NC REAL ESTATE STUDY GUIDE
QUESTIONS WITH 100% CORRECT
ANSWERS
An agent with ABC Realty takes a listing and places it in the multiple listing service.
Which of the following statements is most accurate? - Answer- all agents are subagents
to the seller
Agent Greta is doing some back-of-the-envelope math to help a buyer client get a
general idea of what their property taxes will be. She knows the tax rate is $0.76 per
$100. What other number does she need, and why? - Answer- NC is a full assessment
state
What is the difference between gross profit and net profit? - Answer- Net profit takes
into operating expenses
A buyer is purchasing a house that currently has a tenant. The tenant pays the rent in
advance on the first of the month. A closing takes palace on August 20th, how would
the rent proration appear on the settlement statement or closing disclosure? - Answer-
Debit seller credit buyer in equal amounts
An agent is working in an open house that is listed by another agent in her firm.
Because of the attractiveness of the property, the agent experiences significant traffic
and several unrepresented buyers. Which of the following is most accurate regarding
this scenario? - Answer- Can leave without seeing the WWREA disclosure
When listing a property to sell, which of the following would be accurate regarding NC
Real Estate Commission guidance? - Answer- when measuring a property for living
area, any floor of the house that has earth adjacent to one wall above floor level is
considered below grade and should be represented as such.
Buyer Helene goes into contract on a property using form 2-T, the Offer to Purchase
and Contract. According to the contract, she has a 15-day due diligence period. On day
14, she informs the seller in writing that she is canceling the contract. Will her earnest
money and due diligence fee be returned to her? Why or why not? - Answer- She will
get back earnest money but due diligence is non-refundable
What is the default ownership for married buyers in North Carolina at the time of
purchase? - Answer- Tenancy by the entirety
,A broker in North Carolina is responsible for explaining the agency options available in
the State. This can be best accomplished by: - Answer- Provide and describe WWREA
at first substantial contact
Which of the following is true regarding offers and contracts used by real estate agents?
- Answer- Association of Realtors creates several forms to address most issues arising
in residential transactions that are available for use by Realtors.
Which of the following terms are parts of the flooring system? - Answer- joist, girder,
and sill
In preparation to close on a property, the buyer had inspections, a survey, and a title
search performed by appropriate professionals. The survey found that the neighbor's
fence intruded into the sellers' property by one foot for the width of the back line of the
property. Further, the title search revealed that the seller had an unpaid mechanic's lien
on the property. These findings are examples of a burden on title and defined as which
of the following words? - Answer- Encumbrances
Gustavo has four liens on his property:
Primary mortgage (added 2015)
Home equity loan (added 2017)
Tax lien (added 2019)
Special assessment lien (added 2020)
In what position would the tax lien be, in terms of lien priority? - Answer- 1st
North Carolina Closing Attorney Ted is having Andres, his legal assistant, conduct a
settlement meeting.
Which of these activities will Andres need to have Ted handle? - Answer- how to
interpret a paragraph in a contract
Tina has owned a donut shop for years. The area is re-zoned as residential, making
commercial activity illegal. Tina gets special permission from the zoning board to
continue to run the business. Months later, she sells the property to Al, who starts a
dumpling business. The new business is a(n): - Answer- illegal non conforming use
Patronella Realty has ten branch offices and a large main office. According to North
Carolina law, this brokerage must have how many BICs? - Answer- 11
A listing agent's responsibility regarding the Residential Property and Owners
Association Disclosure Statement includes which of the following? - Answer- to advise
the seller of their rights and obligations regarding the RPOADS
As part of an appraisal, real estate appraiser Jolene needs to consider the property's
highest and best use. Which of the following does NOT need to be considered? -
Answer- property sales history
, After estimating the value of the property using the applicable approaches to appraisal,
an appraiser will usually: - Answer- an appraiser will usually reconcile the final
estimations
Which of the following is true about offerors and offerees? - Answer- They can
potentially reverse roles.
What is the process of paying off a debt/mortgage in regular installments based on a
fixed payment schedule called? - Answer- amortization
How many brokers-in-charge should a real estate brokerage have? - Answer- One at
the principal office and 1 at each branch
What are ownership rights to all that is found beneath the surface of the tract of land
owned, extending downward to the center of the earth? - Answer- subsurface right
Real property taxes are always due on what date according to the North Carolina
Machinery Act? - Answer- September 1st
A property manager has a policy that dogs are allowed but only with a $500 pet fee and
if the dog weighs less than 25 pounds. A tenant completes the application and states
that he has a 60-pound yellow lab. Which of these is true of the situation? - Answer-
The landlord would waive both if the dog was a registered service animal.
North Carolina building code requires protection against what type of pests? - Answer-
termites
Kirani prepaid the full year's property taxes on his home before selling it on the last day
of July to Emmy.
On the settlement statement, the property tax amount for August through December will
be recorded as a: - Answer- Credit to kirani debit to emmy
Sarah found a ready, willing, and able buyer for Lola's home. Yay! Sarah can't wait to
get that commission check. When should she expect to see it? - Answer- When the sale
closes
Buela and Carl tell their agent they only want to be shown homes that do not feature
any stairs.What type of home construction are they describing? - Answer- Ranch
Cari purchased a home. Months after she closed, an issue emerged with the title that
ended up costing her the property. What compensates her lender for this loss? -
Answer- Lenders title insurance
What should an agent do if their agency relationship changes with an existing client? -
Answer- Disclose change immediately and get new informed consent
QUESTIONS WITH 100% CORRECT
ANSWERS
An agent with ABC Realty takes a listing and places it in the multiple listing service.
