Red Real Estate Dynamics Chapter 18

Front 1

Chap 18 question 1
The maximum period a license may be placed on inactive status is:
A: one year
B: two years
C: three years
D: no time limit

Back 1

D: no time limit
===============
chap 18-6
VII - INACTIVE LICENSES
43-40-12g and h
Anyone who has a real estate license but who does not wish to conduct business at this time may return the license to the commission and go on inactive status. There is no time limit to how long the license can stay inactive. Renewal fees must be paid. The inactive licensee cannot do any real estate business except in connection with personally owned property

Front 2

Chap 18 question 2
A broker shall not be entitled to any part of the earnest money or other money paid to him/her in connection with any real estate transaction as part of all of his/her commission until the transaction has been:
A: consumated
B: inactivated
C: approved
D: cemented

Back 2

A: Consumated
====================
chap 18-10
X. TRUST ACCOUNTS
43-40-20 and 21
... The broker is not entitled to any money from the trust account until the deal is closed or terminated.

Front 3

Chap 18 question 3
The Georgia Real Estate Commission must follow certain procedures when dealing with an alleged violation. Which comes first?
A: Hearing
B: Report to the Attny Gen
C: Disciplinary Action
D: Investigation

Back 3

D: Investigation
=====================
VIII DISCIPLINARY PROCEDURES
43-40-14 through 16
... When a licensee is denied or is disciplined, the holder is always entitled to a hearing, and can appeal for a judicial review if not satisfied. After an investigation has taken place and the notice of hearing has been filed, if the licensee surrenders the license or allows it to lapse, this is taken as an admission of guilt.

Front 4

Chap 18 question 4
A broker may collect a commission from both the seller and the purchaser, if:
A: the total commission does not exceed the usury limit.
B: Both the seller and the purchaser agree in writing
C: the Real Estate Commission is notified
D: the seller gives his/her written permission

Back 4

B: both the seller and the purchaser agree in writing.
====================
chap 18-11,12 and 13
XIII VIOLATIONS
43-40-25 Unfair Practices
22. Acting as a dual agent without expressed, writen consent
31. Failure to disclose and agency relationship

Front 5

Chap 18 question 5
Broker Betty is placing her license on inactive status. Which of the following is true?
A: Betty will not have a pay renewal fees
B: She will have to reactivate within ten years
C: Inactive status is the same as surrendering the license
D: Betty will still be able to lease or sell her own property

Back 5

D: Betty will still be able to lease or sell her own property.
=====================
VII - INACTIVE LICENSES
43-40-12g and h
...The inactive licensee cannot do any real estate business except in connection with personally owned property

Front 6

Chap 18 question 6
Salesperson Roberts plans to purchase a piece of property he has listed for sale. Before presenting the offer, he must:
A: Disclose to the seller the purpose for which the property is being purchased
B: Furnish his broker with written notice of his intent to purchase the property so that no commission is paid
C: furnish his broker with written notice of his intent to purchase and state in the contract that he is a licensed real estate salesperson.
D: provide the commission with a copy of the sales contract so seller's rights will be protected

Back 6

C: furnish his broker with written notice of his intent to purchase and state in the contract that he is a licensed real estate salesperson.
====================
chap 18-11,12 and 13
XIII VIOLATIONS
43-40-25 Unfair Practices
9. Acting as an agent and also an undisclosed principal in a transaction. (It is not illegal for a licensee to represent himself in the sale of his property as long as there is written disclosure of this fact and the broker has given written permission.)

Front 7

Chap 18 question 7
Which of the following is exempt from the licensing requirement?
A: Attorneys who solicit property for sale
B Elected officials who deal in real estate in their county of residence
C: Persons operating under a duly executed power-or-attny to convey property
D: Relatives of the owner

Back 7

C: Persons operating under a duly executed power-or-attny to convey property
=====================
chap 18-15
XV EXCEPTIONS TO LICENSE LAW
43-40-29
4. A person acting with court authority as a reciever, trustee, executor or guardian.

Front 8

Chap 18 question 8
Licensing requirements are set by the:
A: Real Estate Commission
B: Secretary of State
C: State Legislature

Back 8

A: The Real Estate Commission
=============
chap 18-1,2 and 3
The Georgia Real Estate commission as the authority over all real estate licenses. The commission is empowered to:
* Issue licenses
* set fees
* pass rules and regulations; and
* take disciplinary actions.

