303-CE-FN Flashcards
Which property type is excluded from coverage under North Carolina’s Commercial Real Estate Broker Lien Act?
* A condo building with three units
With five or more units are covered in the act, but not multi-family residential properties with fewer than five units.
* A condo building with three units
* A poultry farm and processing plant
* A strip mall that sells agricultural goods
* A vacant high-rise building
* A vacant high-rise, agricultural land deals, transactions involving vacant land, and residential buildings
Tevin just rented a condo on the coast for a weekend getaway. He signed the rental agreement, which
included both his and the landlord’s rights and obligations, as well as the amount of rent, security
deposit, and additional fees. What is missing from this contract?
* Information on how the deposit will be held
While you may see all of these things on a vacation rental agreement, the only other information that is required on the form is how the deposit will be held.
* Information on how the deposit will be held
* Resident statement
* Services and utilities provided
* The name of the real estate firm.
Which property type is excluded from coverage under the North Carolina Commercial Real Estate Broker Lien Act?
* A multi-family residential building with five or fewer units
Residential buildings with five or fewer units aren’t covered under the act.
- A condo building with 10 units
* A multi-family residential building with five or fewer units - A strip mall that sells agricultural goods
- A vacant high-rise building
*
To whom/which entity should a licensee who’s been threatened with violence after refusing to violate
fair housing law report the threat?
* Law enforcement officials
Threatening violence is a criminal act that should be reported to law enforcement.
- HUD
* Law enforcement officials - The governor
- The National Fair Housing Alliance
North Carolina property manager Raquel has a tenant whose lease has expired, but who won’t leave.
The property owner wants Raquel to begin the eviction process. Is Raquel allowed to comply with this
request?
* Yes. The property owner or an agent, like Raquel, who’s working on behalf of the property owner may initiate legal action for the eviction process.
The property owner or the property owner’s agent may file a complaint with the clerk of the local superior court to begin the legal eviction process.
- No. Only an attorney may initiate legal action for the eviction process.
- No. Only the property owner or an attorney may initiate legal action for the eviction
- process.
- Yes. Any member of the public may initiate legal action for the eviction process.
* Yes. The property owner or an agent, like Raquel, who’s working on behalf of the property owner may initiate legal action for the eviction process.
Winston-Salem broker Kathy told her first-time buyer client that she would rebate 15% of her commission in cash to the buyer after closing, a common and accepted practice at her firm. Kathy neglected to take one important step. What did she do wrong?
* Kathy didn’t disclose the rebate to the buyer’s lender.
The rebate should have been clearly disclosed to the buyer’s lender because it’s subject to lender approval, among other requirements.
* Kathy didn’t disclose the rebate to the buyer’s lender.
* Kathy didn’t get her firm’s approval.
* Kathy didn’t guarantee the rebate to the buyer.
* Kathy’s rebate amount is illegal.
*
Quinn recently purchased a beach cottage nestled in the woodland area of Oak Island. She’s looking
forward to solitude while listening to the sound of the ocean and the birds chirping, which is why she
doesn’t want to honor any of the existing vacation rental agreements to rent her cottage after the sale.
Does the North Carolina Vacation Rental Act permit her to not honor existing agreements?
* She must honor any existing agreements that will end within 180 days from the date of her closing.
All purchasers of vacation rental property in North Carolina must honor any existing agreements that will end within 180 days following closing.
- She doesn’t have to honor any existing agreements after closing.
* She must honor any existing agreements that will end within 180 days from the date of her closing. - She must honor any existing agreements that will end within 45 days from the date of her closing.
- She must honor any existing agreements that will end within 60 days from the date of her closing.
Subdivision development is often guided by how the land is zoned, and also by the subdivision
regulations set forth by the ______.
* Planning commission
The planning commission creates subdivision regulations, which are guided by how the land is zoned.
- County clerk
- Department of health
- Department of state
* Planning commission
Under North Carolina’s license laws, NCREC has the power to discipline a licensee for ______.
* Violating any rule adopted by the commission
North Carolina license law makes violating any rule adopted by the commission grounds for disciplinary action. It’s every licensee’s responsibility to stay current with commission rules and all laws governing licensee behavior.
- Any complaint about the licensee received from a bona fide client
- Behavior unworthy of a licensee, at the commission’s sole subjective discretion
* Violating any rule adopted by the commission - Violating any state or federal law
Which of these is the more common name of Title VIII of the Civil Rights Act?
