NC REAL ESTATE STUDY TEST
QUESTIONS WITH 100% CORRECT
ANSWERS
A buyer's agent owes the buyer a full range of duties, including helping them get the
best price and terms for the home. The buyer becomes interested in purchasing a home
listed with the firm. Which of the following is TRUE? - Answer- If the property is listed
with the buyer's agent, then he/she will act as a dual agent for the buyer and seller.
All of the following would require disclosure of agency status at first substantial contact,
EXCEPT: - Answer- A buyer's agent setting an appointment with a seller to show his
home
Which of the following is a property management agreement LEAST likely to contain? -
Answer- The definite end date of the agency agreement
A developer is building 30 homes in a new subdivision. One property is estimated to
cost $124,000 to build. Which of the following is TRUE with regard to mechanics' liens
in North Carolina? - Answer- A lien agent must be appointed within 15 days of the work
commencing.
Mechanics liens in North Carolina may be able to jump in priority over other recorded
liens, depending on the first day that labor or materials were provided to the job. A lien
agent must be appointed when work equals or exceeds $30,000. Owner-occupied
single-family homes are exempt from mechanics liens, but not from a contractor filing a
lien against the property. The contractor must file the lien within 120 days and sue to
enforce the lien within 180 days of work ending. Property taxes and local assessments
have the highest priority in a lien foreclosure.
A non-exclusive buyer agency agreement must be which of the following? - Answer-
Free from restrictions on whom the buyer may work with
Non-exclusive buyer agency means the buyer is free to work with any many agents or
sellers as s/he sees fit and is not restricted on the amount of time to work with an agent.
Non-exclusive buyer agency may be oral or written in North Carolina. Buyer agency
does need to be in writing prior to presenting an offer, however, the written agency
could be written non-exclusive or written exclusive; either is acceptable. A buyer may
view property an under oral buyer agency agreement.
,A subagent of the seller from ABC Realty makes an offer on behalf of a customer. The
seller accepts the offer and communicates acceptance to the listing agent. The listing
agent notifies the subagent. Meanwhile, the buyer calls the subagent and leaves a
voicemail withdrawing the offer before the buyer is told the seller has accepted. Which
of the following is TRUE? - Answer- The buyer may withdraw the offer
A licensee in North Carolina has an affirmative obligation to: - Answer- disclose material
facts that may put their client at a disadvantage when negotiating a sale with a
customer.
The buyer's agent has included the amount of compensation he expects to receive in
the Offer to Purchase. Has the buyer's agent acted appropriately? - Answer- No. The
amount of compensation cannot be referenced in the purchase contract.
An agent cannot disclaim liability or reference compensation/commission or disclaim
liability in the purchase contract as the agent is not a party to the agreement. The
purchase contract is between the seller and the buyer, not the broker. Compensation is
outlined in the listing contract or buyer agency contract.
All of the following would require disclosure of agency status at first substantial contact,
EXCEPT: - Answer- A buyer's agent setting an appointment with a seller to show his
home
Grace located an in-house listing for her buyer client. She and her client were working
under an oral buyer agency agreement when they decided to view the property. Prior to
showing the property Real Estate Commission rules require which of the following to
occur? - Answer- The broker and buyer must, minimally, enter into an oral dual agency
agreement before viewing the house.
A manufactured dwelling is built to which of the following standards? - Answer- Federal
Manufactured or mobile homes are built to federal (HUD) standards. Manufactured
homes become real property when the wheels and hitch are removed, it is placed on a
permanent foundation, and on land that is owned. The manufactured home must be
removed from the DMV. Modular homes are built to state building codes. Site-built
homes must meet local city/county building codes
Which of the following statements is most accurate regarding the Exclusive Right to Sell
Listing Agreement? - Answer- The seller has no legal right to terminate the listing
agreement during the term of the agreement
Henry, a buyer from Kentucky was hesitant to enter into a written buyer agency
agreement at the inception of his relationship with his agent. All of the following are true,
EXCEPT? - Answer- An agent cannot insist that a buyer sign an Exclusive agency
agreement before the agent will work for the buyer
, A broker is working with a buyer as a subagent. The buyer tells the broker to offer
$140,000 for the property, but I will pay $145,000. The broker must: - Answer- tell the
seller the offer is $140,000, and the buyer said they would pay $145,000.
