SUPERIOR NC REAL ESTATE IMPORTANT FINAL
EXAM AND RETAKE STUDY QUESTIONS AND
CORRECT SOLUTIONS (RATIONALES PROVIDED)
DISTINCTION GRADE BOOST
You are on a listing appointment and the sellers tell you they would like to net $135,000 from
the sale of their home. You estimate they will have to pay $950 in miscellaneous closing costs,
and you will charge them a 6.5% commission to sell the property. They also have a loan payoff
of $53,500. What must the property sell for to ensure they receive their desired net?
A. $201,764.25
B. $145,401.06
C.$201,604.27
D.202,620.32 - ANSWER D. $202,620.32
The seller must net $135,000 + $950 in costs + $53,500 payoff for a total of $189,450. That
amount represents 93.5% (100%-6.5%). $189,450÷.935 (93.5%) = $202,620.32.
When a landlord is responsible for the payment of taxes, insurance and mortgage payments,
and the tenant is required to only pay rent, the lease is a(n):
A. Net Lease
B. Gross Lease
C. Ground Lease
D. Index Lease - ANSWER B. Gross Lease
In a gross lease the tenant makes a lump sum payment for the amount of the rent and the
landlord is responsible for these expenses. The tenant pays nothing extra.
An attorney of fact is best described as
A. a fiduciary to his principal
,B. an agent
C. an attorney
D. a client - ANSWER A. a fiduciary to his principal
Which of the following is not essential to a general warranty deed for real estate?
A. signature of buyer
B. Signature of seller
C. Covenant of seisin
D. a legal description of real estate - ANSWER A. Signature of buyer
The initial maximum deposit in a NC trust account by a broker who is depositing their own funds
is:
A. $50, or whatever the financial institution requires
B. $100, or whatever the financial institution requires
C. $500, or whatever the financial institution requires
D. $1,000, or whatever the financial institution requires - ANSWER B. $100 or whatever the
financial institution requires
When is the developer of a time share project required to deliver the public offering statement
to the purchaser?
A. within a reasonable time
B. Prior to day of closing
C. upon initial contact with the buyer
D. Prior to buyers submission of an offer - ANSWER D. prior to buyers submission of an offer
What is an executory contract?
A. one that goes to closing
,B. fully executed contract
C. Contract with outstanding terms
D. Contract signed by only one party - ANSWER C. A contract with outstanding terms
-Remember an executed contract means all terms and conditions have been met, executory
means it has not been fully completed yet
How long do you have to notify the NCREC of a conviction of a crime? - ANSWER 60 days
10 days to report address or name changes
An unlicensed assistant may not
A. Search public records
B. place signs in yard
C. schedule appointments
D. assist other in the sale or lease - ANSWER D. assist others in the sale of lease
Under the federal fair housing act of 1968, it is permissible to
A. Alter terms of a loan for a minority
B. Refuse to give a loan because he has poor credit
C. Advertise property for sale to only a special group
D. Tell an individual an apartment has been rented when it has not - ANSWER B. Refuse to give a
loan because he has poor credit
FHA FRESHCORN
Familial status, Race, Equal, Sex, Handicapped, C, Opportunity, Religion, Nationality
The agency of the government that administers fair housing laws is - ANSWER HUD
CFPB Regulate the TILA (truth in lending APR) and RESPA (Real estate settlement procedures
loan types)
, The process of changing real property to personal property is
A. Intention
B. Conversion
C. Adaptation
D. None of the above - ANSWER B. Conversion
The difference between fraud and misrepresentation is
A. buyer can accept compensatory damages for fraud
B. Fraud is unintentional, misrepresentation is intentional
C. No difference
D. Fraud is intentional, misrepresentation is unintentional - ANSWER D. Fraud is intentional,
misrepresentation is unintentional
RESPA regulations would not apply to which of the following?
A. 1-4 family loans
B. Purchase money taken out by the seller
C. 1st lien residential mortgage
D. Home equity loan - ANSWER B. purchase money taken out by the seller
A dedication refers to
A. A instrument used in place of a mortgage
B. Additional fee charged by the lender
C. Transfer of real property from private owner to public agency
D. Right of owner to use adjacent land
Which party's signature is required on a deed of trust?
