
A statement that the consent of the client has been given voluntarily and that the
engagement has been read and understood.
✔✔Actual knowledge refers to - ✔✔what an agent knows to be true - express
information or facts - about a property or a client's circumstances.
✔✔Imputed knowledge refers to - ✔✔what an agent "should have known" about a
property or circumstance, simply because the client, broker, or another licensee knows
to be true and they are connected by an agency relationship.
✔✔In a designated agency, a broker may appoint or designate - ✔✔one licensee in the
firm to represent one client (either the buyer or seller) in a transaction to the exclusion of
all other agents in the brokerage. The broker can then appoint a different licensee to
represent the other party in the same transaction.
✔✔A transaction broker is defined under Georgia law as - ✔✔"a broker who has not
entered into a client relationship with any of the parties to a particular real estate
transaction and who performs only ministerial acts on behalf of one or more of the
,parties, but who is paid valuable consideration by one or more parties to the transaction
pursuant to a verbal or written agreement for performing brokerage services."
✔✔A federal law passed adding two new protected classes; Handicap and Familial
status - ✔✔1088 Amendments to the Fair Housing Act
✔✔Accounting - ✔✔A client level duty relating to account of earnest money, actions, etc
✔✔Accurate - ✔✔A customer level duty relating to disclosure of all material defects
(including latent or hidden defects) to any customer; e.g. leaky roofs, leaky basements,
etc.
✔✔Addendum - ✔✔An addition made to an original contract; e.g., adding the
requirement that a roof be repaired. Also, sometimes referred to as an amendment.
✔✔Agent - ✔✔One who is hired to represent another
✔✔Amendment - ✔✔A change made to an original contract; e.g., extending closing
date on contract; also referred to as an addendum
✔✔Assignment - ✔✔A transfer of rights in contract to another party
✔✔Assignment of Lease - ✔✔A total transfer of rights in a lease where the original
tenant and new tenant are both liable to the landlord for the lease payments
✔✔Attorney-in-fact - ✔✔The title given to someone who has the power of attorney; can
sign on other's behalf
✔✔Bi-lateral - ✔✔A contract containing a promise for a promise; e.g., buyer and seller
in selling and buying a house
✔✔Blockbusting - ✔✔The illegal act of making a profit by inducing owners to sell by
telling them that persons of a protected class are moving into their neighborhood.
✔✔Bounds - ✔✔Markers in a Metes and Bounds description; e.g., stake, well, etc.
✔✔Breach - ✔✔Where a party to a contract does not perform according to the terms of
the agreement
✔✔Capital gain - ✔✔Profit made on an investment item, such as real estate
✔✔Care - ✔✔A client level duty exercising knowledge and skill
✔✔Civil Rights Act of 1866 - ✔✔Banned all racial discrimination
, ✔✔Civil Rights Act 1968 - ✔✔Banned discrimination in residential real estate on the
basis of race, color, religion, national origin, sex, handicap, or familial status
✔✔Mixing escrow money with personal or business funds; illegal - ✔✔Commingling
✔✔Competent parties - ✔✔An essential element of a contract; one must be of legal age
and of sound mind
✔✔Confidentiality - ✔✔A client level duty relating to maintaining confidential information
of the client
✔✔Constructive eviction - ✔✔In leasing, a situation where the landlord constructively
evicts the tenant by not maintaining the premises; e.g., no heat in the wintertime; lessee
or tenant must actually leave the premises and is released from lease obligations
✔✔Corporation - ✔✔A type of syndication where owners can limit their liability; a
corporation who purchases real estate takes title in severalty
✔✔Counter-offer - ✔✔A rejected offer and a new offer made back to the other party
✔✔Declare contract forfeited - ✔✔Buyer backs out of a contract, is released from the
contract but the seller keeps the earnest money is liquidated or pre-arranged damages
✔✔Description - ✔✔An essential element of a contract; must have an adequate
description of the real estate; generally a legal description
✔✔Disclosure - ✔✔A client level duty relating to disclosing to a client all materials facts
regarding the transaction
✔✔Dual agency - ✔✔A situation where a broker represents both buyer and seller at the
same time; must have written prior permission from both parties and informed consent
✔✔Earnest money - ✔✔Good faith money
✔✔Errors and omissions insurance - ✔✔Liability insurance for real estate agents that
protects against claims of failure to perform duties or mistakes being made
✔✔Escalation clause - ✔✔A lease clause allowing a landlord to pass increased costs
along to tenant; i.e., can raise rent to tenant if landlord's costs go up
✔✔Exclusion on homes - ✔✔Only for owner-occupied properties; a person can write off
up to $250,000 of capital gains if single, $500,000 if married; must have been your
QUESTIONS AND ANSWERS SURE A+
✔✔Another important fact to remember is that the broker ____ be held liable by any
parties to the transaction for revealing information in compliance with this subsection of
the law. - ✔✔cannot
✔✔a broker ___ ___ ___ liable for failure to disclose any matters not mentioned in this
section of the law. - ✔✔May not be
✔✔A broker will ___ ___ held liable for a failure to reveal information not listed in these
laws, unless it is proven that the broker's intention was to commit fraud. - ✔✔Not be
✔✔A broker may act as a dual agent - ✔✔only with the written consent of all clients,
containing these details:
A description of the transactions or types of transactions in which the broker will serve
as a dual agent.
