GA MLS Cram Course Flashcards

GA MLS Cram Course Flashcards homeowners warranty program (HOW)A buyer of a home wants to purchase as insurance policy that would warranty against certain defects, such as a faulty furnace, plumbing, etc. Which of the following insurance programs would satisfy this requirement?Closing DisclosureUnder the TILA-RESPA Integrated Disclosure Rule, this form replaced the HUD-1 Settlement Statement and must be provided to the consumer/borrower at least 3 business days before consummation (closing) of the loan all parties having an interest in the fund agree to this procedure in writing If the purchaser is paying a substantial amount of earnest money, and particularly if the closing is several months later, it would be practical to place the funds in an interest bearing account. It is permissible to do so as long as cooperativeA person who purchases shares of stock in a corporation that owns a building and receives a proprietary lease to a specific unit within the building has purchased a Closing DisclosureUnder the TILA-RESPA Integrated Disclosure rule, the HUD-1 and final Truth In Lending disclosure have been combined into a new form called Daughter's heirsA father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property?9%A person bought 3 lots for $22,000 net each and divided them into four lots of equal frontage. The lots then sold for $18,000 each. What was the approximate percentage of gross profit?AvulsionThe loss of land as a result of being washed away by a sudden act of nature, such as a flood, is referred to as Reverse Annuity MortgageWhich of the following forms of financing would enable elderly homeowners to borrow against the equity in their home so they can receive monthly payments needed to help meet living costs?name and phone number of the licensee's firm on every page of the website Regarding internet advertising, if a licensee has a website they must disclose the ResidentialTruth In Lending / Regulation Z applies to which of the following real estate transaction?No, this action is a violation of the license law A real estate licensee pays a $50 referral fee to an unlicensed person for securing potential buyers. Is this action permissible under the license law?A partial amortized 2nd mortgageWhich of the following loans would have a balloon payment?

equityThe interest or value remaining in property after payment of all terms or other charges on the property is called Each exclusive brokerage engagement must include the street address of the property Which of the following statements regarding brokerage agreements isFALSE?Increase the yield on the loanDiscount points on a loan are used by the lender to short saleA borrower is in default of their loan. Rather than experiencing the delay and expense of a foreclosure action the lender agrees to release the mortgage so the property can be sold to a new purchaser. If the sale produces less money than is owned the lender the transaction would be referred to as a impose a fine not to exceed $1000A broker was found guilty of commingling. The real estate Commission shall have the power to The seller retains legal titleIn a land contract (contract for deed), which of the following statements is correct?$29In Georgia, a property sells for $216,000 and the buyer assumes the seller's $187,000 loan. How much is the transfer tax?The buyer becomes the lessorIn a sale-leaseback agreement between a buyer and seller, which of the following statements is true of the arrangement?a monetary encumbrance affecting title to the propertyWhich of the following statements best describes a lien on real property?Yes, provided the home was used as a their principal place of residence for 2 of the preceding 5 years Can a homeowner use a capital gains taxation exclusion ($500,000 for married homeowners who file jointly and $250,000 for single filers) on the sale of a principal residence more than once?$66,800A property sells for $195,000. The existing loan balance is $114,000 and the seller's closing costs are $2500. What are the sellers net proceeds if the brokerage fee is 6%?Both loans have prepayment privileges and cannot be charged a prepayment penalty Which of the following is a similar characteristic of both a FHA and VA loan?Advise the seller of the form and value of the earnest money being offered A buyer made an offer on a seller's residential property.The offer included earnest money in the form of an antique clock valued at $3000. The agent should Proprietary LeaseUnder corporation ownership the lease that grants occupancy of a specific unit to the stockholder is called a TuesdayOn Monday evening, after the brokerage office has closed, a salesperson receives an offer to purchase and an earnest money deposit in the form of a personal check. On Wednesday, she obtains the final acceptance on the offer.The earnest money check wouldMOST LIKELYbe turned over to her broker on A pregnant womanUnder the Federal Fair Housing Act, familial status would apply to

