NC 302 Post Licensing Exam
Questions and Answers All
Correct
Brittany is in the process of buying Sam's Charlotte home. Brittany's agent, Tim, and
Sam's agent, Mila, as well as the closing attorney, Arthur, also have roles in the
transaction. Who is responsible for getting Arthur the information and documents
needed for the transaction to close? - Answer- Both Brittany and Sam, with the help of
their agents, are responsible for getting pre-closing documents and information to the
closing attorney.
The _____ Addendum may be used to provide information regarding mobile homes on
the property being sold. - Answer- Additional Provisions
`````What is the key difference between a North Carolina residential contract and
commercial contract? - Answer- Commercial contracts include extra verbiage related to
closing responsibilities.
````You're reviewing the closing statement for your client, who purchased a property in
Charlotte. How will the property taxes of $2,000 for the current year be prorated at the
North Carolina closing using a proration date of March 5? - Answer- Debit seller
$345.21, credit buyer $345.21
*The buyer will need to pay the seller's share of the property taxes when they come due
next year, so that amount is taken from the seller now (a debit) and credited to the
buyer.
`````What must a North Carolina licensee do to obtain permission to share an executed
contract (Form 12-T) with the appraiser who's scheduled to appraise the property? -
Answer- Nothing, because the buyer authorizes this when executing the contract.
```North Carolina buyer Tom is buying a property in Charlotte. He remembers seeing
something about a wire fraud warning in the Standard Form 2-T, but he can't remember
exactly what it said. Which of the following is true of this transaction? - Answer- Tom
should independently obtain the closing attorney's phone number, and call the closing
attorney's office to verify the wiring instructions.
,``In the North Carolina Offer to Purchase and Contract form, ______ is a provision that
contains legally binding statements that the buyers make regarding their responsibilities
in the purchase. - Answer- Buyer Representations
Leslie received notice that the property she was getting an FHA loan to pay for didn't
appraise at the value specified in her purchase contract. What's true about the status of
the transaction at this point? - Answer- Leslie can still move forward with the purchase if
she chooses to do so.
**Regardless of the appraised value, the purchaser may still consummate the contract.
The appraised value is simply used to determine the maximum mortgage HUD will
insure. HUD does NOT warrant the property's value or its condition. It's the purchaser's
job to determine whether the property's price and condition are acceptable.
``Christine had barely accepted an offer from Lance before she changed her mind about
selling the house. What will happen to Lance's deposit that he submitted with his offer? -
Answer- It will be returned to Lance since Christine is breaching the contract.
``What does section five of Form 12-T require sellers to indicate related to property
ownership? - Answer- How long they've owned the property
```Zoey accepted an offer on her home from Beatrice, and another offer from Pete as a
back-up. Later, Zoey received notice from Beatrice that she was terminating the
contract due to issues uncovered during the inspection. What does Zoey need to do
next? - Answer- She needs to promptly provide written notice to Pete that his offer has
become primary.
*If the primary contract is terminated, the seller must also provide the back-up buyer
with prompt written notice that the back-up offer has become primary (called notice of
primary status). If the seller fails to provide this notice, the secondary buyer may
terminate the contract without penalty.
Caitlin wants to make an offer on a short sale in Charlotte. Which of the following
actions can her agent Kyle NOT take in order to help Caitlin with this? - Answer- Draft
an addendum that meets Caitlin's specific needs.
```North Carolina buyer Karen was supposed to deliver her initial earnest money deposit
by June 1. On June 6, she receives written notice that the payment is late. How long
does she have from receipt of this notice to deliver an acceptable form of payment to
the payee? - Answer- One banking day
**If the buyer fails to deliver the due diligence fee or earnest money deposit by the due
dates, or if any payment the buyer makes is dishonored by the bank from which the
payment is drawn, the buyer has one banking day after written notice of this to deliver
, cash, an official bank check, a wire transfer, or an electronic transfer to the payee.
Otherwise, upon written notice to the buyer, the seller may terminate the contract.
```James was purchasing some vacant land from Kindra, and asked his broker to
include a "time is of the essence" provision for the settlement date. Which of these is
the best response that the broker can provide? - Answer- "Unless you absolutely need
to close by a certain date, I don't recommend this strategy because it locks us in to that
date."
**Because a "time is of the essence" provision locks the parties into the specified date,
brokers should avoid using it unless their clients must close by a certain date.
```North Carolina broker Teddy is representing buyer Jamaal. She's getting ready to
complete an offer to purchase and contract form for Jamaal. Which of the following
provisions is PROHIBITED in this form? - Answer- A provision addressing payment of
broker compensation or commission, including the forfeiture of any earnest money
**A broker who's acting as a broker in a transaction may NOT include a provision about
broker or firm compensation or commission, or a provision claiming the broker is not
liable for any statements the broker made regarding the transaction
```In North Carolina, which of the following occurs at the settlement meeting? - Answer-
Review and sign closing documents.
*Settlement meeting procedures aren't set in stone, but typically, all of the parties in the
transaction gather at the closing attorney's office to review and then sign the relevant
documents.
Which of these statements correctly defines settlement in North Carolina? - Answer-
The closing attorney's receipt of all properly executed transaction documents and funds
Which of the following statements best describes a buyer performing due diligence
during a North Carolina real estate transaction? - Answer- The buyer meets with a
lender to get pre-qualified, arranges a home inspection and appraisal, asks questions,
and investigates any other areas of the property the buyer feels may need it.
One advantage of telling the buyers' agents that there are multiple offers on a property
is _______. - Answer- It gives buyers an incentive to create a better offer
Tiffany, an investor, wants to net 12% profit after paying a brokerage commission of 7%.
If her original purchase price was $349,000, what's the minimum offer she can accept?
