Nc Real estate

Patronella Realty has ten branch offices and a large main office. According to North Carolina law, this brokerage must have how many BICs?

11

Gustavo has four liens on his property: Primary mortgage (added 2015) Home equity loan (added 2017) Tax lien (added 2019) Special assessment lien (added 2020) In what position would the tax lien be, in terms of lien priority?

1st

Lina's North Carolina home was most recently assessed in 2018. Her county follows the standard reappraisal cycle. When will she be up for reappraisal?

2026

Barry agrees to pay $349,000 for a house that's listed at $355,000. Beautiful bargain, Barry! The appraisal values the home at $352,000. What is the amount of Barry's loan going to be if his lender will only loan 80% LTV?

279,200

Jerry is selling his home to Amanda on the last day of April. He prepaid his annual HOA dues of $840 in January. If the settlement agent uses the 360-day year method, how much will Amanda's prorated share of the HOA dues be?

560

In determining square footage of a property, which of the following methods for addressing unique situations is correct?

Add 6 inches to measure exterior walls

Which of the following is true regarding offers and contracts used by real estate agents?

Association of Realtors creates several forms to address most issues arising in residential transactions that are available for use by Realtors.

An agent is working in an open house that is listed by another agent in her firm. Because of the attractiveness of the property, the agent experiences significant traffic and several unrepresented buyers. Which of the following is most accurate regarding this scenario?

Can leave without seeing the WWREA disclosure

Kirani prepaid the full year's property taxes on his home before selling it on the last day of July to Emmy. On the settlement statement, the property tax amount for August through December will be recorded as a:

Credit to kirani debit to emmy

A buyer is purchasing a house that currently has a tenant. The tenant pays the rent in advance on the first of the month. A closing takes palace on August 20th, how would the rent proration appear on the settlement statement or closing disclosure?

Debit seller credit buyer in equal amounts

What should an agent do if their agency relationship changes with an existing client?

Disclose change immediately and get new informed consent

In preparation to close on a property, the buyer had inspections, a survey, and a title search performed by appropriate professionals. The survey found that the neighbor's fence intruded into the sellers' property by one foot for the width of the back line of the property. Further, the title search revealed that the seller had an unpaid mechanic's lien on the property. These findings are examples of a burden on title and defined as which of the following words?

Encumbrances

Randy is renting his basement apartment to Josh, his son, who is a full-time college student. There is no formal lease involved, no specified termination date or rental period established, and Josh even skips payments now and then. What type of leasehold estate best describes this arrangement?

Estate at will

Which of the following is true regarding property insurance?

HO-3 is a common form of homeowner policy and is a package policy that includes coverage for property and liability claims.

Agent Bob is called by a seller who is currently listed with another agent under an Exclusive Right to Sell listing agreement. The seller would like to know if Agent Bob can list his property as his current agent has performed poorly. Bob could correctly answer:

He will be glad to list property when he is no longer working with another agent

Kelsey and Elliot have a contract that literally spells out all the terms and conditions of their lease agreement. Mike and Carl have an unspoken understanding regarding what Carl needs to do in exchange for living in Mike's basement. How would you describe these two contracts?

Kelsey and Elliot have an express contract. Mike and Carl have an implied contract. Both contracts may be legally binding.

Cari purchased a home. Months after she closed, an issue emerged with the title that ended up costing her the property. What compensates her lender for this loss?

Lenders title insurance

Agent Greta is doing some back-of-the-envelope math to help a buyer client get a general idea of what their property taxes will be. She knows the tax rate is $0.76 per $100. What other number does she need, and why?

NC is a full assessment state

What is the difference between gross profit and net profit?

Net profit takes into operating expenses

Johnna Wilson of ABC Realty presented an offer on behalf of her buyer client on a property listed by Janice DeBerg of XYZ Realty. The offer was $250,000 and the seller had until Wednesday at 4 pm to accept the offer. After reviewing the offer, the seller counteroffered $260,000 on Monday evening. By Wednesday afternoon, the seller had received no response to the counteroffer, and she was getting anxious to have a binding contract, so the seller instructed her agent to communicate, prior to 4 pm on Wednesday, that she had accepted the original offer of $250,000. Which of the following statements is most accurate?

