Barney Fletcher Practice Exam 1 Flashcards

Barney Fletcher Practice Exam 1 Flashcards The Real Estate Research, Education and Recovery Fund

may only make payments based on judgements to:A.

brokersB. salespeopleC. the commissionerD. non licensees

• non licensees

A person increased the monthly mortgage payments to a lender with all the increases in payments being applied to the principal loan balance. Which of the following terms best describes this type of payment plan?A. partially amortized with a balloonB. growing equity mortgageC.straight noteD. term loan

• growing equity mortgage

Which of the following is NOT an appurtenance that belongs to and passes with the land?A. rightB. privilegeC.improvementD. reversion

• reversion

$1,000 is paid for a 30 day option to buy. Which of the following BEST describes the listing agent's commission?A. it is earned at the time the option is entered intoB. it is earned when the option is exercisedC. the commission comes out of the $1,000D. the commission is payable at the end of the 30 day option period

• it is earned when the option is exercised

A property had several different encumbrances recorded against it. Which of the following factors would indicate which would be paid off first?A. date of acknowledgementB. amount of the lienC. whether it was a voluntary or involuntary lienD. type of lien

• type of lien

In an installment land contract, what type title did the seller retain?A. joint tenancyB. legalC. equitableD. tenancy in common

• legal

A loan for which of the following would NOT fall under Regulation Z?A. residential homeB. a loan involving discount pointsC. shoe store in a commercial shopping stripD. a duplex

• shoe store in a commercial shopping strip

A lender packaged a number of loans to sell to investors.

This is referred to as a type of interim financing called:A.

blanket financingB. package financingC. warehouse financingD. discount financing

• warehouse financing

Which of the following items would be considered a fixed cost in a property management budget?A. repair of roofB.utilitiesC. replacement of furnaceD. real estate taxes

• real estate taxes

Georgia's law that is focused on deceptive advertising is:A.

an anti trust lawB. Regulation ZC. UDTPA (Uniform Deceptive Trade Practices Act)D. FBPA (Fair Business

Practices Act)

• FBPA (Fair Business Practices Act)

The authorities are investigating a violation of the law by a licensee. Which could happen?A. the local association of

Realtors could revoke or suspend his licenseB. the GREC could revoke or suspend his licenseC. the GREC could impose criminal penaltiesD. the Attorney General could impose criminal penalties

• the GREC could revoke or suspend his license

There was a home listed under an exclusive right to sell agreement. Another broker went to show the house without notifying the listing broker. Was this a violation of the license law?A. yes, because only the listing broker can show the propertyB. yes, because the selling broker must first contact the listing broker in order to show the propertyC. no, because the selling broker has an implied contract to show the propertyD. no, because under an exclusive right to sell listing, everyone is authorized to sell

• yes, because the selling broker must first contact the

listing broker in order to show the property A property had 10 rental units. The leases had been signed after the mortgage was recorded on the public record. The property was later foreclosed on but the leases were not disturbed. Which of the following clauses must have been included in the mortgage?A. subrogationB. non disturbanceC. defeasanceD. exculpatory

• non disturbance

ABC developers advertise, "For rent to anyone including those who are handicapped." May they advertise in this manner?A. no, this is a violation of Federal Fair Housing LawsB. no, this discriminates against the handicappedC.yes, it is exclusive to those who are handicappedD. yes, it is inclusive of everyone including the handicapped

• yes, it is inclusive of everyone including the

handicapped Which is NOT true about a mechanic's lien?A. it can be filed for the value of the cost of the improvementB. it must be filed within a specified time periodC. it would have to be enforced by the courtD. its priority rights are determined by the date of recording

• its priority rights are determined by the date of recording

After taking the pre license class and passing the state exam, in applying for license, what type of documentation would be required?A. a Georgia's driver licenseB. a photo IDC. personal referencesD. letter about business background

• a photo ID

A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually paid $150, what was the total value of the property?A. $30,000B.

$82,500C. $120,000D. $133,000

• $120,000$150 divided by .5% = $30,000. $30,000

divided by 25% = a total value of $120,000 When an FHA 203B loan is obtained, which generally happens?A. an FHA appraiser appraises the propertyB.there is a maximum of 20 years allowed for the loan termC.FHA will guarantee a maximum of $27,500 in case of defaultD. FHA loans will normally allow the buyer to obtain a 2nd mortgage to cover the down payment

• an FHA appraiser appraises the property

A husband and wife filed for and received a divorce. The wife then tried to sell the property but the ex husband's name was still on the deed. Which of the following actions would be best in trying to remedy the situation?A. suit to