GA real estate exam practice questions and answers rated A

GA real estate exam practice questions and answers rated A The owner of an apartment building has just signed an agreement with a real estate firm. Has an agency been formed? Yes, because an agency is formed whenever one party delegates to another the right to act on his behalf in certain business transactions. A managing broker requires his licensees to mention a particular lender to buyers. The broker has a financial interest in this paticular mortgage lender. Which of the following should the licensee recommend to buyers? Consider this lender, disclosing the broker's interest, and other lenders. A licensee is representing prospective buyers. The licensee orally informed the buyers that the developer would be paving the streets in front of a house in a rural subdivision. The licensee had not verified this but assumed that it was true because the developer had done the paving in similar subdivisions. The buyers relied on the licensee's statement in deciding to buy the house. If no contract exists spelling out paving responsibilities, who can be held accountable for damages? the licensee because his unverified statement was misrepresentation Four people bought an investment property together, each having an equal ownership interest. They took title in such a manner that if one died he could leave his one-fourth interest to his heirs. How did they take title to the real estate? tenants in common Under which of the following circumstances may a seller keep the earnest money deposit of a defaulting buyer? if the seller wants to declare the sales contract forfeited, and there is a forfeiture clause in the contract A deed restriction in a subdivision created a community playground that used a few square feet from the rear of every owner's lot. An owner has begun making plans to convert the rear half of his lot to a garden. The plans would require the removal of park equipment. A neighbor objects to these plans. The neighbor should apply for a court injunction against the owner's plans. Under which of the following circumstances may a seller keep the earnest money deposit of a defaulting buyer? if the seller wants to declare the sales contract forfeited, and there is a forfeiture clause in the contract When using the sales comparison approach, a licensee determines that a comparable property's tile floor in the entry hall is worth $2,000. The subject property does not have tile floors at all. Which of the following adjustments should be made? The comparable should be adjusted downward. Which of the following could be deducted as expenses from annual income taxes on an investment property? painting a structure A minor leases an apartment. Immediately upon reaching the age of majority, the lessee notified the lessor that the lease was being terminated. Which of the following is true in this situation? The termination possible because the rescission was made within a reasonable amount of time after the lessee reached the age of majority. A seller wants to allow a buyer to assume the existing mortgage. The sellers want to be sure that they will not be liable for the mortgage after it is assumed. Which of the following will best meet the seller's needs? novation To qualify as a tax-deferred exchange, a property must be held for productive use in trade or business. A church owns a retirement home and restricts the rental of the units to church members regardless of age, sex, race, color, or national origin. Is this policy a violation of federal fair housing laws? No, because religious organizations may limit occupancy of dwelling units they own to persons of the same religion. A licensee who finds a buyer a house listed with his own firm and is paid a fee by the buyer for finding a suitable house has what type of agency? dual A licensee has a property under contract with a financing contingency. The mortgage lender calls the licensee and asks if the contract price on a property can be decreased by $5,000. The mortgage lender explains that this will help the buyer qualify for a loan and help the seller close. Which of the following should the licensee do? Refuse to change the price as this is illegal. A buyer bought a home from an owner. The owners agreed to owner-finance the property. The parties agreed to amortize the loan over a 15-year period. The buyer became the owner of record of the property, and the seller had a lien against the property. What type of instrument was used to purchase the property'? a purchase money mortgage A buyer bought a house in a subdivision zoned residential. The buyer wanted to open a day care in the home. To do so legally, the buyer should obtain a conditional use permit. When an offer to purchase is agreed to and signed by all parties, but not closed, the purchaser has an equitable interest.