Practice Exam 1 Flashcards
Under which of the following types of mortgage loans would a buyer have to produce a CRV
VA Guaranteed Loan
Promissory Note elements
a promise to pay
terms of payment
amount of the debt
(NOT Needed is lenders signature)
In regard to loan costs, FHA Mortgage Insurance Premium (MIP) and VA funding fees, who can legally pay these items at closing ?
the borrower
the seller
the lender or they can be financed into the loan
Which parties signature is required on the DEED of TRUST?
The TrustOR
Which of the following statements are correct regarding construction loans
Construction loans have the HIGHEST RISK to the LENDER
Construction loans have a shorter repayment period than a home loan
Open ended mortgages
Non Amortized
If first substantial contact occurs by telephone, the licensee is required to transmit the Working with Real Estate brochure immediately but not later than
3 CALENDAR days after the telephone conversation
Concerning the Residential Property Disclosure Act, if a buyer does NOT receive the disclosure,…
then the buyer has 3 calendar days within to RESCIND the transaction from either the DATE OF CONTRACT or the DATE OF RECEIPT of the disclosure whichever comes first
If a provisional does not take their 90 hours of post licensing training within three years from the date on which they were initially licensed their license is
INACTIVE
A licensees annual renewal pocket card must always be
Carried on his person while doing business as a real estate agent
If a real estate agent has been found guilty of violating the NC Real Estate Licensing Law, the NCREC can
Suspend or revoke the license
Reprimand or censure the licensee
When is the developer of a timeshare project required to deliver the public offering statement to the purchaser?
No later than the DATE of CONTRACT EXECUTION
When must the Residential Property Disclosure Statement be given to the buyer of the residential property?
No later than the time the BUYER MAKES AN OFFER ON THE PROPERTY
Which is true concerning Footings?
Footings form the base upon which the rest of the foundation rests
Footings are poured into trenches below ground level and are usually composed of masonry type materials
A joist is
Long horizontal boards installed parallel to each other to support the load of the ceiling and the rafters above it.
Long horizontal boards installed parallel to each other that are attached to the sill to support the floor and its associated loads
Which of the following best describes the owners original basis in his or her property?
for income tax purposes the original cost (Purchase price) of the property
If payment of License FEES are RETURNED unpaid or dishonored by check or credit card, the NCREC can discipline a licensee by taking all the following actions
Denying the license
Suspending the license
Revoking the license
NOT reprimanding (note not paying fees are involved)
All of the following are requirements by the NCREC to obtain a limited non resident commercial license
Creation of a brokerage agreement and the signing of a declaration of affiliation with a NC resident real estate broker
consent to be disciplined under the rules, statutes and regulations of NC
declaration of their residence in a state or territory of the US other than NC
The requirements of the Real Estate Settlement & Procedure Act apply to any real estate transaction that takes place
Involving 1-4 units
Involving a federally relate mortgage
Which of the following statements regarding written listings agreements in NC is correct ?
A written listing provides proof that the broker was hired by the seller
The listing agreement must have a definite starting and ending date
The broker must deliver to the seller a copy of the signed listing agreement
(it does NOT include and automatic extension clause)
If dual agency is undisclosed which of the following actions would most likely occur?
A civil lawsuit for damages caused to the client
A disciplinary action by the NCREC
Designated agency is allowed in
PB and PB
Broker and PB
Broker and Broker
Dual Agency
the broker acting for both the buyer and the seller in the same transaction
A PB owes all of the fiduciary duties
to obey all legitimate instructions from the broker concerning the transaction
to be loyal to the interests of the principal
to disclose material facts concerning the sale
(does NOT prepare the deed for the transfer of title)
A buyer is to assume an existing loan of 80K at 9%. The interest on the loan which is paid in Arrears would appear on the closing statement as
Double entry, debit seller/credit buyer
If an owner of a building sold it, the present tenants lease would
be honored by the new owner until expiration
A broker lists a property for sale at 18K with a 5% commission and obtains a verbal offer from a prospective buyer. The seller indicates to the broker that the offer is acceptable if submitted in writing. Before the offer can be put into writing the purchaser backs out. The broker is entitled to
NO COMMISSION
Key principle of Estate for Years is
Expire automatically without notice at the end of the period designated
Which of the following is true about TENANCY at SUFFERANCE?
It occurs where one had a lease for a specific term and holds over at the end of the lease without the consent of the landlord
It is the lowest FREEHOLD ESTATE known by law
A seller signs two listing agreements on the same property at the same time for the same listing period with different firms. The seller signs an “Exclusive Right to Sell Listing Agreement” with ABC Realty and and Exclusive Agency Agreement with XYZ Realty. If a ready willing and able buyer is procured by ABC realty, which of the following would be legally correct
Seller would owe two commissions, one commission to ABC Realty, and one commission to XYZ Realty.
Specific Performance
Legal remedy a buyer has to force a seller to honor a contract for sale
In connection with an OTPC earnest money is used
as evidence of the buyers good faith
as liquidated damages to the seller in the event of a breach
the major difference between Installment Land Contract and a Purchase Money Mortgage is
The time in which delivery of the deed is made
A NC real estate listing agreement is required to be in writing under
NC Real Estate Commission Rules
According to NCREC rules regarding the drafting of legal documents, which of the following statements is correct ?
A broker acting as an agent in real estate transaction shall not draft legal instruments, however a broker may complete pre printed fill in the blank forms, if authorized or directed to do so by the parties
Which IS required for a contract to be valid and enforceable?
signatures of both parties
consideration
mutual consent
(Witnesses are Not required)
The NC Residential Rental Agreements Act covers all of the following
Basement apartments
Condo Unit
Apartment Complexes
(NOT Transient Occupancy)
