Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Test Questions - AW > Test Questions - AW > Flashcards

Test Questions - AW Flashcards

1
Q

When should the Working With Real Estate Agency brochure be used?

A

At first substantial contact - when the customer shares personal, financial, motivational information. It turns the conversation from “what” to “why”.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What lien takes priority over others?

A

Real Property Taxation “ad valorem” (according to value).

**Unless - in the event of a foreclosure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do you do when you suspect an encroachment on your property?

A

Talk to your neighbor and get a survey.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

General rules of Dual Agency Disclosure?

A

Must be in writing.
Must be at the formation of a relationship.
Consent should be obtained BEFORE showing a property your firm has listed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How is out-of-state compensation handled?

A

Commission is handled firm to firm, not between licensees. Referrals across state lines are permitted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the advertising rules in NC?

A

*Yard signs require seller permission.
BIC/firm must approve.
Must include name or firm.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 3 D’s of Disclosure? What does a disclosure agreement need to accomplish?

A

Disclose. Discuss. Decide.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What documents are required to be in writing under the Conner Act? What type of document is NOT included in the Conner Act but is covered under the NC Statue of Frauds?

A

DREAMOIL - Deeds, Restrictive Covenants, Easements, Assignments, Mortgages, Options, Installment Land Contracts, Leases 3+ years.

Sales/Purchase Contracts are not covered by Conner Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What must be included on the License Pocket Card?

A
  • Must be signed & contain license #, expiration date and license type.
  • Is a DEMAND DOCUMENT.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the 4 license statuses?

A

Provisional.
Broker.
BIC Eligible.
BIC.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the difference between what the NCREC rules cover vs. the Statute of Frauds?

A

NCREC rules cover agency agreements (must be in writing).

Statute of Frauds covers DREAMOILS (not Agency)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the penalties for violating the Do Not Call rules and who enforces them?

A

The FTC (Federal Trade Commission) enforces fines federally for $11,000 per call.

NC govt fines $500 for first violation, $1,000 for second, $5,000 after that.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the exceptions to the Do Not Call rules?

A

**People you did business with in the last 18 months.
Charities, Campaigns, Collections Agencies.
When responding to an inquiry from the last 90 days.
FSBO if you have a bona fide buyer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How often must you re-check the Do Not Call registry?

A

Every 31 (thirty-one, not thirty), days.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who would be considered an Incompetent Party in a contract? Are they bound to an agreement?

A

Minors (under 18) and those lacking Mental Capacity (drunk, high, disabled, under duress).

Contracts are voidable by incompetent party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How long can brokers hold onto offers before sharing them with their seller clients?

A

They must share them IMMEDIATELY, but never longer than 3 days, even if already under contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How does the death of a licensee impact a licensing agreement?

A

No impact, because the agency is with the firm, not the individual licensee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What type of listing agreement guarantees commission for a sold home? What is the most common type of listing agreement?

A

Exclusive Right to Sell.

It is the most common.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who pays the Excise Tax and how is it calculated?

A

Seller at time of sale.
Round up to nearest $500 and divide by $500.
Not on gift deeds.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is Color of Title?

A

Reasonable belief of ownership of a property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the period of time of Adverse Possession in NC?

A

7 years with Color of Title, 20 years without it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the purpose of a deed?

A

A deed is a conveyance document. It conveys real property from one party to another.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Who is exempt from providing the Mineral, Oil and Gas disclosure?

A
  • **Vacant lots.
  • *New home construction must provide it.
  • Buyer must get PRIOR TO OFFER.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the process of enforcing Eminent Domain?

A

Condemnation.

Condemnation is the process, Eminent Domain is the right.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What must be present in every contract to be valid and enforceable?

A

CONSIDERATION - anything of value offered as inducement to contract.

Earnest Money and Due Diligence funds are NOT considered consideration.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are Latent Defects? Does seller/broker have to disclose them?

