1
Superior NC Real Estate Important Final
Exam questions Exam (Latest Update
2025) UPDATE!!
RESPA - (ANSWER)-Real Estate Settlement Procedures Act: applies ONLY to 1-4
family residential transactions, transactions involving a "federally related"
mortgage (conventional, FHA, VA)
Which party's signature is required on a deed of trust?
A. the trustee
B. the beneficiary
C. the trustor(s)
D. the grantee(s) - (ANSWER)C. the trustor(s)
The trustor is the borrower in a lending situation using a trust deed. The borrower
is giving the lender security or collateral interests in the property. Because those
rights and interests belong to the borrower and they are surrendering them, only
the trustor (or borrower) must sign the trust deed.
Under which of the following types of mortgage loans would a buyer have to
produce a certificate of reasonable value?
A. VA Guaranteed Loan
B.VA Insured Loan
C.FHA Insured Loan
D.Conventional Loan - (ANSWER)A. VA Guaranteed Loan
, 2
The certificate of reasonable value or CRV is the name for the appraisal in a VA
loan. VA loans are guaranteed, FHA loans are insured. The appraisal in an FHA
loan is called a Conditional Committment.
Encapsulation refers to: - (ANSWER)The sealing away of friable asbestos
Radon becomes a material fact in North Carolina:
A. Only in regard to properties located in the western part of the state
B. In all residential real estate transactions
C. Only when the presence of radon can be sensed by smell
D. When the level of radon is 4.0 picocuries or higher - (ANSWER)D. When the
level of radon is 4.0 picocuries or higher.
The major difference between an installment land contract and a purchase money
mortgage is:
A.Seller financing only exists in purchase money mortgages.
B.The buyer receives legal title and the seller receives equitable title.
C.The time in which delivery of the deed is made.
D.Installment carryback is also known as seller carryback financing. - (ANSWER)A
purchase money mortgage, seller financing or a seller carryback occurs when the
seller is transferring title to a buyer at closing and the seller is acting as the
lender. Typically the buyer would execute a promissory note and deed of trust for
the seller. An installment land contract or a contract for deed is a situation where
the seller remains in title to the property and the borrower is in the process of
Superior NC Real Estate Important Final
Exam questions Exam (Latest Update
2025) UPDATE!!
RESPA - (ANSWER)-Real Estate Settlement Procedures Act: applies ONLY to 1-4
family residential transactions, transactions involving a "federally related"
mortgage (conventional, FHA, VA)
Which party's signature is required on a deed of trust?
A. the trustee
B. the beneficiary
C. the trustor(s)
D. the grantee(s) - (ANSWER)C. the trustor(s)
The trustor is the borrower in a lending situation using a trust deed. The borrower
is giving the lender security or collateral interests in the property. Because those
rights and interests belong to the borrower and they are surrendering them, only
the trustor (or borrower) must sign the trust deed.
Under which of the following types of mortgage loans would a buyer have to
produce a certificate of reasonable value?
A. VA Guaranteed Loan
B.VA Insured Loan
C.FHA Insured Loan
D.Conventional Loan - (ANSWER)A. VA Guaranteed Loan
, 2
The certificate of reasonable value or CRV is the name for the appraisal in a VA
loan. VA loans are guaranteed, FHA loans are insured. The appraisal in an FHA
loan is called a Conditional Committment.
Encapsulation refers to: - (ANSWER)The sealing away of friable asbestos
Radon becomes a material fact in North Carolina:
A. Only in regard to properties located in the western part of the state
B. In all residential real estate transactions
C. Only when the presence of radon can be sensed by smell
D. When the level of radon is 4.0 picocuries or higher - (ANSWER)D. When the
level of radon is 4.0 picocuries or higher.
The major difference between an installment land contract and a purchase money
mortgage is:
A.Seller financing only exists in purchase money mortgages.
B.The buyer receives legal title and the seller receives equitable title.
C.The time in which delivery of the deed is made.
D.Installment carryback is also known as seller carryback financing. - (ANSWER)A
purchase money mortgage, seller financing or a seller carryback occurs when the
seller is transferring title to a buyer at closing and the seller is acting as the
lender. Typically the buyer would execute a promissory note and deed of trust for
the seller. An installment land contract or a contract for deed is a situation where
the seller remains in title to the property and the borrower is in the process of
