Practice Exam 4 Flashcards
A licensee must report which of the following items to the NCREC within 60 days?
a conviction for DUI
Concerning a timeshare violations in NC, which of the following is true?
a timeshare developer can be fined and a licensee can have his licensed revoked
The Interstate Land Sales Full Disclosure Act
exempts the sale of lots in a subdivision containing fewer than 25 lots
Developer must provide a property report and register the subdivision with HUD
Basic economic principle of value which states that if house A and house B are equally desirable properties with similar assets and house A is selling for $160K and house B is selling for $170K, virtually every buyer will choose house A.
SUBSTITUTION
COST
Actual amount paid
Value
aka WORTH
Anne was showing properties and while driving through a specific neighborhood told the prospective buyer that, “This is a neighborhood in which you would probably not want to live” Annes conduct would be
STEERING and illegal
Bill is managing an apartment complex which as a no pets policy. A woman with a seeing eye dog has completed an application and meets the credit and income criteria to rent a unit. Under federal fair housing law, Bill may
Rent the unit to the woman and he may NOT charge her any additional deposit for the dog
Stanley Smith is purchasing a property which is currently being utilized as a restaurant. The restaurant contains a number of trade fixtures, equipment, utensils, dishes, tables and chairs used in the business. The seller provides Stanley with a Bill of Sale for the separate transfer of all of these items. If Stanley wants to finance both the purchase of the real estate and these additional items into one loan, what type of loan should he obtain from his lender?
PACKAGE LOAN
When a lender requires mortgage insurance with a loan, and the loan is sold on the secondary mortgage market,
the mortgage insurance goes with the loan to protect all future purchases of the loan
When a home is sold “subject to an existing mortgage”,
The SELLER remains liable for the repayment of the loan unless the lender provides the seller with a separate lease.
Broker Anne obtains a listing on a property in Boone NC and she signs a Listing Contract with the seller. She later finds a buyer for the same property and agrees to represent the buyer in a written Buyer Agency Contract.
Anne is practicing DUAL AGENCY and must obtain written permission from both parties.
A broker is interested in purchasing a home. The home is listed with his/her firm.
The broker must communicate to the property owner he/she is a licensed broker.
Assignment of a contract in NC
A contract can be assigned if there is no clause prohibiting assignment
A PB runs a newspaper ad which contains willful misrepresentation. Whose license could be suspended or revoked by the NCREC ?
BIC
Provisional Broker
In a lease the COVENANT OF QUIET ENJOYMENT indicates that the landlord
warrants that no one will disturb the tenants possession of the property
In NC an UNlicensed assistant
may show rental properties in a property management office
MAY NOT show properties or hold open houses in a sales office
A firm selling its own property through the actions of its own employees
is NOT required to have a real estate license
Requires a Real Estate License
an Auctioneer of real estate
an out of state licensee who is showing properties and writing offers in NC
A licensee who manages a neighbors rental property and collects a fee
Bob a real estate broker has a listed property for sale. While in the property conducting an open house, Bob noticed that the hot water faucet was not operating properly. In regard to questions on the Residential Property Disclosure Statement, Bobs seller has checked all of the boxes with “No Representation”. When a prospective buyer expresses interest in the home what are Bob’s obligations?
Disclose the faucet issue as a material fact to his seller and he must also disclose it to any prospective buyer even if the seller objects to such disclosure
In measuring square footage in a home and the buyer has indicated it is a material fact the real estate may rely on the NCREC Residential Square Footage Guidelines and rely on the
amount of square footage that the listing agent has indicated in the MLS listing.
A corporation owns several residential properties and has placed them into an entity known as Prime Properties LLC. The corporation is not licensed by the NCREC. None of the companies salaried employees have real estate licenses. The LLC wants to sell several of its rental properties. Which of the following is correct?
The LLC may sell these properties using its own salaried employees and does not need to place any of the earnest money deposits into a trust account.
DUAL AGENCY
always requires consent and disclosure of all parties
designated agency is a form of dual agency
Dual agency will only exist when there is one firm involved
If designated agency occurs, when must the seller know the name of the designated agent working with the buyer?
At the time of first offer to purchase property
