Midterm Part 1 of 3

Question 1

A real estate agent is holding his first meting with a prospective buyer to discuss the prospective buyer’s housing needs. The agent would prefer to work for the prospective buyer as a buyers agent. Before the agent can begin to do this, the agent must do all of the following

Answer 1

Provide a prospective buyer with a copy of the NC Real Estate Commission’s “ Working With Real Estate Agents” brochure

Review with the Prospective buyer the information in the NC Real Estate Commissions “Working With Real Estate Agents” brochure and explain agency representation options offered by the firm.

Reach agreement with the prospective buyer regarding the terms of the agents representation, including compensation to the agent.

Question 2

If DUAL AGENCY is UNdisclosed, it could result in

Answer 2

Rescission of the sales contract

Forfeiture of the real estate commission

Civil action in court

Question 3

Estate that CANNOT pass by inheritance?

Answer 3

ORDINARY LIFE ESTATE

Question 4

Estate that CAN pass by inheritance?

Answer 4

FEE SIMPLE ESTATE

FEE SIMPLE CONDITION SUBSEQUENT

PUR AUTRE VIE LIFE ESTATE

Question 5

Which is considered SPECIFIC LIEN on real estate?

Answer 5

DEED OF TRUST

MECHANICS LIEN

REAL ESTATE TAXES

Question 6

A licensee is required to provide a copy of each contract, offer, option, or lease to each party thereto

Answer 6

Immediately upon affixing their signatures thereon, but in no event later than five days following the date the instrument is fully executed.

Question 7

NOT required to have a real estate license

Answer 7

One that is hired by a property owner to appraise a house

Question 8

Bob Jones an elderly white businessman, owns a quad plex apartment building. He lives in one of the units as his primary residence. He personally manages all matters pertaining to the rental of the apartments. Although he does not use discriminatory advertising and does not hire a real estate firm to manage the property, he openly refuses to rent to an individual based on their race. Bob Jones is in violation of

Answer 8

CIVIL RIGHTS ACT of 1866

Question 9

Mr. Brown and Mr. Simpson have signed a contract of sale on Mr. Browns property. Which of the following would be considered an excuse for non performance of the contract?

Answer 9

Destruction of the premises being sold

Mutual mistake as to a material fact

Question 10

Title of real property may be transferred by

Answer 10

Laws of Intestate Succession

Question 11

If a breach of sales contract occurs, the earnest money deposit would be considered which of the following type of damages?

Answer 11

LIQUIDATED DAMAGES

Question 12

Doctrine of SPECIFIC PERFORMANCE

Answer 12

based on the physical characteristic of land which is UNIQUENESS

Question 13

Metes and Bounds description

Answer 13

Distance = metes
Bounds = Direction

Question 14

Bob Broker delivers an offer to purchase to Sue Seller. The offer states that Seller agrees to sell Bert Buyer “Sellers house on State Rd 1313 in Wake County”. Seller owns three houses on State Rd 1313 in Wake County. Seller accepts the offer, but prior to the closing date, Seller refuses to go through with the transaction. Can the buyer enforce the sales contract?

Answer 14

NO

Because the description of the property is too indefinite and the contract is therefore VOID

Question 15

Sally receives her NC Brokers license in her mailbox on May 15th 2003. In order to continue to keep her brokers license on ACTIVE status, she must pay the annual renewal fee to the NCREC on or before

Answer 15

JUNE 30th 2003

Question 16

Does NOT terminate a sales contract

Answer 16

death of a seller

Bankruptcy of the real estate firm

Question 17

SPECIAL WARRANTY DEED

Answer 17

Deed that warrants only against defects or encumbrances that have occurred “by, through, or under the grantor” is a special warranty deed.

Question 18

If a real estate agent fails to properly fulfill his fiduciary duties to the principal or his other duties to a third party

Answer 18

The third party may sue the principal for the agents wrongful act

Question 19

Protected Categories under the FAIR HOUSING ACT o 1968.

Answer 19

17 year old son who lives with parents

Pregnant woman

Familial status

(NOT Marital status)

Question 20

Public Land Use controls include all of the following

Answer 20

Subdivision regulations

environmental protection laws

master plan specifications

(NOT deed restrictions)

Question 21

When an old service station is located in an area that has been zoned for residential use only, the station may be permitted to continue to operate as a service station under

Answer 21

LEGAL NON CONFORMING USE

Question 22

Which would be considered a MATERIAL FACT by law in NC?

Answer 22

Recorded lien on the property

Information about a pending zoning change that would enhance the value of a sellers property even if the agent is a buyers agent.

Question 23

Two agents in a firm are designated agents. What are the rest of the agents in the firm?

Answer 23

Dual agents

Question 24

A real estate firm wants to incorporate. Which of the following statements is correct?

Answer 24

The corporation must obtain a real estate license for the “firm” from the NCREC and the firms POCKET card shall be KEPT AT THE FIRM.

Question 25

As imposed under the government’s right to police power, zoning ordinances regulate

Answer 25

The use to which a property may be put

the placement of buildings on the property

the bulk and density of buildings

(DO NOT regulate minimum acceptable material & construction standards)

Question 26

Joe, Moe, and Harry are joint tenants owning a parcel of land. Harry conveys his interest to his long time friend, Will. After the conveyance, Joe and Moe

Answer 26

remain JOINT TENANTS with Will becoming a tenant in common.

Question 27

Deed restrictions are a means by which

Answer 27

GrantORs control the future use of the property