GA REAL ESTATE LICENSE UPDATED EVALUATION
QUESTIONS AND ANSWERS SURE A+
✔✔Protective period clause - ✔✔Protects broker in case negotiations extend past the
expiration date of listing; this clause is normally standard in an agency agreement
✔✔Puffing - ✔✔Subjective opinion; e.g., this home has a beautiful view; not a law
violation
✔✔Real estate investment trust - ✔✔(REIT) A type of syndication that is basically a
giant mutual fund for real estate investments
✔✔Rectangular survey system - ✔✔A form of legal description that describes land in
America using meridians (north and south) and base (east and west) lines; every six
miles range and tier lines are drawn to form townships; also referred to as the
government survey system
✔✔Redlining - ✔✔Lenders refusing to loan in certain areas based upon protected
classes
✔✔Rescind - ✔✔In a contract, this returns the parties to status quo; way they were
before contract signed
✔✔Right of first refusal - ✔✔A contract where one is given the first opportunity to buy if
a property is put up for sale
✔✔Section - ✔✔A portion of ground measuring one mile square; also one square mile;
contains 640 acres; every acre contain 43,560 square feet
✔✔Securities license - ✔✔Required if one sells investments to the general public, such
as REIT's (Real Estate Investment Trust)
✔✔Setback lines - ✔✔Amount of space between lot line and building line
✔✔Sherman anti-trust laws - ✔✔A federal law that prohibits groups of brokers setting a
fixed price for services
✔✔Signed - ✔✔An essential element of a contract; must have signatures of all parties
to contract
✔✔Sole proprietorship - ✔✔A simple business form under which a person can operate
a business; it has no separate legal existence from the owner. Also, profits and losses
flow through to the owner
,✔✔Special agent - ✔✔A person who represents someone else one time in one area;
e.g., broker to seller
✔✔Specific performance suit - ✔✔Court action to force completion of a contract
✔✔Square footage - ✔✔Length times width
✔✔Statute of frauds - ✔✔A law that requires certain documents to be in writing to be
enforceable; e.g., real estate sales contracts, deeds, leases over 1 year
✔✔Steering - ✔✔Directing people toward areas based upon their protected class
✔✔Sub-agency - ✔✔An agency situation where one agent is authorized to use another
agent to represent the client; historically, this where two brokers, the listing and selling
broker, both represent the seller; buyer is a customer and is unrepresented
✔✔Subleasing - ✔✔A partial transfer of rights in a lease where just the original tenant
remains liable for the lease payments; the new tenant is a lessee of the original of the
original tenant
✔✔Syndication - ✔✔Two or more people investing together
✔✔Tax-free exchange - ✔✔Exchanging like-kind property for like-kind property,
resulting in a deferral of capital gains tax; also called a 1031 exchange
✔✔Time is of the essence clause - ✔✔States that all terms of the contract must be
completed in a timely manner
✔✔Township - ✔✔A portion of ground measuring 6 miles square; also 36 square miles
✔✔Trust account - ✔✔Separate account for holding other people's money; usually held
by broker; also referred to as escrow account
✔✔Unenforceable - ✔✔A contract that may not be enforceable in a court; e.g., an oral
contract
✔✔Uni-lateral - ✔✔A contract containing a promise for an action; e.g., a lease with an
option to buy
✔✔Valid and enforceable - ✔✔A contract containing all the essential elements,
including being in writing
✔✔Void - ✔✔A contract with no legal effect; e.g., one of the parties not of sound mind
, ✔✔Voidable - ✔✔A contract that can be voided by one of the parties; e.g., contract
signed by a minor, under duress, or due to misrepresentation
✔✔Writing - ✔✔An essential element of a contract; contract doesn't have to be in
writing, but generally does to be enforceable (an oral contract general cannot be
enforced in court)
✔✔Acceleration clause - ✔✔(Due on default clause) A mortgage clause where a lender
calls a loan balance due and payable upon the happening of certain event, e.g., non-
payment of mortgage
✔✔Acceleration clause - ✔✔(Due on default clause) A mortgage clause where a lender
calls a loan balance due and payable upon the happening of certain event, e.g., non-
payment of mortgage
✔✔Adjustable rate mortgage - ✔✔(ARM) A note where the interest changes
periodically, thereby possibly changing all terms of the loan
✔✔Alienation clause - ✔✔(Due on Sale Clause) A mortgage clause where a lender calls
a loan balance due and payable upon selling the property; makes loan non-assumable
✔✔Annual percentage rate - ✔✔(APR) Takes all costs of borrowing and expresses as a
percentage
✔✔Arrears - ✔✔At the end, e.g., May 1st house payment applies to April's interest
✔✔Assumption - ✔✔An assignment of a loan from the seller to the buyer where the
buyer becomes primarily liable for debt and the seller remains secondarily liable
✔✔Beneficiary - ✔✔Legal holder of the note (lender)
✔✔Blanket mortgage - ✔✔Covers more than one property; used by developers, etc .
