Free Georgia Real Estate Practice Exam

Q1.A borrower is purchasing a home for $275,000 and making a 10% down payment. The lender charges 2 discount points at closing. How much will the borrower pay in discount points?

• A.$$5,500
• B.$$2,750
• C.$$4,950
• D.$$5,000

Q2.A Georgia salesperson receives a $5,000 earnest money check from a buyer on Friday afternoon. The listing broker is out of town. According to the Georgia Real Estate Commission (GREC) rules, by when must the earnest money be deposited into the broker's trust account?

• A.Immediately upon receipt, before the end of business on Friday
• B.Within three banking days of the date the contract is accepted by all parties
• C.By the close of business on the next banking day after receipt
• D.Within five calendar days of receipt of the earnest money

Q3.A Georgia broker is the qualifying broker of a firm and also serves as the branch office manager of a second office location. The broker hires an experienced affiliated broker associate to manage the day-to-day operations of the branch. Under O.C.G.A. § 43-40-15 and GREC Rule 520-1-.04, which statement best describes the qualifying broker's ongoing supervisory liability for the branch?

• A.The qualifying broker retains ultimate supervisory responsibility for all licensees at the branch and remains subject to disciplinary action by GREC for violations committed by the branch licensees, even if a broker associate manages daily operations.
• B.Once a licensed broker associate is designated as branch manager, the qualifying broker's supervisory liability for that branch is fully transferred to the broker associate under GREC Rule 520-1-.04.
• C.The qualifying broker is only liable for branch violations if GREC can show the qualifying broker had actual knowledge of the specific violation at the time it occurred.
• D.The qualifying broker's liability is limited to trust account violations at the branch; supervision of salesperson conduct is solely the responsibility of the designated branch manager.

Q4.At a Georgia closing, real estate taxes for the current year are prorated between buyer and seller. If the closing occurs mid-year and the taxes have NOT yet been paid, which statement correctly describes the typical proration adjustment?

• A.The buyer receives a credit, and the seller receives a debit for the seller's portion of unpaid taxes
• B.The seller receives a credit, and the buyer receives a debit for the seller's portion of unpaid taxes
• C.No proration is necessary because Georgia taxes are paid in arrears at the end of the year
• D.The closing attorney pays the full year's taxes from escrow regardless of who owes them

Q5.Which of the following is an example of proper harassment documentation?

• A.'He was clearly harassing her — it was obvious to everyone present.'
• B.'There seemed to be an inappropriate interaction at the open house.'
• C.'I believe a fair housing violation may have occurred based on what I observed.'
• D.'He told her she had a great smile and asked if she was single while standing close enough that she stepped back.'

Q6.Which community type is legally permitted to restrict residency to adults and exclude families with children under the Fair Housing Act?

• A.Any rental property where the owner personally lives on-site
• B.Qualified 55+ or 62+ senior housing communities that meet HUD's published requirements
• C.Any private club that restricts its membership to adults
• D.Any landlord who owns fewer than 4 rental units

Q7.A prospect says, 'I need an exception to this rule because of my disability.' What is the safest first operational step?

• A.Recognize a possible accommodation request and route it through the trained review process
• B.Reject it because no form was used
• C.Ask for every medical record
• D.Publish the request to other tenants

Q8.What type of contract exists when only one party is legally bound to perform?

• A.Bilateral contract
• B.Executed contract
• C.Unilateral contract
• D.Express contract

Q9.A buyer's agent who notices cracks in the foundation during a showing should:

• A.Disclose the visible cracks to the buyer immediately as potentially material
• B.Note it privately and wait for the home inspection report
• C.Ask the seller's agent if the seller has disclosed foundation issues
• D.Take photos for the file but make no representation about what they mean

Q10.Under the Fair Housing Act, which contract provision would be considered discriminatory and illegal?

• A.Requiring proof of income from all buyers
• B.Setting a minimum credit score requirement
• C.Stating 'no children allowed' in the property
• D.Requiring a home inspection

Q11.Under the federal Fair Housing Act, which of the following advertising statements would be considered MOST likely to constitute an illegal discriminatory advertisement?

• A.'Spacious 3-bedroom home near top-rated schools and parks.'
• B.'Ideal for a traditional family looking for a quiet, Christian community.'
• C.'Walking distance to houses of worship, shopping, and public transit.'
• D.'No pets allowed; tenant responsible for all utilities.'

Q12.In Georgia, which type of deed provides the buyer with the greatest level of protection through the grantor's warranty covenants?

• A.Quitclaim deed
• B.Limited warranty deed (also called a 'Special Warranty Deed')
• C.General warranty deed
• D.Deed under power of sale

Q13.A lender denies a mortgage application from a married couple, citing the wife's maternity leave as evidence of 'unstable income,' even though she has a written offer to return to her same position. The lender does not ask the husband about his income continuity. Which federal law is MOST directly violated, and what is the primary basis for the violation?

• A.The Fair Housing Act, because the lender discriminated based on familial status by penalizing the couple for having a child.
• B.The Equal Credit Opportunity Act (ECOA), because the lender discriminated on the basis of sex by applying different income-continuity standards to the wife than to the husband.
• C.The Truth-in-Lending Act (TILA), because the lender failed to disclose the specific reason income continuity was evaluated differently.
• D.RESPA, because the lender applied unequal settlement service requirements based on the applicant's sex.

Q14.A Georgia salesperson's license expired 30 months ago and the licensee never renewed. The licensee now wishes to reactivate. Under GREC rules implementing O.C.G.A. Title 43, Chapter 40, which statement BEST describes the reinstatement requirements?

• A.The licensee may reinstate by paying the late renewal fee and completing all missed continuing education hours with no further requirements.
• B.Because the license has been expired for more than two years, the licensee must retake and pass the state licensing examination as a condition of reinstatement.
• C.The licensee must reapply as a new applicant, retake the pre-license education course, and pass the examination, as the license is considered permanently forfeited after 12 months.
• D.The licensee may reinstate within three years of expiration solely by paying a reinstatement fee set by GREC without any educational requirements.

Q15.In Georgia, a warranty deed is being prepared for a residential closing. Which of the following elements is legally required for the deed to be valid and recordable under Georgia law?

• A.The deed must be acknowledged before a notary and attested by two witnesses, one of whom must be an official witness
• B.The deed must be signed by both the grantor and the grantee and notarized by a certified closing attorney
• C.The deed must include the purchase price in full and be signed by the grantor only
• D.The deed must be recorded within 30 days of execution or it is void as between the parties