A

Hidden defects. Don’t have to be disclosed unless known or reasonably should have known.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is the difference between Easements and Licenses?

A

Easements are permanent, Licenses are temporary.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What Act usually requires notarization prior to a recording?

A

NC Conner Act (DREAMOIL)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What does the Sherman Anti-Trust Act prevent?

A

Unfair competitive practices.

*Prohibits Price Fixing (“usual/average commission”)

Prohibits Boycotting - doing business with other firms based on their commission rates.

Prohibits Market Allocation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is the seller’s sole remedy in the event of a buyer’s breach?

A

Earnest Money (“Liquidated Damages”) and Due Diligence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the rules for a licensee/firm selling their own property?

A

Can NEVER represent the buyer.
Cannot engage in dual agency.
Must disclose ownership and license, as they are under “higher standard”.
Must treat buyer as a customer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Does compensation create agency?

A

NO. Agency contracts create agency, NOT payments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is the difference between Executory Contracts and Executed Contracts?

A

Executory contracts have not been fully performed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What properties are exempt from the NC Residential Property Disclosure Act?

A

**First sale of an uninhabited dwelling (new construction).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Difference between Willful and Negligent mistake?

A

Intentional vs. “Below required standard of care”.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What properties does the Residential Property + Owners Association Disclosure Statement (RPOADS) apply to?

A

RESIDENTIAL (1-4 units)

Agents should NOT complete the form, but can advise and assist the seller.

Must be provided to buyer BEFORE the offer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What terminates agency?

A

**Death of property or party (firm included).

Also terminated through completion, expired term, mutual agreement or breach.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is self-dealing?

A

Failing to disclose profits from a sale. It violates conflict of interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What are the Fiduciary Duties of a broker?

A

OLDCAR.

Obedience. Loyalty. Disclosure. Confidenciality. Accounting. Reasonable Skill/Care.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What is a Provisional Broker’s status when first licensed?

A

Inactive until affiliated with a BIC (one at a time) and that BIC has notified the NCREC.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

How long does a BIC have to report a termination of a broker?

A

10 days.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What must a licensee include on all contracts and disclosures?

A

License #

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What is Marketable Title? Who confirms/reports it?

A

States Title is free of claims, liens, defects.

Documented via Attorney opinion.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What is Reversionary Interest?

A

When the interest in a property returns to the Grantor.

If it goes to anyone else, it is Remainder Interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What type of ownership does not favor right of survivorship?

A

NC Joint Tenancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What type of ownership does not require equal shares?

A

Tenancy in Common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

How do you determine the capacity of Septic Systems for a home?

A

Number of permitted BEDROOMS (2 persons per bedroom).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Is Straight Piping legal in NC?

A

No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What test determines soil suitability?

A

PERC Test.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What are the 4 essential elements of a valid contract?

A
  1. Mutual agreement
  2. Competent Parties
  3. Consideration
  4. Legal Purpose
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

How long can a Listing Agreement be oral?

A

Never. Listing agreements must be in writing at time agreement is made.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

What is the rescission period for Interstate Land Sales?

A

7 days.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

NC Condo Act of 1986 first sales vs. resales.

A

New Sales - Must include public offering statement.
- 7 day right of rescission.

Resale - Owner provides Resale Certificate.

        - No right of rescission.
        - No public offering.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What are the duties of a licensee to the principal?

A

Deliver written agency within 3 calendar days.

**Disclose payments from 3rd party (conflicts of interest).

Disclose material facts, account for funds in trust account, be honest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

When is Title Insurance paid and who does it not cover?

                *One of most missed questions!*
A

Paid one time at closing. Does not cover the seller.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What does Exclusive Buyer Agency mean?

A

Buyer employs ONE firm (must be in writing before first offer).

Needs specific terms (dates).

Broker is paid no matter what buyer purchases.

Similar to Exclusive Right to Sell listing agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

What is Chain of Title and what period of time does it cover?