Usually contains a partial release clause to release each property from the blanket
mortgage as sold
✔✔Bond - ✔✔Creates the debt; a promise to pay back money that was borrowed; also
referred to as a promissory note
✔✔Buydown - ✔✔Similar to discount points; a buy down is where one pays extra
money to a lender up front in order to lower the interest rate for the first several years of
the loan term; helps buyer qualify for loan
✔✔Buyer's guide to settlement costs - ✔✔(HUD booklet) A booklet that explains all
about closing costs; must be given to buyer within 3 days of loan application
QUESTIONS AND ANSWERS SURE A+
✔✔Protective period clause - ✔✔Protects broker in case negotiations extend past the
expiration date of listing; this clause is normally standard in an agency agreement
✔✔Puffing - ✔✔Subjective opinion; e.g., this home has a beautiful view; not a law
violation
✔✔Real estate investment trust - ✔✔(REIT) A type of syndication that is basically a
giant mutual fund for real estate investments
✔✔Rectangular survey system - ✔✔A form of legal description that describes land in
America using meridians (north and south) and base (east and west) lines; every six
miles range and tier lines are drawn to form townships; also referred to as the
government survey system
✔✔Redlining - ✔✔Lenders refusing to loan in certain areas based upon protected
classes
✔✔Rescind - ✔✔In a contract, this returns the parties to status quo; way they were
before contract signed
✔✔Right of first refusal - ✔✔A contract where one is given the first opportunity to buy if
a property is put up for sale
✔✔Section - ✔✔A portion of ground measuring one mile square; also one square mile;
contains 640 acres; every acre contain 43,560 square feet
✔✔Securities license - ✔✔Required if one sells investments to the general public, such
as REIT's (Real Estate Investment Trust)
✔✔Setback lines - ✔✔Amount of space between lot line and building line
✔✔Sherman anti-trust laws - ✔✔A federal law that prohibits groups of brokers setting a
fixed price for services
✔✔Signed - ✔✔An essential element of a contract; must have signatures of all parties
to contract
✔✔Sole proprietorship - ✔✔A simple business form under which a person can operate
a business; it has no separate legal existence from the owner. Also, profits and losses
flow through to the owner
,✔✔Special agent - ✔✔A person who represents someone else one time in one area;
e.g., broker to seller
✔✔Specific performance suit - ✔✔Court action to force completion of a contract
✔✔Square footage - ✔✔Length times width
✔✔Statute of frauds - ✔✔A law that requires certain documents to be in writing to be
enforceable; e.g., real estate sales contracts, deeds, leases over 1 year
✔✔Steering - ✔✔Directing people toward areas based upon their protected class
✔✔Sub-agency - ✔✔An agency situation where one agent is authorized to use another
agent to represent the client; historically, this where two brokers, the listing and selling
broker, both represent the seller; buyer is a customer and is unrepresented
✔✔Subleasing - ✔✔A partial transfer of rights in a lease where just the original tenant
remains liable for the lease payments; the new tenant is a lessee of the original of the
original tenant
✔✔Syndication - ✔✔Two or more people investing together
✔✔Tax-free exchange - ✔✔Exchanging like-kind property for like-kind property,
resulting in a deferral of capital gains tax; also called a 1031 exchange
✔✔Time is of the essence clause - ✔✔States that all terms of the contract must be
completed in a timely manner
✔✔Township - ✔✔A portion of ground measuring 6 miles square; also 36 square miles
✔✔Trust account - ✔✔Separate account for holding other people's money; usually held
by broker; also referred to as escrow account
✔✔Unenforceable - ✔✔A contract that may not be enforceable in a court; e.g., an oral
contract
✔✔Uni-lateral - ✔✔A contract containing a promise for an action; e.g., a lease with an
option to buy
✔✔Valid and enforceable - ✔✔A contract containing all the essential elements,
including being in writing
✔✔Void - ✔✔A contract with no legal effect; e.g., one of the parties not of sound mind
, ✔✔Voidable - ✔✔A contract that can be voided by one of the parties; e.g., contract
signed by a minor, under duress, or due to misrepresentation
✔✔Writing - ✔✔An essential element of a contract; contract doesn't have to be in
writing, but generally does to be enforceable (an oral contract general cannot be
enforced in court)
✔✔Acceleration clause - ✔✔(Due on default clause) A mortgage clause where a lender
calls a loan balance due and payable upon the happening of certain event, e.g., non-
payment of mortgage
✔✔Acceleration clause - ✔✔(Due on default clause) A mortgage clause where a lender
calls a loan balance due and payable upon the happening of certain event, e.g., non-
payment of mortgage
✔✔Adjustable rate mortgage - ✔✔(ARM) A note where the interest changes
periodically, thereby possibly changing all terms of the loan
✔✔Alienation clause - ✔✔(Due on Sale Clause) A mortgage clause where a lender calls
a loan balance due and payable upon selling the property; makes loan non-assumable
✔✔Annual percentage rate - ✔✔(APR) Takes all costs of borrowing and expresses as a
percentage
✔✔Arrears - ✔✔At the end, e.g., May 1st house payment applies to April's interest
✔✔Assumption - ✔✔An assignment of a loan from the seller to the buyer where the
buyer becomes primarily liable for debt and the seller remains secondarily liable
✔✔Beneficiary - ✔✔Legal holder of the note (lender)
✔✔Blanket mortgage - ✔✔Covers more than one property; used by developers, etc .
Usually contains a partial release clause to release each property from the blanket
mortgage as sold
✔✔Bond - ✔✔Creates the debt; a promise to pay back money that was borrowed; also
referred to as a promissory note
✔✔Buydown - ✔✔Similar to discount points; a buy down is where one pays extra
money to a lender up front in order to lower the interest rate for the first several years of
the loan term; helps buyer qualify for loan
✔✔Buyer's guide to settlement costs - ✔✔(HUD booklet) A booklet that explains all
about closing costs; must be given to buyer within 3 days of loan application
