Frogs
Which of the following statements about a listing agreement is TRUE?
It creates a fiduciary relationship between the seller and the listing firm
Which of the following is an example of economic obsolescence for a residence?
Located near a waste management facility
In North Carolina, an oral buyer agency agreement
Must include agreement on brokerage compensation and whether single or dual agency will be practiced
Under North Carolina real estate Commission rules, all written agency agreements
Must include an anti-discrimination clause
A broker is aware the public road in front of her listing is scheduled to be widened to a four lane divided highway next year. the listing agent
Must volunteer the information to all prospective buyers
A seller signs an exclusive right to sell listing agreement with a broker. A buyer submits a full price offer for a cash purchase with terms that match the terms of the listing agreement. The seller rejects the offer. In this situation, the seller
Owes a commission to the broker.
A buyers agent owes which of the following duties to the buyer
Performing a comparative market analysis before an offer
A deed of trust
Pledges the property as collateral to secure a mortgage loan
A listing agent received two written offers for the same property within a few hours of each other. Both offers propose a purchase price below the listed asking price, but they vary in financing and other terms. The listing agent may
Present both offers to the seller and coach the seller on possible responses
A title insurance policy
Protects the purchaser and/or the lender against loss due to an existing covered title defect that was undiscovered when the policy became effective
the lien on real estate that takes priority over all other liens is a
Real property tax lien
The primary responsibility of a broker engaging in property management
Realize the highest rate of return on the property that is consistent with the owner's instructions
A broker engaging in property management is generally tasked by the property with
Reinvesting profits to build the owner's investment portfolio
A quitclaim deed would most likely be used in which of the following situations
Release of ownership rights in a divorce
Which of the following is a legal property management practice under the federal fair Housing Act as amended in 1988?
Requiring a credit report and a criminal background check for all applicants
Which of the following scenarios best illustrates first substantial contact?
Seller states that she must relocate by the end of the year
A broker obtains an exclusive right to sell listing for her real estate company. What is the agency relationship between the owner of the listed property and all the brokers that work for the listing company?
Seller subagency
The assessed value of a parcel of land is $72,000 and the local ad valorem tax rate is $ .86 per $100 of assessed value. The settlement will be on March 26; the seller owns the day of closing; and the buyer will pay the tax bill after it is issued later in the year. Using the 30 day month 360 day year calendar for calculations, the correct tax preparation entries at settlement would be
Seller will be debited $147.92 and buyer will be debited $471.28
The sellers wish to include several conditions in their counter offer. There are no standard addenda lead the sellers wishes. The listing agent
Should strongly advise the sellers to have an attorney draft the appropriate language as an addendum to the counteroffer
A written listing agreement will be automatically terminated if the
Sold practitioner broker that signed the agency agreement dies
Under a net lease, the tenant pays a based monthly rent plus
Some or all of the property expenses such as maintenance, taxes, and insurance.
The city has recently improved a residential subdivision by installing sidewalks across the front of the neighborhood lots. To recover the expense of the sidewalk installation, the city will collect the money from the improved lot owners by imposing a
Special assessment
a state law that requires contracts conveying interest in real property to be in writing in order to be enforceable is called the
Statute of Frauds
Which of the following statements about a provisional broker (PB) is TRUE?
The PB and his/her supervising broker-in-charge are subject to disciplinary action for any actions of the PB that are in violation of Commission rules
Which of the following factors may a residential property manager lawfully consider as a basis for rejecting a tenants applicant?
The applicant has changed jobs multiple times in the last three months
A sales contract is contingent upon the buyer obtaining financing at terms stated in the contract within 30 days of contract formation. If the buyer is unable to secure such financing by the deadline
The buyer may terminate the contract and have the entire earnest money deposits returned to the buyer
A buyer's agent hand-delivers a signed offer to the listing agent with a different real estate firm. When the listing agent presents the offer to the seller in persona, the seller strikes through the proposed purchased price and enters a higher number, initials the change, signs the offer, and hands the offer back to the listing agent. The listing agent delivers the signed offer to the buyer agent's firm. The buyer's agent scans and emails the document to the buyer, pointing out the price change. The buyer initials the change and emails the document back to the buyer's agent. The buyer's agent calls to inform the listing agent that the buyer has initialed the price change, The listing agent notifies the seller later that day of the buyer's acceptance. A binding contract was created when
The buyer's agent told the listing agent that the buyer has initialed the change
A seller agrees to all of the terms in a buyer's offer except the proposed closing date. The seller changes the closing date, initials the change, and signs the offer. The listing agent promptly notifies the buyer's agent of the seller's actions. Given these facts, which of the following statements is TRUE?
