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NC Real Estate Unit Quiz > In Class Quiz > Flashcards

In Class Quiz Flashcards

1
Q

The point at which supple and demand are balanced is know as

a. highest and best use
b. balance
c. conformity
d. equilibrium

A

d. equilibrium

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2
Q

A trade fixture is considered

a. a fixture
b. an easement
c. personalty
d. a license

A

c. personalty

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3
Q

A seller is under contract to sell a property using the standard offer to purchase and contract. The elegantly decorated master bedroom has vertical window blinds, hand painted light switches and electrical outlet covers, and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction?

a. none of the items
b. the draperies and blinds
c. the hand painted items
d. the draperies

A

d. the draperies

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4
Q

A person who has complete control over a parcel of real estate is said to own a

a. leasehold estate
b. fee simple estate
c. life estate
d. defeasible fee estate

A

b. fee simple estate

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5
Q

Which of the following has an indefinite ownership period?

a. freehold estate
b. non freehold estate
c. estate for years
d. estate at will

A

a. freehold estate

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6
Q

A decedent left a will giving a neighbor the right to use a well on the decedent’s land as long as the neighbor was alive. The neighbor’s interest in the property is properly called a(n)

a. leashold estate
b. easement in gross
c. easement appurtenant
d. life estate

A

b. easement in gross

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7
Q

A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died testate. The sister now owns the building

a. as a joint tenant with right of survivorship with her brother’s heirs.
b. in severalty.
c. as a tenant in common with her brother’s heirs.
d. as a life tenant with her brother’s heirs having remainder interest.

A

b. in severalty.

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8
Q

A brother and sister can NOT concurrently own real estate in North Carolina as

a. remainder devisees
b. tenants by entireties
c. joint tenants
d. tenants in common

A

b. tenants by entireties

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9
Q

One of two owners hold an undivided 60 percent interest and the other holds and undivided 40 percent interest. The two owners probably hold their interests as

a. cooperative owners
b. joint tenants
c. community property owners
d. tenant in common

A

d. tenant in common

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10
Q

In order to reach the garage on their property, the property owner utilizes an easement appurtenant that give the right to use the neighboring property’s driveway. The neighboring property is the

a. leasehold interest
b. dominant tenement
c. servient tenement
d. licensing property

A

c. servient tenement

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11
Q

When a company furnishes building materials for a house and is subsequently not paid, the company may file

a. a deficiency judgment
b. a lis pendens
c. an stoppel certificate
d. a mechanic’s lien

A

d. a mechanic’s lien

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12
Q

Which of the following liens holds first priority regardless of when it was recorded?

a. mortgage lien
b. purchase money lien
c. ad valorem tax lien
d. federal income tax lien

A

c. ad valorem tax lien

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13
Q

All of the following are true about a metes-and-bounds legal description EXCEPT

a. it is only used in state west of the Mississippi
b. the point of beginning must be an identifiable landmark or monument
c. it will have a series of calls in relationship to monuments
d. the final call must return to the point of beginning

A

a. it is only used in state west of the Mississippi

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14
Q

Which of the following is an essential element of a valid North Carolina deed?

a. a seal
b. recordation
c. the signature of the grantee
d. words of conveyance

A

d. words of conveyance

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15
Q

In order for a deed to be valid

a. the grantor must be legally competent
b. the signature of the grantor must be witnessed
c. the deed must be recorded
d. the grantee must sign the deed

A

a. the grantor must be legally competent

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16
Q

All of the following are examples of police power EXCEPT

a. zoning ordinances
b. building codes
c. restrictive covenants
d. subdivision regulations

A

c. restrictive covenants

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17
Q

A North Carolina broker verbally agrees to represent a prospective buyer even though the buyer declined to sign a buyer agency agreement. The broker neglected to revisit the agency issue before showing the buyer a suitable property. Therefore, while showing property, the agent has fiduciary duty to

a. the seller
b. the buyer
c. no one
d. the public

A

b. the buyer

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18
Q

Which of the following statements is TRUE about types of agency?

a. a property manager usually acts as a special agent of the landlord
b. a listing agent usually acts as a general agent of the seller
c. a real estate licensee usually acts as a general agent of an affiliated firm
d. a buyer’s agent usually acts as a universal agent for the buyer