* Fair Housing Act
Title VIII of the Civil Rights Act of 1968 expanded on previous acts to include discrimination in housing.
- Equal Opportunity Act
* Fair Housing Act - Fair Lending Law
- School Choice Act
Which of the following options is the definition of a lease in which the base rent increases at set intervals during the lease term?
* Graduated lease
A graduated lease is the only lease that increases at set intervals. While an escalated lease may also increase, it is dependent on the owner’s expenses and may go up or down.
- Escalated lease
* Graduated lease - Ground lease
- Oil or gas lease
*
When a listing company limits the sharing of compensation in its agency agreement, it ______.
* Might only work with brokers who are MLS members
Listing companies may restrict their brokers from sharing brokerage fees with non-members or reduce the amount of commission that’s shared.
- Gives its brokers permission to cooperate and share with any licensed broker
- Has a company policy to only work with non-affiliated brokers
- Is restricting its brokers to a 2% commission split
* Might only work with brokers who are MLS members
What is the general purpose of an HOA?
* Make and enforce rules for the properties in its jurisdiction.
HOAs make and enforce rules for the properties in their jurisdiction.
- Act as an intermediary between disputing neighbors.
- Enact laws that keep certain people out of the community.
* Make and enforce rules for the properties in its jurisdiction. - Recruit desirable residents to the community.
Allie, a broker with Radical Randleman Realty for three years, left to work under Brad, whose firm focuses on condos. Allie figured she’d receive any commission she earned with Radical Randleman within due time. What should Allie have done before leaving her former firm?
* Verified her commission with her former BIC.
Prior to transferring to a new brokerage, it’s a good idea for licensees to take the initiative to verify they’ll receive any commission they earned per their independent contractor or employment agreement with the firm they’re leaving.
- Asked for a recommendation.
- Nothing. She’s guaranteed to receive all of her commission.
- Received a copy of the succession plan.
* Verified her commission with her former BIC.
Which of these scenarios is a violation of federal fair housing laws?
* Miguel follows his client’s request to only show him properties where the neighborhood is mainly Hispanic.
Buyers are free to select properties based on demographics as long as licensees don’t use demographics as a basis for showing properties. Landlords may refuse to rent to individuals on the basis of creditworthiness.
- Janae refuses to rent an apartment to a Greek couple whose credit history is sketchy.
- Maureen, a buyer, selects a house in a neighborhood because of its demographic makeup.
* Miguel follows his client’s request to only show him properties where the neighborhood is mainly Hispanic. - Wanting to be closer to her Cuban community, Miranda asks her agent to show her properties in the West Palms area, so he focuses his search on that geographic area.
What’s considered a kickback according to the Real Estate Settlement Procedures Act?
** Any item of value received in return for referring business to a settlement service provider (SSP)**
Any item of value given in return for referring business to a settlement service provider is considered to be a kickback and is a violation of RESPA Section 8
- Any fee paid for actual services rendered
* Any item of value received in return for referring business to a settlement service provider (SSP). - Educational material provided without receiving a referral in exchange
- The broker’s commission
A recent homebuyer is upset with a North Carolina real estate licensee who didn’t disclose that the property was owned by a convicted sex offender. The new owner is threatening to file a lawsuit. Did the licensee fail in the duty to disclose a material fact?
* No, licensees aren’t required to disclose that a property was owned by a sex offender because this isn’t considered a material fact.
Real estate licensees in North Carolina aren’t required to disclose that a property was owned by a sex offender, registered or not, nor can legal action be sought for failing to do so.
- No, because news of this offender was widely reported to the local community and was publicly available, so the licensee’s duty to disclose was waived.
* No, licensees aren’t required to disclose that a property was owned by a sex offender because this isn’t considered a material fact. - Yes, licensees have a duty to disclose any negative details about a property.
- Yes, licensees must always disclose if a property was owned by a convicted sex offender.
Broker Mark hired Pria to work in the office as an unlicensed assistant. Some of Mark’s licensees complained that she was doing tasks that only a licensee should be doing. When he asked Pria about this, she was surprised. “I thought that’s what you hired me to do! I was only trying to help,” she said. What could Mark have done to avoid this situation?
