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Real Estate > State Questions > Flashcards

State Questions Flashcards

0
Q

Who needs a real estate license?

A

Anyone who wants to be compensated for buying, selling, renting, auctioning, or leasing property.

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1
Q

Since when did you have to be licensed to sell,buy,rent, auction or lease…real property?

A

July 1, 1957

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2
Q

What is broker in charge? BIC

A

Required for each brokerage firm and each branch office, the full broker responsible for displaying all licenses properly and notifying the Commission of any changes, ensuring all advertisements,maintaining trust, records of transaction and supervising provisional brokers associated with the firm.
Active real estate broker with 2 years of full time experience with 8 hour Continuing Ed each year.

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3
Q

Provisional broker?

A

Real estate licensee who performs real estate activity under the supervision of licensed Broker in Charge. Must complete post licensing courses to remove the provisional license status.

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4
Q

How long are the Commission terms ?

A

3 years

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5
Q

What is compensation….?

A

Anything of valuable consideration

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6
Q

How many member are on the commission?

A

9

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7
Q

Does the auction crier need a license?

A

No

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8
Q

Can an unlicensed assistant host an open house or solicit a sale?

A

No

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9
Q

7/1/1…what does that mean in the Real Estate commission?

A

7 elected by the governor
1 elected by the senate
1 elected by the house

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10
Q

When does All license expire?

A

June 30th

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11
Q

What happens when you don’t pay for the license?

A

It expires.

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12
Q

How many hours of CE?

A

8 hours
4 mandatory
4 electives

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13
Q

How many of your CE can carry over?

A

4

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14
Q

When does your CE run?

A

July 1st till June 30.

But it must be taken before June 10th.

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15
Q

Provisional brokers need to get all their CE by?

A

2nd renewal

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16
Q

How many hours of Post Licensing will you need?

A

3 /30 hour classes?

No specific order and can’t be taken at the same time.

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17
Q

If you don’t take at least 1, 30 hour post licensing class every year. your license becomes?

A

Inactive

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18
Q

If you don’t get your all post licensing class in by the third year, your license become?

A

Inactive

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19
Q

The only way you license becomes expired…..?

A

Non payment

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20
Q

True or false regarding the HUD1
The broker may not rely on the delivery of HUD 1, but he broker must Review the statement for accuracy and disclose all party of any errors?

A

True

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21
Q

Can the real estate commission fine you?

A

No

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22
Q

Can the commission fine anybody?

A

Yes, time share developers.

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23
Q

Can the RE Commission appear in superior court for injunctive relief to prevent a person who does not have a license from selling real estate?

A

Yes

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24
Q

Can the courts revoke your license?

A

No, only the RE Commission can.

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25
Q

If there is a dispute against the buyer and seller about earnest money, what can the broker do?

A

Hold it…can hold it indefinitely but if you don’t want to.
Send a letter that you will hold it for 90 days
Then they pass it off to the court.

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26
Q

If the dispute is against the seller and the yourself about the earnest money, what can you do?

A

Give it all and then sue for it.

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27
Q

Timeshare, how many days does the buyer have ?

A

5/5/5 days

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28
Q

Does your pocket card tell you the active status of your license or the level of education status?

A

No

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29
Q

Does your pocket card tell if you are a provisional broker or if you are broker?

A

Yes

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30
Q

If you change your address, how many days do you have to report to the commission?

A

10 days

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31
Q

If you commit a crime, how many days do you have before you report it?

A

60 days

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32
Q

If I have a buyers agreement of dual agency agreement, it must be reduced to writing by?

A

Time of offer

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33
Q

You cannot put it an offer with …..agreement

A

Orally

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34
Q

What is a blind ad?

A

Leaving off a name or the name of the agency

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35
Q

Trust account fund, how much of your personal money can be in the trust account?

A

$100 or what the bank requires

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36
Q

How many day do I have to deposit funds?

A

3 banking days

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37
Q

How may days do I have for paperwork?

A

5 days

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38
Q

Exception to the paperwork days..?

A

Property managers, they have 45 days.

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39
Q

If I am holding trust money, how many days can I deliver the funds to the attorney?

A

No more that 10 days before closing.

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40
Q

How long do you need to retain records?

A

3 years

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41
Q

Do I have to disclose bonus to buyers customer?

