Practice Exam 3 Flashcards
Mr. Granger owned a commercial office building and had several of the tenants executed long term leases. The tenants spent considerable expenses in moving and making improvements to the offices which they rented. Shortly after the lease were executed, the city was granted approval for a road widening project and instituted a condemnation proceeding against the building. In regard to the taking of the property under eminent domain, what compensation may be allowed?
Compensation will be due to Mr. Granger as the property owner and to the tenants for damages caused by the termination of the tenancy.
Improvements for investment property
Patio
Fence
Screen Porch
(NOT painting)
Which of the following laws requires a lender to notify a loan applicant within 30 days if their loan was declined?
Equal Credit Opportunity Act (ECOA)
A broker visited Mr. and Mrs Smith and they signed an EXCLUSIVE RIGHT TO SELL listing agreement for their home. The broker was told that all of the Smiths children were also in agreement about the sale and the broker was given strict instructions that the home must be sold asap. The next day a relative of the Smiths called the broker and said that the Smiths had died earlier in the morning in a car accident. What should the broker do?
The broker should immediately stop all efforts because the listing no longer exists
Under NCREC rules the Working With Real Estate Agents disclosure must be provided “at first substantial contact”. If that contact occurred electronically or by phone, the brochure may be transmitted to the consumer within 3 calendar days by
FAX
US MAIL
E MAIL
When a landlord is responsible for the payment of taxes, insurance, and mortgage payments, and the tenant is required to only pay rent, the lease is an
GROSS LEASE
In an OPTION CONTRACT,
the option is enforceable by the OPTIONEE on the OPTIONOR
The provision of the Real Estate Settlement and Procedures Act apply to which of the following transactions if a federally related loan is used
The purchaser of a four plex by an investor
The following people DO NOT need a real estate license in NC
a salaried person employed by a person/property manager who exhibits rentals
an owner of real estate who is selling or leasing his/her property
A trustee in bankruptcy proceeding or foreclosure sale
In a foreclosure proceeding when there is an excess money bid and the funds collected exceed the amount of the mortgages and liens on the property, the trustee or sherif must do what with the overage?
Return those funds to the homeowner
A homeowner takes a home equity loan from their personal residence. The only reason for obtaining the loan was so that they could use those funds for down payment on a commercial building. They request that the funds be directly transferred from the home equity lender to the commercial buildings closing agent. Does the Truth in Lending Act apply to any portion of what the consumer is doing?
yes, because the home equity loan involved a residence and it was subject to the TRUTH IN LENDING ACT
A disclosure of agency status should be made by a buyers agent to the sellers agent
At the initial contact with the seller or sellers agent
With a written confirmation in the OFFER TO PURCHASE and Contract
Parts of a Window
Muntin
Mullion
Sash
Sill Plate
Located between the foundation wall and the floor joist
SOLE Plate
Connects the studs to the floor
Most efficient type of heat in NC
Warm Forced Air
Radon gas is known to cause
Lung Cancer
A deed provided in a foreclosure in which the sheriff or trustee promises only that they have the right to convey the property would be
BARGAIN and SALE DEED
A tenant has signed a six month lease that stipulates it shall convert to a month to month if the tenant continues to occupy and pay rent beyond the initial term. What is the maximum security deposit that is permitted under the NC Residential Tenant Act?
Two Months for a month to month lease
The Parole Evidence Rule states that
No oral agreements that contradicts the terms of a written contract may be considered in a lawsuit based on the written agreement
The party who drafted any ambiguous terms in a contract would have that provision construed most narrowly against them
Written contract is assumed to be the complete manifestation of the agreement of the parties
RURAL HOUSING SERVICE AGENCY
FARM SERVICE AGENCY
administer these loans under the Rural Economic and Community Services Program of the US Department of Agriculture
Eligibility requirements for these type of loans are restricted to low income residents of rural areas or very small towns
Characteristics of the loans include longer than normal repayment period and subsidized interest rates
When a lender is utilizing a DEED OF TRUST, at the end of the loan at the time of defeasance, which of the following will occur?
The trustee will provide the trustor with a deed of reconveyance at the instruction of the beneficiary
Who must sign a subordination agreement in order for the relegation of lien position to change in regard to mortgage loans on the property?
The Superior lien holder
NC License laws and commission rules
A broker can work for more than one firm if all of the BICs provide written permission
A BIC can be a BIC for more than one firm if the firms are doing business at the same location
