Real Estate U Final Exam 1 With Full
Set Answers Correct
Which of the following are tax-deductible expenses resulting from home
ownership? - Ans--Mortgage interest and property taxes
Which of the following is true regarding the $500,000 exemption, in the sale
of a personal residence, for a married couple filing jointly? - Ans--A married
couple can use the $500,000 joint exemption if only one meets the
ownership requirement,
but BOTH meet the occupancy requirement
A homeowner in NC had constructed a three-bedroom house with two full
baths in a rural area that necessitated the installation of an on-site septic
system. It was properly permitted at that time. A few years later the
homeowner constructed a fourth bedroom, but no extra bathroom, in the
basement area. He did not obtain any permits at that time as he was
constructing the addition by himself. He now wants to list the property for
sale with a broker. What would be the maximum intended occupancy for this
house according to NC guidelines? - Ans--6
Chris is a real estate broker in NC. He lists a parcel of undeveloped land,
which is zoned for single-family residential use. Chris knows that this
property is about to be rezoned for multi-family residential use, which will
greatly increase the value of the property. Rather than informing the seller of
this fact, Chris offers to buy the property at the listed price, telling the seller
that he wants to acquire the property as a long-term investment. The deal
closes. Several months later, after the rezoning had been accomplished,
Chris sold the property for a $80,000 profit. The seller soon finds out about
the profit Chris has made. What can the seller do in this case? - Ans--Notify
the NCREC to impose disciplinary action
Which of the following is an example of a blind ad? - Ans--Just listed! Home
for sale. $250,000. Call Mary at (919)555-5555 for more information.
, A settlement meeting is usually conducted by a closing attorney. Who
typically recommends the closing attorney? - Ans--The buyer or the buyer's
lender
A firm license is NOT required for which of the following? - Ans--a sole
proprietorship
James is a broker in NC and is also licensed as an attorney. He is buying a
house and wants to rewrite part of the sales contract. Is James permitted to
do so? - Ans--Yes. Since James is also an attorney and the buyer, he is
permitted to rewrite parts of the contract.
Samantha is a newly licensed provisional broker in NC who passed the
licensing exam on July 12, 2021. In order to have her license remain on
"Active" status, when must she complete 8 hours of continuing education? -
Ans--By June 10 of 2023
Sam is a non-provisional broker whose license is on "Active" status though
he is not affiliated with a Broker in Charge (including himself). He is ONLY
paid referral fees as he refers all real estate activities to other brokers. He
maintains a public website where people can ask for information about the
value of their home and Sam refers all of these questions to other "Active"
brokers. Is Sam's website within the rules of the NCREC? - Ans--No
Mark is a licensed broker in NC who owns several investment properties,
which he rents out. He also provides property management services for a
number of other homeowners. Mark has a trust account in which he keeps all
of the funds for his property management business, including tenant
security deposits and monthly rent payments. In the trust account, he also
put three security deposits for his own properties. This is an example of: -
Ans--Commingling
John is a broker in North Carolina. He maintains a trust account for a recent
sales transaction. For how long does John maintain records of the trust
account after the transaction is closed? - Ans--3 years
Set Answers Correct
Which of the following are tax-deductible expenses resulting from home
ownership? - Ans--Mortgage interest and property taxes
Which of the following is true regarding the $500,000 exemption, in the sale
of a personal residence, for a married couple filing jointly? - Ans--A married
couple can use the $500,000 joint exemption if only one meets the
ownership requirement,
but BOTH meet the occupancy requirement
A homeowner in NC had constructed a three-bedroom house with two full
baths in a rural area that necessitated the installation of an on-site septic
system. It was properly permitted at that time. A few years later the
homeowner constructed a fourth bedroom, but no extra bathroom, in the
basement area. He did not obtain any permits at that time as he was
constructing the addition by himself. He now wants to list the property for
sale with a broker. What would be the maximum intended occupancy for this
house according to NC guidelines? - Ans--6
Chris is a real estate broker in NC. He lists a parcel of undeveloped land,
which is zoned for single-family residential use. Chris knows that this
property is about to be rezoned for multi-family residential use, which will
greatly increase the value of the property. Rather than informing the seller of
this fact, Chris offers to buy the property at the listed price, telling the seller
that he wants to acquire the property as a long-term investment. The deal
closes. Several months later, after the rezoning had been accomplished,
Chris sold the property for a $80,000 profit. The seller soon finds out about
the profit Chris has made. What can the seller do in this case? - Ans--Notify
the NCREC to impose disciplinary action
Which of the following is an example of a blind ad? - Ans--Just listed! Home
for sale. $250,000. Call Mary at (919)555-5555 for more information.
, A settlement meeting is usually conducted by a closing attorney. Who
typically recommends the closing attorney? - Ans--The buyer or the buyer's
lender
A firm license is NOT required for which of the following? - Ans--a sole
proprietorship
James is a broker in NC and is also licensed as an attorney. He is buying a
house and wants to rewrite part of the sales contract. Is James permitted to
do so? - Ans--Yes. Since James is also an attorney and the buyer, he is
permitted to rewrite parts of the contract.
Samantha is a newly licensed provisional broker in NC who passed the
licensing exam on July 12, 2021. In order to have her license remain on
"Active" status, when must she complete 8 hours of continuing education? -
Ans--By June 10 of 2023
Sam is a non-provisional broker whose license is on "Active" status though
he is not affiliated with a Broker in Charge (including himself). He is ONLY
paid referral fees as he refers all real estate activities to other brokers. He
maintains a public website where people can ask for information about the
value of their home and Sam refers all of these questions to other "Active"
brokers. Is Sam's website within the rules of the NCREC? - Ans--No
Mark is a licensed broker in NC who owns several investment properties,
which he rents out. He also provides property management services for a
number of other homeowners. Mark has a trust account in which he keeps all
of the funds for his property management business, including tenant
security deposits and monthly rent payments. In the trust account, he also
put three security deposits for his own properties. This is an example of: -
Ans--Commingling
John is a broker in North Carolina. He maintains a trust account for a recent
sales transaction. For how long does John maintain records of the trust
account after the transaction is closed? - Ans--3 years