A

All conveyances (recorded deeds) affecting title over last 30-60 years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

How many days to record sale(?) of Time Share?

A

45 days.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Do Time Shares need to be registered with the commission before sale?

A

Yes. 45 days to be recorded.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

What is Procuring Cause?

A

Unbroken chain of events that caused a sale to happen.

Need to have written contract in NC.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

What is the statutory use period for Easement by Prescription?

A

20 years statutory use. OCEAN.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

What are examples of National Contract Remedies?

A
  1. ***Specific Performance.
  2. Compensatory.
  3. Consequential.
  4. Liquidated Damages.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

How long must be Time Share Records be kept?

A

3 years.

Must hold ? for 10 days.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What must Commercial Real Estate Ads mention?

A

Must disclose “Limited Commercial Broker” in the ad.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

What is an Abstract? Who prepares it?

A

Summary of all documents in a title search prepared by NC attorneys.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Early Term fees in an agency agreement must be…

A

Clear & Conspicuous.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Is an accepted contract binding if a party dies?

A

Yes, but only once accepted.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Can an inactive licensee earn or receive payments?

A

Can Receive payment for services performed while active/expired, but cannot Earn new payments until active.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Who can the NCREC fine? How much?

A

Timeshare Developers only. $500 per violation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

When can you convey/sell property within a subdivision (new construction).

A

Only AFTER final plat approval.

Otherwise it is a misdemeanor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

What is a Pure Race State?

A

1 lien is property taxes.

First to record lien gets paid first.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

What if a seller fails to provide RPOADS disclosure to buyer?

A

Buyer has 3 day walk away period.

Loses this right after occupancy or settlement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Are General Liens voluntary or involuntary?

A

Always INVOLUNTARY.

Against real estate - income taxes, judgements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

What are common examples of General Liens?

A

Income taxes and Judgments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

What are some NC Agency Agreement requirements?

A

Must BE IN WRITING.

Must include license numbers.

Must have set terms (start/end dates).

Must contain non-discriminatory provision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Out-of-State Brokers cannot…

A

They cannot enter a state where they are not licensed to do real estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

What is unique about a Sole Proprietorship?

A

NOT a formal identity.

Taxed as regular income.

No shelter/office space.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Which type of business identity has the MOST LIABILITY?

A

General Partnership - even more liability than sole proprietorship.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

What is the role of NCREC in contracts rules?

A

NCREC DOES NOT: Create contracts, Provide Forms, Approve Contracts.

NCREC DOES: Create rules about provisions (non-discrimination), Prescribe 19 essential elements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Three important forms created by the NCREC:

A
  1. WWREA - agency disclosure
  2. RPOADS - material disclosures
  3. MOG - mineral disclosures
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

A Purchase Contract serves as a ….

A

Conveyance Document

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

How long can a settlement be delayed without a breach?

A

A settlement can be delayed up to 7 days without a breach.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

What are the seller’s remedies if a buyer breaches?

A

Forfeiture of DDF & EMD.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

How many days to transfer Earnest Money to closing attorney?

A

10 days.

Transfer to closing attorney no more than 10 days prior to settlement for buyer credit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Are Multiple Offers a material fact?

A

NO.

But that can be disclosed with seller’s permission. Details can be shared with each buyer’s permission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

When does the recording of the deed take place?

A

At CLOSING.

Closing and Settlement may not happen on the same day.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Land Installment Contracts require recording within…

A

Seller/Vendor must record in 5 days.

Buyer/Vendee must be given 30 days to cure default prior to forfeiture of interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

In an Amortized Loan, payments go to:

A

Principal and Interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

What is Usury?

A

Charging more than the lawful rate of interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

What do lenders base LTV rate on?

A

Lenders base LTV on sales price or appraised value, whichever is LESS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

Borrower has interest rate of 6.5%. Their loan is $78,000. How much interest will they pay in 6 months?