The buyer's offer has been rejected, and the seller has made counteroffer
After hours of negotiating, a buyer and a seller reach in oral agreement on the terms for the purchase of the sellers home. The buyer submits a written offer with the terms of the oral agreement. Before the seller has a chance to sign the written offer, the seller dies of a heart attack. Which of the following statements is true
The buyer's offer is terminated, because the seller did not sign the offer
If the seller has prepaid the real property tax bill for the entire calendar year prior to settlement, which of the following statements regarding this settlement statement entries is true
The buyers portion of the tax bill will appear as a buyer debit and a seller credit
An estate in real property may be best defined as
The extent or degree of a person's intrest in real property
A dual agent may disclose which of the following information to one of the agents principals without the permission of the other client?
The fact that the roof of the property in questioon has several leaks.
Which of the following statements about townhouses in North Carolina is true
The homeowners' association owns the common areas of a townhouse complex
In NC, a husband and wife own a home as tenants by the entirety. Both of their wills specify that all property and possessions will pass to their 3 children equally upon their respective deaths. The wife dies suddenly. Explain ownership of the house after the wife's death.
The husband will have 100% ownership of the house
Which of the following statements regarding adjustable rate mortgage loans is TRUE
The interest rate may be adjusted based on a published index
The disclosure to prospective buyers that a listed property is located in a flood zone is only required when
The listed property is located in a federally designated flood hazard area
Which of the following statements is TRUE about the North Carolina Working With Real Estate Agents brochure?
The real estate agent must review the agency options in the brochure with the consumer.
Which of the following situations would be considered a material fact in North Carolina
The seller has been served with a foreclosure notice
Which of the following would create legally binding acceptance of a written offer?
The seller's agent emails the buyer's agent that the seller signed the offer as written
A properly completed option to purchase real estate contract must include
The specific terms of sale that will apply if the option holder exercises the option to purchase
Under the North Carolina residential rental agreements act
The tenant must properly dispose of all garbage and waste in a clean and safe manner
A North Carolina broker is required to deliver all executed contracts to his/her clients no later than
Three days after receipt by the broker
The North Carolina Working With Real Estate Agents brochure must be given?
To all consumers in a sales transaction no later than first substantial contact.
The recordation of a deed to real property is required
To protect the buyer against ownership claims by any third party
A metes and bounds property description
Uses monuments to identify changes in direction
A commercial lot in the city is located in the middle of an area zoned for office use only. City zoning requirements limit construction to one story in height and dictate a minimum number of parking spaces based on the square footage of an office building. The property owner wishes to build an office building on the lot. Due to the irregular shape of the lot and the presence of a city utility easement across the owner's property, less than half of the required parking spaces will fit on the property. The property owner realizes that the required parking spaces could be created by constructing offices over a one- story parking garage. The property owner should petition the city for a
Variance
Excise tax on real property in North Carolina is
Vied on transfers of real estate at the rate of $1 of each $500 of the purchase price
A seller and a buyer are under contract on the buyer's first home purchase. It is discovered prior to closing that the buyer was intoxicated when he signed the contract. For sellers contract for this transaction is
Voidable by the buyer
A broker advertises his listing as waterfront property. The property has a great view of the lake, but there is another lot located between the listed property and the lakeshore. The listing agent may be guilty of
Willful misrepresentation
A prospective buyer asked the listing agent during an open house if there are any drainage issues with the low-lying area in the backyard. The agent states that there are no drainage issues. If the broker knows that the backyard floods every time there is a big rain, the listing agent may be guilty of
Willful misrepresentation
Which of the following statements regarding the TILA-RESPA Integrated Disclosure (TRID) requirements is TRUE?
Within 3 days of receiving a loan application, the lender must provide the applicant with a loan estimate
A listing broker mails a signed offer to his out-of-town seller. The seller electronically signs the offer as written and emails it back to the listing broker. The listing broker forwards the email with the signed offer to the buyer's agent who is affiliated with a different real estate company. Is there a binding contract at this point in time?
Yes, receipt by the buyer's agent of the electronic document is sufficient to create a binding contract
A house located within the city limits has a current market value of $485,000 according to a recent appraisal. The assessed value from the last county-wide tax valuation is $412,250. The tax rate is $.92 per hundred for the county and $.34 per hundred for the city. What is the total annual property tax liability on the property, rounded to the nearest dollar
".92 + .34 = 1.26 / 100 412,250 --------- 100. = 4,122.50 x 1.26 = $5,194.35 "
A buyers agent will keep 65% of her firms earned commission split. The sales price of the property is $876,000 period if the listing firm is offering a 50/50 split of the 5.5% commission to the selling firm comma how much will the buyer's agent receive?
$15,658
A loan in the amount of $187,500 at 4 1/2 % for 30 years closes on September 19. The first monthly payment is due on November 1. Using a 30 day month 360 day year, what is the amount of interim interest that the borrower has to pay at settlement
$23.44
A buyer is under contract to purchase a home for $370,000 and has qualified for an 80% loan to value mortgage loan at an annual interest rate of 4.5%. How much will the buyer go for the 1% loan origination fee and 1 1/2 loan discount points associated with the loan package?