A

No just disclose material facts

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42
Q

Do I have to disclose bonus to buyer client?

A

Yes

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43
Q

If you have an oral agreement with the client…than you have to disclose?

A

Orally

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44
Q

If I have a written agreement with the client…than you have to disclose?

A

In writing

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45
Q

In a real estate sales transaction, a broker may not receive any kind of compensation,incentive, bonus or rebate or other consideration more than nominal value?

A

Unless it is in writing and principal has agreed to it

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46
Q

Can You compensate a travel agent?

A

Yes

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47
Q

BIC?

A

12 hour of BIC classes given by the commission
2 year experience needed.
Provisional hours count

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48
Q

What do need to do to remove the provisional status ?

A

Take 3/30 hours classes.

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49
Q

If you are inactive broker, can I receive a referral fee or a commission?

A

If its fall in your lap business.
Ex…mother comes and asks you to sell her home.
Not true for provisional broker.

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50
Q

As a provisional broker, can you receive a referral fee or commission?

A

Yes, if you were active at the time of transaction, contract.

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51
Q

Can you ever draft a contract?

A

Yes, for yourself.

No, for others.

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52
Q

Broker acting as an agent in a real estate transaction, shall not draft legal document for the rights of others ?

A

Is practicing law…and a provisional broker cannot.

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53
Q

What is shopping offer?

A

Making other buyers agent to beat it.

No, unless the other buyer gives you permission

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54
Q

S corp, c corp, or LLC, how many license will you need?

A

One for yourself

One for the corporation.

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55
Q

Who is the qualifying broker?

A

Top of the pyramid

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56
Q

What is the qualifying broker responsible for?

A

Renewing the real estate firm license
Retaining the firms pocket card
Notifying the commission of any address change, changing of status of the brokerage firm
Making sure there is a BIC

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57
Q

What can you the Commission do if you bounce your renewal check?

A

They can revoke your license
Deny renewal
They can suspend your license

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58
Q

Does post licensing count towards our CE?

A

No

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59
Q

If an agent has license out of state, do they have to take the pre licensing class?

A

No just take the state portion.

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60
Q

Can an out of state licensee come to NC and help buy or sell a property?

A

Yes, only for commercial property.

But they need to be under a BIC in NC and that BIC needs to hold the money in their trust.

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61
Q

If I work for a corporation as a employee….do I need a RE license?

A

No, because I’m working for my employer.

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62
Q

You notice your neighbor’s garden is encroaching on the communities common area playground. You should?

A

Immediately file for a injunctive relief in the court of law

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63
Q

Can agency ever be implied in NC?

A

No

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64
Q

Do all real estate broker need a license?

A

If you want to help buy, sell, lease or auction you need a license.

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65
Q

Exception to the licensure rule?

A

Auction houses need a real estate license but the cryer does not need a R E license.

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66
Q

Unlicensed assistant cannot hold open a houses or show property….?

A

but can do administrative work.

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67
Q

Do employees of a corporation need a license?

A

No

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68
Q

If you’re selling for yourself, do you need a license?

A

No

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69
Q

Who elects the chairman of the Commission?

A

Members of the committee.

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70
Q

What can the commission do if you make a mistake?

A

They can revoke your license.

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71
Q

What does the commission do?

A

Create the publication of education material.

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72
Q

License expires

A

June 30th

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73
Q

License may be renewed?

A

45 day prior to expiration.

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74
Q

License renewal fee is ?

A

$30

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75
Q

Renewal fee cannot increase for more than —- in a year?

A

$5

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76
Q

To reinstate….? How much does it cost?

A

$55

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77
Q

Reinstate has to be done in a — period?

A

6 months

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78
Q

Continuing Ed cost?

A

$125 per course

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79
Q

To become a BIC?

A

2 year experience
8 hr CE
4 mandatory BICAR

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80
Q

15 deadly ways to screw up?

A 
Misrepresentation
False promise
Dual agency without disclosure
Accepting $
Representing other than yourself
Failing to remit all $
Endangerment
Paying $
Dishonest
Not legal
Commingling
Failing to deliver purchase agreement
Failing to give accurate closing statement
HUD1....know what should be on it.
RE Commission cant fine brokers .....just take license away.
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81
Q

The commission may appear in court in action of…..if someone sells and get compensated without a license.

