NC 302 Post Licensing Test Questions and
Answers – North Carolina Real Estate
Study Guide
In a real estate transaction, which of the following is an example of consideration? -
CORRECTANSWER The seller's promise to sell
Your automatic check writer wrote a check for $51.50, but your printer ran out of toner,
so you had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one
dollars and no/100 cents." Which amount takes priority? -CORRECTANSWER The
handwritten number
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of
these actions changes the contract from executory to executed? -CORRECTANSWER
Dierks' lender funded the loan, and closing took place
_______ is an example of circumstances that are beyond the buyers' control, meaning
they can't practically do what they've agreed to do, and the offer terminates. -
CORRECTANSWER Destruction of property
If a contract is for an illegal purpose, it's ______ -CORRECTANSWER Void
,Which of the following is NOT a valid reason for an offer termination in North Carolina? -
CORRECTANSWER Improper forms
Which offer would be the most appealing to a seller? -CORRECTANSWER It depends
on the seller's needs and motivations
Kirk and his cousin Dewey decided to buy a vacation home. They entered into a
contract with the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he
doesn't want to let his cousin down. So instead of pulling out altogether, Dewey
convinced his son to replace him in the purchase contract. Kirk and Crystal agreed to
the substitution, and Dewey was released from all his obligations under the contract.
Dewey's son is now the contracting party. What's this an example of? -
CORRECTANSWER Novation
What type of language should be used to write contracts? -CORRECTANSWER Plain
language
When does offer and acceptance occur? -CORRECTANSWER When both parties sign
a contract with the full understanding of the terms.
Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an
offer to purchase a specific piece of real estate without the obligation to buy it. Until Eric
exercises his option to buy, only Sylvan is bound by the option agreement; he may not
,sell the property to anyone else during the option period. What type of contract is this? -
CORRECTANSWER Unilateral
Three of these statements about interpreting contracts are true, and one is not. Which
statement is FALSE? -CORRECTANSWER A handwritten insertion can be canceled
out by typing over it.
What is wrong with this statement: "Handwritten information on a contract is not legally
binding. All insertions must be typed."? -CORRECTANSWER Insertions do not have to
be typed to be legally binding.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
Desmond a commission. What type of agreement do Desmond and the Harpers have? -
CORRECTANSWER Bilateral
The Nettles have accepted the Briars' purchase offer, and both parties have signed the
sales contract. The funds, and the title, should transfer in a matter of days, but
otherwise the all elements and terms of the contract have been met. What type of
contract do the Nettles and the Briars have? -CORRECTANSWER Executory
Ruthie is explaining the termination option to her buyer client. How would she explain
that "time is of the essence" is for the discharge under operation of law option? -
, CORRECTANSWER "This means that if the seller doesn't decide by the deadline, the
buyer is no longer held to the contract"
Why do you think that handwritten changes take priority over typed changes? -
CORRECTANSWER It's less likely to be done inadvertently
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy
rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to
these terms, and they added their signatures. Which of the following statements is
correct? -CORRECTANSWER Breanna accepted the offer Kathy made
Rex needs to handle some money he acquired during an "unsavory" business deal. He
agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and
return it to Rex as part of a legal business dealing. What kind of contract do Rex and
Ben have? -CORRECTANSWER Void
Which of the following is a legitimate reason to counter an offer? -CORRECTANSWER
Price
When a seller's agent receives a written offer from a prospective buyer, how must it be
handled? -CORRECTANSWER It must be submitted promptly to the seller
Answers – North Carolina Real Estate
Study Guide
In a real estate transaction, which of the following is an example of consideration? -
CORRECTANSWER The seller's promise to sell
Your automatic check writer wrote a check for $51.50, but your printer ran out of toner,
so you had to fill in the handwritten line. In a hurry, you accidentally wrote, "Fifty-one
dollars and no/100 cents." Which amount takes priority? -CORRECTANSWER The
handwritten number
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of
these actions changes the contract from executory to executed? -CORRECTANSWER
Dierks' lender funded the loan, and closing took place
_______ is an example of circumstances that are beyond the buyers' control, meaning
they can't practically do what they've agreed to do, and the offer terminates. -
CORRECTANSWER Destruction of property
If a contract is for an illegal purpose, it's ______ -CORRECTANSWER Void
,Which of the following is NOT a valid reason for an offer termination in North Carolina? -
CORRECTANSWER Improper forms
Which offer would be the most appealing to a seller? -CORRECTANSWER It depends
on the seller's needs and motivations
Kirk and his cousin Dewey decided to buy a vacation home. They entered into a
contract with the seller, Crystal. Before finalizing the sale, Dewey wanted out, but he
doesn't want to let his cousin down. So instead of pulling out altogether, Dewey
convinced his son to replace him in the purchase contract. Kirk and Crystal agreed to
the substitution, and Dewey was released from all his obligations under the contract.
Dewey's son is now the contracting party. What's this an example of? -
CORRECTANSWER Novation
What type of language should be used to write contracts? -CORRECTANSWER Plain
language
When does offer and acceptance occur? -CORRECTANSWER When both parties sign
a contract with the full understanding of the terms.
Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an
offer to purchase a specific piece of real estate without the obligation to buy it. Until Eric
exercises his option to buy, only Sylvan is bound by the option agreement; he may not
,sell the property to anyone else during the option period. What type of contract is this? -
CORRECTANSWER Unilateral
Three of these statements about interpreting contracts are true, and one is not. Which
statement is FALSE? -CORRECTANSWER A handwritten insertion can be canceled
out by typing over it.
What is wrong with this statement: "Handwritten information on a contract is not legally
binding. All insertions must be typed."? -CORRECTANSWER Insertions do not have to
be typed to be legally binding.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
Desmond a commission. What type of agreement do Desmond and the Harpers have? -
CORRECTANSWER Bilateral
The Nettles have accepted the Briars' purchase offer, and both parties have signed the
sales contract. The funds, and the title, should transfer in a matter of days, but
otherwise the all elements and terms of the contract have been met. What type of
contract do the Nettles and the Briars have? -CORRECTANSWER Executory
Ruthie is explaining the termination option to her buyer client. How would she explain
that "time is of the essence" is for the discharge under operation of law option? -
, CORRECTANSWER "This means that if the seller doesn't decide by the deadline, the
buyer is no longer held to the contract"
Why do you think that handwritten changes take priority over typed changes? -
CORRECTANSWER It's less likely to be done inadvertently
Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy
rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to
these terms, and they added their signatures. Which of the following statements is
correct? -CORRECTANSWER Breanna accepted the offer Kathy made
Rex needs to handle some money he acquired during an "unsavory" business deal. He
agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and
return it to Rex as part of a legal business dealing. What kind of contract do Rex and
Ben have? -CORRECTANSWER Void
Which of the following is a legitimate reason to counter an offer? -CORRECTANSWER
Price
When a seller's agent receives a written offer from a prospective buyer, how must it be
handled? -CORRECTANSWER It must be submitted promptly to the seller