A statement that the broker represents two clients whose interests are/could be different
or even adverse.
A statement that a dual agent will disclose to all parties in the transaction all adverse
material facts relevant to the transaction that the dual agent knows.
A statement that the broker (or the broker's affiliated licensees) will disclose, in a timely
manner to each client, the nature of any material relationship the broker and the
broker's affiliated licensees have with the other clients in the transaction.
A statement that the client is not required to consent to the dual agency.
A statement that the consent of the client has been given voluntarily and that the
engagement has been read and understood.
✔✔Actual knowledge refers to - ✔✔what an agent knows to be true - express
information or facts - about a property or a client's circumstances.
✔✔Imputed knowledge refers to - ✔✔what an agent "should have known" about a
property or circumstance, simply because the client, broker, or another licensee knows
to be true and they are connected by an agency relationship.
✔✔In a designated agency, a broker may appoint or designate - ✔✔one licensee in the
firm to represent one client (either the buyer or seller) in a transaction to the exclusion of
all other agents in the brokerage. The broker can then appoint a different licensee to
represent the other party in the same transaction.
✔✔A transaction broker is defined under Georgia law as - ✔✔"a broker who has not
entered into a client relationship with any of the parties to a particular real estate
transaction and who performs only ministerial acts on behalf of one or more of the
,parties, but who is paid valuable consideration by one or more parties to the transaction
pursuant to a verbal or written agreement for performing brokerage services."
✔✔A federal law passed adding two new protected classes; Handicap and Familial
status - ✔✔1088 Amendments to the Fair Housing Act
✔✔Accounting - ✔✔A client level duty relating to account of earnest money, actions, etc
✔✔Accurate - ✔✔A customer level duty relating to disclosure of all material defects
(including latent or hidden defects) to any customer; e.g. leaky roofs, leaky basements,
etc.
✔✔Addendum - ✔✔An addition made to an original contract; e.g., adding the
requirement that a roof be repaired. Also, sometimes referred to as an amendment.
✔✔Agent - ✔✔One who is hired to represent another
✔✔Amendment - ✔✔A change made to an original contract; e.g., extending closing
date on contract; also referred to as an addendum
✔✔Assignment - ✔✔A transfer of rights in contract to another party
✔✔Assignment of Lease - ✔✔A total transfer of rights in a lease where the original
tenant and new tenant are both liable to the landlord for the lease payments
✔✔Attorney-in-fact - ✔✔The title given to someone who has the power of attorney; can
sign on other's behalf
✔✔Bi-lateral - ✔✔A contract containing a promise for a promise; e.g., buyer and seller
in selling and buying a house
✔✔Blockbusting - ✔✔The illegal act of making a profit by inducing owners to sell by
telling them that persons of a protected class are moving into their neighborhood.
✔✔Bounds - ✔✔Markers in a Metes and Bounds description; e.g., stake, well, etc.
✔✔Breach - ✔✔Where a party to a contract does not perform according to the terms of
the agreement
✔✔Capital gain - ✔✔Profit made on an investment item, such as real estate
✔✔Care - ✔✔A client level duty exercising knowledge and skill
✔✔Civil Rights Act of 1866 - ✔✔Banned all racial discrimination
, ✔✔Civil Rights Act 1968 - ✔✔Banned discrimination in residential real estate on the
basis of race, color, religion, national origin, sex, handicap, or familial status
✔✔Mixing escrow money with personal or business funds; illegal - ✔✔Commingling
✔✔Competent parties - ✔✔An essential element of a contract; one must be of legal age
and of sound mind
✔✔Confidentiality - ✔✔A client level duty relating to maintaining confidential information
of the client
✔✔Constructive eviction - ✔✔In leasing, a situation where the landlord constructively
evicts the tenant by not maintaining the premises; e.g., no heat in the wintertime; lessee
or tenant must actually leave the premises and is released from lease obligations
✔✔Corporation - ✔✔A type of syndication where owners can limit their liability; a
corporation who purchases real estate takes title in severalty
✔✔Counter-offer - ✔✔A rejected offer and a new offer made back to the other party
✔✔Declare contract forfeited - ✔✔Buyer backs out of a contract, is released from the
contract but the seller keeps the earnest money is liquidated or pre-arranged damages
✔✔Description - ✔✔An essential element of a contract; must have an adequate
description of the real estate; generally a legal description
✔✔Disclosure - ✔✔A client level duty relating to disclosing to a client all materials facts
regarding the transaction
✔✔Dual agency - ✔✔A situation where a broker represents both buyer and seller at the
same time; must have written prior permission from both parties and informed consent
✔✔Earnest money - ✔✔Good faith money
✔✔Errors and omissions insurance - ✔✔Liability insurance for real estate agents that
protects against claims of failure to perform duties or mistakes being made
✔✔Escalation clause - ✔✔A lease clause allowing a landlord to pass increased costs
along to tenant; i.e., can raise rent to tenant if landlord's costs go up
✔✔Exclusion on homes - ✔✔Only for owner-occupied properties; a person can write off
up to $250,000 of capital gains if single, $500,000 if married; must have been your