A

Injunctive relief

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82
Q

Time share?

A

You own the right to to occupy time.

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83
Q

The Commission can’t fine BIC or brokers but they can fine time share developers….

A

$500/ incident.

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84
Q

What is a public offering statement?

A

A document that all prospective time share purchaser must receive before signing a Sale contract.
It contains that the information required by GS.
Where contract of sale is voidable by the purchaser for five days after the execution of the contract.

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85
Q

Penalty for violation of the article will be guilty of?

A

Class 1 misdemeanor

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86
Q

If you change your name or address, how may days do you have to report it to commission?

A

10 days

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87
Q

When do you need to give the brochure of “ Working with. A Real Estate Agent”?

A

At first substantial contact.

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88
Q

If first substantial contact occurs by telephone, how many days do you have to mail the brochure” working with your Real estate Agent”

A

No later than 3 days.

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89
Q

Wen do you need to disclose of dual agency?

A

Must be reduced to writing no layer than the time where one party is represented by the broker makes an offer,sell rent,lease, or exchange real estate to another.

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90
Q

Delivery of all paperwork to all parties?

A

Within 5 calendar days

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91
Q

Provisional broker shall deliver $?

A

Upon receipt

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92
Q

Closing statement shall be furnished to the buyer and the seller in the transaction no more than ……

A

5 days after closing

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93
Q

Earnest money is transferred to the attorney……

A

No more than 10 days before closing

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94
Q

Retention of records….

A

3 years

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95
Q

Exception to the rule where you need a license to be compensated is?

A

Travel agents may be compensated without licensure.

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96
Q

Who can draft legal instruments?

A

You can but only for yourself.

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97
Q

A broker cannot draft legal documents…..

A

Because its a legal form and that would be practicing law.

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98
Q

What is PITI?

A

Principle interest + tax+ insurance

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99
Q

What is a Homestead Exemption Act?

A

Owner of a property is age 65 or older up to $60,000 in equity in their primary residence is exempt from general judgment lawsuits, if a borrower is less than 65, they may exempt up to $35,000 in equity from lawsuits stemming from general judgement liens.

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100
Q

How many acres are in a square mile?

A

640 acres

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101
Q

What are the steps in foreclosure?

A

Notice of hearing
Notice of sale
Report of sale
Trustee’s deed

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102
Q

Are garage counted as. Heated living space?

A

No

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103
Q

If property is sold in Auction, what gets paid second?

A

Special assessment taxes

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104
Q

Under the Homestead exemption Act, should you buy with an owner financed homes…..

A

There is no exemption should a buyer default on the repayment of their mortgage….their is NOI exemption under the Homestead Exemption Act for owner financing.

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105
Q

Timeshare must be registered with NC Real Estate Commission prior to sale? T/F

A

True

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106
Q

Timeshare may be sold prior to registering with NCREC , but not close? T/F

A

False

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107
Q

Timeshare brokers may be fined by NCREC? T /F

A

False….just developers.

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108
Q

None of the following are essential elements of a contract to purchase real property except?

A

Consideration

109
Q

Under Fair housing Casses, which governmental agency will be involved?

A

HUD

110
Q

what is adverse possession?

A 
Open
Continuous
Exclusive
Adverse
Notorious
111
Q

If a buyer loses a job while under contract…and cannot buy the house. Will The Listing firm be able to collect commission ?

A

It will be hard because they did not produce, ready, willing and able buyer

112
Q

Does a corporation that owns property and is using a an employee need a license to sell property?

A

No

113
Q

Va loans?

A

Widow of an veteran may obtain a VA loan
A non veteran may assume a VA loan
Certificate of reasonable value will need to be issued before the VA loan can occur.

114
Q

What is another name for Comparative Market Analysis?

A

Broker Price Opinion

115
Q

VA Loans and FHA loans?

A

VA loans allow 100% LTV loans
Discount points may be charged in FHA loans and these discount points increase the lenders yield.
FHA and VA loans can be fully amortized…constant payment amount each month through the life of the loan.

116
Q

Does land depreciate?

A

No

117
Q

Can you sell a property to a minor?

A

Yes, but it is voidable by the the buyer.

And becomes enforceable when minor becomes of age.

118
Q

Certificate of appropriateness?

A

If someone wants to demolish a home that has been zoned historic, certificate of appropriateness has to be obtained.