The broker is not a buyers agent. The broker is a subagent of the seller. The broker
must disclose to the principal (the seller) any information that might affect his decision.
Common courtesy does not apply, and this is why we have agency disclosure.
The Residential Rental Agreement Act: - Answer- outlines the statutory duties of the
landlord and tenant.
The Residential Rental Agreement Act applies to residential transactions. It does not
apply to commercial deals, therefore, does not apply to all leasing transactions. The
Tenant Security Deposit Act requires that a security deposit be held in a trust or escrow
account, or for a non-broker owner the ability to be bonded. The Federal Fair Housing
Act prevents discrimination on the basis of handicap and ADA does not permit
discrimination for service animals.
With regard to Ad Valorem taxes, which of the following statements is TRUE? - Answer-
Ad Valorem tax rates are determined by dividing the city or county's annual budget by
the overall assessed value of real property within the city or county.
The tax rate is based upon the city or county budget and may be adjusted every year.
The assessed value must be adjusted every eight years, however may be adjusted
every year (octennial reappraisal). Ad Valorem taxes are a specific lien against real
property, and have the highest priority over other recorded liens.
A broker is involved in a sale transaction using the NCAR/NCBA standard Offer to
Purchase and Contract. A buyer requested repairs, and the seller agreed to all in
writing. The buyer terminated the contract in writing by 5 pm on the due diligence date.
Which of the following is TRUE? - Answer- The buyer is entitled to the earnest money
The NCAR Property Management Agreement: - Answer- permits the property manager
to prorate rent when a unit is not habitable.
A broker in North Carolina has a limited listing agreement with the seller to put a for sale
sign in the yard, install a lockbox, and enter the property into the MLS. Which of the
following is TRUE? - Answer- A limited listing obligates the broker to provide full
fiduciary duties to the seller
A broker discovers a seller client who owns a property in severalty recently married.
Which of the following statements is TRUE? - Answer- The broker should notify the
seller that the new spouse must sign to sell for marketable title
QUESTIONS WITH 100% CORRECT
ANSWERS
A buyer's agent owes the buyer a full range of duties, including helping them get the
best price and terms for the home. The buyer becomes interested in purchasing a home
listed with the firm. Which of the following is TRUE? - Answer- If the property is listed
with the buyer's agent, then he/she will act as a dual agent for the buyer and seller.
All of the following would require disclosure of agency status at first substantial contact,
EXCEPT: - Answer- A buyer's agent setting an appointment with a seller to show his
home
Which of the following is a property management agreement LEAST likely to contain? -
Answer- The definite end date of the agency agreement
A developer is building 30 homes in a new subdivision. One property is estimated to
cost $124,000 to build. Which of the following is TRUE with regard to mechanics' liens
in North Carolina? - Answer- A lien agent must be appointed within 15 days of the work
commencing.
Mechanics liens in North Carolina may be able to jump in priority over other recorded
liens, depending on the first day that labor or materials were provided to the job. A lien
agent must be appointed when work equals or exceeds $30,000. Owner-occupied
single-family homes are exempt from mechanics liens, but not from a contractor filing a
lien against the property. The contractor must file the lien within 120 days and sue to
enforce the lien within 180 days of work ending. Property taxes and local assessments
have the highest priority in a lien foreclosure.
A non-exclusive buyer agency agreement must be which of the following? - Answer-
Free from restrictions on whom the buyer may work with
Non-exclusive buyer agency means the buyer is free to work with any many agents or
sellers as s/he sees fit and is not restricted on the amount of time to work with an agent.
Non-exclusive buyer agency may be oral or written in North Carolina. Buyer agency
does need to be in writing prior to presenting an offer, however, the written agency
could be written non-exclusive or written exclusive; either is acceptable. A buyer may
view property an under oral buyer agency agreement.