18 monthsA brokerage company recently had a listing expire. The seller is on the Do-Not-Call list. After the end of the transaction for how many months may the agents in the listing office call the seller?an open-end mortgageA mortgage that may be repaid in full at any time over the lifetime of the loan without a prepayment penalty by the lender is quiet title actionA court action to establish or settle the title to a particular property where there is a cloud on the title, such as an adverse possession claim, is called a Adverse PossessionThe acquiring of title to real property owner by someone else by means of open, notorious, hostile and continuous possession for statutory period of time is an example of

• business daysUnder the TILA-RESPA Integrated Disclosure Rule (TRID),

the Loan Estimate form is required to be provided to the consumer/borrower no later than how many days after they submit a loan application?beneficiaryIn a trust, legal title to real property is transferred to a person to be held and managed by the person for the benefit of the A short term "construction loan"Which of the following loans bests describes an interim loan?MortgageeIn a loan assumption, a seller may be released from the debt and a new buyer substituted as the party permanently liable for the mortgage debt. Who releases the seller?both the name of the bank and the number or name of the account within one month of opening the account.If a Georgia real estate broker is required to maintain a trust account or escrow account, they must provide the Commission with apply to the court for an injunctionThe owner in a residential subdivision gets a building permit from the county to put a fence on his property. The fence is in violation of the subdivision's restrictions (CC&R).An adjoining neighbor in the subdivision objects to the fence. If the homeowner's association (HOA) fails to enforce the restrictions the neighbor's best action would be to 30 daysUpon termination of a management agreement by a community association or property owner, licensee shall provide all records, documents and funds within what period o time of the termination?1091 sq. ft.What is the gross living area in the below diagram?Yes, this would be considered an unauthorized offeringA broker learns that a neighbor might be selling their house and proceeds to secure potential buyers without the knowledge and consent of the owner. Would the broker's action be in violation of the license law?

building codesRules established by local governments to regulate construction standards are called as soon as practicably possibleA licensee must give all earnest money received (cash, checks or items of value) to his/her broker committed an unfair practice by inducing a party to break a contract A salesperson is holding an open house. A married couple looks at the house and tells her the house is just what they have been looking for but they had signed a contract to purchase a house down the street the day before. The salesperson tells them that they can sign a contract with her to purchase this house and simply not complete the purchase of the house that they had contracted to buy the day before. In this situation the salesperson has In Georgia, open listings do not have to be in writingWhich of the following statements about an open listing isINCORRECT?Yes, the agent can call for up to 3 months after the consumer makes an inquiry A potential buyer attends an "open house" on a listed property and inquires about the sales price. The interested buyer is registered on the Do-Not-Call Registry. Can the salesperson call the interested buyer?a violation of license lawIn the marketing of a condominium unit, the real estate licensee tells the prospective buyer "that because of the demand for these units the price will double in 5 years." This statement by the licensee is Based on the information you have provided, I don't think you can afford that property A salesperson is showing property in a racially changing neighborhood. Which of the following statements by the salesperson would be appropriate in this situation?non-recourse loanIn which of the following loans is the borrower not held personally liable on the note?Contracts using email have the same legal significance as those found on paper Under the Electronic Signatures in Global and National Commerce Act (E-Sign), which of the following statements is correct?A timeshare ownership in which the owner acquires title to a specific property for a certain period of each year Which of the following would best describe interval ownership?Annual percentage rateA licensee runs the following credit ad "this property can be yours for only $950 a month". Which of the following items must be included?$1000The Georgia Real Estate Commission may impose a necessary fine, but for a single violation that fine must not exceed Yes, if a contract contains any ambiguity the court will generally rule against the party who prepared it Due to an ambiguity in the financing terms, the sellers failed to understand they will be carrying a second mortgage note for five years and wanted to cancel the contract. Might the court cancel the contract?General AgencyWhat type of agency relationship does a real estate sales associate usually have with their employing broker?