No binding contract exists as the counteroffer terminated the original offer.

A buyer is looking to purchase a home with a Flood Zone B designation. is this buyer required to carry flood insurance? Why or why not?

No, it is considered a low-risk area for flooding.

Ben is a tenant who does not properly care for and clean his apartment, resulting in a rodent infestation. Ben does not report the infestation to the landlord, resulting in damage to the walls and electrical wiring. Ben states that her landlord is responsible for the cost of repairs. According to the North Carolina Residential Rental Agreements Act, is Ben correct in this situation? Why or why not?

No, the tenant is responsible for keeping the unit clean, and therefore must pay for repairs resulting from neglect.

Broker Ernie manages an apartment building for a property owner. He employs a cleaning service to do move-out cleans. Ernie pays the cleaning service $100 per unit. The cleaning service then gives Ernie $15 for every $100 it receives. However, the property owner does not know that Ernie is receiving this fee in addition to his regular brokerage fee. Under North Carolina's license law, is this acceptable?

No, this is not acceptable. Ernie should have gotten the owner's written consent before receiving this profit.

In North Carolina, townhouses are subject to the provisions of what piece of legislation?

North Carolina Planned Community Act

Real estate brokerage relationships in North Carolina are governed by all of the following EXCEPT:

North Carolina's law of fiduciaries

How many brokers-in-charge should a real estate brokerage have?

One at the principal office and 1 at each branch

A licensee recently failed to complete his required continuing education. Which of the following answers is most accurate regarding the agent's license status?

Placed on inactive status on july 1st

Which of the following would be considered a private land-use control?

Protective covenant

Which of the following practices would fall within the North Carolina Real Estate Commission's purposes?

Protects interest on consumers in real estate sales

A broker in North Carolina is responsible for explaining the agency options available in the State. This can be best accomplished by:

Provide and describe WWREA at first substantial contact

The standard Offer to Purchase and Contract, form 2-T, would be appropriate for all of the following transactions, except which?

Purchase vacant land in subdivision

Carlita is financing her purchase of a starter home with an FHA loan. Joseph is buying a condo with a VA loan. Samantha is seeking financing for her investment group's purchase of commercial property. Which of these statements is accurate regarding RESPA applicability of the loans described?

RESPA applies to Carlita and Joseph's loans

Buela and Carl tell their agent they only want to be shown homes that do not feature any stairs.What type of home construction are they describing?

Ranch

Real property taxes are always due on what date according to the North Carolina Machinery Act?

September 1st

A provisional broker, Judy, leaves Firm A to join Firm B while she has a transaction in process at Firm A. Firm A appoints another agent to complete the transaction and agrees to compensate the provisional broker (Judy) a 50% commission at the closing. Which of the following most accurately describes how Judy will be compensated?

She can be compensated even though she no longer works for that BIC

Seller Reeva knows that her roof leaks every winter, but she tells potential buyers that there are no issues with the roof. What is TRUE about Seller Reeva's actions?

She could be held liable for lying to the buyer

Melissa is the broker for a buyer client. The buyer wants to make an offer on a property, so Melissa filled out a form 2-T and the buyer signed it. Melissa then submitted the offer to the seller's agent, who rejected it. Melissa let her client know the offer was rejected and kept a copy of the offer in her files. What error did Melissa make in this transaction?

She should have delivered a copy of the signed offer to her client within three calendar days.

Buyer Helene goes into contract on a property using form 2-T, the Offer to Purchase and Contract. According to the contract, she has a 15-day due diligence period. On day 14, she informs the seller in writing that she is canceling the contract. Will her earnest money and due diligence fee be returned to her? Why or why not?

