missed practice exam questions Flashcards
A time-share developer fails to give a purchaser the public offering statement as required by rule. Which of the following could result?
The buyer could receive funds from the developer, levied by the North Carolina Real Estate Commission as a fine.
In North Carolina, excise tax is paid when and by whom?
At recordation of the deed, by the attorney with funds collected from the seller
Conventional loans are viewed as the MOST secure loans because
their loan to value ratios are often lower than other types of loans
A real estate broker has measured the square footage of a home and included it in all marketing. The MOST likely reason the broker has given the square footage of the property is because
some MLS systems will not accept a listing without square footage
The defeasance clause in a mortgage requires the mortgagee to execute
a satisfaction of mortgage
The defeasance clause in a mortgage requires the mortgagee to execute
a satisfaction of mortgage
The addition to the general insurance policy language that normally increases the number of perils or situations covered by the policy is
an endorsement
Provisional broker post-licensing coursework is
optional for inactive licenses, unless they wish to become active
To increase yield on a loan, the lender charges
Discount points rates
A property owner conveys a life estate to his cousin for the duration of the life of the cousin’s grandfather. If the cousin were to die before his grandfather, how long may his heirs have possession of the property?
until the grandfather dies
In the cost approach to value, the appraiser makes use of
the estimated replacement cost of the building
The principal difference between an estate for years and an estate from period to period is that
an estate from period to period has no expiration date
When determining which properties to show to a buyer, when must a buyer’s agent disclose that one of the properties has a $300 bonus?
Disclosure must be made before to showing the property
A buyer purchased a property but did not record the deed. Under these circumstances,
the buyers interest is not fully protected against third parties
A buyer and a seller have entered into a binding contract for the sale of real estate. During this phase and until closing, the buyer has which type of title?
Equitable
The primary intent of zoning ordinances is to
ensure that proposed land uses conform to the master plan
Under the North Carolina Condominium Act of 1986, the seller of a condominium (created after October 1, 1986, who is not the developer) must
provide the buyer with information on the association’s dues and assessments
Which of these is TRUE regarding anyone who is paid to perform work that disturbs the paint in a house?
Homeowners are not regulated in the remodeling or paint removal of a private residence
When must an earnest money check be deposited by the escrow agent?
Within three business days of contract acceptance
If a buyer and an agent agree to an oral buyer agency agreement and before writing the offer to purchase and contract, the buyer wants to make an offer but does not want to sign a buyer’s agency agreement as the buyer promised, the agent
should not write the offer at that time
Which of these is TRUE of condominium ownership?
The common elements cannot be sold separately
Which of these is TRUE of condominium ownership?
The common elements cannot be sold separately
Defined as a loss in value from any cause, depreciation is generally divided into three categories. The loss of value due to the normal wear and tear on a property is called
physical deterioration
A contract that may be rescinded by one party due to duress, fraud, misrepresentation, or because one party is a minor, is also known as
a voidable contract
A landowner subdivides her acreage and offers the lots for sale. A broker tells her that he can sell the lots. After the broker sells some of the lots, the landowner refuses to pay him a commission. The broker can
do nothing
A licensee in North Carolina can be disciplined for
failing to disclose a material fact
A disclosure of agency status should be made by a buyer’s agent to the seller
with a written confirmation in the purchase and sale agreement because a declaration of agency status is included in the standard Offer to Purchase and Contract form.
A buyer tells the agent that he likes a home because it is so quiet and peaceful. The agent knows that a busy shopping center is ready to start construction next door. The buyer does not ask about the surrounding property, so the agent says nothing. What, if anything, is the agent guilty of?
Willful omission
A promise, or something of value, made by one party to induce another party to enter into a contract is
legal consideration
A licensed auctioneer must disclose his agency status to a buyer
never because there is no required agency disclosure.
A seller agreed to list his home for $220,000, but the listing agent did not tell him that the fair market value of the home was $245,000. The listing agent purchased the property the next day. The agent has violated which of these duties to the seller?
Loyalty
A store owner has operated a neighborhood grocery store for the last 30 years. Her store is the only retail property in an area that is zoned residential. The store is an example of
a nonconforming use
The buyer and the seller have entered into a binding contract for sale. However, before closing, the law changes and the buyer’s intended use of the property becomes illegal. Which is TRUE?
The contract is void due to impossibility of performance
A woman has a nine-year-old grandson living with her, and her application for an apartment has been rejected because the community does not allow anyone under the age of 18. Is this permissible?
Yes, if the housing complies with regulations for senior housing.
Every purchaser of a time-share in North Carolina must be given
none of these
The purpose of a mortgage is to
provide security for a loan
Which of the following is exempt under North Carolina real estate licensing laws?
A managing member selling the LLCs property
An optionee has communicated to the optionor that the optionee will purchase the property. This option contract is now exercised and is BEST described as
an executory bilateral purchase contract
The Tenant Security Deposit Act regulates
all of these
A listing agent representing a seller is required to disclose agency status to a buyer when the buyer
says she is a first time home buyer
The entity MOST likely to use a 1031 tax-deferred exchange would be
an investor selling income property
All of these are typically prorated at closing EXCEPT
security deposits
The due diligence period in the Offer to Purchase and Contract (NCAR/NCBA) allows for the buyer to do all of the following EXCEPT
request the return of the due diligence fee if the seller will not address the items found in the home inspection report.
A participant in the secondary market is
an institutional investor that buys and sells loans
Two men are co-owners in fee simple of a small office building. One of the men dies intestate and leaves nothing to be distributed to his heirs. The surviving owner is related to neither the deceased owner nor his creditor. What would explain how the surviving owner acquired the deceased owner’s interest in the office building?
Joint tenancy
A title insurance policy protects against title defects
found after closing
Unlicensed assistants of a broker may do all of the following EXCEPT
agree to a prospective tenant’s suggestion to reduce the monthly rent by $100 if the tenant cuts the grass every week.