$7,400
A large commercial transaction just closed for a sale price of $5,750,000. How much commission did the listing firm earn if it will be paid 6% on the first million of the sale price, 5% on the second million and 3% for the remainder
***$222,500
The real property tax rate for a property they did as $0.018 per dollar of assessed value converts to what mill rate
***180
Which of the following statements about land measurement is true?
***the area of a rectangular lot is calculated by multiplying the length of the lot by the width of the lot
How many acres are contained in a section under the Government Rectangular Survey System?
640
In a transaction featuring an installment land contract,
A buyer who defaults on payments may lose all rights to the property as well as all pervious payments made towards the purpose of the property
In North Carolina, which of the following persons must have an active real estate broker license in order to earn compensation?
A licensed real estate appraiser managing his own rental property plus one property owned by a friend
Which of the following statements regarding designated agency in North Carolina is true
A non-provisional broker may be the designated agent for the seller-client and a provisional broker in the same firm may be the designated agent for the buyer-client
Which of the following about deeds is true
A special warranty deed contains a promise that the grantor will convey title on the property without any encumbrances.
Which of the following is an example of personal property that could typically be removed by the seller of a residential property?
A treehouse constructed in a tree on the property that can be removed without damage to the tree
Which of the following statements about deeds is true
A trustees or sheriff's deed is generally used to transfer title after a foreclosure
Which of the following statements about VA mortgage loans is true
A veteran borrower must use a Certificate of Eligibility to determine what portion of the loan the VA will guarantee.
Which of the following would be used to include extra terms or conditions as part of a standard offer to purchase?
Addendum
A necessary element of an enforceable real estate sales contract is
An agreement for exchange of things of value between contract parties
Funds for FHA-insured mortgage loans are typically provided by
An approved lenders
A listing agreement generally includes
An automatic termination date
The principle of value that states value is created or affected by a future event is
Anticipation
When considering a prospective tenant's application, a property manager may lawfully approve or deny the application based on the
Applicants credit report and employment history
Equity in real estate can be created through
Appreciation of local real estate values.
Mortgage loan discount points
Around the borrower to obtain a loan with little or no upfront cost
Which of the following environmental statements is TRUE
Asbestos is a health hazard once it becomes friable
A valid contract must
Be supported by legally sufficient consideration
Which of the following statements concerning broker compensation in North Carolina is true
Compensation to a broker from a se....
The fiduciary duties of an exclusive buyer's agent include
Concealing client's confidential information
The Working with Real Estate Agents brochure
Contains an acknowledgment panel that must be retained by the broker
The provision in a sign contract that requires the completion of some action before the contract is binding is called a
Contingency
Which of the following statements in a broker advertisement for real property would be compliant with Regulation Z requirements
Conventional loans available with payments as low as 760 a month
In the market data approach to value, the principle factors used to select comparable properties are
Date of sale, location, physical features, and terms and condition of sale
All of the following situations will terminate a listing EXCEPT:
Death of the individual listing licensee.
A typical property management agreement may be terminated by
Destruction of the property
Regulation Z of the truth in lending act requires that lenders
Disclose mortgage loan finance charges and intrest rate to borrowers
The North Carolina Real Estate Commission may discipline a broker for
Drafting a loan contingency provision into a residential sales contract
A detached workshop extends over the property line onto the neighboring lot by six inches. This legally constitutes a (an)
Encroachment
Liens, restrictive covenants, easements and encroachments are examples of
Encumbrances
A listing agreement enables the seller to avoid compensating the listing firm if the seller procures the buyer of the listed property is a
Exclusive agency agreement
Under which of the following listing agreements must a seller pay a commission to the listing company even if the seller procures the buyer?
Exclusive right to sell listing
The grantor promises to warrant and defend the title conveyed against any claims and demands of all persons since the beginning of time
General Warranty Deeds
Flood insurance is
Generally required by lenders if any part of the finance property is in a flood zone
The owner of a condominium unit
He is responsible for paying the real property taxes assessed on his/her individual condominium unit
What duties does a broker go to a customer who is not the brokers principle?
Honestly, fairness and disclosure of material facts
A North Carolina listing broker who is preparing to market a listed property should
Identify any fixtures the sellers intend to take with them.
According to the applicable provision in the standard Offer to Purchase and Contract form jointly approved by the North Carolina Association of REALTORS and the North Carolina Bar Association, what happens if buyer is unable to secure the financing described in the contract?
If the information is discovered during the due diligence period, Buyer may terminate the contract and receive a refund of any Earnest Money Deposit
Which of the following statements about hybrid ownership is TRUE
In time share ownership, individuals have limited use of a commonly owned unit
If a North Carolina broker acting as an agent in a real estate transaction uses a preprinted offer or sales contract form, it must
Include specified information such as an adequate legal description of the property and the manner of payment for the purchase price
Loan Fraud
Is using misrepresentation to obtain a larger loan than the lender guildlines allow