A

$78,000 x 0.065 = $5070

$5070/12 months = $2535.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

A property was listed for $245,000 and sold for 8% less than list price. The seller was paying 6.5% commission. Listing required listing firm to pay 50% to the selling firm. If the listing agent was paid 60% of the firm’s commission and brokerage retained 40%, how much was the listing agent paid?

A

$245,000 x .92 = $225,400.

$225,400 x .065 = $14,651.

$14,651 / 2 = $7,325.50.

$7,325.50 x .60 = $4,395.30.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Property that was listed for $192,000 is being purchased by a buyer in amount of $185,000. The appraisal determined value of the property was $190,000. If the lender provides the buyer a loan of 90% LTV, what is the amount of the borrower’s loan?

A

$185,000 x .90 = $166,500.

Use lower of sales price and appraisal amount.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

The original loan was $80,000. Monthly principle and interest payment is $890 for this 20 years loan with a 9% interest. What is the total amount of interest paid over 20 years?

A

20 years x 12 months = 240 months.

240 months x $890 = $213,600.

$213,600 - $80,000 = $133,600.

pg. 282

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

What are the 3 C’s of Credit needed to qualify for a loan?

A
  1. Credit
  2. Capacity
  3. Collateral
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

What is the Acceleration Clause?

A

When the borrower is required to BRING ALL MONEY NOW to avoid DEFAULT.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

Acceleration vs. Alienation

A

BRING ALL MONEY NOW in event of default (acceleration) vs. event of sale (alienation). Alienation is voluntary.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

What is the difference between a Promissory Note and Mortgage/Deed of Trust?

A

Promissory Note - covers money (rate, amount)

Mortgage - covers secured property

pg. 306

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

Three parties in a Deed of Trust

A
  1. Trustor/Borrower
  2. Beneficiary/Bank
  3. Trustee/3rd Party - applies lien, gives deed of conveyance.

pg. 308

100
Q

What is an FHA appraisal called?

A

Conditional Commitment

101
Q

What is the FHA Escape Clause?

A

Buyer can get their Earnest Money back, but not their Due Diligence Fees.

102
Q

A property was listed for $750,000. The property produces $90,000 in income and has expenses of $30,000. What is the Cap Rate?

A

$90,000 - $30,000 = $60,000.

$60,000/$750,000 = .08 = 8%

103
Q

Who issues VA loans?

A

***LOCAL banks.

VA loans are guaranteed and are 100% loan value.

104
Q

How is property value verified in a VA loan?

A

CRV - Certificate of Reasonable Value

VA’s version of “conditional commitment (FHA)” or appraisal.

105
Q

How many acres are contained in the following? The SW1/4 of the NW1/4 of the NW1/4 of a rectangular section as measured under the government rectangular system?

A
106
Q

A firm is charging a 6% commission. The property is listed for $820,000 and sold for 10% less. Listing form is offering 50/50 split. How much will the buyers agent earn if they are on a 70% split with their broker?

A
107
Q

Residential lot is 385 feet wide and 120 feet deep. How many acres does the lot contain?

A

385 x 120 = 46,200

1 acre is 43560

46,200/43,560 = 1.06 acres

108
Q

What is the most common home owners policy?

A

HO-3

109
Q

Which HO policy covers the most risk?

A

HO-3 also most popular

110
Q

Does Land Value appreciate or depreciate?

A

Never depreciates.

111
Q

Which appraisal approach uses Depreciation?

A

Cost Approach

  • Used for non-income producing properties and new construction.
112
Q

Sales Comparison Approach Adjustments are made to Subject or Comp property?

A

Comparable property.

113
Q

What types of homes can be used as Comparable property for appraisal?

A

Similar homes sold in last 6 months.

114
Q

What is Market Value?

A

What a willing buyer will pay and willing seller will accept.

115
Q

What is Blockbusting?

