NC REAL ESTATE FINAL EXAM
QUESTIONS AND ANSWERS ALL
CORRECT
A provisional broker owes all of the following fiduciary duties, EXCEPT:
A. to obey all legitimate instructions from the broker concerning the transaction
B. to be loyal to the interests of the principal
C. to prepare the deed for the transfer of title
D. to disclose material facts concerning the sale - Answer- to prepare the deed for the
transfer of title
Which of the following is not required for a contract to be valid and enforceable?
A. legal purpose
B. consideration
C. mutual consent
D. signature - Answer- signature
When is the developer of a timeshare project required to deliver the public offering
statement to the purchaser?
A. prior to the day of closing
B. upon initial contact with the buyer
C. within a reasonable time
D. prior to the buyer's submission of an offer - Answer- prior to the buyer's submission
of an offer
If an owner of a building sold it, the present tenant's lease would:
A. terminate automatically
B. terminate in 30 days
C. be renegotiated with the new owner
D. be honored by the new owner until expiration - Answer- be honored by the new
owner until expiration
Which of the following is NOT an essential element of a promissory note?
A. a promise to pay
, B. lender's signature
C. terms of payment
D. amount of the debt - Answer- lender's signature
Under the standard form 2T Offer to Purchase and Contract when is the buyer obligated
to provide the due diligence fee to the seller?
A. On the date the offer is submitted
B. On the effective date in the contract
C. Within 3 days of acceptance
D. Within one day of acceptance of the contract - Answer- On the effective date in the
contract
Which of the following statements are TRUE?
A. broker may not represent a buyer in a transaction where the licensee has an
ownership interest in the property.
B. If a broker has an interest in the property and represents the buyer, the licensee must
disclose dual agency
C. A licensee is not subject to the rules of the NCREC when selling their own property
D. A licensee who refers a buyer on a property which they own to another licensee
cannot receive a referral fee - Answer- broker may not represent a buyer in a
transaction where the licensee has an ownership interest in the property.
Aunt Fran decides to sell her property to a church "so long as" the property is used for
religious purposes. One year after the closing, the new owner uses the property for a
nonreligious purpose. Which of the following statements are correct?
A. This is a good example of a fee simple transfer
B. This is a transfer of a defeasible fee
C. Planning and zoning would be involved in enforcing the condition
D. If Aunt Fran dies, the condition is automatically terminated - Answer- This is a
transfer of a defeasible fee
All of the following are the obligation of a Broker-in-Charge, EXCEPT:
A. Making certain that all affiliated licensees have properly completed their required
education
B. Managing the trust account
C. Making certain that all affiliated licensees timely renew their real estate license
D. Appointing a BIC in each new branch location that the office opens - Answer-
Appointing a BIC in each new branch location that the office opens
Which of the following real estate sale ads placed in a newspaper by a broker is/are
permitted? I. House for sale, 2,500 SF, 3 bedrooms, 2 baths, $80,000. Call ABC Realty
QUESTIONS AND ANSWERS ALL
CORRECT
A provisional broker owes all of the following fiduciary duties, EXCEPT:
A. to obey all legitimate instructions from the broker concerning the transaction
B. to be loyal to the interests of the principal
C. to prepare the deed for the transfer of title
D. to disclose material facts concerning the sale - Answer- to prepare the deed for the
transfer of title
Which of the following is not required for a contract to be valid and enforceable?
A. legal purpose
B. consideration
C. mutual consent
D. signature - Answer- signature
When is the developer of a timeshare project required to deliver the public offering
statement to the purchaser?
A. prior to the day of closing
B. upon initial contact with the buyer
C. within a reasonable time
D. prior to the buyer's submission of an offer - Answer- prior to the buyer's submission
of an offer
If an owner of a building sold it, the present tenant's lease would:
A. terminate automatically
B. terminate in 30 days
C. be renegotiated with the new owner
D. be honored by the new owner until expiration - Answer- be honored by the new
owner until expiration
Which of the following is NOT an essential element of a promissory note?
A. a promise to pay
, B. lender's signature
C. terms of payment
D. amount of the debt - Answer- lender's signature
Under the standard form 2T Offer to Purchase and Contract when is the buyer obligated
to provide the due diligence fee to the seller?
A. On the date the offer is submitted
B. On the effective date in the contract
C. Within 3 days of acceptance
D. Within one day of acceptance of the contract - Answer- On the effective date in the
contract
Which of the following statements are TRUE?
A. broker may not represent a buyer in a transaction where the licensee has an
ownership interest in the property.
B. If a broker has an interest in the property and represents the buyer, the licensee must
disclose dual agency
C. A licensee is not subject to the rules of the NCREC when selling their own property
D. A licensee who refers a buyer on a property which they own to another licensee
cannot receive a referral fee - Answer- broker may not represent a buyer in a
transaction where the licensee has an ownership interest in the property.
Aunt Fran decides to sell her property to a church "so long as" the property is used for
religious purposes. One year after the closing, the new owner uses the property for a
nonreligious purpose. Which of the following statements are correct?
A. This is a good example of a fee simple transfer
B. This is a transfer of a defeasible fee
C. Planning and zoning would be involved in enforcing the condition
D. If Aunt Fran dies, the condition is automatically terminated - Answer- This is a
transfer of a defeasible fee
All of the following are the obligation of a Broker-in-Charge, EXCEPT:
A. Making certain that all affiliated licensees have properly completed their required
education
B. Managing the trust account
C. Making certain that all affiliated licensees timely renew their real estate license
D. Appointing a BIC in each new branch location that the office opens - Answer-
Appointing a BIC in each new branch location that the office opens
Which of the following real estate sale ads placed in a newspaper by a broker is/are
permitted? I. House for sale, 2,500 SF, 3 bedrooms, 2 baths, $80,000. Call ABC Realty