Which of the following statements is most accurate? - Answer- all agents are subagents
to the seller
Agent Greta is doing some back-of-the-envelope math to help a buyer client get a
general idea of what their property taxes will be. She knows the tax rate is $0.76 per
$100. What other number does she need, and why? - Answer- NC is a full assessment
state
What is the difference between gross profit and net profit? - Answer- Net profit takes
into operating expenses
A buyer is purchasing a house that currently has a tenant. The tenant pays the rent in
advance on the first of the month. A closing takes palace on August 20th, how would
the rent proration appear on the settlement statement or closing disclosure? - Answer-
Debit seller credit buyer in equal amounts
An agent is working in an open house that is listed by another agent in her firm.
Because of the attractiveness of the property, the agent experiences significant traffic
and several unrepresented buyers. Which of the following is most accurate regarding
this scenario? - Answer- Can leave without seeing the WWREA disclosure
When listing a property to sell, which of the following would be accurate regarding NC
Real Estate Commission guidance? - Answer- when measuring a property for living
area, any floor of the house that has earth adjacent to one wall above floor level is
considered below grade and should be represented as such.
Buyer Helene goes into contract on a property using form 2-T, the Offer to Purchase
and Contract. According to the contract, she has a 15-day due diligence period. On day
14, she informs the seller in writing that she is canceling the contract. Will her earnest
money and due diligence fee be returned to her? Why or why not? - Answer- She will
get back earnest money but due diligence is non-refundable
What is the default ownership for married buyers in North Carolina at the time of
purchase? - Answer- Tenancy by the entirety
,A broker in North Carolina is responsible for explaining the agency options available in
the State. This can be best accomplished by: - Answer- Provide and describe WWREA
at first substantial contact
Which of the following is true regarding offers and contracts used by real estate agents?
- Answer- Association of Realtors creates several forms to address most issues arising
in residential transactions that are available for use by Realtors.
Which of the following terms are parts of the flooring system? - Answer- joist, girder,
and sill
In preparation to close on a property, the buyer had inspections, a survey, and a title
search performed by appropriate professionals. The survey found that the neighbor's
fence intruded into the sellers' property by one foot for the width of the back line of the
property. Further, the title search revealed that the seller had an unpaid mechanic's lien
on the property. These findings are examples of a burden on title and defined as which
of the following words? - Answer- Encumbrances
Gustavo has four liens on his property:
Primary mortgage (added 2015)
Home equity loan (added 2017)
Tax lien (added 2019)
Special assessment lien (added 2020)
In what position would the tax lien be, in terms of lien priority? - Answer- 1st
North Carolina Closing Attorney Ted is having Andres, his legal assistant, conduct a
settlement meeting.
Which of these activities will Andres need to have Ted handle? - Answer- how to
interpret a paragraph in a contract
Tina has owned a donut shop for years. The area is re-zoned as residential, making
commercial activity illegal. Tina gets special permission from the zoning board to
continue to run the business. Months later, she sells the property to Al, who starts a
dumpling business. The new business is a(n): - Answer- illegal non conforming use
Patronella Realty has ten branch offices and a large main office. According to North
Carolina law, this brokerage must have how many BICs? - Answer- 11
A listing agent's responsibility regarding the Residential Property and Owners
Association Disclosure Statement includes which of the following? - Answer- to advise
the seller of their rights and obligations regarding the RPOADS
As part of an appraisal, real estate appraiser Jolene needs to consider the property's
highest and best use. Which of the following does NOT need to be considered? -
Answer- property sales history
, After estimating the value of the property using the applicable approaches to appraisal,
an appraiser will usually: - Answer- an appraiser will usually reconcile the final
estimations
Which of the following is true about offerors and offerees? - Answer- They can
potentially reverse roles.
What is the process of paying off a debt/mortgage in regular installments based on a
fixed payment schedule called? - Answer- amortization
How many brokers-in-charge should a real estate brokerage have? - Answer- One at
the principal office and 1 at each branch
What are ownership rights to all that is found beneath the surface of the tract of land
owned, extending downward to the center of the earth? - Answer- subsurface right
Real property taxes are always due on what date according to the North Carolina
Machinery Act? - Answer- September 1st
A property manager has a policy that dogs are allowed but only with a $500 pet fee and
if the dog weighs less than 25 pounds. A tenant completes the application and states
that he has a 60-pound yellow lab. Which of these is true of the situation? - Answer-
The landlord would waive both if the dog was a registered service animal.
North Carolina building code requires protection against what type of pests? - Answer-
termites
Kirani prepaid the full year's property taxes on his home before selling it on the last day
of July to Emmy.
On the settlement statement, the property tax amount for August through December will
be recorded as a: - Answer- Credit to kirani debit to emmy
Sarah found a ready, willing, and able buyer for Lola's home. Yay! Sarah can't wait to
get that commission check. When should she expect to see it? - Answer- When the sale
closes
Buela and Carl tell their agent they only want to be shown homes that do not feature
any stairs.What type of home construction are they describing? - Answer- Ranch
Cari purchased a home. Months after she closed, an issue emerged with the title that
ended up costing her the property. What compensates her lender for this loss? -
Answer- Lenders title insurance
What should an agent do if their agency relationship changes with an existing client? -
Answer- Disclose change immediately and get new informed consent
