Exam Cheat Sheet · Quick Reference

Georgia Community Association Manager (CAM) Examination

Georgia  ·  PSI Services Real Estate

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
48
Exam time
120 min
Administered by
PSI Services Real Estate
Format
Closed-book

Georgia State Portion 48 questions

Laws and Rules 14 Q · 29%
Property LawLaw of AgencyGeorgia Real Estate License LawGeorgia Real Estate Commission structure and authorityLicense qualifications, application, and examination requirementsLicense maintenance, renewal, and reinstatementTrust account management and disbursement requirementsBrokerage relationships, disclosures, and management responsibilitiesAdvertising rules and prohibitionsGrounds for license denial, suspension, and revocationEstates in land and encumbrancesCommunity association manager licensing and duties under the Georgia license law and GREC rules +3 more
Practice 34 Q · 71%
Forms of OwnershipContracts and Transaction DocumentsReal Estate Instruments and ConveyancesFinancing and AccountingProperty Management Agreements and Manager ResponsibilitiesLeasehold Estates and Lease TypesClosing Procedures and Settlement StatementsTitle Records, Title Search, and Title InsuranceLiens, Tax Liens, and Special AssessmentsForeclosure Processes and Redemption RightsReal Estate Math ApplicationsCondominiums, cooperatives and common-interest communities (owners associations, common elements, covenants) +11 more

Key Distinctions

Index leasevsGraduated lease

An index lease raises or lowers rent periodically based on the consumer price index or another economic indicator, while a graduated lease states specific rent increases effective at set future dates.

Modern Real Estate Practice (22nd ed.), Unit 17 – Variable lease
Fee simple determinablevsFee simple subject to a condition subsequent

A determinable fee uses 'so long as,' 'while,' or 'during' and title reverts automatically upon violation, whereas a condition subsequent uses 'on condition that' and the holder of the right of reentry must bring a legal action in court.

Modern Real Estate Practice (22nd ed.), Chapter 3 – Interests in Real Estate, Fee simple defeasible
Taking title 'subject to' a mortgagevsAssuming the mortgage / novation

A 'subject to' buyer is not personally liable for a foreclosure deficiency (the original seller may remain liable), while an assumption makes the buyer personally obligated and only a novation signed by seller, buyer, and lender releases the seller from liability.

Modern Real Estate Practice (22nd ed.), Unit 12 – Buying subject to or assuming a seller's mortgage
ComminglingvsConversion

Commingling is mixing client or principal funds with personal or general business funds (always illegal), while conversion is the separate violation of illegally using or spending the entrusted money.

Modern Real Estate Practice (22nd ed.), Unit 9, Accounting section
PuffingvsFraud / negligent misrepresentation

Puffing is permissible legal exaggeration of a property's benefits (though unethical for REALTORS®), fraud requires intentional misrepresentation of a material fact relied upon to a party's detriment, and negligent misrepresentation occurs when the professional should have known the statement was false.

Modern Real Estate Practice (22nd ed.), Unit 9 — Opinion vs. fact / Customer-Level Services section
Assignment of a leasevsSublease

An assignment transfers the entire leasehold (the original tenant stays liable unless specifically released), while a sublease transfers less than the entire interest and leaves the original lessee holding a sandwich lease between landlord and subtenant.

Modern Real Estate Practice (22nd ed.), Unit 11 – Assignment; Unit 17 – Assignment and subleasing
Option (unilateral) contractvsBilateral sales contract

An option binds only the optionor to keep the offer open and is enforceable solely by the optionee, who has no obligation to buy; a bilateral contract binds both parties (seller to convey title, buyer to pay the price).

Modern Real Estate Practice (22nd ed.), Unit 11 – Options; Unit 11 – Bilateral and unilateral contracts
AmendmentvsAddendum

An amendment changes words or provisions already in the contract, while an addendum adds a provision to an existing contract, incorporates the original by reference, and must be signed by all parties (e.g., agreeing to split inspection repair costs).

Modern Real Estate Practice (22nd ed.), Unit 11, Amendments and Addendums
General agentvsSpecial agent

A general agent (property manager under a management agreement, or sales associate for the employing broker) represents the principal in a broad range of matters, while a special agent is authorized for one specific act or transaction such as a listing broker finding a buyer.

Modern Real Estate Practice (22nd ed.), Unit 9 — Types of Agency Relationships section (sales associate as general agent)
Riparian rights on a nonnavigable waterwayvsNavigable river / littoral rights

Land bordering a nonnavigable waterway is owned to the exact center of the waterway, while land adjoining commercially navigable rivers is owned only to the water's edge and littoral land on navigable lakes, seas, and oceans only to the average high-water mark, with the state/government owning below.

Modern Real Estate Practice (22nd ed.), Chapter 2 – Real Property and the Law, Riparian rights
Time-share estatevsTime-share use

A time-share estate is a fee simple (real property) interest in a specified unit for a period each year, while a time-share use is a contract right (personal property) with the developer holding title, terminating after a set number of years.

