MID TERM EXAM PART 1 Flashcards
(31 cards)
Which of the following tangible items would NOT be considered real property due to its movability?
In-ground basketball goal.
A fuel tank
Antenna, satellite dishes and receivers
Outdoor plants in containers.
ANSWER
Sullivan Paige obtained an exclusive right to sell listing for Carolina Realty. As a result, the seller has an agency relationship with each broker within Carolina Realty firm as a
Transactional Agency
Dual Agency
Seller subagency
Buyer subagency
ANSWER
Chuck Grant from Yulee, Florida visits Asheville and decides he wants to look at a listing represented by Phillip Monroe of Coldwell Banker. Chuck informs agent Monroe that he is not represented by anyone. Therefore, agent Phillip must inform Chuck that he is representing the seller
Orally, before showing the property to Chuck in person
Orally the moment Chuck calls about seeing the property
In writing before obtaining any confidential information from Chuck
In writing before showing the property to Chuck.
ANSWER
A real estate sales contract to be enforceable in a court of law must have the following item:
The receipt of Due Diligence money by the seller’s agent
The receipt Ernest Money by the Escrow Agent
It must be recorded in the county in which the contract occurred.
An exchange of consideration between the contract parties.
ANSWER
Which of the following items is NOT an example of an encumbrance?
Tax property lien
Restrictive covenants
Mortgage
General Warranty Deed
ANSWER
Which one of the following statements about an Oral Buyer Agency Agreement in North Carolina is True?
Allows a person to work with several brokerages while searching for property.
Allows a person to work with only one brokerage at a time
Must be renewed every 14 days
Requires the buyer to receive a copy of the Working with Real Estate Agents brochure only if they wish to make an offer on a property
ANSWER
The remedy of specific performance within a real estate contract allows for
The injured party to receive full damage compensation making them whole
Enforcement of the buyer’s right to purchase the property per contract terms.
Allows the parties involved the right of rescission based upon the nonperformance of the terms within the contract.
Sets a time limit for the terms within the contract to be fully executed.
ANSWER
A written listing agreement generally includes:
The heated square footage of the property
The guarantee that a broker will sell the property by a set time limit
An automatic termination date
The buyer’s obligations when purchasing the property.
ANSWER
An exclusive buyer’s agency agreement with a firm will be automatically terminated if the
(A). Individual buyer-agent dies.
(B). Buyer and the firm agree to stop working together.
(C). Buyer closes the sale of their currently owned property.
(D). Property on which the buyer has made an offer is destroyed.
ANSWER
An estate in real property may be BEST defined as
A taxable interest in land with or without improvements
The extent or degree of a person’s interest in real property
A large parcel with permanent structures that has been inherited
The total amount of real property that an individual owns in severalty.
ANSWER
John, Paul, and George own property in Florida as joint tenants. They are married and have children. John died; however, he had willed his portion to his children, Julian and Sean.
Which of the following BEST describes the ownership of the property after John’s estate has been settled?
Paul and George own the property as joint tenants.
Julian and Sean own the property as joint tenants with Paul and George
Paul and George own the property as tenants in common
Julian, Sean, and Yoko (John’s wife) own the property as tenants in common with Paul and George.
ANSWER
Phillip Monroe owns 283 Jim’s Branch Road in Swannanoa, NC. He grants a written easement across his property to Mr. Kingston who owns the parcel directly behind him. Mr. Monroe has recorded the easement within Buncombe County. Five years later, Phillip decides to sell his property to the Edwards family. Is it possible for the Edwards family to legally stop Mr. Kingston from using the easement?
No because of the concept of Eminent Domain
Yes, because the Edwards family did not consent to the use of the easement during the execution of the purchase contract.
No because the easement is appurtenant to the property
Yes, because Mr. Kingston did not sign the original easement agreement.
ANSWER
Steve’s split rail fence extends over the property line of Gordon Ball’s. This legally constitutes.
Encroachment.
Appurtenance
Variance
Extra territorial zoning allowance
ANSWER
Which of the following would create legally binding acceptance of a written offer?
