Free Georgia Real Estate Practice Exam

Q1.At closing, which party typically pays for the owner's title insurance policy in most standard real estate transactions?

• A.The buyer
• B.The listing agent
• C.The mortgage lender
• D.The seller

Q2.In a title transfer by intestate succession, if a married person dies without a will and has two children from a previous marriage, how is the property typically distributed under most state laws?

• A.Surviving spouse receives everything
• B.Surviving spouse and children share according to state intestacy laws
• C.Children receive everything equally
• D.Property goes to the state

Q3.Under federal law, which circumstance would allow a landlord to retain a tenant's security deposit without violating consumer protection principles?

• A.Normal wear and tear to carpeting after a 3-year tenancy
• B.Tenant's failure to provide 60 days' notice before move-out when lease requires 30 days
• C.Administrative processing fees for deposit return that exceed actual costs
• D.Documented property damage beyond normal wear and tear with photographic evidence and repair receipts

Q4.Under Georgia Real Estate Commission advertising rules, if a salesperson advertises real estate services using a team name, what must ALWAYS appear in the advertisement?

• A.The salesperson's personal cell phone number.
• B.The name of the broker or brokerage firm under which the salesperson is licensed.
• C.The team's separate real estate license number issued by GREC.
• D.The names of every individual member of the team.

Q5.A lender provides a Loan Estimate to a Georgia homebuyer within three business days of receiving a complete loan application. Two weeks later, the lender issues a revised Loan Estimate reflecting a higher interest rate because the buyer requested a different loan program. Under RESPA's TRID rules, which of the following best describes the lender's obligation at closing?

• A.The lender must provide a Closing Disclosure at least three business days before consummation, and the final figures must fall within TRID tolerance limits relative to the valid revised Loan Estimate.
• B.The lender may issue the Closing Disclosure on the day of closing as long as the buyer verbally acknowledges receipt.
• C.Because a revised Loan Estimate was issued, the original three-business-day Closing Disclosure waiting period is waived.
• D.RESPA requires the Closing Disclosure to be delivered at least five business days before closing, regardless of any loan program change.

Q6.In a designated agency arrangement, what is the primary advantage for clients compared to traditional dual agency?

• A.Lower commission rates
• B.Separate agents providing undivided loyalty
• C.Faster transaction processing
• D.Guaranteed transaction completion

Q7.At closing, a Georgia buyer's earnest money of $5,000 is being applied toward the purchase price. How should this amount appear on the buyer's closing disclosure or settlement statement?

• A.As a debit to the buyer, reducing the net funds the buyer must bring to closing
• B.As a credit to the buyer, reducing the net funds the buyer must bring to closing
• C.As a credit to the seller, reducing the amount the seller receives at closing
• D.It does not appear on the settlement statement because it was already collected by the broker

Q8.Georgia imposes a real estate transfer tax on the conveyance of real property. Which of the following best describes how this tax is calculated under O.C.G.A. § 48-6-1?

• A.A flat fee per transaction regardless of the sales price
• B.A percentage of the outstanding mortgage balance being assumed by the buyer
• C.A tax based on each $500 or fraction thereof of the consideration paid, after deducting the first $100
• D.A percentage of the appraised value of the property as determined by the county tax assessor

Q9.A Georgia real estate team operating under ABC Realty posts online advertisements using only the team name 'The Pinnacle Team' with no mention of ABC Realty. Under GREC advertising rules (Ga. Comp. R. & Regs. r. 520-1-.09), this advertisement is:

• A.Permissible, because a team name is considered an approved trade name under Georgia license law.
• B.Permissible, provided the team leader's individual license number is displayed in the advertisement.
• C.A violation, because all real estate advertising in Georgia must clearly and conspicuously include the name of the supervising broker or firm under which the licensees are licensed.
• D.A violation only if the team consists of more than two licensed salespersons.

Q10.A Georgia real estate closing is scheduled for March 15. The seller has already paid the annual property taxes for the full calendar year. Using a 365-day proration method, which statement correctly describes how the tax proration will appear on the settlement statement?

• A.The buyer will be credited and the seller will be debited for the taxes covering the period from March 15 through December 31
• B.The seller will be credited and the buyer will be debited for the taxes covering the period from March 15 through December 31
• C.No proration is required because the seller has already paid the taxes in full
• D.The taxes are always paid in arrears in Georgia, so the buyer will owe the seller nothing at closing

Q11.In Georgia, who is legally required to conduct a real estate closing involving the transfer of title to real property?

• A.A licensed real estate salesperson who has completed a closing certification course
• B.A licensed Georgia attorney
• C.A licensed title insurance agent acting as settlement agent
• D.Any licensed real estate broker who is a party to the transaction

Q12.A landlord advertises 'No children allowed' in a rental listing. This practice violates which federal law?

• A.Truth in Lending Act
• B.Equal Credit Opportunity Act
• C.Real Estate Settlement Procedures Act
• D.Fair Housing Act

Q13.A Georgia buyer purchases a home for $325,000. The deed is to be recorded in the county where the property is located. How is the Georgia Real Estate Transfer Tax calculated, and approximately how much will the buyer owe?

• A.$1.00 per $1,000 of the purchase price, totaling $325
• B.$1.00 per $500 of the purchase price (or fraction thereof), totaling $650
• C.$3.00 per $1,000 of the purchase price, totaling $975
• D.A flat fee of $500 regardless of the purchase price

Q14.A landlord may charge a tenant with an assistance animal:

• A.Damages the animal actually causes to the unit, but no pet fees, pet deposits, or pet rent
• B.A monthly pet rent up to $50
• C.A non-refundable pet deposit
• D.Nothing — landlords must absorb all costs

Q15.A Georgia listing broker and a buyer's broker are different firms working on the same transaction. Under BRRETA, what must the listing broker provide to an unrepresented buyer before entering into a substantive discussion about a specific property?

• A.A completed Seller's Property Disclosure Statement
• B.A written brokerage engagement agreement signed by the seller
• C.A written disclosure explaining the broker's agency relationship in the transaction
• D.A copy of the Multiple Listing Service agreement