A

c. a real estate licensee usually acts as a general agent of an affiliated firm

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19
Q

A contract created under duress is

a. voidable
b. enforceable
c. discharged
d. void

A

a. voidable

20
Q

The type of listing agreement that provides for the payment of a commission to the broker even though the owner makes the sale without the aid of the broker is called an

a. exclusive right to sell listing
b. open listing
c. exclusive agency listing
d. alternative two listing

A

a. exclusive right to sell listing

21
Q

The amount of earnest money deposit is determined by

a. the Real Estate Settlement Procedures Act
b. an agreement between the parties to the contract
c. the broker’s office policy on such matters
d. the listing agreement

A

b. an agreement between the parties to the contract

22
Q

A prospective buyer makes a written purchase offer through a buyer’s agent at ABC Realty. The seller accepts the offer as written. Seller communicates to a listing agent at XYZ Realty that the offer was signed. At this point in time, the

a. seller is contractually bound
b. buyer is contractually bound
c. both parties are contractually bound
d. buyer can still withdraw the offer

A

d. buyer can still withdraw the offer

23
Q

On Monday, the seller receives a written offer on his vacant lot for $52,000. On Tuesday, the seller counteroffers for a sales price of $54,500. On Friday, the seller withdraws the counteroffer and accepts the original offer of $52,000. Under these conditions,

a. there is a valid agreement because the seller accepted the buyer’s offer exactly as it was originally made.
b. there is no valid agreement because the seller’s counteroffer was rejection of the buyer’s original offer.
c. there is a valid agreement because the seller accepted before the buyer withdrew the original offer.
d. there is no valid agreement because the buyer’s original offer was not accepted within 72 hours.

A

b. there is no valid agreement because the seller’s counteroffer was rejection of the buyer’s original offer.

24
Q

A tenant’s apartment lease has expired. She and her landlord have agreed that she may remain on the premises until a sale of the building is finalized or until the tenant locates another suitable rental, whichever occurs first. The tenant will continue to pay her normal monthly rent. She and the landlord made a commitment to inform each other two weeks prior to ending this agreement. The tenancy described is

a. estate at will
b. estate sale
c. estate at sufferance
d. periodic tenancy

A

a. estate at will

25
Q

A land contract provides for the

a. sale of unimproved land only
b. sale of real property under an option agreement
c. conveyance of legal title at a future date
d. immediate transfer of reversionary rights

A

c. conveyance of legal title at a future date

26
Q

Under NC license law, which of the following people require a real estate license?

a. a property manager’s salaried employee who exhibits rentals
b. attorney-in-fact
c. a trustee in a bankruptcy proceeding or foreclosure sale
d. an attorney who lists and sells real estate for others

A

d. an attorney who lists and sells real estate for others

27
Q

An unlicensed salaried assistant of a real estate provisional broker is soliciting listings for his provisional broker

a. this is legal so long as the assistant is not paid any portion of the commission
b. this is not legal unless the assistant and the provisional broker have permission from the BIC
c. it is not legal for the unlicensed assistant to solicit listings
d. this is legal so long as the provisional broker does not conduct a BPO

A

c. it is not legal for the unlicensed assistant to solicit listings

28
Q

A real estate licensee obtains their real estate license in October. When will they first need eight hours of continuing education?

a. within 90 days of their first anniversary date
b. when they renew their license to second time
c. when they renew their license at first time
d. within 120 days of license activation

A

b. when they renew their license to second time

29
Q

Agency agreements in North Carolina must include all of the following requirements EXCEPT

a. a definite ending date
b. the list price and automatic renewal clause
c. buyers agent license number
d. fair housing language

A

b. the list price and automatic renewal clause

30
Q

Which of the following statements about the Working With Real Estate Agents brochure is TRUE?

a. the customer creates a fiduciary agency relationship when signing the panel
b. the brochure is required in all real estate transactions
c. the consumer must sign the acknowledgment panel that the agent maintains on file for 3 years
d. the brochure id required in all commercial sales transactions