119
Q

Building codes are created by?

A

It is created in the state level but enforced in the Local level.

120
Q

Can a provisional broker create a BPO and charge a price for it?

A

No, provisional broker may not create BPO

121
Q

Independent contractor agreements between individual agent and their firm……

A

At least 90% of the agent income must be based on sales production and not on a number of hours worked.
A broker in Charge will tell the agent what they have to do, but not how to do it.
According to the IRS their must be a written independent contractor agreement that spells out that the agent is an independent contractor and no a employee.

122
Q

Are licensees solely responsible for the HUD1?

A

No
Attorney prepare the HUD, but licensees must be able to Erich the accuracy of the HUD 1 entries about which they have knowledge and to assure the HUD 1 is complete Ed in accordance with the provisional of the sale contract.

123
Q

Buyers paying cash…do they need to buy flood insurance?

A

No…but it would be wise

124
Q

Is flood insurance included in standard homeowner’s policy?

A

No

125
Q

Can NCREC fine licensees?

A

No just time share developers

126
Q

Does a non-residential commercial licensees have to take and successfully pass the sate portion of NCREC licensing exam before conducting business in NC?

A

No

127
Q

Does tendency by entirety continue even after a divorce?

A

No.

128
Q

What is NOVATION?

A

Substituting a new contract for an old one or

substituting a new parties to an existing contract.

129
Q

What is another name for due on sale clause?

A

Alienation clause

130
Q

Under Regulation Z , the three day right to rescission applies to ?

A

…Refinancing a home mortgage or a home equity loan.

Implements the Truth in Lending Act requiring credit institution to inform borrowers of true cost of obtaining credit.

131
Q

What is a wrap around loan?

A

Type of loan which enables the borrower with existing mortgage or deed of trust loan to obtain additional financing from a second lender without paying off the first loan….assuming the payment of the existing loan.

132
Q

If the licensee’s annual renewal fee is returned, the NCREC may?

A

Deny licensure renewal
Suspend the agent’s license
Revoke the agent’s license.

133
Q

Can the NCREC reprimand and censure the license

A

No

134
Q

Do-not-call list?

A

The real estate agent may contact a consumer they have a business relationship for up to 18 months after the last purchase, even if the consumer is on the do-not-call list

135
Q

What is closing in Escrow mean?

A

Third party acting on behalf of the buyer and seller and handle closing activities.

136
Q

In NC closing is usually done face to face? T/F

A

True

137
Q

Sherman Anti-Trust Act?

A

Laws prohibiting monopolies and contracts, combinations and conspiracies that unreasonably restrain trade.
Ex.
Price fixing,group boycotting, and allocation of customers and markets
Fines $100,000 and 3 years in prison.
For corp. $1 million
In civil….triple the value of actual damage plus attorney fees and costs.

138
Q

Property management agreement is between who?

A

Owner and the firm.

139
Q

Another name for construction loan is?

A

Term Loan

140
Q

Another name for a straight loan?

A

Is term loan

141
Q

A veteran loan needs?

A

Certificate of eligibility
Certificate of reasonable value
Secure a loan for a one to four owner occupied building.

142
Q

What is a short sell?

A

The lender is willing to take less thanks owed but the bank decides how much to sell it for.
Lender may seek a deficiency judgement for the amount of debt still owed.

143
Q

Under the TRUTH IN LENDING ACT….
Regulation Z
Which require a three day rescission ?

A

Home improvement loan
Refinancing a home loan
FHA reverse annuity mortgage

144
Q

Good faith estimate?

A

Statement from the lender to the borrower.
Discloses the charges that cannot change
Which is provided with three business days of loan application
Discloses fees that can rise up to 10% at settlement
Discloses fees that can change in any amount at settlement.

145
Q

Regulation Z does not cover any of the following loans?

A

Personal property credit transaction involving more than $25,000
Loans to owners of a dwelling containing more than four housing units.
Commercial, agricultural and business loans

146
Q

Regulation Z does cover what type of loans?

A

One to four family real estate financing.

147
Q

Regulation Z requires full disclosure if any of the of trigger terms are used in an ad, such as?

A

Amount of monthly payment
Financing charges
Amount of down payment

148
Q

What does a trigger term look like for sound like?