Modern Real Estate Practice (22nd ed.), Unit 4, Time-Share Ownership
CooperativevsCondominium

In a cooperative the corporation owns the building and occupants hold stock plus a proprietary lease, so an unpaid maintenance default falls on the remaining shareholders; a condominium association can place a lien on the defaulting owner's real property title.

Modern Real Estate Practice (22nd ed.), Chapter 4 – Forms of Real Estate Ownership, Cooperative ownership
Judgment lienvsMortgage lien

A judgment is a general, involuntary (equitable) lien reaching all of the debtor's real and personal property in the county where filed, while a mortgage is a specific, voluntary lien created by the owner.

Modern Real Estate Practice (22nd ed.), Unit 15, Judgment
Foreclosure of a first mortgagevsDeed in lieu of foreclosure

Foreclosure of the highest-priority lien sells the property free of that mortgage and eliminates all junior liens, while a deed in lieu of foreclosure does NOT eliminate junior liens.

Modern Real Estate Practice (22nd ed.), Chapter 12, Foreclosure

Key Terms

Proprietary lease Modern Real Estate Practice (22nd ed.), Chapter 4 – Forms of Real Estate Ownership, Cooperative ownership
The document a cooperative shareholder receives granting occupancy of an apartment for the life of the corporation, the shareholder owning stock (personal property) rather than real estate.
Negative amortization Modern Real Estate Practice (22nd ed.), Unit 12 – Negative Amortization
The process in which a payment cap limits the monthly payment to less than the interest owed, so the shortfall is added to the loan balance and the balance increases.
Novation Modern Real Estate Practice (22nd ed.), Unit 11 – Novation
The substitution of a new contract (or new party) for an existing contract with intent to discharge the old obligation; in lending it is a new written agreement executed by seller, buyer, and lender that frees the original borrower.
Constructive notice Modern Real Estate Practice (22nd ed.), Chapter 7 (Title Records), Notice
Notice given by physical possession of property by someone other than the record owner, or through recording in the public record.
Bargain and sale deed Modern Real Estate Practice (22nd ed.), Chapter 6 (Transfer of Title), Types of deeds / Bargain and sale deed
A deed containing no express warranties against encumbrances but implying that the grantor holds title and possession; adding a covenant against the grantor's encumbrances makes it equivalent to a special warranty deed.
Alienation clause Modern Real Estate Practice (22nd ed.), Unit 12 – Alienation clause
A promissory note clause—also called a resale, due-on-sale, or call clause—letting the lender declare the entire debt due when the property is sold or permit assumption at an acceptable rate; distinct from an acceleration clause, which applies upon default.
Federal (IRS) tax lien Modern Real Estate Practice (22nd ed.), Unit 15, IRS Tax Lien
A general, statutory, involuntary lien on all real and personal property of the delinquent taxpayer whose priority dates from filing or recording, so it does not supersede previously recorded liens.
Deed of reconveyance Modern Real Estate Practice (22nd ed.), Unit 12 – Release of the mortgage lien or deed of trust
The release document executed and delivered by the trustee (not the lender) to the trustor when a deed of trust loan is fully repaid, returning legal title; it should be notarized and recorded.
Land contract (contract for deed) Modern Real Estate Practice (22nd ed.), Unit 11 – Owner financing contracts
An owner-financing contract in which the buyer/vendee holds equitable title and possession while the seller/vendor keeps legal title until all required payments are made.
Liquidated damages clause Modern Real Estate Practice (22nd ed.), Unit 11 – Liquidated damages
A contract provision designating the earnest money as the seller's sole remedy on buyer breach, so the seller keeps the deposit but may not sue for additional damages.
Escape (kick-out) clause Modern Real Estate Practice (22nd ed.), Unit 11 – Contingencies
A provision letting the seller continue marketing the property until the buyer's contingency—such as selling an existing home—is satisfied.
Binder (letter of intent) Modern Real Estate Practice (22nd ed.), Unit 11, Binder
A short document stating the essential terms of the buyer's offer and acknowledging receipt of the deposit, with the complete contract of sale drafted by an attorney after the seller signs; used in some states, particularly in complex commercial transactions.
Agency coupled with an interest Modern Real Estate Practice (22nd ed.), Unit 9 – Termination of Agency
An agency in which the agent holds an ownership interest in the subject property; it cannot be revoked by the principal acting alone and is not terminated by the principal's death, unlike an ordinary agency the principal may revoke unilaterally subject to contract fees.
Marketable title Modern Real Estate Practice (22nd ed.), Unit 7, Marketable Title
Title whose defects must be raised by the buyer before acceptance of the deed; after acceptance, the buyer's only remaining recourse is generally a suit against the seller under the deed's covenants of warranty.
Trade fixtures / accession Modern Real Estate Practice (22nd ed.), Chapter 2 – Real Property and the Law, Trade fixtures
Items a commercial tenant installs that must be removed on or before the last day of the rental term; those not removed become the landlord's real property by accession with no compensation to the tenant.
MARIA (legal tests of a fixture) Modern Real Estate Practice (22nd ed.), Chapter 2 – Real Property and the Law, Legal tests of a fixture
The five court tests—Method of attachment, Adaptability for the land's ordinary use, Relationship of the parties, Intention of the person placing the item, and Agreement of the parties.
DEEP C (bundle of legal rights) Modern Real Estate Practice (22nd ed.), Chapter 2 – Real Property and the Law, Real property
Disposition, Enjoyment, Exclusion (the right to keep others from entering or using the property), Possession, and Control.
SIPS (economic characteristics of land) Modern Real Estate Practice (22nd ed.), Chapter 2 – Real Property and the Law, Economic characteristics of real property
Scarcity, Improvements, Permanence of investment, and Situs (area preference/location); immobility, indestructibility, and uniqueness are the physical characteristics instead.
Easement by prescription Modern Real Estate Practice (22nd ed.), Chapter 3 – Interests in Real Estate, Easement by prescription
An easement acquired by use that is continuous, nonexclusive, without the owner's permission, and visible, open, and notorious for the state-law period, generally 10 to 21 years; tacking of successive periods requires successors in interest.
Georgia CAM licensure waiting period after convictions O.C.G.A. Title 43, Ch. 40, § 43-40-15(b)
Under O.C.G.A. § 43-40-15(b), an applicant with multiple convictions must wait at least five years after satisfying all terms and conditions of the sentence for the last conviction (two years applies only to a single conviction).
Georgia real estate commissioner O.C.G.A. Title 43, Ch. 40, § 43-40-4(b)
Under O.C.G.A. § 43-40-4(b), a full-time employee serving as chief executive officer of the Georgia Real Estate Commission whom the commission appoints and whose annual salary the commission fixes; the Governor appoints the six commission members.