,A subagent of the seller from ABC Realty makes an offer on behalf of a customer. The
seller accepts the offer and communicates acceptance to the listing agent. The listing
agent notifies the subagent. Meanwhile, the buyer calls the subagent and leaves a
voicemail withdrawing the offer before the buyer is told the seller has accepted. Which
of the following is TRUE? - Answer- The buyer may withdraw the offer
A licensee in North Carolina has an affirmative obligation to: - Answer- disclose material
facts that may put their client at a disadvantage when negotiating a sale with a
customer.
The buyer's agent has included the amount of compensation he expects to receive in
the Offer to Purchase. Has the buyer's agent acted appropriately? - Answer- No. The
amount of compensation cannot be referenced in the purchase contract.
An agent cannot disclaim liability or reference compensation/commission or disclaim
liability in the purchase contract as the agent is not a party to the agreement. The
purchase contract is between the seller and the buyer, not the broker. Compensation is
outlined in the listing contract or buyer agency contract.
All of the following would require disclosure of agency status at first substantial contact,
EXCEPT: - Answer- A buyer's agent setting an appointment with a seller to show his
home
Grace located an in-house listing for her buyer client. She and her client were working
under an oral buyer agency agreement when they decided to view the property. Prior to
showing the property Real Estate Commission rules require which of the following to
occur? - Answer- The broker and buyer must, minimally, enter into an oral dual agency
agreement before viewing the house.
A manufactured dwelling is built to which of the following standards? - Answer- Federal
Manufactured or mobile homes are built to federal (HUD) standards. Manufactured
homes become real property when the wheels and hitch are removed, it is placed on a
permanent foundation, and on land that is owned. The manufactured home must be
removed from the DMV. Modular homes are built to state building codes. Site-built
homes must meet local city/county building codes
Which of the following statements is most accurate regarding the Exclusive Right to Sell
Listing Agreement? - Answer- The seller has no legal right to terminate the listing
agreement during the term of the agreement
Henry, a buyer from Kentucky was hesitant to enter into a written buyer agency
agreement at the inception of his relationship with his agent. All of the following are true,
EXCEPT? - Answer- An agent cannot insist that a buyer sign an Exclusive agency
agreement before the agent will work for the buyer
, A broker is working with a buyer as a subagent. The buyer tells the broker to offer
$140,000 for the property, but I will pay $145,000. The broker must: - Answer- tell the
seller the offer is $140,000, and the buyer said they would pay $145,000.
The broker is not a buyers agent. The broker is a subagent of the seller. The broker
must disclose to the principal (the seller) any information that might affect his decision.
Common courtesy does not apply, and this is why we have agency disclosure.
The Residential Rental Agreement Act: - Answer- outlines the statutory duties of the
landlord and tenant.
The Residential Rental Agreement Act applies to residential transactions. It does not
apply to commercial deals, therefore, does not apply to all leasing transactions. The
Tenant Security Deposit Act requires that a security deposit be held in a trust or escrow
account, or for a non-broker owner the ability to be bonded. The Federal Fair Housing
Act prevents discrimination on the basis of handicap and ADA does not permit
discrimination for service animals.
With regard to Ad Valorem taxes, which of the following statements is TRUE? - Answer-
Ad Valorem tax rates are determined by dividing the city or county's annual budget by
the overall assessed value of real property within the city or county.
The tax rate is based upon the city or county budget and may be adjusted every year.
The assessed value must be adjusted every eight years, however may be adjusted
every year (octennial reappraisal). Ad Valorem taxes are a specific lien against real
property, and have the highest priority over other recorded liens.
A broker is involved in a sale transaction using the NCAR/NCBA standard Offer to
Purchase and Contract. A buyer requested repairs, and the seller agreed to all in
writing. The buyer terminated the contract in writing by 5 pm on the due diligence date.
Which of the following is TRUE? - Answer- The buyer is entitled to the earnest money
The NCAR Property Management Agreement: - Answer- permits the property manager
to prorate rent when a unit is not habitable.
A broker in North Carolina has a limited listing agreement with the seller to put a for sale
sign in the yard, install a lockbox, and enter the property into the MLS. Which of the
following is TRUE? - Answer- A limited listing obligates the broker to provide full
fiduciary duties to the seller
A broker discovers a seller client who owns a property in severalty recently married.
Which of the following statements is TRUE? - Answer- The broker should notify the
seller that the new spouse must sign to sell for marketable title