A

Directing people to move out of a neighborhood due to protected class demographics.

Applies to sellers.

116
Q

What is Steering?

A

Directing people towards or away from a neighborhood based on ethnic or racial makeup.

Applies to buyers.

117
Q

What is Redlining?

A

Changing loan terms and conditions based on ethnic or racial makeup.

118
Q

RESPA applies to….

A

1-4 RESIDENTIAL properties. Not vacant land or commercial.

119
Q

When should the borrowers closing disclosure be received?

A

Must be received by the borrower 3 days before closing.

120
Q

What does the ECOA cover?

A

Covers LENDEES based on race, color, religion, national origin and sex.

Adds: Age, Marital Status and Public assistance.

121
Q

When does the Loan Estimate Disclosure need to be given?

A

Within 3 days of loan application.

Broker is not liable for accuracy.

122
Q

What are Advertising Trigger Terms?

A

Any mention of finance terms requires APR disclosure.

APR is NOT a trigger term.

123
Q

What does the CFPB (Consumer Financial Protection Bureau) cover?

A

They enforce Regulation Z (TILA), which regulates true cost of credit)

124
Q

What is the difference between Primary and Secondary Mortgage Market?

A

Primary works directly with consumers.

secondary purchases loans from Primary. Freddie Mac, Fannie, Ginnie, Farmer.

125
Q

What is the Federal Funds Rate?

A

Recommends

rates banks charge each other.

126
Q

What is a Discount Rate?

A

Rate charges by FED when it lends to BANKS.

127
Q

What type of loan covers more than one property?

A

Blanket Loans

128
Q

What type of loan includes no deficiency judgment in NC for seller financing?

A

Purchase Money Loans

129
Q

What does the Blue Water Act of 2020 include?

A

No loan limits.

veterans must still qualify.

130
Q

What is a Demise?

A

Another word for Lease.

131
Q

Who is excluded from Fair Housing?

A

Rentals 1-4 units owner/occupied.

Dwellings for religious organizations.

Private clubs.

132
Q

NC Residential Rental Act applies to…

A

1-4 DWELLING units that charge rent.

Not land, commercial, or businesses.

133
Q

Tenant’s agreement to rent property “As Is”….

A

Does NOT relieve owner from liability.

134
Q

What is a disability?

A

Any physical or mental impairment which substantially limits a person’s abilities or daily activities.

135
Q

Who replaces the batteries in a detector in a rental?

A

The Tenant.

Initially installed by owner (10 year batteries).

136
Q

What is Constructive Eviction?

A

Tenant leaves due to Landlord Breach (failure to maintain health and safety).

137
Q

How long do you hold personal property after an eviction?

A

7 days if over $500 of value.

5 days if under $500 of value.

138
Q

Does lease terminate when a rental home is sold?

A

No, new owner must honor existing lease.

139
Q

What are the maximum amounts of deposit that a landlord can charge?

A

Weekly leases: 2 week deposit

Monthly leases: 1.5 month deposit.

Longer: 2 month deposit.

140
Q

Only non-licenses who can receive a referral fee?

A

Travel Agent for vacation rental referrals.

141
Q

What is the Vacation Rental Property time period?

A

Any period LESS than 90 days and must be in writing.

142
Q

What is the time period for a Vacation Rental Expedited Eviction?

A

Requires 4 hour notice prior to eviction.

143
Q

What is Periodic Tenancy?

A

Initial agreement is for a specific period and automatically renews with payment.

144
Q

What is the termination notice requirement for Periodic Tenancy?

A

Weekly Lease - 2 days notice.

Monthly Lease - 7 days notice.

Year Lease - 1 month notice.

145
Q

What is a Fixed Rent Lease?

A

Most common - typical residential lease.

Landlord pays all taxes, insurance, etc.

146
Q

Does death terminate a lease?

A

No

147
Q

Do you need a license to manage your own property or an HOA?