A

For qualified buyers you could own this home for a low monthly mortgage payment of $750….but no information on how they got to that number.

149
Q

Mortgage fraud?

A

A buyer states an unrealistic income from their occupation
The seller’s name is not the same a the name on the offer to purchase and contract and the deed given to the buyer at closing
The buyer would like to use a certain appraiser to determine the value of the home.

150
Q

Can an agent give their buyer client the bonus offered door the sale of the home as credit on the HUD 1 statement?

A

As long as it is in HUD 1 and approved by the lender, the bonus may be given to the buyer.

151
Q

Essential elements of a promissory note?

A

A promise to repay the debt
The repayment terms
The signature of the trustor…..borrower

152
Q

What is not necessary on a promissory note?

A

The signature of the beneficiary…..loaner

153
Q

The promissory loan can to transferred from one lender to another as long as…..?

A

The note must contain an unconditional promise to pay a sum of money on demand or at a set date in the future.
The note must be payable to “bearer” or “order”
The note must be in writing

154
Q

In a short sale situation, a listing agent should do?

A

Recommend that the seller discuss the situation with the lender
Encourage the property owner to seek both legal and tax advise.
Provide a Comparable Market Analysis for the seller to determine the homes market value.

155
Q

Do Not Call list?

A

A licensee may call for sale by owner of the agent has a buyer who is interested in the property.
Those soliciting for charity or political purposes are exempt from the Do Not Call List.
Even if the buyer customer is on the D Not Call list, a licensee may contact the buyer customer for up to 18 months without the buyer’s permission.

156
Q

Can a licensee contact the for sale by owner to set up a meeting to preview the owners home and share with the owner the listing services the agent can provide?

A

No

157
Q

What is Equity?

A

The difference between the current market value and the total amount owed on all outstanding liens on the property.

158
Q

The term Interest can be best described as?

A

The amount earned when money is lent to the other people.
Interest on home loans is usually computed as simple interest
Usury law limits the amount of interest that can be charged on certain types of loans

159
Q

What is a Title Theory state?

A

A non judicial foreclosure is allowed because the mortgage contains the power of sale clause.
The lender is known as the beneficiary
The trustee must record a satisfaction of mortgage once the loan is paid off and re conveyance deed is used to convey title to the borrower.

160
Q

Real Estate Settlement Procedure Act (RESPA)

What does it do?

A

It requires a disclosure of settlement cost
It does not allow lenders to charge fee for preparation of the HUD1 settlement statement.
It requires that within 3 business days of the loan application, the borrower I to receive a settlement cost and you procedure.

161
Q

RESPA does not apply to?

A

Purchase money mortgages or installment land contract

162
Q

Installment land contract….is also called?

A

Contract for deed or land contract.

163
Q

When is a broker allowed to draft their own lease agreement?

A

When managing their own property

164
Q

A licensee manages four housing units for four separate owners…can the licensee put it in a same trust account?

A

Yes.

165
Q

Does Joint Tenancy come with automatic right if survivorship in NC?

A

No

166
Q

Does property acquired before and after the marriage require both signature should they want to sell the property?

A

Yes

167
Q

Property inherited during marriage or received as a gift would not require both signature to sell because it is called?

A

Separate property

168
Q

What is a Community property?

A

Property is considered to be equal between husband and wife. Any acquired during he marriage is deemed to have been obtained by mutual efforts. When a spouse dies, the surviving spouse automatically owns half of the property and the other half of the state is inherited by the decedent’s heir.

169
Q

CAN SPAM Act?

A

The email’s subject line must not be deceptive
The message must be identified as an advertisement
Must include a valid physical address.
OR
A fine of up to $16,000 for each separate emails
Damages up to $250 per violation
Punishment to up to 5 years in prison
Maximum fine of $2million

170
Q

If a agent is a representing a buyer client and the builder is offering bonus for those who sell by the end of he year….

A

The agent may orally disclose the bonus to the buyer and confirm it in writing no later than the time of offer.

171
Q

What is on your pocket card?

A

Provisional Broker or Broker.
License expiration date
License number and agents signature

172
Q

What does the pocket card not tell?

A

If you are active or inactive…..continuing Ed.

173
Q

A non provisional real estate agent in inactive status. The agents mother wants assistance in purchasing a home in active adult community….can an agent receive commission?

