REAL ESTATE U FINAL EXAM 2024 –
2025 ACTUAL EXAM COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS)
/ ALREADY GRADED A+
Amy is looking to obtain a loan to purchase a new house. Her monthly mortgage
payment (PITI) will be $3,650 per month. Amy's gross monthly income (her salary) is
$12,000 per month. The lender requires a front-end ratio of no more than 32%. Will Amy
qualify for a loan? – answer The answer is Yes because Amy's front-end ratio equals
$3,650 / $12,000 = 0.304 or 30%.In other words, Amy's total monthly housing expense
equals 30% of her gross monthly income, which is less than the lender's requirement of
32%. Lenders typically look for a borrower to have a maximum front-end ratio of 28-
32%.
John is applying for a new mortgage. After submitting all of his financials to the lender,
the lender calculates that John's total monthly debt obligations (mortgage, car loan, and
student loans) will equal $5,640 per month. John's gross monthly income (his salary)
equals $13,000 per month. Assuming the lender requires a maximum debt-to-income
ratio of 42%, will John qualify for the mortgage? – answer The answer is No because
John's debt-to-income ratio equals $5,640 / $13,000 = 0.439 or 43.9%. Since his debt-
to-income ratio exceeds the lender's requirement of 42% John cannot qualify for the
loan. Lenders typically look for a borrower to have a maximum back-end-ratio of 36-
43%.
CMA: The subject property has three bedrooms. Comp #2 has two bedrooms.Based on
the broker's analysis, a bedroom in this neighborhood is worth $6,000. The subject
property also has an attached garage, while Comp #2 has a detached garage.The
attached garage adds $2,000 in value. Comp #2 has a pool, while the subject property
does not. A pool is worth around $4,000. If Comp #2 sold for $280,000, what should be
the value of the subject property? – answer To find the answer, we need to adjust the
sales price of Comp #2 based on the superior and inferior features of the subject
property. You have to adjust the sales price of the comparable property up or down
based on superior and/or inferior features of the subject property. If the subject property
is superior, then add value to the sales price of the comp.
If the subject property is inferior, then subtract value from the sales price of the comp.
The subject property is more valuable than Comp #2 by $6,000 for the extra bedroom
and $2,000 for the attached garage. However, the subject property is less valuable than
Comp #2 by $4,000 for the pool.
, Therefore, the value of the subject property equals $280,000 + $6,000 + $2,000 -
$4,000 = $284,000
A buyer makes a written offer to purchase a property and includes a $2,500 earnest
money deposit. The seller makes a counteroffer for more money. The buyer verbally
accepts. The listing agent deposits the money in the trust account at this point in time.
When the buyer receives the seller's counteroffer, he refuses to sign even though he
had verbally agreed earlier. The seller is angry and tells the buyer that he will not return
the earnest deposit since the buyer has reneged on his word. In fact, the seller
demands that the listing agent give him the deposit. What must the real estate agent do
regarding the earnest money in this situation? – answer He must retain the deposit in
the trust account until he obtains written permission from the buyer and seller or await a
court order.
While a broker was inspecting a property for listing, the property owner told the broker
the house contained 2,400 square feet of heated living area. Relying on this information,
the broker listed the property and represented it to prospective buyers as containing
2,400 square feet. After purchasing the property, the buyer accurately determined that
there were only 1,850 square feet and sued for damages for the difference in value
between 2,400 square feet and 1,850 square feet. Which of the following is correct? -
answerBoth the broker and the seller are liable.
A provisional broker licensee on active status has just taken continuing education
classes for the first time. These classes were taken before the deadline for completion.
He took the BICUP course and one elective. What will be his license status as of July
1? – answer Inactive
A broker licensee may be disciplined by the NC Real Estate Commission for which of
the following actions? – answer Drafting a financing contingency addendum at the
buyer's request
In North Carolina, unpaid property taxes lawfully constitute a lien against the property as
of what date? – answer January 1 of the current tax year
Which of the following is true regarding closing statements in North Carolina? – answer
The broker does not have to personally prepare the closing statement.