She will get back earnest money but due diligence is non-refundable

When a property's market value is less than the balance of the mortgage loan on the property and the mortgagor has experienced a hardship and cannot keep the property, the lender may agree to a:

Short sale

What is the default ownership for married buyers in North Carolina at the time of purchase?

Tenancy by the entirety

Which of the following is true regarding the Residential Property Owners Association Disclosure Statement (RPOADS)?

The RPOADS and the Mineral Oil and Gas Rights Disclosure should be given prior to the buyer's first offer to purchase to avoid a three day right of rescission.

A builder offered a $3,000 bonus to a buyer's agent for a successful transaction, closing by the end of the month. This bonus was on top of the commission that the buyer agent had previously disclosed to the buyer. Which of these statements is true?

The agent would be entitled to the compensation by disclosing it to the buyer, but the written acknowledgment could not be in the offer to purchase.

In a fixed-rate, amortized loan, how does the amount of the monthly payment going towards principal change over time?

The amount going towards principal will increase over time.

A property manager has a policy that dogs are allowed but only with a $500 pet fee and if the dog weighs less than 25 pounds. A tenant completes the application and states that he has a 60-pound yellow lab. Which of these is true of the situation?

The landlord would waive both if the dog was a registered service animal.

An agent had a listing agreement signed by the wife of a married couple but not by her spouse. The property was titled solely in the name of the wife. When an offer was received at full list price, the husband, the non-titled spouse, refused to sign the offer to purchase and stated that he would not sign a deed waiving his marital interest in the property. Which of the following is true?

The seller will be unable to convey clear title, but the listing fee will be deemed earned by virtue of the listing agent procuring a ready, willing, and able buyer.

Which of the following is true regarding real estate licenses in North Carolina?

There is no experience necessary to become a non-provisional broker in North Carolina.

What is TRUE about limited nonresident commercial brokers?

They become affiliated with a resident North Carolina broker.

Which of the following is true about offerors and offerees?

They can potentially reverse roles.

A developer has found a lot to build a multi-family apartment building in an area where there is a housing shortage. Because of the odd shape of the lot, it will be difficult to construct enough units to make the project profitable and provide the number of parking spaces required per unit in the zoning ordinance. A slight deviation from the current zoning would provide the developer with the change needed and would create an attractive project in the city limits. What strategy should the developer pursue to accomplish his goal?

Variance

Which of the following statements is TRUE about a broker's responsibility regarding land use? A broker:

When a property is or might be subject to zoning and/or covenants, brokers are to advise their potential client that ordinances or covenants could affect their use and enjoyment of the property, but they are not required to discover and disclose exactly what the ordinances or covenants are.

Sarah found a ready, willing, and able buyer for Lola's home. Yay! Sarah can't wait to get that commission check. When should she expect to see it?

When the sale closes

Darla works at a lending office. She is in talks with a borrower when a coworker tells her the company doesn't make loans to that area because of "the kind of people who live there." The coworker shows a map with the area blacked out. Darla doesn't want to be fired, so she tells the borrower that the company cannot loan to them. Did Darla do anything wrong?

Yes, Darla is guilty of the practice of redlining.

Provisional broker Marcus is representing a seller. Several offers have come in that have included checks for earnest money. The seller wanted to wait another week for more offers to come in before deciding which one they will accept. Even so, Marcus immediately gave all of the checks to his BIC. Did Marcus handle this money properly? Why or why not?

Yes, provisional brokers should always immediately give any trust funds to their BIC.

Does this ad trigger a TILA disclosure? Why or why not? "Great deal on a renovated two-story in historic Tramor neighborhood. 3 beds, 2 baths, neighborhood park, only $1,500 a month!"

Yes, the ad mentions a monthly payment, so it would trigger a TILA disclosure.