* Provided Pria with a job description, stating which activities she should perform, and which ones she legally cannot perform.
To avoid having unlicensed assistants perform work they aren’t qualified to do, brokers should make a point to provide job descriptions that clearly state the activities unlicensed assistants can perform, and the activities they aren’t allowed to perform.
- Hired Pria as an independent contractor.
- Made sure all of his licensees’ licenses remained active.
* Provided Pria with a job description, stating which activities she should perform, and which ones she legally cannot perform. - Told all of his licensees to leave Pria to do the work she was hired to do.
Muriel is guilty of improper conduct when she ______.
* Fails to inform a prospective buyer of a material fact regarding property she’s listed
*** Fails to inform a prospective buyer of a material fact regarding pr
North Carolina statutes prohibit improper, fraudulent, or dishonest dealing, such as failing to inform a consumer of a material fact.
- Declines to work with a client who asks her to act in a discriminatory manner
* Fails to inform a prospective buyer of a material fact regarding property she’s listed - Refuses to allow a prospective buyer to ride in her car with her
- Wears revealing clothing when showing a home to a family with children
In North Carolina, if landlords breach their duty to keep the premises habitable, tenants may do what?
* Take legal action to collect for damages, including paid rent.
In North Carolina, if landlords breach their duty to keep the premises habitable, tenants may take legal action against them and request a court collect for damages, including rent paid while the unit was uninhabitable.
- Make the premises habitable themselves.
- Request another unit on the same or similar premises.
- Sublet the premises to another party.
* Take legal action to collect for damages, including paid rent.
When a landlord in North Carolina charges late fees for unpaid weekly rent, which of the following is true?
* The landlord is limited by law in the amount that may be charged.
A landlord may only charge $4 or 5% of the weekly rent, whichever is greater, and may only charge once for the unpaid amount.
* The landlord is limited by law in the amount that may be charged.
* The landlord may charge late fees for each month until it’s paid in full.
* The landlord may no longer charge late fees on unpaid rent.
* The landlord may use personal discretion when deciding how much to charge.
Miriam was representing a client, Sarah, who was in the process of buying a home that was built in 1976. However, Dan, the inspector, noticed that the pipes were made from plastic. How should Miriam
advise Sarah?
* Have a licensed plumbing contractor take a closer look.
If the pipes turn out to be polybutylene, Sarah could end up paying as much as $10,000 to get them replaced. A plumbing contractor should take a closer look so Sarah knows whether or not they are polybutylene, and what shape they are in.
- Cancel the contract.
- Go ahead with the sale.
* Have a licensed plumbing contractor take a closer look. - Have the inspector give the pipes a closer look.
Carol installed a water filtration system in her unit after getting the landlord’s permission. The system now needs some maintenance work done to it, and Carol asked her landlord to service it immediately. Is that one of the landlord’s statutory duties?
* No. Maintaining a tenant-installed system is not a landlord’s statutory duty.
It is a landlord’s duty to provide tenants with running water and maintain the dwelling so it is fit and habitable, but it is not the landlord’s duty to service and maintain tenant-installed systems.
- No. It is the duty of property maintenance to service and maintain water filtration systems.
* No. Maintaining a tenant-installed system is not a landlord’s statutory duty. - Yes. Landlords must provide tenants with running and filtered water.
- Yes. Landlords must provide tenants with service and maintenance for all in-home systems.
Under RESPA’s Section 8, which of these would be considered a kickback?
* A title insurance company buys you dinner to thank you for referring a client.
When a settlement service provider accepts anything of value for referring a client, this is considered a kickback under RESPA’s Section 8.
- A mortgage company splits the cost of a full-page ad equally with you, and you each take half of the ad space.
- A mortgage lender attends a client appreciation party you’re hosting for your past and current clients and gives out his business cards.
* A title insurance company buys you dinner to thank you for referring a client. - You receive tickets from a satisfied client you helped with a referral to a local mortgage lender.
North Carolina HOAs may not charge more than ______ per day for an ongoing violation of the association’s covenants, bylaws, rules, or regulations.
* $100
HOAs may not charge more than $100 per day for an ongoing violation of the covenants, bylaws, rules, or regulations. Should the owner fail to pay any fines, the HOA may file a lien against the owner’s property, and can even sell the unit via foreclosure.
* $100
* $150
* $20
* $50
