State: Georgia | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. If a contractor completes work without obtaining the required Georgia building permit, what is a typical remedy used by local authorities?
Unpermitted work can lead to stop-work orders and requirements to obtain permits and bring the project into compliance or potentially remove noncompliant work.
2. A ceiling fan permanently installed in a home is classified as:
A permanently installed ceiling fan is considered a fixture, thus part of real property.
3. In Georgia, a lease that has a definite end date and terminates automatically if not renewed is called a fixed-term tenancy.
A fixed-term tenancy is a lease for a set period with a definite end date; it ends automatically at the end of that term unless renewed.
4. The main purpose of a real estate appraisal is to determine:
The primary goal of a real estate appraisal is to determine the property's market value, which reflects the price it would likely sell for under typical market conditions.
5. In Georgia, express authority is defined as authority given to an agent in writing by the principal.
Express authority is explicit, granted in writing by the principal.
6. At closing in Georgia, who disburses funds to payoff existing liens and to pay the seller's proceeds?
The closing agent or title company disburses funds from the transaction, paying off liens and delivering the seller’s net proceeds.
7. Which of the following is considered a physical component of real property?
Soil is a tangible part of the land, whereas rights like water or minerals are interests, not physical components.
8. The cost approach is most appropriate for valuing:
The cost approach works best for new or unique properties where comparable sales are limited. Older homes may have significant depreciation, making other approaches more reliable.
9. When does a property tax lien attach in Georgia?
In Georgia, property tax liens attach on January 1 of the tax year, securing the obligation for the upcoming tax levy.
10. Specific performance is:
Specific performance is an equitable remedy that can compel a seller to transfer title when monetary damages are insufficient or inappropriate.
11. A junior mortgage is usually:
A junior mortgage is secondary to the primary mortgage and is repaid after the first lien in case of default.
12. Under Georgia law, acceptance of a real estate offer is generally effective when:
Acceptance is generally effective when communicated to the offeror; the exact method may be specified by the offer, and exceptions exist (e.g., unilateral contracts).
13. Georgia real estate licenses are typically categorized into which two primary types?
The two primary license types in Georgia are Salesperson and Broker.
14. A property’s highest and best use is defined as:
Highest and best use refers to the use that is legally permissible, physically possible, financially feasible, and most productive, producing the maximum value for the property.
15. Georgia allows dual agency when:
Dual agency (or designated agency) is permitted in Georgia with written consent from all parties and proper disclosure.
16. A mortgage loan where only interest is paid during the term and the principal is due at the end is called:
A straight note, also called an interest-only loan, requires the borrower to pay only interest during the term. The entire principal is due as a lump sum at maturity.
17. What is escrow account reconciliation in Georgia?
Reconciliation is the monthly process of ensuring the escrow ledger matches the bank statements.
18. Private mortgage insurance (PMI) protects the lender against:
PMI provides financial protection to lenders if a borrower defaults on a mortgage with a low down payment.
19. What effect do improvements to a property generally have on Georgia property taxes?
Capital improvements typically increase the assessed value of a property, which can raise the amount of property tax due, depending on local assessment rules and exemptions.
20. Subletting a Georgia rental property generally...
Subletting typically requires the landlord’s consent unless the lease explicitly allows subletting.
21. In Georgia, the term 'alienate' means to:
Alienation means transferring property ownership by sale, gift, or other conveyance.