Determine your answer, then click the arrow to see the correct response.
Which of the Following Is NOT Typically Considered a Fiduciary Duty of an Agent to Their Client?
A) Loyalty
B) Disclosure
C) Confidentiality
D) Competing
Correct Answer: D) Competing
Explanation: Fiduciary duties include loyalty, disclosure, confidentiality, and obedience. Competing is not a fiduciary duty; rather, it’s a conflict of interest that agents must avoid.
Under Georgia Law, What Is the Maximum Number of Days a Seller Has To Respond to an Offer Before It Is Considered Rejected?
A) 1 day
B) 3 days
C) 5 days
D) 10 days
Correct Answer: B) 3 days
Explanation: In Georgia, if a seller does not respond to an offer within 3 days, the offer is considered rejected unless otherwise specified in the terms of the offer.
If a Licensee Is Found To Have Engaged in Fraudulent Activities, What Action Can the Georgia Real Estate Commission (GREC) Take?
A) Issue a warning letter
B) Suspend the license
C) Increase the license renewal fee
D) Revoke the license
Correct Answer: D) Revoke the license
Explanation: The GREC can take serious actions such as revoking a license if a licensee is found to have engaged in fraudulent activities.
What Is a "REALTOR®"?
A) A real estate agent who has completed extra training
B) A licensed real estate agent who is a member of the National Association of REALTORS®
C) A term for a real estate broker
D) A specific type of real estate investment
Correct Answer: B) A licensed real estate agent who is a member of the National Association of REALTORS®
Explanation: A REALTOR® is a licensed real estate professional who is a member of the National Association of REALTORS® and adheres to its code of ethics.
Which of the Following Is a Legal Requirement for a Real Estate Contract To Be Enforceable in Georgia?
A) The contract must be notarized
B) Both parties must be represented by separate agents
C) The contract must be in writing
D) The contract must include a specific performance clause
Correct Answer: C) The contract must be in writing
Explanation: In Georgia, for a real estate contract to be enforceable, it must be in writing, as required by the Statute of Frauds.
In a Residential Lease Agreement, How Long Must a Landlord in Georgia Provide Notice Before Terminating a Month-to-Month Tenancy?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
Correct Answer: D) 60 days
Explanation: In Georgia, a landlord must provide a minimum of 60 days’ notice to terminate a month-to-month tenancy.
An Agent Receives a "Pocket Listing" From a Seller, Meaning the Property Is Not Listed Publicly. What Must the Agent Do if They Receive an Offer on the Property?
A) Keep the offer confidential and inform the seller
B) Inform the seller but not disclose the offer to the public
C) Disclose the offer to other agents to find the best bid
D) Publicly disclose the offer details to attract other offers
Correct Answer: B) Inform the seller but not disclose the offer to the public
Explanation: Even if a property is a pocket listing, the agent must present all offers to the seller but does not need to disclose the offer details publicly.
What Type of Deed Is Most Commonly Used To Convey Real Estate in Georgia?
A) Warranty Deed
B) Quitclaim Deed
C) Bargain and Sale Deed
D) Special Purpose Deed
Correct Answer: A) Warranty Deed
Explanation: A Warranty Deed is the most commonly used deed in Georgia for transferring real estate because it provides the greatest protection to the grantee by guaranteeing clear title.
Which of the Following Would Be Considered an "Illegal Kickback" in Real Estate Transactions Under Georgia Law?
A) A referral fee disclosed to all parties involved
B) A commission split between agents
C) Payment from a contractor to an agent for recommending their services without disclosure
D) A bonus given by a seller to an agent for closing a sale quickly
Correct Answer: C) Payment from a contractor to an agent for recommending their services without disclosure
Explanation: An illegal kickback occurs when an agent receives payment or a benefit from a contractor for recommending their services without properly disclosing the arrangement to all parties involved.
In Georgia, if a Buyer Decides To Cancel a Contract Under the “Right of Rescission,” How Many Days Do They Have To Do So?
A) 3 days
B) 5 days
C) 7 days
D) 10 days
Correct Answer: A) 3 days
Explanation: In Georgia, the right of rescission for certain types of contracts allows buyers to cancel the contract within 3 days of signing. This typically applies to contracts involving specific types of real estate transactions or financing.