Free Georgia Real Estate Practice Exam

Q1.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

Q2.During a listing appointment, a seller discloses to the listing agent that an underground storage tank (UST) was removed from the property 15 years ago but that the soil was never tested for contamination. A buyer subsequently makes an offer, and the listing agent does not mention the UST history. Under CERCLA and general agency principles, which party faces the GREATEST potential long-term liability for cleanup costs if contamination is later discovered?

• A.Only the original party that installed the underground storage tank, since CERCLA assigns liability exclusively to the party that caused the contamination.
• B.The listing agent exclusively, because the agent had actual knowledge and failed to disclose the known environmental condition.
• C.The buyer, as the new current owner, is a potentially responsible party (PRP) under CERCLA regardless of fault, and may also have claims against the seller and listing agent for nondisclosure.
• D.The seller's estate, since CERCLA liability extinguishes upon transfer of title to a bona fide purchaser.

Q3.At closing, a broker reviews the Closing Disclosure and notices that prepaid interest is listed as a borrower charge. The buyer asks why they are paying interest before the first mortgage payment is due. The broker's most accurate explanation is:

• A.Prepaid interest is an escrow reserve collected to cover future property tax payments
• B.Prepaid interest covers the interest that accrues from the closing date to the end of the closing month, because the first payment is due on the first of the second month following closing
• C.Prepaid interest is a lender fee equivalent to one month's principal and interest payment
• D.Prepaid interest is optional and can be waived if the buyer closes on the first of the month

Q4.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

Q5.The Georgia Real Estate Commission is composed of members appointed by the Governor. Under O.C.G.A. § 43-40-2, which of the following CORRECTLY describes the composition and qualifications of GREC commissioners?

• A.All six members must be actively licensed Georgia real estate brokers with at least five years of experience at the time of appointment.
• B.The Commission consists of six members: five must be actively licensed real estate brokers or salespersons, and one must be a non-licensee representing the general public.
• C.The Commission consists of six members appointed to six-year staggered terms, all of whom must hold an active Georgia broker's license.
• D.The Commission has seven members; a majority must be licensed brokers, and members serve at the pleasure of the Governor with no fixed term.

Q6.NAR Standard of Practice 10-5 applies to REALTOR® conduct in which contexts?

• A.Only in-person client meetings
• B.Professional contexts including open houses, industry events, MLS forums, and professional social media
• C.Only transactions involving the REALTOR®'s own listings
• D.Only conduct occurring at the REALTOR®'s brokerage office

Q7.A fee simple estate differs from a life estate primarily in which characteristic?

• A.The duration and inheritability of the ownership interest
• B.The right to possess and use the property during the holder's lifetime
• C.The ability to lease the property to tenants
• D.The requirement to maintain the property in good condition

Q8.A property sold for $450,000. The listing agent's commission was 3% and the selling agent's commission was 2.5%. If the listing agent splits their commission 60/40 with their broker (agent keeps 60%), how much commission does the listing agent receive?

• A.$6,075
• B.$8,100
• C.$13,500
• D.$24,750

Q9.A property manager refuses to rent a ground-floor apartment to an applicant who uses a wheelchair, citing concerns about wear and tear on the unit. The applicant is otherwise qualified. Under the Fair Housing Act, this action most likely constitutes:

• A.Permissible screening based on legitimate business concerns
• B.Illegal discrimination based on disability
• C.A lawful occupancy standard consistently applied to all applicants
• D.A reasonable accommodation denial that requires HUD review before action can be taken

Q10.A property manager of a residential complex discovers that the building, constructed in 1978, has deteriorating paint on common area walls and window frames. Under federal EPA regulations, which of the following actions is the property manager MOST likely required to take before performing renovation work on these surfaces?

• A.Follow the EPA's Renovation, Repair, and Painting (RRP) Rule, which requires using certified renovators and following lead-safe work practices.
• B.Obtain written consent from all tenants before any painting or repair work begins.
• C.File a disclosure statement with HUD identifying all areas of deteriorating paint.
• D.Test all surfaces for asbestos before any renovation work is performed.

Q11.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.

Q12.Under O.C.G.A. Title 43, Chapter 40, the Georgia Real Estate Commission has the authority to do which of the following WITHOUT a formal hearing?

• A.Revoke a licensee's license for a first-time violation of agency disclosure rules
• B.Issue a cease-and-desist order to a person engaging in unlicensed real estate activity
• C.Suspend a licensee's license for failure to pay an agreed-upon commission
• D.Impose a fine exceeding $1,000 on a licensed broker for a single violation

Q13.Under the Real Estate Settlement Procedures Act (RESPA), a lender must provide a borrower with a Loan Estimate within how many business days of receiving a completed loan application?

• A.1 business day
• B.3 business days
• C.5 business days
• D.7 business days

Q14.Under the Real Estate Settlement Procedures Act (RESPA), which of the following practices is specifically prohibited?

• A.Charging a borrower for a credit report
• B.Requiring the use of a specific title company as a condition of the loan
• C.Providing a Loan Estimate within three business days of application
• D.Collecting escrow funds for property taxes and insurance

Q15.In states where attorneys are required to conduct real estate closings, what is the primary reason for this requirement?

• A.To ensure compliance with federal lending regulations
• B.To provide legal protection through the unauthorized practice of law statutes
• C.To guarantee title insurance coverage
• D.To meet federal settlement requirements under RESPA