A

Yes….Fall in you Lap business transaction.

174
Q

If licensee expired for not more than 6 months may reinstate their licenses with the submission of payment?

A

$55

175
Q

A licensee may reinstate their license if it has expired more than six months upon….

A

Complete and accurate application and a payment of $55

176
Q

The reinstatement of a licensee whose lice has been revoked shall be considered upon the submission of….

A

A complete and accurate application and payment of $30

177
Q

Reinstatement of a surrendered license will be considered upon submission of….

A

A complete and accurate application and payment of $30

178
Q

An agent who wished to conduct commercial business in NC may do so as long as….

A

It’s affiliated with an in state firm

Receive a limited nonresident commercial real estate license

179
Q

A provisional broker must have what in their ads…..?

A

Name of firm

Number

180
Q

A non provisional broker must have what on their ads?

A

Name and phone number

181
Q

A non residential commercial licensee may advertise their services in NC as long as…

A

They conspicuously identify themselves as Limited Nonresidential Commercial Real Estate Broker.

182
Q

Is Time share consider real property in NC?

A

Yes.

183
Q

In Times Share….all monies received by the time share developer or broker in connection with a time share transaction must be deposited within?

A

3 banking days.

184
Q

In Time Share …..all monies received by the time share developer or broker in connection with a time share transaction shall remain in the trust account for

A

10 days from the date of purchase or until cancellation by the purchaser, which ever occurs first.

185
Q

In Time Share… A time share developer may be fined by NCREC for violations up to ?

A

$500 per incident.

186
Q

In Time Share….every developer desiring the renewal of a time share shall apply for the same in writing with NCREC during?

A

Month of June

187
Q

Are possible zoning changes a material fact?

A

Yes

188
Q

Fiduciary duties include….

A 
Loyalty
Obedience...lawful
Accounting
Disclosure
Skill, care and diligence
189
Q

What is a real estate licensee not to do?

A

Draft legal document
Render their opinion on legal matters
Provide advicconcerning how a buyer should hold title to real estate

190
Q

Disciplinary actions will take place if?

A

Failure of an agent to properly complete an offer to purchase contract.
Failure of an agent to diligently perform services they agreed to in listing contract.
Failure of the the agent to provide accurate closing statement to seller and buyer.

191
Q

Could a failure of an agent to complete an offer to purchase and contract result in disciplinary action?

A

Yes

192
Q

Could a failure of an agent to diligently perform services they agreed to in a listing contract result in disciplinary action?

A

Yes

193
Q

Could a failure of an agent to provide accurate closing statement to seller an buyer result in disciplinary action?

A

Yes

194
Q

Could a failure of a property manager to provide a depreciation schedule result in disciplinary action?

A

No

195
Q

When is the buyers agent required to reveal their agency status to the seller or listing agent?

A

At initial contact

196
Q

A real estate licensee working for than one firm and more than one BIC. This is not a violation if they are?

A

He has content from both firms and the broker is not a provisional broker.

197
Q

Property manager is responsible for?

A

A budget of projected revenues.
A budget for expenses
Occupancy and absorption rate

198
Q

What is a property manager not responsible for?

A

A depreciation schedule for the building

199
Q

Corrective maintenance include?

A

repairs and keeping building equipment , utilities and amenities functioning properly.

200
Q

Preventative maintenance include?

A

Before problems

201
Q

Routine maintenance include….

A

Daily and weekly

202
Q

Construction maintenance include….

A

Assist in deciding , but never make gap improvement investment.

203
Q

Exclusive agency…

A

An agent of that firm may show the seller’s house to buyer customer.

204
Q

If an escrow agent receives a check from the buyer’s earnest money, the check has o be deposited within….?

A

3 banking days

205
Q

An escrow or trust may be in interest bearing and the firm may keep any of the interest from the trust account as long as it is removed every?

A

30 days

206
Q

If the trust account money are mixed with the firms business account’s money, this is called?

A

Co mingling

207
Q

What is considered…..reasonable standard to skill care diligence in acquiring material fact?

A

What is reasonable…..crawling in an attic that is too small and is in danger of getting stuck…..the agent is not expected to go in…and can not be liable for expecting to know any issues arising from the inability to crawl through the space

208
Q

Lot size that has been mistakenly put on by the sellers agent is not a responsibility of the buyers agent….

