Free Georgia State Law Practice Test — LicenseIQ

Question 1

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 2

Which broker funds may properly be kept in a trust account?

Accepted Answer

Rule 520-1-.08(1)(e) permits only clearly identified broker funds for minimum balances and service charges. Anything else is commingling.

Question 3

Which person must hold a Georgia real estate license?

Accepted Answer

Negotiating for another person for compensation is brokerage. Executors, an owner's regular employees and attorneys in fact are all listed exemptions in §43-40-29.

Question 4

Under BRRETA, which statement about a seller's broker's disclosure duty is correct?

Accepted Answer

BRRETA imposes no duty to discover. The duty is limited to actually known, not readily discoverable adverse facts, and liability requires a finding of fraud.

Question 5

GREC finds a licensee committed seven violations in one disciplinary proceeding. Absent an agreement otherwise, the maximum total fine is:

Accepted Answer

Seven violations at $1,000 each would be $7,000, but the statute caps fines at $5,000 in one proceeding unless the parties agree otherwise.

Question 6

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

Question 7

How many members serve on the Georgia Real Estate Commission?

Accepted Answer

O.C.G.A. §43-40-2 creates a six-member commission: five licensees with at least five years of experience and one consumer-oriented public member. Five is the number of industry seats, which is why it tempts test-takers.

Question 8

When may a broker apply earnest money toward its commission?

Accepted Answer

Section 43-40-20(e) bars taking trust funds as commission until the transaction is consummated or terminated.

Question 9

A licensee contacts an owner whose home is exclusively listed with another firm and persuades her to cancel and relist with him. This conduct:

Accepted Answer

Inducing a party to break a contract or brokerage agreement to substitute a new one, and negotiating with an owner under an exclusive with another broker, are both listed unfair practices.

Question 10

Which statement about Georgia's approach to residential seller disclosure is accurate?

Accepted Answer

Caveat emptor applies, and the Seller's Property Disclosure Statement is a trade form, not a statutory mandate. Active concealment of defects is still actionable.

Question 11

How many hours of prelicense education are required for a Georgia salesperson license?

Accepted Answer

Salespersons complete a 75-hour approved course. Sixty hours is the broker course, 25 is post-license and 36 is CE per renewal.

Question 12

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 13

A Georgia home sells for $385,000 with no loans assumed. What is the state transfer tax?

Accepted Answer

$1 for the first $1,000, plus $384,000 / $100 = 3,840 units x $0.10 = $384. Total = $385. $1,155 would come from applying the intangible rate.

Question 14

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 15

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 16

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 17

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 18

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 19

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 20

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 21

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 22

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 23

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 24

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 25

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Georgia real estate state law practice test

1. A broker received a 4.2% commission totaling $12,600. What was the sale price?

2. Which broker funds may properly be kept in a trust account?

3. Which person must hold a Georgia real estate license?

4. Under BRRETA, which statement about a seller's broker's disclosure duty is correct?

5. GREC finds a licensee committed seven violations in one disciplinary proceeding. Absent an agreement otherwise, the maximum total fine is:

6. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

7. How many members serve on the Georgia Real Estate Commission?

8. When may a broker apply earnest money toward its commission?

9. A licensee contacts an owner whose home is exclusively listed with another firm and persuades her to cancel and relist with him. This conduct:

10. Which statement about Georgia's approach to residential seller disclosure is accurate?

11. How many hours of prelicense education are required for a Georgia salesperson license?

12. A salesperson wants to buy a FSBO home for his own investment. He must:

13. A Georgia home sells for $385,000 with no loans assumed. What is the state transfer tax?

14. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

15. When an owner dies with no will and no heirs, the property passes to the state through:

16. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

17. A home sells for $400,000 with a 5% total commission. What is the total commission?

18. A licensee may manage property for an owner for a fee only if there is:

19. 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:

20. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

21. Which is the most common and desirable way a real estate sales contract terminates?

22. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

23. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

24. Which statement about FHA-insured loans is correct?

25. Under an open listing, the seller owes a commission to:

Sources