Front 9

Chap 18 question 9
Before suspending or revoking a license the commission shall:
A: provide a hearing for the licensee
B: get permission from the attny gen
C: refund the licensee's Recovery Fund deposit
D: inform the governor

Back 9

A: provide a hearing for the licensee
================
chap 18-14
XIV INVESTIGATION AND HEARING
43-40-26 through 28
Before a license is censured, suspended or revoked, the licensee is entitled to a hearing under the Administrative Procedures Act. The hearing will take place whether or not the licensee chooses to appear. If licensee is disatisfied with the process, he/she can appeal to the courts.

Front 10

Chap 18 question 10
Salesperson Wilson shows a perspective purchaser a home on Wednesday afternoon. That evening Wilson obtains an offer and an earnest money deposit. The offer is to remain effective until Saturday at 6:00pm, but it is accepted Friday.
When should Wilson turn over the earnest money to the broker?
A: Probably Thursday
B: Probably Friday
C: Probably Saturday
D: Probably Monday

Back 10

A: Probably Thursday
======================
chap 18-13
Unfair Practices
23. Failure to submit trust funds to the broker as soon as possible.

Front 11

Chap 18 question 11
The License Law gives the commission the power to:
A: Set all commissions
B: revoke or suspend licenses
C: pass rules and change the license law
D: fine licencees up to $1000 or send them to jail for one year

Back 11

B: revoke or suspend licenses
======================
Chap 18-6
VIII DISCIPLINARY PROCEDURES
43-40-14
Then Real Estate commission can issue licenses or refuse to issue them; can suspend or revoke a license or censure a licensee for breaking the law or the rules and regulations.

Front 12

Chap 18 question 12
Which of the follwong is true about the qualifying broker of an organization
A: The qualifying broker must be an officer of the corp.
B: The qualifying broker must own interest in the corp.
C: The qualifying broker must live in the state of Ga.
D: The qualifying broker must have had a brokers license at least 5 years

Back 12

A: The qualifying broker must be an officer of the corp.
====================
Chap 18-9
IX MANAGEMENT OF A FIRM
43-40-18 and 19
... In a corp, the qualifying broker must be an officer (but not neccesarily a stock holder).

Front 13

Chap 18 question 13
What will a broker first be required to prove in court before he/she can recover a commission?
A: He or she had a contract for employment
B: He/she was a properly licensed at the time of the cause of the transaction
C: He/she showed the property to the purchaser
D: He/she was a resident of Ga at the time of the cause of action

Back 13

B: He/she was properly licensed at the time of the cause of action.
===================
Chap 18-11
XII. MAINTENANCE OF ACTION
Stature 43-40-23 and 24
In any court action brought to establish the right to collect compensation for a real estate transaction, the compainant must prove that he or she holds an active broker's license.

Front 14

Chap 18 question 14
Which of the following does not represent grounds for a dicsiplinary action against the licensee?
A: A salesperson fails to deliver a signed offer to the seller within a reasonable time.
B: A broker advertises real estate for sale without the consent of the owner.
C: A broker deposits earnests money belonging to the principal into a personal account
D: Accepting a referal fee from an out-of-state broker

Back 14

D: accepting a referral fee from an out of state broker.
====================
chap 18-12
Using process of elimination to answer this question:
"A" is wrong because failing to deliver a signed offer is an unfair trade practice
"B" B is a clear violation of license law
"C" C is commingling which is a violation

Front 15

Chap 18 question 15
If a licensee does not renew his/her license within the time period required by law:
A: He/she must reapply as an original applicant.
B he/she may renew within one year of the date of its lapsing by paying a reinstatement fee
C: he/she may renew within two years from the date of it lapsing by paying a reinstatement fee.
D: he/she may renew within two years from the date of it lapsing by paying all renewal fees and late charges which would have been due, plus a reinstatement fee.

Back 15

D: he/she may renew within two years from the date of it lapsing by paying all renewal fees and late charges which would have been due, plus a reinstatement fee.
=====================
chap 18 -5
VI FEES
43-40-12 and 13
A license lapses if the renewal fee is not paid when due at renewal. It can be reinstated at any time within two years by paying all fees due plus late charges and a re-instatement fee.