Which of the following scenarios would violate the Real Estate Commission's rules regarding compensation of brokers in a firm?

a broker, with his broker in charge's approval, receives a bonus from a new home builder paid directly to the broker at the closing table

Which of the following would be considered a material fact that should be disclosed to a buyer?

a future construction project of a highway that could potentially block a property's driveway

What is asbestos?

a naturally occurring mineral fiber commonly used in insulation that can cause severe respiratory health issues if airborne or inhaled

What is an option to purchase contract?

a unilateral contract that gives the optionee a window of opportunity during which they can exercise an exclusive right to buy a property; an option fee is paid for this right

When signing a property management agreement, property managers are entering into what kind of contract?

a written contract between a property owner and a property manager to establish all duties of the property manager

Which of the following words or phrases describes the mechanism for municipalities to pay for the amenities and services such as schools, police, and fire services offered to its citizens?

ad valorem taxes

A buyer's agent is assisting the buyer in making an offer on a unique property. Because the property's unusual characteristics, the most commonly used offer to purchase (NCAR form 2-T) does not address many of the issues of the contemplated purchase. What strategy would the buyer's agent suggest to best serve the client in making an offer?

advise the buyer to seek legal counsel to draft an offer that would fit the buyer's needs

An agent with ABC Realty takes a listing and places it in the multiple listing service. Which of the following statements is most accurate?

all agents are subagents to the seller

What is the process of paying off a debt/mortgage in regular installments based on a fixed payment schedule called?

amortization

After estimating the value of the property using the applicable approaches to appraisal, an appraiser will usually:

an appraiser will usually reconcile the final estimations

If either party fails to uphold their obligations or duties as outlined in the agency agreement without cause, this would be considered a:

breach of agreement

Jenna, a broker, and Melissa, a seller, recently signed a listing agreement. In exchange for meeting the conditions of the listing agreement, Jenna will earn a 3% commission rate. Who determined this rate?

broker and seller

Who receives direct compensation when a listing sells?

brokerage firm

Broker Sadie helped Shah find a property to purchase in Washington five years ago and they've kept in touch since. Shah tells Broker Sadie that he's looking to sell his home. When Broker Sadie asks Shah the price for which he'd like to list the home, Broker Sadie has:

created implied agency

In preparing for a closing, the agents instructed their clients to be prepared to pay for certain items at the settlement. These payments are typically accomplished by debiting the appropriate party for costs attributed to them by contract, law, or custom. Which of the following would be a seller debit at closing?

deed preparation

When Buyer Mariana saw a home for sale in a desirable neighborhood in North Carolina, she wrote down Broker Kayleigh's name from the yard sign. Mariana called Kayleigh the next day and happily accepted Kayleigh's invitation to tour the home the next day. Over the phone, Kayleigh says, "I'll email you a document that explains agency. I know you're in a hurry, so you don't have to read it, and I won't waste your time by explaining it to you." It appears that Kayleigh:

did not properly disclose agency

Which of the following listing agreements is characterized by providing an agent the sole right to list the property but allows for the seller to sell the property himself and avoid paying compensation?

exclusive agency

An unlicensed assistant for a broker performed all of the following duties. Which one of these duties violates license law?

holding open houses in the broker's listings

North Carolina Closing Attorney Ted is having Andres, his legal assistant, conduct a settlement meeting. Which of these activities will Andres need to have Ted handle?

how to interpret a paragraph in a contract

Tina has owned a donut shop for years. The area is re-zoned as residential, making commercial activity illegal. Tina gets special permission from the zoning board to continue to run the business. Months later, she sells the property to Al, who starts a dumpling business. The new business is a(n):

illegal non conforming use

Which of the following terms are parts of the flooring system?

joist, girder, and sill

Monique, a broker-in-charge, has a transaction fall through. What should she do with the records?

keep them for three years

Which of the following would constitute a fiduciary level service for a listing agent?

market the listing according to methods that are traditional for the area

Rubie is a licensed land surveyor. She selects a monument as her point of beginning and defines the boundaries of a property in terms of distances and compass directions, finally returning to the point of beginning. What type of legal land description has she created?

