GEORGIA REAL ESTATE FUNDAMENTALS FINAL EXAM TEST
BANK COMPLETE 300 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
Easement by prescription - ANSWER: Easement acquired by continuous open and
hostile use of the property for the period of time prescribed by state law
Easement by necessity - ANSWER: Easement allowed by law as necessary for the full
enjoyment of parcel of real estate .(right of ingress and egress over a grantors land)
Rescission - ANSWER: The practice of one party canceling or terminating a contract.
Mortgagee - ANSWER: The bank(receiving the house)
Tax prorations - ANSWER: Taxes are paid July 1st, 365 days, seller pays the day of
closing.
Alienation clause - ANSWER: Clause stating that the balance of the secured debt
becomes immediately due and payable at the lenders option if the property is sold
by the borrower. Prevents the borrower from assigning the debt without the lenders
approval.
Deed - ANSWER: Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS) - ANSWER: Location
Improvements
Permanence of investment
Scarcity
Fiduciary relationship with the principle (COLDAC) - ANSWER: Care
Obedience
Loyalty
Disclosure
Accountability
Confidentiality
Types of real estate ( SIR MAC) - ANSWER: Special purpose
Industrial
Residential
Mixed use
Agricultural
Commercial
PITI - ANSWER: Principle
Interest
, Taxes
Insurance
Diminishing returns - ANSWER: The point when additional improvements do not
increase value
Increasing returns - ANSWER: Produces an increase in income and value
Cancel a contract - ANSWER: Stop where you are
Recind contracts - ANSWER: Start over back to starting place
Fee simple determinable - ANSWER: A fee simple estate qualified by a special
limitation
"So long as"
"While"
"During"
Automatically reverts back to owner .
Fee simple subject to a condition subsequent - ANSWER: If an estate is no longer
used for the purpose conveyed , it reverts back to the original grantor by the right of
re-entry. Have to go to court
Fee simple defeasible - ANSWER: Subject to the occurrence or non occurrence of a
specified event. Ex. Land for a church can only be used for religious reasons
Conveyance - ANSWER: Moved the property
Origination fees - ANSWER: Cost for doing the loan. 1% of loan amount
Brokerage relationships in real estate transactions act( BRRETA) - ANSWER: Governs
real estate relationships
Special agent(designated agent) - ANSWER: Represents the principal in one specific
act or business transaction only, under detailed instruction.
General agent - ANSWER: Represents the principle in a broad range of matters
Universal agent - ANSWER: Empowered to do anything the principle could do
personally
Voidable - ANSWER: Could be, seemed that everything was ok but found out later.
Ex. Contract with a minor
Void - ANSWER: As if it never happened. Never should have signed contract- public
record.
BANK COMPLETE 300 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
Easement by prescription - ANSWER: Easement acquired by continuous open and
hostile use of the property for the period of time prescribed by state law
Easement by necessity - ANSWER: Easement allowed by law as necessary for the full
enjoyment of parcel of real estate .(right of ingress and egress over a grantors land)
Rescission - ANSWER: The practice of one party canceling or terminating a contract.
Mortgagee - ANSWER: The bank(receiving the house)
Tax prorations - ANSWER: Taxes are paid July 1st, 365 days, seller pays the day of
closing.
Alienation clause - ANSWER: Clause stating that the balance of the secured debt
becomes immediately due and payable at the lenders option if the property is sold
by the borrower. Prevents the borrower from assigning the debt without the lenders
approval.
Deed - ANSWER: Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS) - ANSWER: Location
Improvements
Permanence of investment
Scarcity
Fiduciary relationship with the principle (COLDAC) - ANSWER: Care
Obedience
Loyalty
Disclosure
Accountability
Confidentiality
Types of real estate ( SIR MAC) - ANSWER: Special purpose
Industrial
Residential
Mixed use
Agricultural
Commercial
PITI - ANSWER: Principle
Interest
, Taxes
Insurance
Diminishing returns - ANSWER: The point when additional improvements do not
increase value
Increasing returns - ANSWER: Produces an increase in income and value
Cancel a contract - ANSWER: Stop where you are
Recind contracts - ANSWER: Start over back to starting place
Fee simple determinable - ANSWER: A fee simple estate qualified by a special
limitation
"So long as"
"While"
"During"
Automatically reverts back to owner .
Fee simple subject to a condition subsequent - ANSWER: If an estate is no longer
used for the purpose conveyed , it reverts back to the original grantor by the right of
re-entry. Have to go to court
Fee simple defeasible - ANSWER: Subject to the occurrence or non occurrence of a
specified event. Ex. Land for a church can only be used for religious reasons
Conveyance - ANSWER: Moved the property
Origination fees - ANSWER: Cost for doing the loan. 1% of loan amount
Brokerage relationships in real estate transactions act( BRRETA) - ANSWER: Governs
real estate relationships
Special agent(designated agent) - ANSWER: Represents the principal in one specific
act or business transaction only, under detailed instruction.
General agent - ANSWER: Represents the principle in a broad range of matters
Universal agent - ANSWER: Empowered to do anything the principle could do
personally
Voidable - ANSWER: Could be, seemed that everything was ok but found out later.
Ex. Contract with a minor
Void - ANSWER: As if it never happened. Never should have signed contract- public
record.
