State: Georgia | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. Which adjustment is made when a comparable property is smaller than the subject?
If a comparable is smaller than the subject, its price is increased to make it comparable to the subject property.
2. Georgia requires how many hours of approved pre-license education for a salesperson license?
Georgia requires 75 hours of approved pre-license education for a salesperson license before taking the licensure examination.
3. In Georgia, the time limit to file a mechanic's lien after completion or last improvement is:
Georgia requires that a mechanic's lien be filed within 90 days after completion of the work or the last improvement.
4. Which statement best describes how zoning interacts with property rights in Georgia?
Zoning regulates land use under police power to balance private property rights with public health, safety, and welfare; it can be amended or changed through processes like amendments, variances, or CUPs.
5. Which term refers to property rights that are transferred separately from the land itself?
Appurtenances are rights or interests that are attached to the land but can be transferred with it.
6. A subordination clause most benefits which party?
The trustor benefits because a new loan can take priority over an existing loan, allowing for additional financing options.
7. Which of the following is primarily a residential mortgage lender in the U.S.?
Savings and loan associations (S&Ls) historically focus on residential mortgages, whereas commercial banks have broader lending portfolios.
8. In Georgia, a grantor conveys property 'to A for life.' What estate does A receive?
To A for life creates a life estate measured by A’s life. The property will pass to a remainderman or revert to the grantor after A dies.
9. Which six fiduciary duties are recognized in Georgia agency law?
Georgia recognizes six fiduciary duties: loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care and skill.
10. In Georgia, subletting generally requires what?
Subletting typically requires the landlord's consent, though many leases allow it if certain conditions are met and consent is not unreasonably withheld.
11. Which statement best describes the effect of a lis pendens on marketability of title?
Lis pendens provides notice of potential adverse claims affecting title; it does not guarantee title until resolved.
12. What percentage of fair market value is used as the assessed value for most real property in Georgia?
Georgia uses a 40% assessment ratio for real property, meaning assessed value equals 40% of the fair market value for tax calculation, with exceptions for certain property classes.
13. The Agency Relationship Disclosure should be provided in Georgia at:
Disclosures should occur early, when representation is established to inform the consumer.
14. Which loan is paid first in a foreclosure sale?
In foreclosure, loans are paid in order of priority. The first trust deed (senior loan) is paid before junior liens or second trust deeds.
15. Effective gross income is calculated by:
Effective gross income = potential gross income – vacancy and collection losses, representing the actual expected income from the property.
16. In Georgia, a triple net (NNN) lease obligates the tenant to pay which of the following?
A triple net lease requires the tenant to pay property taxes, property insurance, and maintenance, in addition to base rent, making the tenant responsible for most ongoing property costs.
17. Which adjustment is made when a comparable has fewer bathrooms than the subject?
Since the comparable is inferior (fewer bathrooms), value is added to it to equate it to the subject property's features.
18. By Georgia practice, when must earnest money be deposited into escrow after contract acceptance?
GA practice generally requires the earnest money deposit to be placed in escrow within 3 business days after acceptance.
19. Which element is essential to a valid Georgia real estate contract?
A valid contract typically requires an offer and acceptance, among other elements such as consideration, capacity, and legality.
20. Can lien rights be assigned or transferred to another party?
Lien rights can generally be assigned or sold to third parties.
21. What is the Georgia term for changing the zoning classification of a parcel?
Rezoning is the formal process of changing a property's zoning designation on the zoning map, often requiring public hearings.