The buyer’s agent told the seller that the buyer will initial and sign the counteroffer that evening. A spouse signs for his/her spouse based on marital rights. The seller’s agent emails the buyer’s agent that the seller signed the offer as written. The buyer submits a good faith deposit to the seller.
ANSWER
The legal description that is used most commonly in describing property in urban areas is called the:
Metes and Bounds description
Rectangular Government Survey System
Reference to a Recorded Plat (Lot/Block)
Urban Plat (Lot/Block)
ANSWER
The form of legal description used that uses a Point of Beginning, Monuments, and Calls is known as the
Metes and Bounds description
Rectangular Government Survey System
Reference to a recorded Plat (Lot/Block)
Urban Plot (Lot/Block)
ANSWER
If a parcel of land is bordered by a small stream then the property line would be
At the mean high water mark
At the edge of the stream
At the 3 feet mark before the stream itself
At the center of the stream.
ANSWER
Which of the following would NOT be considered in determining if an item is a fixture?
Intent
Adaptability
Value
Method of Attachment
ANSWER
Which of the following essential elements are necessary for having a valid deed?
Must be recorded with the county in which the property exists.
Must be signed by the grantee and grantor
The deed must be voluntarily accepted by the grantor
The grantee must be identified within the deed.
ANSWER
David Rodgers has owned a small engines repair shop in Mountain Home, NC since the late 1980’s. Due to rapid growth in Henderson County, the county zoning commission voted in favor of changing several zoning areas. As a result, Rodgers’ Machine Shop will now reside within a residential zone. What will happen to David’s small engine repair shop?
He will be given 120 days to abandon the property so the county can demolish the building paving the way for more residential properties.
The county will pay him market price for property through the concept of Eminent Domain.
Nothing will happen, he has the legal right of nonconforming use to continue operating his machine shop.
He must apply for a variance with the county commission board.
ANSWER
Callie Wright has an Exclusive Right to Sell listing contract with the Pandora family. While on desk duty, a prospective buyer asks her to show him the property. He really likes the home; however, he feels that the listing price is too much. Therefore, he asks Ms. Wright if the sellers would consider taking less than what they are asking. Agent Callie has knowledge that the Pandora family is indeed quite anxious to sell their property so they can move to Florida to be closer to family. Therefore, agent Callie suggests to the prospective buyer that he should offer $5,000 less than the listing price. In this scenario, Agent Wright
Is now performing an unauthorized dual agency
Has violated her fiduciary duties to the Pandora family
Is in full violation of agency law by possibly securing a secret commission.
Has not violated anything by offering simple advice to a customer.
ANSWER
Which of the following statements about dual agency is/are correct?
Dual agency can occur within one firm if a broker has become a buyer’s agent and is showing a property listed by the broker-in-charge.
Dual agency can occur within one firm if a broker shows his buyer-client his or her own listing.
I only
II only
Both I and II
Neither I nor II
ANSWER
Which of the following scenarios would be considered a material fact that a seller would have to disclose on the Residential Property and Owner’s Association Disclosure Form in NC?
There is a mold growing in the basement due to a consistent water drainage issue on the property.
The HVAC system has not been serviced in the last 10 years
Nothing
The property has an in-ground storage tank.
ANSWER
Jill Jones is represented as a buyer by Lauren Polo of Blue Crab Realty. After looking at several properties, Jill decides to place an offer of $185,000 on a property that is located with the school zoning of a top-rated elementary school. She informs her agent on a Friday that is ready to present her offer to the sellers. After much discussion, the sellers accept the offer, sign it, and send it to their agent on a late Saturday night. The seller’s agent immediately informs agent Polo that their clients have accepted the offer. Agent Polo attends a dinner party that night and decides to wait until Sunday to inform the buyer that the sellers have accepted her offer. Meanwhile, Jill decides Sunday morning that she has decided to not purchase the property and informs Agent Polo that she wishes to revoke her offer. According to this scenario…
The buyer can revoke her offer because she has not signed anything.
The buyer is not considered to be under a legal binding contract because her agent has not yet presented the revocation of her offer to the sellers.
The buyer is under contract because communication of acceptance to the seller’s agent creates a legal binding contract for the buyer
The buyer is under contract because the accepted(signed) offer has been communicated to the buyer’s agent
ANSWER