A

No

148
Q

What can property management assistants do/not do?

A

Can - show property, collect rent, fill in blanks

Cannot - Negotiate, receive commission, give advice.

149
Q

What is not included in a property management budget operating expense?

A

Debt Service

150
Q

Is familiar status covered under Fair Housing?

A

Yes, you cannot refuse to rent to families with children under age of 18.

151
Q

What size companies do ADA hiring practices apply to?

A

Companies with 15 or more employees.

152
Q

When must a Provisional Broker deliver money and to whom?

A

Immediately to BIC.

153
Q

When does Earnest Money need to be deposited into a trust by the BIC?

A

Within 3 BUSINESS/BANKING days of receipt.

With sales contracts, 3 days of acceptance.

154
Q

Is Age covered by Fair Housing?

A

NO

155
Q

What 3rd party checks can a licensee accept?

A

ONLY Due Diligence and Earnest Money.

Cannot accept: inspection payments, survey payments.

156
Q

Mailbox Rule only applies to…

A

Acceptance of a contract, not revocation.

157
Q

In the event of a dispute once money is in a trust account, what happens with it?

A

Must be held for 90 days in county where the property is located.

158
Q

When must a broker transfer money out of trusts to closing attorney?

A

No more than 10 days PRIOR to settlement.

159
Q

Are FSBO exempted from NC Fair Housing Act?

A

No

Only owner-occupied rentals are exempted and single-sex dorms.

160
Q

What is commingling and what is an exception to it?

A

Mixing your money with others’.

Broker allowed up to $100 to cover bank charges.

161
Q

All of the following could result in a disciplinary action from the NCREC accept…

A

Attempting to complete all post licensing courses in one year.

162
Q

Is compensation an indicator of agency representation?

A

No

163
Q

When is the Closing Disclosure considered received if by mail?

A

If mailed, 3 days after delivery.

If in person, it is received on same day it was provided.

164
Q

In order to be exempt from capital gains tax, how long must you occupy the home?

A

2 out of the last 5 years.

165
Q

What is the impact of Fair Housing violations?

A

Disciplinary Action against licensee.

Can be both civil AND criminal.

166
Q

Most insurance policies void if….

A

The owner moves out or home remains vacant.

Always recommend an attorney and insurance agent.

167
Q

A seller should keep a property insured until…

A

Recordation (closing).

168
Q

How long does a landlord have to return a security deposit?

A

Within 30 days, 60 days if needed.

169
Q

How long to return deposits under the NC Vacation Rental Act?

A

45 days.

170
Q

What is an Estate of Sufferance?

A

When a person stayed over time

171
Q

What are types of Non-Freehold Estates?

A
  1. Estate for Years
  2. Periodic Tenancy
  3. Estate at Will
  4. Estate at Sufferance
172
Q

What is an Estate for Years?

A

For a certain date (not actual years).

Does NOT automatically renew.

Ex. Wedding Venue

173
Q

What is Tenancy at Will?

A

Usually guests on a property that can be terminated at anytime without notice.

Ex. Girl Scouts at grocery store.

174
Q

What is a Net Lease?

A

Tenant may pay maintenance, taxes, insurance.

175
Q

What is an Absolute Net Lease?

A

Tenant pays everything - maintenance, taxes, insurance.

176
Q

Are marital status and age covered under Fair Housing?

A

No

Covered under ECOA

177
Q

What is covered under Fair Housing?

A

FReSH CoRN

Familial Status
Race
Sex (gender)
Handicapped
Color
Religion
National Origin
178
Q

What terminates an offer?

A
  1. Expired
  2. Death or insanity of offerOR
  3. Revoking offer before accepted.
  4. Reasonable time passes without acceptance.
  5. Failure of offerEE to comply.
  6. Expiration of power of attorney.
  7. Acceptance of offer.

*Binding even in death AFTER acceptance.

179
Q

How do you count days when dealing with Interim Interest?