Formulas to Know

Acreage of a parcel (and section/square-mile conversion)Acres = (length ft × width ft) ÷ 43,560; 1 square mile (1 section) = 640 acres. Example: 660 × 330 = 217,800 sq ft ÷ 43,560 = 5 acres.
Simple interest on a note (360-day year)Interest = Principal × Annual Rate × (Days ÷ 360). Example: $6,500 × 0.08 × (90÷360) = $130.00.
Discount points and origination feeOne discount point = 1% of the LOAN amount (not the purchase price); Points $ = Loan × point %; Origination fee $ = Loan × fee %. Example: $200,000 × 0.02 = $4,000; $225,000 × 0.02 + $225,000 × 0.015 = $7,875.
Loan-to-value ratio and minimum down paymentLTV = Loan ÷ Value; lenders base LTV on the LOWER of sale price or appraised value. Max loan = lower value × LTV%; Down payment = Sale price − Max loan. Example: $305,000 × 0.80 = $244,000; $310,000 − $244,000 = $66,000.
Minimum sale price to achieve a seller's desired netSale Price = (Desired net + closing costs + mortgage payoff) ÷ (1 − commission rate). Example: ($285,000 + $4,200) ÷ 0.945 = $306,032; ($260,000 + $5,500 + $145,000) ÷ 0.93 = $441,398.
Seller's net proceedsNet proceeds = Sale price − commission (price × rate) − closing costs − mortgage payoff − prorated taxes owed. Example: $310,000 − ($18,600 + $3,800 + $1,200 + $148,000) = $138,400.
Monthly principal and interest from an amortization factorMonthly P&I = (Loan amount ÷ $1,000) × factor per $1,000. Example: 185 × $6.65 = $1,230.25; 195 × $6.78 = $1,322.10.
Annual real estate tax from a mill rate (with equalization factor)1 mill = $0.001 ($1 per $1,000 of assessed value). Tax = Assessed value × (mills ÷ 1,000); if an equalization factor applies, multiply assessed value by the factor FIRST. Examples: $180,000 × 0.025 = $4,500; ($200,000 × 1.25) × 0.040 = $10,000.
Proration of taxes or prepaid rent at closingDaily rate = Annual (or monthly) amount ÷ days in the year/month used (365-day, or 360-day banker's year with 30-day months); multiply by the days belonging to each party, with the seller responsible through the day before closing and the buyer owning the closing day. Examples: $5,475 ÷ 365 = $15/day × 107 days = $1,605 credit to buyer; $7,200 ÷ 360 = $20/day × 225 days = $4,500 seller's share; $1,650 ÷ 30 = $55/day × 20 days = $1,100 buyer credit.
Cash flow on a managed propertyTotal income − operating expenses = net operating income; NOI − debt service − reserves = cash flow. Example: $200,000 − $80,000 = $120,000; $120,000 − $60,000 − $10,000 = $50,000.
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