A. the trustee
EXAM AND RETAKE STUDY QUESTIONS AND
CORRECT SOLUTIONS (RATIONALES PROVIDED)
DISTINCTION GRADE BOOST
You are on a listing appointment and the sellers tell you they would like to net $135,000 from
the sale of their home. You estimate they will have to pay $950 in miscellaneous closing costs,
and you will charge them a 6.5% commission to sell the property. They also have a loan payoff
of $53,500. What must the property sell for to ensure they receive their desired net?
A. $201,764.25
B. $145,401.06
C.$201,604.27
D.202,620.32 - ANSWER D. $202,620.32
The seller must net $135,000 + $950 in costs + $53,500 payoff for a total of $189,450. That
amount represents 93.5% (100%-6.5%). $189,450÷.935 (93.5%) = $202,620.32.
When a landlord is responsible for the payment of taxes, insurance and mortgage payments,
and the tenant is required to only pay rent, the lease is a(n):
A. Net Lease
B. Gross Lease
C. Ground Lease
D. Index Lease - ANSWER B. Gross Lease
In a gross lease the tenant makes a lump sum payment for the amount of the rent and the
landlord is responsible for these expenses. The tenant pays nothing extra.
An attorney of fact is best described as
A. a fiduciary to his principal
,B. an agent
C. an attorney
D. a client - ANSWER A. a fiduciary to his principal
Which of the following is not essential to a general warranty deed for real estate?
A. signature of buyer
B. Signature of seller
C. Covenant of seisin
D. a legal description of real estate - ANSWER A. Signature of buyer
The initial maximum deposit in a NC trust account by a broker who is depositing their own funds
is:
A. $50, or whatever the financial institution requires
B. $100, or whatever the financial institution requires
C. $500, or whatever the financial institution requires
D. $1,000, or whatever the financial institution requires - ANSWER B. $100 or whatever the
financial institution requires
When is the developer of a time share project required to deliver the public offering statement
to the purchaser?
A. within a reasonable time
B. Prior to day of closing
C. upon initial contact with the buyer
D. Prior to buyers submission of an offer - ANSWER D. prior to buyers submission of an offer
What is an executory contract?
A. one that goes to closing
,B. fully executed contract
C. Contract with outstanding terms
D. Contract signed by only one party - ANSWER C. A contract with outstanding terms
-Remember an executed contract means all terms and conditions have been met, executory
means it has not been fully completed yet
How long do you have to notify the NCREC of a conviction of a crime? - ANSWER 60 days
10 days to report address or name changes
An unlicensed assistant may not
A. Search public records
B. place signs in yard
C. schedule appointments
D. assist other in the sale or lease - ANSWER D. assist others in the sale of lease
Under the federal fair housing act of 1968, it is permissible to
A. Alter terms of a loan for a minority
B. Refuse to give a loan because he has poor credit
C. Advertise property for sale to only a special group
D. Tell an individual an apartment has been rented when it has not - ANSWER B. Refuse to give a
loan because he has poor credit
FHA FRESHCORN
Familial status, Race, Equal, Sex, Handicapped, C, Opportunity, Religion, Nationality
The agency of the government that administers fair housing laws is - ANSWER HUD
CFPB Regulate the TILA (truth in lending APR) and RESPA (Real estate settlement procedures
loan types)
, The process of changing real property to personal property is
A. Intention
B. Conversion
C. Adaptation
D. None of the above - ANSWER B. Conversion
The difference between fraud and misrepresentation is
A. buyer can accept compensatory damages for fraud
B. Fraud is unintentional, misrepresentation is intentional
C. No difference
D. Fraud is intentional, misrepresentation is unintentional - ANSWER D. Fraud is intentional,
misrepresentation is unintentional
RESPA regulations would not apply to which of the following?
A. 1-4 family loans
B. Purchase money taken out by the seller
C. 1st lien residential mortgage
D. Home equity loan - ANSWER B. purchase money taken out by the seller
A dedication refers to
A. A instrument used in place of a mortgage
B. Additional fee charged by the lender
C. Transfer of real property from private owner to public agency
D. Right of owner to use adjacent land
Which party's signature is required on a deed of trust?
A. the trustee