A

Buyers agent relies on the listing….unless the buyers agent suspects that the lot size is different from what is written….even though it says buyers agent is to verify all information.

209
Q

If an agent gives misleading opinions or false inducements to encourage a buyer a home…..found guilty of will misrepresentation and the….?

A

The unfair or deceptive Trade Practice Act

210
Q

Owner tells the agent that his home is 2500 sq feet.
Listing agent enters the information into MLS.
A buyer presents an offer ….the appraisal report comes back at 1500 sq feet. The buyer is unhappy reports the agents to NCREC….who would receive disciplinary action?

A

Both buyer and seller agent….because it is reasonable that buyers agent would know the difference between 2500 sq feet and 1500 sq feet….negligent misrepresentation.

211
Q

In an exclusive right to sell listing agreement….the clause that ensures the broker to receive a commission even after the listing the period is over….as long as the agent provided the names of the buyers who saw the property during the listing period to the seller within 15 days of listing expiration, should the seller sell the house on their own….is called?

A

Broker protection period
Override clause
Extender clause

212
Q

Junk fax laws?

A

The law requires the recipient to have a clear and conspicuous opt out option
Exempts faxes to those agents already had a prior or existing relationship with.
A $500 per fax fine may be levied for Junk Fax Law violations.
Applies to business

213
Q

With limited service company….listing in a MLS. Read carefully to see what it says on the listing.

A

Need to disclose agency from initial contact with Seller.

214
Q

Oral buyer agency agreement must be formalized to a written before……

A

Presenting an offer or must switch to the sellers sub agent and all confidential information must be disclosed to the seller.

215
Q

What is a general agent?

A

Has a broad range of powers in an ongoing relationship

216
Q

When someone dies “testate”….dying with a will….the term used for the transfer of real property is?

A

Devise

217
Q

Do property managers have to have the tenants monies bonded?

A

No

218
Q

What does loyalty mean in the fiduciary duties ?

A

To put the needs of your clients first.

219
Q

Property manager has how many days after the lease ends to provide an initial accounting?

A

30 days.

Final accounting by 60 days.

220
Q

A property manager must deposit all monies into?

A

Licensed and insured bank physically located in North Carolina. And may not deposit the funds in a credit union.

221
Q

Tenants Foreclosure Act 2009?
If a tenant has a legitimate lease, the tenants can occupy the property for the remainder of the lease unless the new owners plan to occupy the property as their primary residence…..but a ?

A

90 day notice is necessary.

222
Q

In a foreclosure…a tenant has the right to terminate the lease early but must give …..day notice?

A

10 day notice

223
Q

Tenants may terminate the lease early due to a foreclosure ….the lease unit must be part of a residential real property that contains less than…..unit

A

15 rental units.

224
Q

The broker must provide the HUD 1to the consumer no later than …. hrs prior to settlement meeting

A

24 hours

225
Q

If a licensee fails to deliver in a reasonable time, a complete copy of any purchase agreement or offer to buy and sell real estate to the buyer or seller, NCREC may….?

A

Revoke the agents license
Suspend the agents license
Censure or reprimand the the license

226
Q

Inactive status occurs when you do not satisfy your?

A

Initial licensure
Continuing Ed.
Firm does not have a qualifying broker with with an active license

227
Q

If a firm is inactive license which desires to have the license set to active…..they must submit a request.
Upon submission the firm may engage in brokerage activities ….however if the firms qualifying broker does not receive written notice in….. Days, other must immediately terminate its brokerage activities.

A

30 days.

228
Q

What are the pre-closing tasks?

A

Selecting a closing attorney
Providing a copy of the sales contract and planned settlement date to the closing attorney
Provide advice to the buyer client or buyer customer as to possible loan source and information they will need seeking a loan per qualification and making loan applications

229
Q

In the NC good Funds settlement Act…..

A

There is no disbursement of funds to the seller, real estate broker or others at the settlement meeting.
The attorney is to verify all funds are paid to the settlement agent prior to recordation of deed and deed of trust.
The deed and deed of trust must be recorded prior to dispersing any funds to the parties.

230
Q

Minimum height under ductwork must be….

A

6’4” with at let half the room a minimum of 7 feet to be counted a s heated living area.(HLA)

231
Q

Machinery act of North Carolina set standards for real property taxation…. True or false

A

True

232
Q

Tax liens attaches to real property on?