Round to nearest whole dollar. - Answer- $420,301
Questions and Answers All
Correct
Brittany is in the process of buying Sam's Charlotte home. Brittany's agent, Tim, and
Sam's agent, Mila, as well as the closing attorney, Arthur, also have roles in the
transaction. Who is responsible for getting Arthur the information and documents
needed for the transaction to close? - Answer- Both Brittany and Sam, with the help of
their agents, are responsible for getting pre-closing documents and information to the
closing attorney.
The _____ Addendum may be used to provide information regarding mobile homes on
the property being sold. - Answer- Additional Provisions
`````What is the key difference between a North Carolina residential contract and
commercial contract? - Answer- Commercial contracts include extra verbiage related to
closing responsibilities.
````You're reviewing the closing statement for your client, who purchased a property in
Charlotte. How will the property taxes of $2,000 for the current year be prorated at the
North Carolina closing using a proration date of March 5? - Answer- Debit seller
$345.21, credit buyer $345.21
*The buyer will need to pay the seller's share of the property taxes when they come due
next year, so that amount is taken from the seller now (a debit) and credited to the
buyer.
`````What must a North Carolina licensee do to obtain permission to share an executed
contract (Form 12-T) with the appraiser who's scheduled to appraise the property? -
Answer- Nothing, because the buyer authorizes this when executing the contract.
```North Carolina buyer Tom is buying a property in Charlotte. He remembers seeing
something about a wire fraud warning in the Standard Form 2-T, but he can't remember
exactly what it said. Which of the following is true of this transaction? - Answer- Tom
should independently obtain the closing attorney's phone number, and call the closing
attorney's office to verify the wiring instructions.
,``In the North Carolina Offer to Purchase and Contract form, ______ is a provision that
contains legally binding statements that the buyers make regarding their responsibilities
in the purchase. - Answer- Buyer Representations
Leslie received notice that the property she was getting an FHA loan to pay for didn't
appraise at the value specified in her purchase contract. What's true about the status of
the transaction at this point? - Answer- Leslie can still move forward with the purchase if
she chooses to do so.
**Regardless of the appraised value, the purchaser may still consummate the contract.
The appraised value is simply used to determine the maximum mortgage HUD will
insure. HUD does NOT warrant the property's value or its condition. It's the purchaser's
job to determine whether the property's price and condition are acceptable.
``Christine had barely accepted an offer from Lance before she changed her mind about
selling the house. What will happen to Lance's deposit that he submitted with his offer? -
Answer- It will be returned to Lance since Christine is breaching the contract.
``What does section five of Form 12-T require sellers to indicate related to property
ownership? - Answer- How long they've owned the property
```Zoey accepted an offer on her home from Beatrice, and another offer from Pete as a
back-up. Later, Zoey received notice from Beatrice that she was terminating the
contract due to issues uncovered during the inspection. What does Zoey need to do
next? - Answer- She needs to promptly provide written notice to Pete that his offer has
become primary.
*If the primary contract is terminated, the seller must also provide the back-up buyer
with prompt written notice that the back-up offer has become primary (called notice of
primary status). If the seller fails to provide this notice, the secondary buyer may
terminate the contract without penalty.
Caitlin wants to make an offer on a short sale in Charlotte. Which of the following
actions can her agent Kyle NOT take in order to help Caitlin with this? - Answer- Draft
an addendum that meets Caitlin's specific needs.
```North Carolina buyer Karen was supposed to deliver her initial earnest money deposit
by June 1. On June 6, she receives written notice that the payment is late. How long
does she have from receipt of this notice to deliver an acceptable form of payment to
the payee? - Answer- One banking day
**If the buyer fails to deliver the due diligence fee or earnest money deposit by the due
dates, or if any payment the buyer makes is dishonored by the bank from which the
payment is drawn, the buyer has one banking day after written notice of this to deliver
, cash, an official bank check, a wire transfer, or an electronic transfer to the payee.
Otherwise, upon written notice to the buyer, the seller may terminate the contract.
```James was purchasing some vacant land from Kindra, and asked his broker to
include a "time is of the essence" provision for the settlement date. Which of these is
the best response that the broker can provide? - Answer- "Unless you absolutely need
to close by a certain date, I don't recommend this strategy because it locks us in to that
date."
**Because a "time is of the essence" provision locks the parties into the specified date,
brokers should avoid using it unless their clients must close by a certain date.
```North Carolina broker Teddy is representing buyer Jamaal. She's getting ready to
complete an offer to purchase and contract form for Jamaal. Which of the following
provisions is PROHIBITED in this form? - Answer- A provision addressing payment of
broker compensation or commission, including the forfeiture of any earnest money
**A broker who's acting as a broker in a transaction may NOT include a provision about
broker or firm compensation or commission, or a provision claiming the broker is not
liable for any statements the broker made regarding the transaction
```In North Carolina, which of the following occurs at the settlement meeting? - Answer-
Review and sign closing documents.
*Settlement meeting procedures aren't set in stone, but typically, all of the parties in the
transaction gather at the closing attorney's office to review and then sign the relevant
documents.
Which of these statements correctly defines settlement in North Carolina? - Answer-
The closing attorney's receipt of all properly executed transaction documents and funds
Which of the following statements best describes a buyer performing due diligence
during a North Carolina real estate transaction? - Answer- The buyer meets with a
lender to get pre-qualified, arranges a home inspection and appraisal, asks questions,
and investigates any other areas of the property the buyer feels may need it.
One advantage of telling the buyers' agents that there are multiple offers on a property
is _______. - Answer- It gives buyers an incentive to create a better offer
Tiffany, an investor, wants to net 12% profit after paying a brokerage commission of 7%.
If her original purchase price was $349,000, what's the minimum offer she can accept?
Round to nearest whole dollar. - Answer- $420,301