A

d. the brochure id required in all commercial sales transactions

31
Q

Designated agency in North Carolina is considered
I. a form of Dual Agency
II. mandatory if the firm offer Dual Agency

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

a. I only

32
Q

Concerning the NC Residential Property & Owner’s Association Disclosure Statement, the listing broker should
I. complete the form for the seller
II. assure the owner discloses all material facts concerning the listed residential property

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

d. Neither I nor II

33
Q

Which of the following are TRUE concerning real estate licenses in North Carolina?
I. provisional brokers must have 8 hours of continuing education prior to their first license renewal
II. real estate licenses not renewed by June 30 each year are placed on inactive status

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

d. Neither I nor II

34
Q

The listing agent is aware of leaking polybutylene plumbing and has listed the home for sale in the MLS. She receives an Offer to Purchase from a buyer. The listing agent does not mention the leaking polybutylene plumbing to the buyer of their agent. The listing agent is guilty of

a. negligent omission
b. negligent misrepresentation
c. willful omission
d. willful misrepresentation

A

c. willful omission

35
Q

An agency agreement will be terminated by
I. death of the principle before an offer to purchase is signed
II. death of the listing agent

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

a. I only

36
Q

A North Carolina listing agent would be required to disclose to a prospective buyer which of the following material facts?

a. a registered sex offender lives next door
b. the current home owner has HIV/AIDS
c. streets in the subdivision are privately maintained
d. the house is reportedly to be haunted

A

c. streets in the subdivision are privately maintained

37
Q

Which component of a house is not part of the roof system?

a. soffit
b. ridgeboard
c. header
d. eave

A

c. header

38
Q

A Provisional Broker informs a customer that his listing client recently received a job transfer to another state and must sell immediately. This is
I. acceptable as the comments may promote an offer
II. acceptable if the provisional broker does not disclose specific financial information associated with his clients motivation

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

d. Neither I nor II

39
Q

How many days does a provisional broker have to deposit earnest money into the trust account?

a. no later than three banking days from acceptance
b. no later than five banking days following receipt of the funds
c. no later than three banking days following receipt
d. trick question; provisional brokers do not “deposit” funds

A

d. trick question; provisional brokers do not “deposit” funds

40
Q

In North Carolina, a licensee and buyer client must sign a written agency agreement by what point in time?
I. at first substantial contact
II. at the time buyer’s agent will present offer to purchase on buyer’s behalf
III. when the buyer’s agent attempts to limit the buyer’s ability to work with other agents

a. I only
b. I and II only
c. II and III only
d. I and III only

A

c. II and III only

41
Q

In North Carolina, Brian Broker sold a home to Rebecca Buyer. The home was listed with Brian’s company and Brian’s company does not offer Designated Agency. What type of agent could Brian be?
I. buyer agent
II. seller subagent

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

b. II only

42
Q

According to the North Carolina Time Share Act,

a. a time share in not considered real property and the buyer will receive a General Warranty Deed
b. a time share developer may be fined $500 for each violation of the NC Time Share Act
c. the buyer will receive a proprietary stock option lease at closing
d. a time share developer must be the registered broker in charge

A

b. a time share developer may be fined $500 for each violation of the NC Time Share Act

43
Q

Ann Broker listed a residential property in Onslow County. She is aware the property will most likely be annexed by the City of Jacksonville and the property taxes will be significantly higher in the future. A buyer’s agent from another real estate company is not aware of the annexation has out of state buyers interested in the property. When asked about pending changes that may affect the property, Ann Broker state that there are none. Which of the following statements are true?
I. Ann is guilty of willful omission
II. They buyer’s agent may be held liable for not disclosing the material fact

a. I only
b. II only
c. Both I and II
d. Neither I nor II

A

b. II only

44
Q

What is the status of the provisional broker license at initial issuance?

a. expired
b. inactive
c. active
d. BIC eligible

A

b. inactive

45
Q

How many years must unsuccessful real estate transaction records be kept?

a. 3 years
b. 5 years
c. any timeline prescribed in the Office Policy and Procedures manual
d. unsuccessful or failed transaction file may be shredded to destroy confidential information

A

a. 3 years

NC Real Estate Unit Quiz (15 decks)

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