Free Georgia Agency Practice Test — LicenseIQ

Question 1

A buyer's agent asks the listing agent whether anyone died in the home. The prior owner died there of natural causes. The listing agent must:

Accepted Answer

Section 44-1-16 removes any duty to volunteer such facts but requires a truthful answer to a direct question, unless answering would violate fair housing law.

Question 2

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 3

A buyer asks a listing agent whether a former occupant had HIV. How should the agent respond?

Accepted Answer

The duty to answer truthfully does not apply where answering would violate federal or Georgia fair housing law. A person's HIV status is treated as a disability under fair housing law.

Question 4

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 5

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 6

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 7

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 8

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 9

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 10

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 11

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 12

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 13

A seller who would otherwise qualify for the single-family exemption lists her home with a broker and instructs the agent not to show it to families with children. The agent should:

Accepted Answer

Using a broker or agent eliminates the exemption, and following a discriminatory instruction would violate fair housing law and §43-40-25.

Question 14

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 15

A listing broker wants to pay a bonus directly to the buyer's agent at another firm. Under GREC rules, a licensee may pay a fee to a licensee representing another party only:

Accepted Answer

Rule 520-1-.06(4)(c) requires full knowledge and written consent of all parties before paying a fee to a licensee representing another party. In addition, compensation to a salesperson must flow through that salesperson's broker.

Question 16

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 17

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 18

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 19

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 20

Which statement accurately reflects BRRETA's treatment of a broker's duties?

Accepted Answer

Section 10-6A-4(a) limits duties to those in the chapter, permits more by signed writing, and states the broker is not a fiduciary. The common-law fiduciary model is the national default this statute replaced.

Question 21

A listing agent repeats a seller's statement that the HVAC is two years old, not knowing it is false, and tells the buyer the seller is the source. Under BRRETA, the agent:

Accepted Answer

A broker who conveys false information without actual knowledge of its falsity is not liable when the source is disclosed.

Question 22

A buyer tours several homes with an agent but signs no agreement. Under BRRETA, the buyer is most likely the agent's:

Accepted Answer

A brokerage engagement is by definition a written contract. Without one, the buyer is a customer who may receive ministerial assistance.

Question 23

Which state agency administers the Georgia Fair Housing Act?

Accepted Answer

The GCEO's fair housing administrator receives and investigates complaints. GREC disciplines licensees for discrimination as a License Law matter.

Question 24

In Georgia, a broker may act as a dual agent only with:

Accepted Answer

Section 10-6A-12 requires written consent from all clients, and statutorily compliant consent is conclusively deemed informed.

Question 25

Which statement must be included in a Georgia dual agency consent?

Accepted Answer

The consent must say that the client need not consent, among other items. Dual agents may not reveal information made confidential by the other client.

Georgia real estate agency practice test

1. A buyer's agent asks the listing agent whether anyone died in the home. The prior owner died there of natural causes. The listing agent must:

2. Which statement about dual agency is correct?

3. A buyer asks a listing agent whether a former occupant had HIV. How should the agent respond?

4. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

5. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

6. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

7. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

8. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

9. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

10. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

11. The client a broker represents is the:

12. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

13. A seller who would otherwise qualify for the single-family exemption lists her home with a broker and instructs the agent not to show it to families with children. The agent should:

14. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

15. A listing broker wants to pay a bonus directly to the buyer's agent at another firm. Under GREC rules, a licensee may pay a fee to a licensee representing another party only:

16. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

17. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

18. A material defect that a seller/agent must disclose is one that:

19. A property manager owes fiduciary duties primarily to the:

20. Which statement accurately reflects BRRETA's treatment of a broker's duties?

21. A listing agent repeats a seller's statement that the HVAC is two years old, not knowing it is false, and tells the buyer the seller is the source. Under BRRETA, the agent:

22. A buyer tours several homes with an agent but signs no agreement. Under BRRETA, the buyer is most likely the agent's:

23. Which state agency administers the Georgia Fair Housing Act?

24. In Georgia, a broker may act as a dual agent only with:

25. Which statement must be included in a Georgia dual agency consent?

Sources