A

Count day of closing and remaining days in month. Assume 30 days in month for exam.

180
Q

Who may perform BPO/CMA for a fee?

A

Only a full broker.

Remember they are not “estimates”, but “probable”.

181
Q

What is the formula for determining Cap Rate? “How do you determine value if cap rate is X and NOI is Y?”

A

Value = NOI / Rate

182
Q

What is the lowest part of construction?

A

Footing (like your body!)

183
Q

What is the highest part of construction?

A

Ridge board.

184
Q

All of the following would be part of roofing construction EXCEPT:

A

Muntins & Mullions - they are part of window construction.

185
Q

What are the components of an Eave?

A
  1. Soffit
  2. Fascia
  3. Frieze Board
186
Q

Who enforces the NC Uniform Building code?

A

Local jurisdictions enforce, state creates.

187
Q

What can a homeowner deduct from annual taxes?

A

Interest in their home loan, real estate taxes.

188
Q

The depreciation that is allowable on an investment property as a tax deduction is:

A

Straight Line Depreciation.

189
Q

What is the required height of a ceiling to count as living area?

A

7 feet, or 6’4 if there is ductwork.

190
Q

When measuring square footage of a home, what do you rely on?

A

Exterior measurements. If interior, add 6inches.

191
Q

How do you measure stairways on multiple level homes?

A

Include stairs as part of first AND second floors.

192
Q

What kind of document transfers possession without transferring ownership?

A

Lease

193
Q

If the annual property tax bill is $1450 and tax rate is $1.85, what is the properties assessed value?

A

$78,378

1450/1.85 x 100.

194
Q

What kind of personal property becomes real property once attached to real property?

A

Fixture.

195
Q

Licensee is listing property and wants commission regardless of who actually finds buyer. What kind of listing?

A

Exclusive Right to Sell

196
Q

RE professionals are prohibited from engaging in what practice that would be a violation of the federal antitrust law?

A

Price fixing.

Boycotting.

Market allocation.

197
Q

What description of commercial property represents an example of economic obsolescence?

A

Numerous vacant and abandoned structures in the area.

198
Q

An advertisement with the following statement would violate TILA/Reg Z:

A

House available with a monthly PITI payment of $995.

Why? Didn’t mention APR.

199
Q

Kahoot! Q:

Which of the following is incorrect according to NCREC square footage guidelines?

A

Ceiling height of second floor must be 6’4.

200
Q

The NC broker pocket card:

A

Is a demand document.

201
Q

What is the status of a provisional brokers license if not renewed by June 30th?

A

Expired.

202
Q

What is the relationship between leverage and risk?

A

Leverage and risk are proportional.

Higher leverage = higher risk.

203
Q

The formula for before-tax cash flow:

A

NOI - Debt Service

204
Q

A borrower obtaining a construction loan would most likely be getting a:

A

Term loan.

205
Q

Two parties enter a demise agreement. Which of the following would terminate without further liability to the parties?

A

Mutual or bilateral decision.

206
Q

Licensed property managers are engaged in all of the following except:

A

Refusing offers to purchase the property.

207
Q

The final action taken by an appraiser in determining the value of property is called:

A

Reconciliation

208
Q

When obtaining a loan, the lender takes what into account?

A

Lenders utilize the gross income and long term recurring debt.

209
Q

A loan where the term of the loan is shorter than the amortized period would result in:

A

A balloon payment.

210
Q

What are considered securitizing documents or collateral agreements?

A

Deeds of Trust and Mortgages.

211
Q

Which of the following is correct regarding an option to purchase?

A

The option is enforceable by the optionee.

Option: only one party is liable.

212
Q

What act provides that a consumer can see a copy of their credit report once a year?

A

FCRA - Fair Credit Reporting Act

213
Q

When a trust deed is paid off, the borrower will receive a deed of conveyance from which party?

A

Trustee.