A

January 1st

233
Q

Real property that I to be taxed must be listed on….?

A

1st day of January

234
Q

Taxes are due and payable?

A

September 1st.

235
Q

Counties and local municipalities operate on a fiscal year….which runs from?

A

July 1st to June 30

236
Q

Is excise tax due on property gifted?

A

No

237
Q

Excise tax is $1.00 per $500 in value and rounds up to whole dollar amount? True or false

A

True

238
Q

The seller is required to pay the excise tax? True or false

A

True

239
Q

The excise tax is a

So called?

A

Revenue stamps…is affixed to the deed as proof the tax was paid

240
Q

Broker must report address change to NCREC with in?

A

10 days

241
Q

Broker must report conviction to NCREC by ?

A

60days of the conviction

242
Q

A provisional broker must have the firms name ?

A

in all advertisement

243
Q

All license expire?

A

June 1st

244
Q

Wen license expire and you pay the annual fee…..

A

A new card will be issued.

245
Q

Can a provisional broker set up a corporation?

A

No…. Provisional broker ha to work under a BIC

246
Q

Can a provisional broker work for a new firm as a commercial agent and continue working for a old firm as a residential agent?

A

As long as both BIC’s notify the NCREC

247
Q

Any entity which converts to a different business entity may do so and not apply for a new license but must notify NCREC within?

A

10 day and pay appropriate fees.

248
Q

Nine members
3 which must be licensed
2 which must not?

A

Seven appointed by the governor
1 by the house
1 by the senate

249
Q

What does the NCREC do?

A

Entitled to the services of Attorney General of North Carolina
Not make rules on commission salaries or fees to be charged by licensee
Make rules to allow the licensee to pay unlicensed travel agent a referral fee
Must make rules and by laws that are not inconsistent with the provisions of this chapter and the general statues

250
Q

Do listing agreements automatically renew?

A

No….

251
Q

Does management agreement automatically renew?

A

Yes so long as a owner can terminate with notice.

252
Q

Management agreement shall be in writing from?

A

From inception

253
Q

Buyer agency must be express Ed and may be oral but must be reduced to writing before ?

A

Time of offer

254
Q

An agreement to shared compensation with non resident commercial licensee must be in?

A

In writing

255
Q

A non resident licensee may advertise in NC but must indicate in the advertisement ?

A

Limited Non Residential Commercial Real Estate Broker

256
Q

When it comes to monies with non residential licensee….?

A

All monies need to flow through the firm.

257
Q

Non resident commercial licensee may affiliate with more than one NC broker but only one resident North Carolina Broker ???

A

In a single transaction

258
Q

If a developer fails to give a pubic offer statement ….

A

The developer has to pay 10% of the sales price….not to exceed $3,000

259
Q

Timeshare means a right to occupy a unit or any of the several unit during…..?

A

5 or more separate periods

260
Q

When two by four stud goes from the ground floor all the way through the second floor it is known as?

A

Balloon framing

261
Q

A gusset plate attaches the roof truss to the?

A

Ceiling joint

262
Q

Piers are used in homes with crawl space to support the floor joist between the?

A

Foundation walls

263
Q

Which roof is closest to a barn roof?

A

Gambrel

264
Q

Building codes at in the supervision of?

A

North Carolina department of Insurance

265
Q

In North Carolina, building that cost more than ……must obtain a general contractor’s license

A

$30,000

266
Q

What is a yield spread premium?

A

A premium paid to the mortgage broker by the lender

267
Q

RESPA is administered by the?

A

FFHA

268
Q

What Kinds of loans are covered under RESPA ?

A

Loans made by lenders insured, regulated or guaranteed by the federal government…sold in secondary market.
Loans for Residential 1 to 4 family dwelling.
Loans for manufactured homes that will be constructed or placed on real property within two years of settlement
Property under 25 acres.

269
Q

According to RESPA …good faith estimate allow for charges to vary depending on what they are used for…..

A

Certain fees must match HUD 1
The total certain fees expenses at settlement may not exceed the total estimated costs on the GFE by more than 10%
Certain number may be different on the final HUD 1

270
Q

The primary purpose for GFE?

A

Provide an accurate estimate of settlement cost to the borrower

Real Estate (5 decks)

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