Front 16

Chap 18 question 16
The liability of the Real estate Education and research fund for the acts of one licensee is terminated upon the payment of $____________on behalf of that licensee
A: $20,000.00
B: $15,000.00
C: $45,000.00
D: $10,000.00

Back 16

C: $45,000.00
==================
chap 18-10
XI EDUCATION, RESEARCH AND RECOVERY FUND
43-40-22
Payments from the recovery fund are limited as follows:
* No more than $15,000.00 can be paid per transaction
* No more than $45,000.00 can be paid as a result of one licensee's actions
* No individual can collect more than $15,000.00

Front 17

Chap 18 question 17
The licensee would subject his/her license to sanction by the commission for all the following except:
A: Failing to leave a copy of the listing agreement with the seller
B: accepting compensation from the employee of a broker
C: Placing a for sale sign on property without written consent of the owner
D: failing to disclose licensure when acting as a principal

Back 17

B: accepting compensation from the employee of a broker
=====================

Front 18

Chap 18 question 18
When a licensed broker closes a real estate transaction, the broker must retain a copy of the closing statement for:
A: One year
B: three years
C: seven years
D: forever

Back 18

B: Three years
======================

Front 19

Chap 18 question 19
Which of the following is considered to be an unfair practice of license law:
A: Maintaining more than one trust account
B: Acting as a real estate broker or salesperson without a license
C: Offering free gifts to influence perspective buyers
D: failing to give copies of the closing statement to clients at the closing

Back 19

D: failing to give copies of the closing statement to clients at the closing
===================

Front 20

Chap 18 question 20
Which of the following statements regarding a brokers trust account is true
A: A broker is never entitled to any part of the earnest money deposit
B: Any bank may be used as a trust account
C: violations of the trust account provisions may result in action by the attny general to impound such an account
D: All trust accounts must pay interest

Back 20

C: violations of the trust account provisions may result in action by the attny general to impound such an account
======================

Front 21

Chap 18 question 21
The Georgia Real Estate Commission has?
A: 5 members, all licensed
B: 5 members, four licensed
C: 6 members, all licensed
D: 6 members, five licensed

Back 21

D: 6 members, five licensed
=====================
chap 18-2
II THE GEORGIA REAL ESTATE COMMISSION
The Ga. Real Estate Commission consists of six members, appointed by the governor and confirmed by the senate. Five of the six must have been licensed in real estate for 5 years preceding their appointment. The 6th memberis chosen for expertise in consumer affairs, and must be a person with no real estate industry connections

Front 22

Chap 18 question 22
In order to recieve a Georgia Salesperson's license you must:
A: be at least 21 years of age
B: be a graduate of a high school
C: take a 75 hour in class pre license class
D: pass the state exam

Back 22

D: Pass the state exam
===================
chap 18-3
III LICENSES
...To acquire a salespersons license one must be at least 18 years old, have a high school diploma or the equivalent, be of good moral character and pass the state exam.

Front 23

Chap 18 question 23
A broker in another state who wishes to be paid for selling a piece of property in georgia must:
A: get a non resident license
B: refer the buyer to a Georgia broker
C: enter into a written agreement to co-op with a Georgia broler
D: Any of the above

Back 23

D: Any of the above
====================
chap 18-5
Instead of getting a Georgia license, an out of state licensee, having a prospect who needs real estate services in Georgia, can refer the prospect to a georgia licensee and recieve a negotiated referral fee. Or, the out of state agent might work with his prospect under an affiliation agreement with a Georgia broker, who is willing to share responsibility for the transaction, to attend any closing, to be identified in advertising and in contracts and to hold any trust funds received.(This type of agreement serves for only one transaction, any other would need a new agreement.

Front 24

Chap 18 question 24
A broker is NOT required to do which of the following?
A: Review all advertising
B: Review all agents tax returns
C: Review all sales contracts within 30 days.
D: Review all trusts account records

Back 24

B: Review all agents tax returns
=====================
chap 18-8
IX MANAGEMENT OF A FIRM
43-40-18
The brokers responsibilities include:
* reviewing advertising for legal compliance
* providing affiliates with programs on license law
* reviewing all contracts within 30 days
* reviewing trust account procedures
* ensuring all affiliates have active licenses
* making proper trust account withdrawals
* keeping records
* giving all licensees a written policies and procedure manual
* making sure all licensees have written affiliation contracts
* having mangerial authority always reasonably available

Front 25

Chap 18 question 25
A licensee who denies equal service to anyone because of race, color, religion, sex, national origin, familial status, or handicap has violated?
A: License law
B: The Georgia Fair Housing Law
C: The federal Fair Housing Law
D: All of the above

Back 25

D: All of the above
===============
chap 18-12
UNFAIR PRACTICES
1. Any violation of the Fair housing Law