NC 302 POST LICENSING (EXAMS OF REAL ESTATE
MANAGEMENT) PRACTICE QUESTIONS WITH
CORRECT ANSWERS
DREAM OILS (Statute of Frauds) --CORRECT ANSWER--Deeds
Restrictive covenants
Easements
Assignments
Mortgages
Options
Installment Land Contracts
Leases - longer than 3 years
Sales Contracts
Offer & Acceptance --CORRECT ANSWER--Seller (OfferEE) & Buyer
(OfferOR) -- ORs GIVE, EEs RECEIVE
OfferOR may revoke or withdraw the offer anytime prior to acceptance
OfferEE can accept, reject or counter -- and when they counter, they are now
the offerEE
This counter offer VOIDS original offer
All offers must be communicated
Deliver all offers immediately but never later than 3 days
Page 1 of 53
,Retention of Records 58A.108 --CORRECT ANSWER--A broker must provide
copies of transaction documents:
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
- Within 3 days
- Keep records for 3 years after
Closing
Termination of Agency
Disbursement of Trust Monies
WHICHEVER OCCURS LAST
Brokers and BIC are responsible for keeping records in a transaction
These are CALENDAR days, not business days
You don't count the day it was executed/received (if received Tuesday, have to
upload by Friday)
Buyer's Rights w/ an offer --CORRECT ANSWER--A buyer has the absolute
right of withdraw/revoke
Even if offer stated it would be held open longer
The withdraw must be communicated to the other party and/or their agent
An offer is terminated any time: --CORRECT ANSWER--Counter offer
Rejection by the offeree
Page 2 of 53
,Revocation by the offeror
Destruction of the property (Think hurricane)
Death or insanity of the offeror
Classifying contracts:
Express & Implied --CORRECT ANSWER--Express: Bilateral, executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral --CORRECT ANSWER--Bilateral - two promises (both
parties bound to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory --CORRECT ANSWER--Executed - All tasks
performed (After closing)
Page 3 of 53
, Executory - tasks remaining to be done (before closing)
Statute of Frauds --CORRECT ANSWER--Everything needs to be in writing
Agent Guidelines w/ offers --CORRECT ANSWER--A listing broker or agent
is required to respond in writing that an offer was submitted if the cooperating
broker who submitted the offer so requests
The listing broker or agent must respond in the affirmative unless the seller has
provided written notification waiving the obligation to have the offer presented
Agent has to present all offers all the way throughout the contract, up to closing
Creation of a counter offer --CORRECT ANSWER--Any change in an offer, no
matter how small creates a counter offer
Counter offer must be accepted and communicated to the other party to create a
contract
Proper use of From 340-T: NCAR Response to Buyer's Offer
A valid contract is formed when a contract is signed, delivered and
communicated --CORRECT ANSWER--"Communicating an offer or an
acceptance to a principal's agent is the same as communicating directly to the
principal"
Page 4 of 53
MANAGEMENT) PRACTICE QUESTIONS WITH
CORRECT ANSWERS
DREAM OILS (Statute of Frauds) --CORRECT ANSWER--Deeds
Restrictive covenants
Easements
Assignments
Mortgages
Options
Installment Land Contracts
Leases - longer than 3 years
Sales Contracts
Offer & Acceptance --CORRECT ANSWER--Seller (OfferEE) & Buyer
(OfferOR) -- ORs GIVE, EEs RECEIVE
OfferOR may revoke or withdraw the offer anytime prior to acceptance
OfferEE can accept, reject or counter -- and when they counter, they are now
the offerEE
This counter offer VOIDS original offer
All offers must be communicated
Deliver all offers immediately but never later than 3 days
Page 1 of 53
,Retention of Records 58A.108 --CORRECT ANSWER--A broker must provide
copies of transaction documents:
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
- Within 3 days
- Keep records for 3 years after
Closing
Termination of Agency
Disbursement of Trust Monies
WHICHEVER OCCURS LAST
Brokers and BIC are responsible for keeping records in a transaction
These are CALENDAR days, not business days
You don't count the day it was executed/received (if received Tuesday, have to
upload by Friday)
Buyer's Rights w/ an offer --CORRECT ANSWER--A buyer has the absolute
right of withdraw/revoke
Even if offer stated it would be held open longer
The withdraw must be communicated to the other party and/or their agent
An offer is terminated any time: --CORRECT ANSWER--Counter offer
Rejection by the offeree
Page 2 of 53
,Revocation by the offeror
Destruction of the property (Think hurricane)
Death or insanity of the offeror
Classifying contracts:
Express & Implied --CORRECT ANSWER--Express: Bilateral, executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral --CORRECT ANSWER--Bilateral - two promises (both
parties bound to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory --CORRECT ANSWER--Executed - All tasks
performed (After closing)
Page 3 of 53
, Executory - tasks remaining to be done (before closing)
Statute of Frauds --CORRECT ANSWER--Everything needs to be in writing
Agent Guidelines w/ offers --CORRECT ANSWER--A listing broker or agent
is required to respond in writing that an offer was submitted if the cooperating
broker who submitted the offer so requests
The listing broker or agent must respond in the affirmative unless the seller has
provided written notification waiving the obligation to have the offer presented
Agent has to present all offers all the way throughout the contract, up to closing
Creation of a counter offer --CORRECT ANSWER--Any change in an offer, no
matter how small creates a counter offer
Counter offer must be accepted and communicated to the other party to create a
contract
Proper use of From 340-T: NCAR Response to Buyer's Offer
A valid contract is formed when a contract is signed, delivered and
communicated --CORRECT ANSWER--"Communicating an offer or an
acceptance to a principal's agent is the same as communicating directly to the
principal"
Page 4 of 53