metes and bounds

Seller Greg knows that his listed property has foundation issues, but since there are no visible signs of the issues, he doesn't disclose them to his agent or to prospective buyers. In this situation, the agent is:

not liable because they wouldn't be expected to discover latent defects

Who can a provisional broker accept commissions from?

only their broker-in-charge

Utility fees, maintenance costs, and property taxes are all examples of what?

operating expenses

As part of an appraisal, real estate appraiser Jolene needs to consider the property's highest and best use. Which of the following does NOT need to be considered?

property sales history

Government ownership of land is the role of government to own and maintain:

public land such as streets, highways, parks, schools, government buildings, roads, and military bases

A seller of a home built prior to 1978 would be required to comply with all of the following, EXCEPT?

remediate any lead-based paint that is discovered by virtue of the buyer's diligence

What are ownership rights to all that is found beneath the surface of the tract of land owned, extending downward to the center of the earth?

subsurface right

A tenant chooses to withhold rent because his air conditioner has been acting up. The landlord disagrees with the tenant regarding the air conditioning and seeks to terminate the tenancy. What term describes the landlord's option in this case?A tenant chooses to withhold rent because his air conditioner has been acting up. The landlord disagrees with the tenant regarding the air conditioning and seeks to terminate the tenancy. What term describes the landlord's option in this case?

summary ejectment

What form of co-ownership, intended for use by legal spouses, provides each party with an undivided, 50% interest with right of survivorship and stipulates that their individual interests cannot be conveyed or encumbered without the consent of the other?

tenancy by the entirety

North Carolina building code requires protection against what type of pests?

termites

If there is a dispute regarding whether an item is a fixture, courts apply the Total Circumstances Test. Which of the following considerations would the court use in determining whether the property conveys with the property or could be removed by the seller?

the intention of the person who attached it

A listing agent's responsibility regarding the Residential Property and Owners Association Disclosure Statement includes which of the following?

to advise the seller of their rights and obligations regarding the RPOADS

Home seller Julian is planning on moving out of his home, having some repairs done, and then listing it after two or three months. What, if any, supplemental insurance should he consider?

unoccupied home insurance

When listing a property to sell, which of the following would be accurate regarding NC Real Estate Commission guidance?

when measuring a property for living area, any floor of the house that has earth adjacent to one wall above floor level is considered below grade and should be represented as such.

A city has decided it would be a public good and benefit the local homeowners to add some more streetlights. What is the most likely way they would fund this intiative?

with a special assessment

A North Carolina broker properly explains agency options to a prospective buyer, and the buyer chooses to enter into a written buyer agency agreement with the broker. The agreement does not authorize dual agency. The broker shows the buyer-client 15 houses listed by other companies before the client asks to see a property listed by the broker's firm. Given these circumstances, what kind of authority to act as a dual agent must the broker obtain in order to proceed?

written authority to act as a dual agent from both the seller and the buyer before showing the in-house listed property

Which of the following advertising descriptions may be a violation of fair housing law?

"Brand new apartments for young professionals. No children allowed!"

You are a license holder walking a buyer through a few of the important differences between a general warranty deed and a special warranty deed. To help educate them, you say:

"General warranty deeds cover any title issue but special warranty deeds only cover issues that occurred while the grantor held the title."

At the first substantial contact with a potential seller client, an agent is required by the Commission to present the:

"Working with Real Estate Agents" brochure

Gustav is a property manager at an apartment complex that is comprised of 40 units that rent for $600 per month and 15 units that rent for $825 per month. Gustav earns a property management flat fee of $5 per month per occupied unit, plus 8% of the rent for each occupied unit. Calculate the amount that Gustav earned in property management fees last month with: 35 of the $600/mo units leased 12 of the $825/mo units leased

$2,707

Samantha bought 4 discount points for $14,000. What is her loan principal?

$350,000

Under North Carolina State Building Code, a permit is required for construction work that costs more than:

$5,000