According to the Statute of Frauds, which of the following leases must be in writing in
order to be enforceable? – answer A lease for more than three years
Betsy Buyer is in the market to purchase a new house. She has decided that she will
not be represented by a licensed buyer's agent but wishes instead to be paid the
buyer's agent commission on the house she is buying from Seller Sam. Does this
require Betsy to be licensed? – answer No
The lowest concrete part of a house is the: - answer Footing
2025 ACTUAL EXAM COMPLETE 400
QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS)
/ ALREADY GRADED A+
Amy is looking to obtain a loan to purchase a new house. Her monthly mortgage
payment (PITI) will be $3,650 per month. Amy's gross monthly income (her salary) is
$12,000 per month. The lender requires a front-end ratio of no more than 32%. Will Amy
qualify for a loan? – answer The answer is Yes because Amy's front-end ratio equals
$3,650 / $12,000 = 0.304 or 30%.In other words, Amy's total monthly housing expense
equals 30% of her gross monthly income, which is less than the lender's requirement of
32%. Lenders typically look for a borrower to have a maximum front-end ratio of 28-
32%.
John is applying for a new mortgage. After submitting all of his financials to the lender,
the lender calculates that John's total monthly debt obligations (mortgage, car loan, and
student loans) will equal $5,640 per month. John's gross monthly income (his salary)
equals $13,000 per month. Assuming the lender requires a maximum debt-to-income
ratio of 42%, will John qualify for the mortgage? – answer The answer is No because
John's debt-to-income ratio equals $5,640 / $13,000 = 0.439 or 43.9%. Since his debt-
to-income ratio exceeds the lender's requirement of 42% John cannot qualify for the
loan. Lenders typically look for a borrower to have a maximum back-end-ratio of 36-
43%.
CMA: The subject property has three bedrooms. Comp #2 has two bedrooms.Based on
the broker's analysis, a bedroom in this neighborhood is worth $6,000. The subject
property also has an attached garage, while Comp #2 has a detached garage.The
attached garage adds $2,000 in value. Comp #2 has a pool, while the subject property
does not. A pool is worth around $4,000. If Comp #2 sold for $280,000, what should be
the value of the subject property? – answer To find the answer, we need to adjust the
sales price of Comp #2 based on the superior and inferior features of the subject
property. You have to adjust the sales price of the comparable property up or down
based on superior and/or inferior features of the subject property. If the subject property
is superior, then add value to the sales price of the comp.
If the subject property is inferior, then subtract value from the sales price of the comp.
The subject property is more valuable than Comp #2 by $6,000 for the extra bedroom
and $2,000 for the attached garage. However, the subject property is less valuable than
Comp #2 by $4,000 for the pool.
, Therefore, the value of the subject property equals $280,000 + $6,000 + $2,000 -
$4,000 = $284,000
A buyer makes a written offer to purchase a property and includes a $2,500 earnest
money deposit. The seller makes a counteroffer for more money. The buyer verbally
accepts. The listing agent deposits the money in the trust account at this point in time.
When the buyer receives the seller's counteroffer, he refuses to sign even though he
had verbally agreed earlier. The seller is angry and tells the buyer that he will not return
the earnest deposit since the buyer has reneged on his word. In fact, the seller
demands that the listing agent give him the deposit. What must the real estate agent do
regarding the earnest money in this situation? – answer He must retain the deposit in
the trust account until he obtains written permission from the buyer and seller or await a
court order.
While a broker was inspecting a property for listing, the property owner told the broker
the house contained 2,400 square feet of heated living area. Relying on this information,
the broker listed the property and represented it to prospective buyers as containing
2,400 square feet. After purchasing the property, the buyer accurately determined that
there were only 1,850 square feet and sued for damages for the difference in value
between 2,400 square feet and 1,850 square feet. Which of the following is correct? -
answerBoth the broker and the seller are liable.
A provisional broker licensee on active status has just taken continuing education
classes for the first time. These classes were taken before the deadline for completion.
He took the BICUP course and one elective. What will be his license status as of July
1? – answer Inactive
A broker licensee may be disciplined by the NC Real Estate Commission for which of
the following actions? – answer Drafting a financing contingency addendum at the
buyer's request
In North Carolina, unpaid property taxes lawfully constitute a lien against the property as
of what date? – answer January 1 of the current tax year
Which of the following is true regarding closing statements in North Carolina? – answer
The broker does not have to personally prepare the closing statement.
According to the Statute of Frauds, which of the following leases must be in writing in
order to be enforceable? – answer A lease for more than three years
Betsy Buyer is in the market to purchase a new house. She has decided that she will
not be represented by a licensed buyer's agent but wishes instead to be paid the
buyer's agent commission on the house she is buying from Seller Sam. Does this
require Betsy to be licensed? – answer No
The lowest concrete part of a house is the: - answer Footing