214
Q

Actual question:

What is not required of the RESPA?

A

Actually answer:

Disclosure of the APR

215
Q

A borrower is purchasing a home for a sales price of $178,000. The house appraised for $185,000 and the borrower gets a loan for 80%. If the lender requires. 1% origination fee and a 1% discount fee, how much is due to cover these at closing?

A

$2848

Exam might ask for cost of “lowering loan”. That would be just the 1% and exclude origination fee.

216
Q

What type of agency most likely to apply for broker listing a property for an owner?

A

Special Agency

217
Q

In NC, fair housing complaints are referred by HUD to:

A

NC Human Relations Commission

218
Q

Actual Question:

What is the best definition of a listing agreement?

A

Agreement hiring a firm to assist seller in finding ready, willing and able buyer.

219
Q

Which type of ownership is “4 unities”?

A

Joint Tenancy

220
Q

According to the common law of agency, a sub agent has what duty to the broker’s principal?

A

Be loyal to broker’s principal.

221
Q

The term redlining is an illegal action within what real estate practice?

A

Mortgage lending.

222
Q

Kahoot! test Question:

The Civil Rights Act of 1866…

A

Provided no exception to illegality of racial discrimination in housing.

223
Q

The FNMA is purchased on the primary or secondary mortgage market?

A

On the secondary mortgage market.

224
Q

Actual Question:

The Promissory Note does not need to include:

“All of the following EXCEPT”

A

The address.

225
Q

Primary purpose of Statute of Frauds is to:

A

Prevent perjury and fraud in fictitious oral contracts.

226
Q

FHA loans are funded by:

A

Local, primary lenders.

227
Q

What is the name of the document that entitles a vet to VA loan financing?

A

Certificate of Eligibility

228
Q

How do you find area of a triangle?

A

Length x width (base x height)

Divided by 2.

229
Q

Circle Question:

Loan Amount X Rate =

A

Annual Interest

230
Q

When co-tenants cannot agree to voluntarily terminate their co-ownership, a ___ can be filed to dissolve the relationship.

A

Suit for Partition

231
Q

What kind of deed offers covenant of seizen?

A

Bargain and Sale Deed

232
Q

What is a gift of personal property by will?

A

Bequest.

233
Q

What are the APR Trigger Terms?

A

Payment, down payment, interest rate, monthly payments

234
Q

How long does a developer of a timeshare have to refund a buyers money on the event of a cancellation?

A

30 days.

Buyer has 5 days to cancel.

235
Q

When an owner of real property sells land but retains mineral rights, they are creating?

A

A reservation and exception that must appear in a deed.

236
Q

Who holds equitable title and who holds legal title regarding a property where a promissory note is secured by a deed of trust?

A

Trustor holds Equitable title, trustee holds Legal title.

237
Q

In appraisal using Cost Approach, which type of property would it apply to?

A

Municipal building.

238
Q

With a purchase money mortgage, how does it appear on a closing disclosure?

A

Credit BUYER, debit SELLER.

239
Q

Does the North Carolina Good Funds Act require attorneys and settlement agents to disperse funds at Recording or Settlement?

A

Disperse funds at Recording.

240
Q

A loan in which the lender makes regular periodic payments to the borrowers is:

A

Reverse Annuity Mortgage

241
Q

In a contract for deed, a legal title to the property is retained by the:

A

VENDOR

242
Q

What is Right of First Refusal?

A

I get to buy if you decide to sell. Unilateral contract - owner is not obligated to sell.

243
Q

What type of loan is Interest Only?

A

Straight Loan.

244
Q

What is the most secure loan?

A

Conventional Conforming Loan

245
Q

PMI is required on conventional loans with how much LTV?

A

Required on loans of 80% LTV.

246
Q

What insurance policy covers condominiums?

A

HO-6

247
Q

VA loans are insured or guaranteed?

A

VA “guaranteed” loans

Test Questions - AW (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions